Forum Replies Created
Alan,
I’m no expert, but I would think the best answer as to when to buy, is “when you’re ready” – i.e. you’ve done your research, found a good deal at a price you can afford, you’re happy with the purchase and feel comfortable making the commitment.
That was part of my point about not feeling pressured to buy. There are plenty of experts making contradictory predictions. Some say the market is going to keep going for a while, others say prices are already 30% over inflated.
I like to keep things simple. We’ve had a long strong market- one of, if not the longest housing boom in history. All booms end, even this one.
We also have the lowest interest rates for 30 years. This will change too, next week, next month, next year – who knows when?
So if you can comfortably buy now and get a good deal from the housing commission, you could lock in a great interest rate and start building equity. If that’s what you want to do – great!
If it happened that all the pieces didn’t quite align and you need to build some more deposit for example, then there’s a good chance of a great opportunity coming up.
I have no idea whether house prices will retrace or not. I would guess they might a little, because they have tended to after previous booms. But even if they don’t, when the market cools, houses take longer to sell. The longer a house is on the market, generally the less it sells for.
Looking at either option as a positive event takes the “pressure” out of it, so you can weigh up the here and now calmly – and then go for whatever you decide.
Best of luck,
Darren.Allan,
You are getting some fantasic advice and help here!
Don’t give up! I was in a similar situation to you. Ill while my wife worked, trying to stay afloat and trying to buy a first house with minimal deposit (with quite rich relatives standing well back!).
We did it. So no doubt you can too. I spent the last year working (when I could) on the “dump” we bought and we now have over $100k equity thanks to the improvements and the rising market.
One note of caution. We’re nearing the end of the property boom, so don’t feel “rushed” into buying. Cycles come and go and by concentrating on building that deposit, and learning all you can about real estate in the meantime, who knows – the market may change in the next 6 to 12 months and you may be able to pick up a real bargain.
Best of luck to you.
cheers,
Darren.I have one you can buy. I’ve only played it a few times, it’s as new. I also have the 202 additional game that plays on the same board.
If interested contact me at darren @ graphic-designer.com if interested. It depends where you are though – they’r equite heavy so expect postage may be a bit extreme.
cheers,
Darren.Check out the Renovation Kings for some reno advice. Like anything, if done right it can be great. Not sure about taking it on at this stage in the property cycle though.
They’re amazing figures Lance. I justchecked out your website. Looks like you’ve got a very professional set up going.
cheers,
Darren.I think you’re right luckyone:
Purchase Price $250000
Divided by 1000= $250
Multiply x 2 = $500 required weekly rent.
6 units = avgerage rent of $83.00.
Nevertheless, the return may not be quite 10.4%, but it’s definitely CF+.
Just as a sidenote; Kazaa software is often loaded with little nasties that the end user is not aware of – such as various forms of spyware. Make sure you run anti spy software regularly if using Kazaa.
Sheryl,
I’ve often wondered about JV arrangements. Surely once you explain what you want to do to a pontential investor/partner, a wrap, subdivision etc – then they don’t need you any more? If they have the means, you’ve just supplied them with a great idea and put yourself out of the loop.
Or are we relying on integrity? Just wondering, as I’ve always been curious about JV’s, but have no intimate knowledge about how they’re brokered.
cheers,
Darren.Great article.
Good questions. I remember the tail end of the Gold Coast property boom in the 80’s. At that time, many people were playing pass the contract. All were happy except the last person left holding it when the market changed.
I hope others may have some more info on possible downsides, but I think it’s clear we’re nearer to the end of the property upswing, and a certain amount of caution will be evident by the savvy investors as opposed to the rushing herds.
(Just my opinion).
The thing is though the market moves in spurts.
A friend bought a property at Runaway Bay around 1992. It did almost nothing for a decade. Now it’s gone up just over 100% in 12 – 18 months. He told me it was still only 8% p.a. over the time he’s had it. It happens to be a hotspot at the moment.
We bought in Brisbane 12 months ago. Our property was valued at the beginning of the week. (We’re thinking of selling). The agent was confident getting a price 120% above what we paid.
Again property values in this area did nothing much for the previous seven years.
Sometimes you get lucky!
Good point Battz. I guess it may depend on actual localties as to who is pushing prices up, but I certainly agree at pointing the bone at the negative gearers
.I read this thread with great interest and I can see both sides.
Six months ago I was looking at possible IP’s close to home, that I could almost afford. Looking back, and adding what I have learnt recently, I probably could have bought one after all.
Now they really have skyrocketed out of range, so my first IP is going to be somewhere else and probably quite a long way off.
I guess most people find the first time they do anything new a little nerve racking. Personally, I found the notion of buying something that was close to home conforting. I could be “on hand” within half an hour if necessary. I could do most repairs and maintenance items myself. I could keep “an eye” on things.
These aren’t things I can do with a property that is a long way away. I guess in reality these are small points, but emotionally for a first timer, it makes the first jump a little higher. What can I really do when I get there anyway? lol
I expect by the third time I won’t even think about it. But it’s all about what we’re comfortable with and what we believe we should be doing with our lives.
I don’t suppose property investment is for everyone. I think caution when inexperienced is a good thing. I learnt that when doing all my doe on shares a few years ago. It’s taken this long to recover to where we were then.
Even so I have nothing against shares (even though putting the same amount in to property fours years ago would have seen us in a very different situation today!).
It’s about being sensible, researchign what you’re doing before doing it, and when confident – going out there and doing it right.
Thx Westan. I didn’t think so but your first post suddenly made me doubt myself.
quote:
if you have owned the property of more than 12 months then you only pay capital gains tax on 50% of the profit.
regards westanWhat about PPOR? Do you pay CGT on your home if you have owned it more than 12 months?
Regarding infrastructure.
A recent report predicted that Brisbane will have the worst traffic problem of any Australian city within 10 years.
Most people moving to Qld list lifestyle as the number one reason. But that lifestyle is chnaging because of the phenomenal growth in the small pocket of S.E.Q.
Yet it is investment that is currently driving the housing market here.
I don’t think anybody is trying to put down Queensland. We’re just trying to ascertain whether this current climate is going to change from an investment POV (in the short term).
Lots of good points there, some of which I have posted in various threads myself. Als being a Qld’er I can tell you that the very reasons people are moving here will soon be eroded by the number of people moving here.
The current price rises are being driven by investors from down south who want to buy property and can’t afford it southern states and / or see Qld as an opportunity / good value.
As you say, once interest rate rises push the yields down there may well be an investor exodus.
But will prices retrace? Looking at the info supplied in another recent thread, it seemed prices only fell about 5% (maybe up to 10%?) after previous property booms and then remained static for long periods.
If the house is not currently tenanted it’s a case of “best guess”. Check rental lists or ring agents for similar houses in the same area that are currently being rented. This will provide you with a good guide, and the final price as always is determined by the market at the time, and the specifics of the particular property.
Great chapter, thanks Steve. [
]At first it sounded like the agents had pocketed the $24k deposit and not passed it on. In that case I’d be supporting your position 100%.
But if I have things right, all they did was fail to bank a cheque they should have done, which would have bounced anyway. The ensuing delay of finding a new buyer was no doubt inconvenient, but trying to get the $24k from them now seems a little OTT. No offense intended, but I totally agree with others who suggest efforts in other directions may be more profitable.
Because basically the agent did stuff up by not banking the cheque as per the regulatory 24 hours, I wonder if they would have been prepared to work hard to find you a new property deal as a recompense? I guess it’s all gone too far for that now though.
Good luck with your investing.
.
