Is it the right time?



From: R S

Hi all!

I am about to go one step further by buying my first home in Melb. and take advantage of the FHOG. Then the 14K can be invested somewhere else. I am a bit uncertain however, whether now is the right time to buy as it is too "HOT" at the moment. We are on top of the cycle at this stage I believe. If not then, I'll wait till it settles a bit and just take the 7K FHOG. Can someone give some sort of advice? The reason for this is that I would also like to invest in real estate.

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Reply: 1
From: Anonymous

Macquarie Bank are predicting another .25% percent cut before year end and then a .75% rise by end 2002. If, and it's a big if, they are correct we will have more boom and a bust (strong or mild?) late next year.

You be the judge, it's your $$.

Actually it's $14,000 of my tax dollars you are spending, so choose wisely!
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Reply: 2
From: Yuch .

Hi Reynaldo,

Yes the market is hot at the moment!!

If you want to buy a 'home', then it doesn't really matter when you buy it. You are going to live in it anyway and get the 14K FHOG while it still last.

But if you want to invest the 14K somewhere else, then you might want to assess very carefully whether you can service another IP.

My suggestion is, buy your home now while the interest rate is low and in the meantime use the 14K to invest in cashflow positive properties. Or if you prefer to concentrate on building up equity in you home and use the equity to invest later. And structure your loan right, talk to an independent mortgage broker. When the market slows down a bit, you then start looking for bargains. Also, don't gear yourself to the hilt!!!

Hope this helps!

~ The secret to success is to start from scratch and keep on scratching. ~
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