I bought my first couple of IPs with deposits from savings. It's possible. If living by yourself, you should be able to save 40% of your net pay.
Alex
Home prices are falling in Sydney? To fall across the country?
- Thread starter Fisher
- Start date
I bought my first couple of IPs with deposits from savings. It's possible. If living by yourself, you should be able to save 40% of your net pay.
Alex
Fisher, have you noticed that you're the one worrying about timing the market, and people who accumulated properties over a number of years, in good times and bad, aren't worried about the timing? What does that tell you? You're telling people who do have multiple properties how hard it is to accumulate them, about how hard it is to start. Does that really make sense? We do know what it's like to start, because we've been there.
What's a very long time to you? 3 years? 5 years? 10 years? What's your investment horizon? Would you say that making your fortune in 20 years is a 'long' time? Compare that to working: how long would it take you? Start at 25, be rich by 45. Do you consider that a 'long' time? So what if you have to wait a few years after you get your first one before buying again? Many people don't start buying until their PPORs are nearly paid off.
If you want to buy faster, go to where the money is. Go work in WA, make a load of money. I did it another way: went overseas to earn pounds and saved 40% of my net.
Alex
Agree with Alex. Stop worrying and make a decision. And if you don't someone else will. Started working in 1990 during the recession and build up a nice deposit. Same gloom and doom. Purchased property and never looked back. Many will do the same in 20 years. Can you time a market ? Good luck. In 20 years time it doesn't matter. Anyway found a suburb in Sydney I like, which has come off quite a bit the last year and off to look at more property. Patience is a virtue Fisher.
Fisher,
Its actually really simple. I'll spell it out with a few facts for you:
1. Some houses are selling cheaply TODAY because vendors are stretched or scared.
2. It doesn't matter what lag indicators like median prices say, because these are weighted by all sorts of factors that make them unreliable. They just sell newspapers. Its actual sale prices being achieved on individual properties that you need to worry about. You're not buying the market, you're only buying ONE house.
3. Sydney is well positioned for future growth. It probably started turning up broadly in 2007 but rate rises and fear put pay to this for now.
So, if you're thinking about buying in Sydney then NOW is the time to be LOOKING. You may not buy for six to twelve months, but get out there NOW and start looking. I saw a property sell in my street in North Narrabeen a few months back for only $450K, which is actually around land value only. It had a quick paint job and is now probably worth $600K again. Still a bottom end property for that postcode, but a stroll to the beach and the bus.
They're out there right NOW. If you wait until the media tells you the market is no longer in chaos and the world is safe again, then you'll probably start looking at the same time as every other scared would-be buyer starts looking. By then demand will be up again and prices with it. Look now, while demand is non-existant and buy yourself a bargain. The $200K reduction on your puchase price is worth the extra $5K in holding costs for 12 months.
Cheers,
Michael.
Its actually really simple. I'll spell it out with a few facts for you:
1. Some houses are selling cheaply TODAY because vendors are stretched or scared.
2. It doesn't matter what lag indicators like median prices say, because these are weighted by all sorts of factors that make them unreliable. They just sell newspapers. Its actual sale prices being achieved on individual properties that you need to worry about. You're not buying the market, you're only buying ONE house.
3. Sydney is well positioned for future growth. It probably started turning up broadly in 2007 but rate rises and fear put pay to this for now.
So, if you're thinking about buying in Sydney then NOW is the time to be LOOKING. You may not buy for six to twelve months, but get out there NOW and start looking. I saw a property sell in my street in North Narrabeen a few months back for only $450K, which is actually around land value only. It had a quick paint job and is now probably worth $600K again. Still a bottom end property for that postcode, but a stroll to the beach and the bus.
They're out there right NOW. If you wait until the media tells you the market is no longer in chaos and the world is safe again, then you'll probably start looking at the same time as every other scared would-be buyer starts looking. By then demand will be up again and prices with it. Look now, while demand is non-existant and buy yourself a bargain. The $200K reduction on your puchase price is worth the extra $5K in holding costs for 12 months.
Cheers,
Michael.
Skilled migration as a proportion of our overall intake has increased from 41%
(2002/3) to 45.2% (2005/6), whilst family has reduced from 29.9% to 26.4% and Humanitarian has reduced from 10.2% to 9.2% in the same period.
Source: 1301.0 - Year Book Australia, 2008
Family migration is linked to skilled migration as it includes spouses and children of those skilled workers, so I don't think there is much opportunity for the government to increase skilled migration whilst keeping overall migration numbers constant. If they more skilled migrants, overall migration numbers will have to rise.
few points i dont agree with..
firstly, there are mis-conceptions about 'timing'.. timing doesnt mean buying at absolute bottom.. thats literraly like winning a lottery.
secondly, how many have truly invested thru the bad times? How many here have bought a prop, or rather multiple props during 89-94 period and held on??
firstly, there are mis-conceptions about 'timing'.. timing doesnt mean buying at absolute bottom.. thats literraly like winning a lottery.
secondly, how many have truly invested thru the bad times? How many here have bought a prop, or rather multiple props during 89-94 period and held on??
This may be a solution, but how do I search for those sales. Is there any web-resource telling about sales from scared/defaulted vendors or you just have to go to many inspections and if the price is low, you could assume that the vendor is scared?
Fisher,
Have you ever thought if interest rates stay on hold, or even go down. What if prices continue to climb this year? You will be missing out on capital gains, and it may be even harder to buy. No matter where we are in the cycle there is ALWAYS good buys to be found, its that or make a good buy ie- buy,renovate increase rent.
We can't predict interest rates, however we can be prepared for them
GO FOR IT !!!!
Hi Fisher,
I understand where you are coming from. There is so much negative information regarding the economy, the future of house prices, etc etc. It can be difficult to block out the 'noise'. What if you purchase and prices do drop by 20%? How will you react? Will you panic and want to sell? Or will you think of this as a temporary drop with the long term in mind? Prices may rise in certain areas, and they may fall in others. I have read so much contradictory information over the past month. Some commentators think the sky is falling in, others believe that some cities (Melbourne for instance) could rise by 10-15% this year!
With all of this in mind, it may be best to take your time to research an area thoroughly. Work out how much it has risen p/a over the past 10 years. Look at how much it rose by last year (particularly if it was in Adelaide, Melbourne or Brisbane). Take a look at the March quarter and see if it rose or dropped. (Particularly if you are thinking of investing in Melbourne).
Watch the area over the next few months and see if the area is 'flooded' with properties, or if there is little change in the number of listings. Work out how long it takes for the advertised properties to sell. Ring agents and ask them how long it is taking to sell a property in the area. Work out what properties appeal to tenants in the area you are looking at. Property managers can give you some indication into what rents quickly, and what doesn't!
Finally look at your own situation. Is your job stable? Can you handle the costs associated with running an IP? What happens if you loose your job through illness, etc? What happens if you can't find a tenant? What happens if the tenant doesn't pay? How much of a buffer do you have etc, etc etc. If you have your bases covered, then you are ready to invest!
Regards Jason.
I understand where you are coming from. There is so much negative information regarding the economy, the future of house prices, etc etc. It can be difficult to block out the 'noise'. What if you purchase and prices do drop by 20%? How will you react? Will you panic and want to sell? Or will you think of this as a temporary drop with the long term in mind? Prices may rise in certain areas, and they may fall in others. I have read so much contradictory information over the past month. Some commentators think the sky is falling in, others believe that some cities (Melbourne for instance) could rise by 10-15% this year!
With all of this in mind, it may be best to take your time to research an area thoroughly. Work out how much it has risen p/a over the past 10 years. Look at how much it rose by last year (particularly if it was in Adelaide, Melbourne or Brisbane). Take a look at the March quarter and see if it rose or dropped. (Particularly if you are thinking of investing in Melbourne).
Watch the area over the next few months and see if the area is 'flooded' with properties, or if there is little change in the number of listings. Work out how long it takes for the advertised properties to sell. Ring agents and ask them how long it is taking to sell a property in the area. Work out what properties appeal to tenants in the area you are looking at. Property managers can give you some indication into what rents quickly, and what doesn't!
Finally look at your own situation. Is your job stable? Can you handle the costs associated with running an IP? What happens if you loose your job through illness, etc? What happens if you can't find a tenant? What happens if the tenant doesn't pay? How much of a buffer do you have etc, etc etc. If you have your bases covered, then you are ready to invest!
Regards Jason.
