Hi gang
I am looking for some advice on our current situation…..We have sold our fully owned PPOR and have a reasonable wad of cash in the bank and some land that is owned outright- ie. totally debt free. We earn a combined income of approx 130k and wanted to build a new PPOR. I get the feeling that 2009 is THE YEAR if in the right financial position that serious money is to be made.
Because we are comforatble financially I feel torn between a beautiful new home and getting back on the investing horse and putting myself back out there. We sold all inv. properties before this downturn so escaped any pain. I can feel that funny fear/need for security creeping in-maybe it's because we have a family now-not sure.
I need some FIRM words of advice. I think we can make some serious tax free money in building and turning over good quality PPORs over the next few years but am thinking that is pretty slow tracked and a part of me feels the need for speed again!
Anyone else in the same boat? What would you do if you were me? I feel a bit like one of those skinny girls asking how to put on weight…
Look forward to hearing from you
mrs pWhy not do both. Get constructing and buy some investments as well. Once you have finished construction you can sell and do again or mortgage the house and release some cash for the next ones- bear in mind it is getting harder to release cash these days.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
its a good time to build. tradesmen are quiet so building should be cheapest now. now is not the time to increase your risk though, so I would not be buying yet. wait for the knives to hit the floor before trying to catch them!
Building now you can get 30-50% off the price of tradies. Tradies are DYING for work, and you can get your house cheaper than ever. Also commodities have come down so raw materials are cheaper. I think now is a good time to buy if you have the cash and means.
Don't buy anything , wait till at least 2010 at least. Depending on which intervention will be made by gov't, you will see prices bottom out anywhere between 2010 and 2020. ( yes.. really ).
Instead of calling the bottom, I will instead give you advice in another way, more practical.
Average Houseprices = 4 * average wages.So if average wages are 30.000, your houseprices should be 120.000.
I believe average wages in Sydney are 50.000, so average houseprices should be 200.000
Since they are about 500.000 now, we'll see drops of around 30-40% still in sydney. Wage increases will fill the gap.
Adelaide and Brisbane will be hit hardest with drops between 40 and 80%Good luck with your construction project. I do feel now is a good time to build, but don't buy anything, stay out of property for a while.
Scamp,
Average wage across Australia is now $1147 pw
http://www.smh.com.au/news/national/average-weekly-wage-now-1147/2008/11/13/1226318805478.htmlAverage wage in Sydney is probably higher.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks gang
Your advice and thoughts are much appreciated
Looks like time to call the builder?…….
mrs p
bottum will probaly be around end of 09 threw to 2011 and then it will start creeping up again. you will prob pick up deals upto 40% less than a year or two ago. buying a property today or tommorow is good either way as long as you get it at a bargan price
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