Good or bad deal???

Hi linda…you know im no expert in property investment and home buying as i made a massive mistake buying a place in the city. But recently ive become more savvy in my investment decisions as i paid a massive price. Near my house there are some gorgeous new houses being built which will be sold in 13 different stages in the future. The land was bought by government and private builders and they decided that a portion of it will remain housing commission. So i asked around and came to the realisation that these places that are nice and are worth about 360 brand new …is it me or is this just too good to be true. AFter a little inquiry i realised that the area is not that great and just near those new houses there are still alot of housing commissions which i do not wish to say that all people renting such houses are junkies, but there are always risks of having neighbours like that. In fact my brother read on the net that in that area alone, there was one house owned by an elderly where the house was robbed 20 times. The robbers often waited so that the old lady would get her insurance to replace her stuff with new ones and would re-rob her. I dont want to put you off, but do your homework bec you know what they say, when something is too good to be true, it usually is…and so when the price is so low, there is a catch….make sure you investigate crime rates around the area and reputation of the area as if you ever decide to get out of that mortgage, you might be forced to sell for less bec the area has been devalued due to it being labelled unsafe. anyhow, thats all i can say. im def no expert but learnt my lesson over the past 4 years….dont listen to agents fast, they just want your money and will tell you anything to sell something to you bec they make money out of you. if you show that you are ahead of them, they step back abit…and dont rush into buying..there is always property to buy even though people make it sound like there isnt and when people think there isnt they go rush buying and thats whats pushing prices up so high.

i think what you have to look at is if you buy now, how much would it go up…would  it sell well and how much rent could you get for it. why buy 2 things and be stuck with 2 mortgages..i dont understand that concept bec when you buy a place for yourself, then rent the 2nd property you are paying 2 mortgages and if one investment is not that great then you are wasting your money where you could be pouring all your energy into paying off your own place quicker. i think people are made to believe they will always make money in investments. thats simply bull bec i learnt that either way, your income will never go up as much as your costs in everything in life today and if an investment is not bringing back at least 6% , its not a good investment. id still rent and buy something abit later with a healthier saving, with no strata fees and coucil rates…

Its going to be cheaper than renting and you will get to own the place and get all the future capital growth. Rents will also increase year by year so the benefits will increase as time goes on.