about to go positive gearing, time to buy?

[kingy]

hello all. its been a while but its good to be back and reading through the forum full of knowledgable people sharing their wisdom, helping each other and newbies such as myself.

a question for you folks... Bought a house a while back and Im very close to positive gearing and was thinking maybe its time to invest in another property. Is this a wise choice? if so I'm confused as to which route i should go, house or apartment? will get better yield and easier on me as its better yield but house has big capital gain and to be honest something i prefer as i don't really need the yield to help me as much.

also is it a good time to buy now considering the crazy prices!? some say prices are going to keep rising for the next 2 years and some say market is unsustainable and will correct itself. I do realise that its a cycle with all these thing and i don't want to jump in at its peak.

thanks for taking the time to read

 

[windyzz]

hello all. its been a while but its good to be back and reading through the forum full of knowledgable people sharing their wisdom, helping each other and newbies such as myself.

a question for you folks... Bought a house a while back and Im very close to positive gearing and was thinking maybe its time to invest in another property. Is this a wise choice? if so I'm confused as to which route i should go, house or apartment? will get better yield and easier on me as its better yield but house has big capital gain and to be honest something i prefer as i don't really need the yield to help me as much.

also is it a good time to buy now considering the crazy prices!? some say prices are going to keep rising for the next 2 years and some say market is unsustainable and will correct itself. I do realise that its a cycle with all these thing and i don't want to jump in at its peak.

thanks for taking the time to read

Hi there,
It really depends on the location, not every house capital growth is stronger than units. for example house further out with lots of land available and with low infrastructure will have lower growth than unit near the city with lots of shops, cafe and public transport.

Also considered this the next gggeneratiois Gen Y , and as Gen Y I can tell you that most of us prefer lifestyle, meaning we like to live closer to work, restaurants, cafes , shops and public transport. Also we don't like to do house work or gardening over the weekend.

So the demand for an apartment will be very strong in the future.

 

[kingy]

hey windyzz. thats true. i guess i should've been more detailed with my post.

I was looking more into houses around the lower north shore or 15km proximity to sydney cbd but also nearby shops and public transport. was also looking for apartments around the cbd with good yield.

also reason why i wanted land was the growth opportunity from buyers or builders or developers who want to build apartments so the house does have to be in a good location.

but yes i see and you make a very good point in that aspect... thanks!

 

[windyzz]

Hehe if that's the case I support buying a land or house in lower north shore. No more land supply available mean price will continue to go higher if you have the money and cash flow, I wouldn't be worried.