Buy now or later.... will rising prices make it harder

[wantingtobuy]

Hi all

We are just buying out 2nd IP and the plan is to pay it off in 7-10yr
Maybe in yr 5 buy another.

Plan to have at least 3 IP's fully paid off for the rental income in the next 20yrs ready for retirement.....

This new IP will be the only debt we carry
PPOR and other IP are fully paid out (offseted to 0 balance)

The issue (and thoughts) are will time make it harder and harder to buy into the housing market as prices rise ? Should we be higher leveraged at today's lower interest rates ???

I prefer lower leverage & less debt but the TIME value concerns me.....
Will slow and steady let me win my race or should I commit more?

Opinions ?

thanks
wanting-to-buy

 

[thatbum]

I'm confused by your question. Are you waiting for anything in particular?

 

[Peter_Tersteeg]

There's plenty of exceptions, but as a general statement, you'd be better off if you purchased 5 years ago rather than waiting until today. The same could be said for the five years prior to that, and the previous 5 years and another 5 years before then (right back to 1995).

I believe many markets are at their peak at this point, but even if they soften a bit, odds are they'll recover and then some over 5 years.

This doesn't mean that prices will be higher in 5 years time, but I think prices will probably be higher rather than lower.

Rates are at an all time low right now as well. There are predictions that they'll decrease further over the next year. They're already so low however, that I suspect in 5 years time they'll be higher than they are today.

Overall I don't think it will be easier to buy property 5 years from now.

 

[wantingtobuy]

Hey Bum

Not waiting as such more wanting to pay it down then use the income for the next rather than impacting my wages cashflow (lifestyle) much.

but i am thinking maybe i (we) should be pushing harder and buying sooner as the CapGain in the end is the big winner for me if i hold long term....

I like the low risk = low impact on $$ but am i also missing the CG boat...

@ Peter

yes yes yes.... so by waiting i am maybe missing low cost of $$ and lower house prices compared to future prices...

thanks
wanting-to-buy