Hi everyone,
I'm currently renting in Elwood and my lease is coming to an end. I had previosuly been overseas and am thinking about going back over at the start of (mid) next year.
The problem I have is I'm wondering if I should buy something or whether I should just keep renting? Understand Elwood/St Kilda's prices are high so am wondering if it's worth it in these areas (even surrounding) – will there be any benefit?
Currently paying $350 rent and if rent again would be happy to pay about $400… So should I buy?
Any thought's…?
Cheers
BenI am not an investor at this stage, but wanted to give my opinion…not advice
I live very close to you, and have thought about this very issue for years now. My very unhelpful thought is…can you afford to buy?I cannot afford to buy in the area in which I am renting (South Melbourne). At this stage in my life, I don't want to move too far away from here, and I don't want to move over to the western suburbs (family circumstances, not snobbishness). Certainly I don't foresee myself being able to afford buying anywhere around here for many years, and I don't think I'd like to spend that much money anyway. I'd rather live below my means, and ensure I have a very secure retirement in the future.So what I decided to do was remain renting in this area (as long as the rent doesn't become unaffordable), and I'm currently saving a deposit for an investment property elsewhere.If you can afford to buy a place around here though, and it fits into your financial/propery plan (do you have one?), I'd do that. However, I think if you then moved overseas, you'd have to negatively gear it…I haven't seen any positive cash flow properties around here, that's for sure!!Please disregard this if you like…just my years of thinking. You may be in a completely different headspace.Hi sdem,
Any advice (opinion) is good advice and gives me another outlook on things… And to tell you the truth, I think I'd rather do the same re. live here and maybe invest else where… Especially if I go back overseas.
Thanks for the advice/opinion,
Remember you don't have to invest in your own postcode or even a surrounding one.
Many people even invest in real estate interstate and some overseas. So investing on the other side of the city, if its more affordable its even better that means you can g et in quickly and you will be able to expand your portfolio much quicker.
If the reason that you don't want to invest in property is because you move all the time. Why????? You are buying investment properties,you dont need to live in them at all. The house that your actually living in will have the troubles of moving.
If you can get a large enough portfolio maybe you could rent in more expensive suburbs and then you can move countries, change postcodes with little fuss and will give you more flexibility, you will still be earning more capital gains than most people as you will have a IP portfolio backing you up.
I hope I helped.
Kind Regards,
Christopher Fife.G'day I own close to a million $$$ of property and I still rent, It allows me to be more mobile, and also allows me to live in areas I want to live while invest in areas that I believe have better investment potential. the most inportant thing is that you own atleast one property,
Owning one property weather it's your own home or an investment gives you an anchor in the market, it locks you in at a price, so that if the market goes up you won't fall behind, however it doesn't really get you ahead as far as financel freedom, because if you sell you may make a profit which looks good on paper but everntually you will probally want to own a family home so you have to buy back in at some stage at the new higher price, but when you own multiple properties that are all increasing in value it will provide you with capital growth over and above your anchor there buy increasing your true net worth,
Thanks for all the info – gives me a better understanding of my options and a lot more direction…
Thanks!
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