If you had $150k to invest..

[WattleIdo]

Back to the original question - where would you buy for $150k?

Cant specifically answer that, however I've just bought something at the lower end of the market in Adelaide.

Spent $190k. Property needs a fair bit of cosmetic work (doing myself), but expect it to be valued in the mid $200's when I'm finished.

I agree this is the general direction of times to come.
I've just bought a cosmetic reno job in Parkes NSW. 148k expect mid 200s at revaluation. Expect Parkes to go somewhere eventually but it's a town not a city like Adelaide. Not everyone's cup of tea. Cash flow already over 8%.

 

[datto]

^^^^^ OK, fair enough, I was taking a punt

 

[WattleIdo]

https://www.youtube.com/watch?v=JL9eO4-aDMs

Nice. Pity what happened to SRV.

 

[coastal]

what about buying a run down shhh hole for $40000, reno for $30000 and reval for $130 k or so
Rent $200 - $220 pw

Town is 10000 k plus. It is not Moree or Broken Hill

I dont see any major growth, say 10 - 20% in 10 years. It might take a year to sell should it need to be sold but not bad for cash flow and equity to use on other purchases.

Would be a good way to manufacture equity and not rely on the market

 

[MitchNik]

Parkes... interesting choice. what landed you there Wattle?

 

[WattleIdo]

Parkes... interesting choice. what landed you there Wattle?

A job, believe it or not. Now I've got 2 jobs and running myself ragged. Looking for the opportunity to actually do the renovation. Feel I've landed on my feet. Lots of outsiders here and we like it. Only the true locals have anything negative to say.

 

[WattleIdo]

what about buying a run down shhh hole for $40000, reno for $30000 and reval for $130 k or so
Rent $200 - $220 pw

Town is 10000 k plus. It is not Moree or Broken Hill

I dont see any major growth, say 10 - 20% in 10 years. It might take a year to sell should it need to be sold but not bad for cash flow and equity to use on other purchases.

Would be a good way to manufacture equity and not rely on the market

Have you got somewhere specific in mind?

 

[ScottT]

A lot of mixed answers here but its all great stuff.

I do have quite high LVR approx 85% but hold a fairly decent cash buffer, have a good paying job and my properties are all very neutral-positive. I don't feel interest rates will rise in the near future at all, they will fall again if anything.

Still a little skeptical about purchasing right now, have read a lot lately of economists predictions on a market crash Aus wide so I think ill hold off until next year.

 

[datto]

How is Steve Not-So-Keen Now doing?

He's in the high rollers' room.....double or nothing

 

[ChrisA1]

Still a little skeptical about purchasing right now, have read a lot lately of economists predictions on a market crash Aus wide so I think ill hold off until next year.

Or you could follow Warren Buffett's advice and "....attempt to be fearful when others are greedy and to be greedy only when others are fearful".

If you're unsure about the market at the moment, then its better to hold onto your money and keep paying off any non-deductible debts and hold the money for when you're more sure about the market dynamics.

I'm reading an article from Michael Yardney and while it isn't directly related to 'what do I do with $150K', it will remind you what you're trying to achieve with that $150K - http://propertyupdate.com.au/10-imp...BlitzRss&utm_campaign=michaelsblogrecentposts

 

[JohnMichael]

Or you could follow Warren Buffett's advice and "....attempt to be fearful when others are greedy and to be greedy only when others are fearful".

If you're unsure about the market at the moment, then its better to hold onto your money and keep paying off any non-deductible debts and hold the money for when you're more sure about the market dynamics.

I'm reading an article from Michael Yardney and while it isn't directly related to 'what do I do with $150K', it will remind you what you're trying to achieve with that $150K - http://propertyupdate.com.au/10-imp...BlitzRss&utm_campaign=michaelsblogrecentposts

I think right now with concern to property people are greedy, not fearful

Well they're afraid of missing out. Which is pretty much what greed is. Certainly not "blood on the streets" at the moment in Sydney...

 

[R377]

If I had $150k to invest - 20% deposit plus stamp duty will give you about $650k to buy property.

I would look at qld or adelaide (as most investors are doing atm). Since you already have two in qld i would look in adelaide.

Could look at eastern subs for around $500-600k but this might only give you 4% yields or you could buy two cheaper houses down south which would give you around 6% yields.

 

[hugh72]

If I had $150k to invest - 20% deposit plus stamp duty will give you about $650k to buy property.

I would look at qld or adelaide (as most investors are doing atm). Since you already have two in qld i would look in adelaide.

Could look at eastern subs for around $500-600k but this might only give you 4% yields or you could buy two cheaper houses down south which would give you around 6% yields.

This is something I would do, spread your risk

 

[westminster]

If I had $150k to invest - 20% deposit plus stamp duty will give you about $650k to buy property.

I would look at qld or adelaide (as most investors are doing atm). Since you already have two in qld i would look in adelaide.

Could look at eastern subs for around $500-600k but this might only give you 4% yields or you could buy two cheaper houses down south which would give you around 6% yields.

Possibly one of the sanest replies to this thread.

Certainly no matter where you choose to buy it needs to be a smart purchase - not a pie in the sky hope for CG type buy.

I still like Perth. Prices are currently stable to slowing and it's more of a buyers market. I have clients using $650k to build 2 villas (duplex) and as they are developing they are making their own equity.

 

[albanga]

Everyone is entitled to their opinions but one thing I don't like is when pessimists do not put a timeline on statements. You find this with a lot of economists who speak of doom and gloom every year for 15 years and when it finally comes to fruition they come out with "I told you so". They put themselves in a never lose situation, as each year passes they say "It's coming, you wait and see".

Forgot the 14 prior years of prosperity when the optimists have cashed in big time! This is why I don't read the economics thread on this forum, it makes me want to lock myself in a room. Im sure if you go back 3 years ago and read some threads and sure enough there will be people saying DO NOT BUY IN SYDNEY! Just imagine you listened to that!

 

[lazibones]

me personally

definitely will not put any money in the real estate market right now.
I've made millions in real estate but now is not a good time to be holding onto debt - it's suicide.

Unless you are putting in cash and 50% LVR then you will be OK in the longer term if you can hold.

Australia is a big place with many different markets, and markets with in markets at all different stages of the property cycle. I have never seen better buying in some areas, with high demand and 0.5% vacancy rate, low interest rates, high yields. I am now able to buy properties yielding 10% plus, never been able to do that before, in a market that has 10 years catching up to do. There some good buying out, those rare buying opportunities are knocking if you know where to look. I have been hearing property is too dear for 20 years. Ever since the first land was auctioned in Melbourne in the 1850s people have were saying too much money was paid. There may be a city on the east coast and parts of another in the south that are in a bubble but there are some places that offer the some most risk free buying you could ever get.

 

[hugh72]

Perseptions are reality depending on where you live and which markets you follow closely, sometimes I think you have to make an assessment and block out all the white noise from uninformed sources based on one particular market. There are many places that have been flat for 7 years plus and are only now showing signs of life