Hi,
I am looking for my first investment property and own a property on mortgage in NSW with equity for deposit. The content on web, sentiments of people I meet say its not the right time to invest because price is going down, its selling time not buying, the property bubble is going to burst etc. They also give example of over supply of apartment sin Brissy, McGrath share price fall, 10-15% price down in Sydney etc.
What do you think, is it good to look for investment property? My property profile is a 3 bed house in a metropolitan area (not in sydney region) which is not more than 10 years old. If possible get a positively geared one and with good capital growth. I am thinking long term.
I have fear like, what will happen if the price drop after I buy.This will give a stagnant growth when price go up. Is it a wrong cycle to invest looking for capital growth.
Thanks in advance
San-
This topic was modified 8 years ago by
San.
Hi San,
The content on web, sentiments of people I meet say its not the right time to invest because price is going down, its selling time not buying, the property bubble is going to burst etc. They also give example of over supply of apartment sin Brissy, McGrath share price fall, 10-15% price down in Sydney etc.
We all hear such things – the first question on hearing such things is “Does the person speaking invest in property, actually own property today, and is successful in property investing?” Be careful, as you could be taking counsel from a Taxi driver, or your parents/friends who don’t own property for investing. BBQ’s are common places to hear people “sounding off” about a raft of things.
And, of course, the Internet. Sometimes “names” will make a comment, and they might be in error too. It is important for us to “prove” for ourselves what is the truth in a situation.
Speaking of “When to buy”, I recall Jason coming up with a VERY worthwhile article about that question. It is here:-
https://www.propertyinvesting.com/buy-properties-in-australia/If you can answer all 7 of the questions in that linked article confidently, then NOW is a good time to buy.
Benny
You can find a good investment during any period of the property cycle if you’re willing to look wide enough or be creative enough. The days of buy anything and watch the cash roll in don’t exist today so you’ve got to be a bit more careful with your purchase.
Thank You for the responses
There are so many markets in Australia, some are currently booming, others declining, others going sideways. Each at different points in their respective cycles.
So long as you’re financially in position the time is NOW – generally there will be a market available which will have the right opportunities present. You cannot always guarantee you will be able to invest at a later time, so may lock yourself out unnecessarily. This happened with a lot of investors over the last 12 months with the APRA changes to investment lending – which saw some investors no longer able to borrow any further, so they have to sit on the sidelines.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Hi Corey / Benny / TheNewGuy,
Thank you for the useful insights. I understand that its all about the property you are assessing to buy and not about the time. Even in a good time you could end up with a bad property. So its all about detailed analysis of the value and growth of the property.
I respect the wealth of knowledge of the people in the industry and decided to hire a buyers agent to identify a property. What are your thoughts about Right Property Group based in Sydney?
Do you need to set-up a company or trust to invest when you are going for your first investment property?
Thanks in advance
SanI’ve never heard of that company. It might be worthwhile starting a new thread with the name in the title so others can respond rather than hiding in this post. There are quite few buyers agents on this forum who have a good reputation too. Also consider where you want to buy, I use s buyers agent specifically because I want to buy outside where I live.
Trusts etc come up all the time. If you do a search you should find a bunch of info. My perspective is if you’re not in a job that is likely to see you sued for all your property, and you’re only starting off then the cost probably isn’t worth it. However I’m always considering the same thing as I buy my 3rd IP.
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This topic was modified 8 years ago by
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