Getting cold feet...

rugrat

rugrat

OK, so DH and I are on the verge of buying an IP. Our first. Now I am starting to get cold feet and wonder if we should buy this property or whether we would be better off waiting awhile and paying down our PPOR first and actually save a deposit. I won't go into all of the pro's and con's of buying now vs waiting 6-12mths and buying then. Basically the property in question would be a good buy, for a long term rental, with some capital growth - but if we waited we could probably buy something else that has a good rental rental return AND a 'strong' capital growth.

But I would like to know:
Does everyone feel like this when buying a new IP?
And how do you know if it is just nerves, or if it is something more indicating that you really shouldn't go ahead with the purchase?

I am naturally a cautious person and I don't think that is playing in my favour here. :rolleyes:
 
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Hi Rugrat

So agree with what Sunfish has to say.

With all my purchases, I have my doubts and apprehensions as well.
We just settled on our 4th last week and while I was so excited, still had butterflies in my stomach. We had early access and were doing stuff in the place so lots of boxes to tick, lots of things to get done before the tenant is in next week.

If you're buying locally think it might be easier but don't get stuck with 'analysis paralysis' ...if you've done your due diligence and this purchase is good for you at this stage, go with it.

I've bitten the bullet and then had to chew really hard but we've survived.

And as I always said 'better to be guided by your dreams than by your fears'.

This is my 2 c worth, anyway.

Good luck, Rugrat, put on a pair of leg warmers and let us know how you go !
 
Nerves, just buy something.

Just make sure the something is the best that is available at the time. If you look at 20 then rank them in order from best to worst and put some offers in on the best, 2nd best, etc until you get one. Just remeber there is always a better one next week or next month, but you want to do something now so sort out what is available now and get the best you can from that selection.

Cheers
Graeme
 
A very wise post, simply put.

I agree with every point made here and believe that this is the true tried n tested way to wealth through resi property.

ESPECIALLY using other peoples money to make YOU money, forget about using your own.

Sunfish said:
No-one here is a licenced financial planner, to the best of my knowledge. If there was one he/she wouldn't touch the question anyway.

So I will give an unqualified reply:
Buy what you can, when you can.
Buyers remorse is common, forget it.
It's time in the market, not market timing.
Market timers are gamblers.
Use OPM. The higher the gearing the higher the return.
Etc.

Of course I don't believe any of that, so why should you?

Anyone who takes advice from a fish is a birdbrain. So too is anyone who seeks and heeds advice from anominous vested interests, engaged is some form of one-upmanship to see who can borrow most money.
Click to expand...
 
I think the problem is that it is just taking so much time to get the financials sorted with the banks that I have to much time to overanalyse things. I know DH is getting sick of me asking "should we? shouldn't we?"
 
Thorpey said:
'WHY are you...?' is the question you need to have already answered...then your question above is answered automagically....
Click to expand...


Why are we? As a long term investment, to help put my toddlers through uni when the time comes, and to go towards my retirement (I am only 27, so a long way off).

Would this property do that? Yes.

Thank you for that.
 
I dont know whether you should or shouldnt.

I do know that 6-12 months never comes , there will always be a reason to put it off til later.

Of course you will question if you have done the right thing or not , thats pretty natural.

I can tell you that I waited til our ppor was paid off before I even thought about buying IPs

I can tell you that if I had done it differently I would be a lot further ahead.

Hindsight is a wonderful thing.
 
rugrat said:
I think the problem is that it is just taking so much time to get the financials sorted with the banks that I have to much time to overanalyse things. I know DH is getting sick of me asking "should we? shouldn't we?"
Click to expand...

Yes the ole seed of doubt.

I think you have answered your question by answering Thorpey's. You can also ask yourself what your gut instinct is? If you don't buy now....will it haunt you? (Especially when the market takes off!:cool:)

If you do buy now, does it feel right and can you sleep at night knowing you have done your due dillegence?

Regards JO
 
Have you back-packed Europe yet, had your family? @ 27, time is running out. 'Tis the journey after all.

There are a lot of either/or questions.
 
rugrat said:
OK, so DH and I are on the verge of buying an IP. Our first. Now I am starting to get cold feet and wonder if we should buy this property or whether we would be better off waiting awhile and paying down our PPOR first and actually save a deposit. :
Click to expand...


If you've waited this long, then why not wait another few months and see what the dropping of the FHOG does? I can't believe they are going to drop it? If it's gone, it could well be the dumbest government policy of all time. Introducing it, that is.

There could be perhaps a little buying frenzy now to get in before 1st July, but what would I know.

See ya's.



ps. Hey sunfish, your pm's are full.
 
Sunfish,
I'm keen to hear your thoughts regarding - where a 27yr old should be investing for their future.. assuming they have travelled overseas, and the amount of money they invest now doesn't impare their "journey"? Thanks.
 
Sunfish said:
Have you back-packed Europe yet, had your family? @ 27, time is running out. 'Tis the journey after all.

There are a lot of either/or questions.
Click to expand...

Backpacking Europe isn't the easiest thing to do with 2 toddlers and another on the way :)

But that is alright, I have 'plenty of time' :) for that later if I want to rough it - and I have siblings living over there in the meantime, so free accomodation. Besides there are so many more affordable places much closer to home to explore. I certainly don't think I have missed out on anything, Life is all about the journey, but I would like that journey to be a LONG one.
 
Rugrat - is it just your DH's income for paying down the PPOR, raising 2 - soon to be 3 kids, and now an IP?? My feet are feeling a little cold just thinking about that.. I hope you have double checked your cashflow? any cash buffer?
 
vbplease said:
Sunfish,
I'm keen to hear your thoughts regarding - where a 27yr old should be investing for their future.. assuming they have travelled overseas, and the amount of money they invest now doesn't impare their "journey"? Thanks.
Click to expand...
I have no advice. I inferred that there were either/or choices. A rare few can have it all, it's usually a clear choice. I, personally, am in favour of the young traveling and "wasting" time just as long as no permanent bad habits are picked up. He (you?) must make those choices without my help.

If there is an ability to start investing as well as doing "whatever", it should not be all-consuming. Again speaking personally, I believe there is plenty of time to get serious after you've spent some time on yourself, your spouse and your kids if you do the family thing early. The early years should be spent gathering knowledge, a nest-egg and good spending/investing habits so you can attack a good opportunity when you are ready for it. (Edit: Forgot to mention the family home, buy one when you can) I read this forum critically and it seems to me that those who have already achieved their goals via property, had set themselves up (possibly unwittingly) in the early years and were in a position to tackle the venture seriously, with the knowledge that they had made up their own mind, had some seed capital and the discipline to weather the hard, early years.

To them, I dips me lid!. If you are a late adopter, scratching for seed capital and just following the leader, all the discipline in the world may not be enough.

Putting some regular savings into the stock market without over-commitment is one way I think could work well. And I also believe running your own business where you have some skills/talents to give you an advantage is an excellent goal to aim for. I started my first in my early twenties with a young and increasing family. It was too early, but I had ambitions once too. :D

You're on your own now. I have no inclination to expand on or explain this post. Make of it what you will.
Rugrat:
Backpacking Europe isn't the easiest thing to do with 2 toddlers and another on the way
Click to expand...

That's why we can't advise, we don't know anything about you. The best thing you can do for your children is to look after them and your marriage. There will be time for wealth creation later, trust me. :D
 
Cheers Sunfish, my question was in context of Rugrat's situation i.e. young family.

There will be time for wealth creation later, trust me.
Click to expand...

One further comment if i may.. I thought time (and the wonder of compounding) was the main factor in wealth creation.
 
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