Hi Everyone,
My name is Yili and I am a newbie to the forum, I have no experience in investing in any property as of yet.
I have a coffee family business with about 15k-20k turnover monthly in which I take about $3000 for salary per month.
The problem is in order for me to do the business, my parents refinanced their home and now have debt of around 300k and the house is worth about 600k.
I am about 30 and I worked hard to make the business work and moved back home with folks with my wife about 2 years ago and within the time we have saved up about $50,000 and thinking of buying our very first home.
My wife's parent is supportive of the idea and offered us another $50,000 to put towards our home.
Therefore right now we have about 100k sitting in the interest bearing bank account.
Here comes the question:
Should I buy a house right now for about 350-400k around my work and pay for the mortgage which will be tight around 2500 per month?
or should I think about duplexes or Units but I don't really like the idea as it's has no land value to appreciate over time?
or I should give the lot towards my parents home mortgage to decrease their debt as I am helping them to pay for that as well also with the whole economic crisis thing.
Any advice would be appreciated especially what surburbs to buy in on the Gold Coast for my circumstances for capital gain down the road in the future.
Cheers
Yili
Buy $100 000 of gold and put it in a safe, Wait 12-18 months and buy a house with the money the gold sells for, You won't need a loan to buy the house.
Hi Hbbehrendorff,
Thank you for reply to my thread, I have that back in my mind as well but where would you be able to buy $100,000 worth of actual Gold?? How many oz would that be?
Or to buy Gold Mine Share? Ones have potential output.
I have heard that you could buy certificates from Banks or stuff not the actual chunk of gold.
As well as the purity of gold would be a great concern as well…
How about the outlook of Silver?
Anyone have other inputs on the topic?
Cheers
Yili
Pay back your parent's money and don't borrow from your in-laws.
It's what a grown-up would do.
I'm window shopping for an IP in Varsity Lakes appears to be relatively undervalued.
Hi Bardon,
Thank you for your reply.
Could you explain more in detail about the Varsity Lakes properties which you think is undervalued? Units? As from what I know it's quite expensive down there I don't think we have enough money for buy into that area.
Regards
Yili
Hi
right now gold is $1264.90 AUD an ounce, That would buy almost 80 ounces of pure gold which I believe is about 3kg.
silver is $11.60 USD an ounce.
You can Buy gold from the perth mint, I would strongly advise AGAINST buying gold certificates or shares in gold, Or even buying gold bullion and storing it in some commercial vault. The safest place is to buy real gold and store it yourself where you know its safe, Either in a safe or burried somewhere, Whatever it dosent matter, But if you have physical possesion of it, Then your protected against any kind of stock, bank or government collapse.
You mentioned silver, I believe both Gold and Silver have very huge profit potentials, As people loose faith in the fraudulent printed paper money and bad stocks people will turn to what they know is not fake, Real money!
Against what most people believe, Gold and Silver are both extremely rare and ridiculously undervalued, from my years of research into ecconomics and monetary issues I believe both gold and silver could very easily double more then once in the comming years I would'nt be surprised if gold was $5000+ ounce within the next 24 months
Gold was $20 ounce in the 1920's and is now $890 USD thats 44x more value in 90 years, That is almost a 50% gain per year
People will tell you that if the financial system collapses then Gold won't be anymore usefull then paper money, I disagree because people will always have to trade, And they will trust in gold because its real, Even if I where wrong you would still have your gold strores to trade in for paper money once the system was back on its feet again.
I believe in gold and silver not only because I think you can make great profit in it but also to protect or maintain most of your current purchasing power in the event of a currency collapse, Bank runs ect. Think of it as insurance.
mifeia123 wrote:Hi Bardon,Thank you for your reply.
Could you explain more in detail about the Varsity Lakes properties which you think is undervalued? Units? As from what I know it's quite expensive down there I don't think we have enough money for buy into that area.
Regards
Yili
Yilli,
Okay firstly I am looking at investment not PPR. Houses for me as opposed to units. Look at the median price for the suburb compared to the region. Also rail line is being extended from Robina to Varsity Lake, strong rentals, new delfin estate starting prices quite high and a few other things I like. You can get a decent 4/2/2 under 400k that should rent early 400's.
Only windowshopping atm but I like the feel of it. Seen a brand new townhouse on azzuz island on the water nice aspect asking 530k, not my target type but if you got it for 480 probably nothing wrong with it in the long term.
Varsity Lake Region
Median Prices $477,500 $635,000 Hi Hbbehrendorff,
Thanks again for the info, very knowledgeable indeed.
I just have a few more questions on Gold & please pardon me if they seemed stupid.
I have visit the Perth Mint website and they have this investor page where we can buy gold, silver and platinum via its Certificate and Depository programs or to buy gold via the Australian Stock Exchange. (In which you don't recommend so that's a NO NO)
So do you mean I should stick to actual bullion coins or bullion bars from Perth Mint and store them with me in a safe place?
Does that mean I need to make a trip to Perth and bring it back?
How about when I want to sell them in lets say 24 months time? Where do I go insuring I am getting the maximum true market value for that GOLD at that point of time?
Would bars better than coins?
If I made money from Gold after it doubled do I need to pay any TAX on it?
Once again sorry if some of the questions seemed stupid, I just want to make sure that I get everything right
Cheers
Yili
Yes I think Bullion Coins or Bars are best, It dosen't really matter whether they are coins or bars, As long as they are pure, In some cases coins can be worth more because of there artifact/sentimental properties
There are a few gold dealers around the country, You need to register with them and provide them documents of identification ect, It is required by law that the gold dealers get your information so they can report you to the government.
Any gold purchase is recorded and kept by the government
Yes you have to pay tax
if you sell someone for more then you bought it for you have to pay tax on it.Now is a great time to get into gold/silver as there is currently a short period of deflation acting on the markets.
Be prepared for $20 000 ounce gold in a few years.
This is one gold dealer: http://www.ainsliebullion.com.au
Yili, my name is Kum Yin & I suggest you steer clear of hbbehrendorff.
If you don't know any more than anyone else, your money would be safest in FD.
Buy a house/unit to live in by all means [& get the 1st home owner's grant] if you really wish to own your own home.
However, you've already picked up the fact that it'll cause some financial difficulty. PPOr is consumption. Why not continue where you're living for a little longer?
Shares at this point in time have far more upside [capital gains] than property. I placed 50000 @8.5% on 18 May 08
When it matures in May, I'll buy shares. I'll also start to restructure my current portfolio to see how extra cash can be generated.
Warren Buffet is buying shares. We can't buy Berkshire Hathaway but we can surely buy something on the ASX.
I will also tell you that I believe PASSIONATELY in property investment. I own property that is fully paid up that has many zeroes in it.
I do not wish you to be misled into believing that if you invest in gold or in property or in shares, your money will surely double.
Please read the threads that discuss the looming recession & the direction that property will go.
Also identify who can offer advice or suggestions that work. note: look for those who have been there, done that.
Good luck,
KYIts such a crock that gold is the cure for instability.
gold is currently trading at a 13 month low…….oops, I thought we were all supposed to go LONG once the credit crisis began? those who did have seen their investment lose 27% !!!!
Yeh watch out for the goldbugs, they have been getting it very wrong recently with the shiny stuff that is not good for anything, or is it that
they talk up gold so that their NWO intrenational bankers can make money on it, they have the most gold
sell gold bring dwon the NWO
Better of with a 4/2/2 in Varsity Lakes it has a purpose will pay an income and you will provide someone with shelter.
The value of your gold can't disappear over night, Gold can't go into receivership caused by an economic downturn or bad company management by CEO's that cost 100 mil a year.
I'm not saying anything bad about property, I never have, All im saying is that property is far overpriced right now so any idot who try's to tell you prices will increase next year or "The mother of all booms" is comming is telling you a bunch of BS
There is an oversupply of housing in Australia, by probably 1 million units or more, Yet we are all lied to and told there is a shortage, That compiled with the complete autistic notion of the speculation of property doubling every few years has caused this unprecedented and unrealistic increase in property prices to reach such a level that people will not be able to continue to hold up the levels of debt that we are.
All the people in this forum can deny it until the cows come home, Because they couldn't even conceive the fact that one of there investment properties could be worth less then what they paid for it, This would be beyond there benevolent wisdom.
Now I predict that property prices will follow the same trend as they did in america, Our property bubble was much bigger then theirs and thats not my opinion, Its a fact.
So how could you even consider purchasing property now when you know you will probably get the same house for a 50% discount in a few years time ?
if you sell someone for more then you bought it for you have to pay tax on it.
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