Yeah thats true benson and i agree with you.
Im just going to hold out until prices come down because at the moment theres not much money to be made unless you alreay own the property or you come across one hell of a great deal, prolly because the poor owner has gone broke…
I think though if the boom continues the way it is vacancy rates will end up to high to sustain. It looks to me like a lot of investors going for the negative gearing stragety and are going to making huge losses when they find they paid too much for their investment.
Hi there sat2003,
From what Ive read the RBA is showing concern about the rate at which property prices have been rising and are considering putting interest rates up to things down.
Also the banks have reduced the amount of home loan approvals in the last year indicating that they suspect rates will go up and these people wont be able to afford…[Read more]
I live in Cairns and the prices here have gone through the roof at the moment.
Ive been looking around in this area for IP’s but the boom almost makes it impossible to find anything that you could positively gear.
Hopefully prices have reached there peak and things will tamper down….
Sorry for the confusion, what Im trying to say is if you signed a contract to buy a new ppor but have to wait for your old house to sell then there could be months in between selling your old house and settling on the new one.
And once you sign a contract on a house you need to at least get a cover note for it as your now legally bound to the contract.
System Administrator – I work for a company that contracts to Navy Hydrographic Division.
It can be quite interesting and also a bit boring, I know i’d rather be financially free.
Also I’m 21 and bought by first property 2 yrs ago and looking to invest in IP’s. [8D]
You also have to be careful if you sign a contract on a house subject to the sale of your own home, as the vendors might want to rent out the house your purchasing while you try to sell your own.
I could see this becoming a problem as you become responsible for both properties.