pre purchase jitters ! please help

Hi Guys,

Just need some guidance. I bought my first 2 IP properties and I never had second thoughts. I was happy with the purchase and all. My last purchase was 1.5 years ago and both properties have gone up in value and are also cash flow positive.
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I am in a very comfortable position at the moment. I just recently put an offer on my 3rd IP. I have already delayed settlement twice and I just cant seem to proceed with the deal. Already put down the 0.25% deposit.
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I just want to know if this is normal to have many negative thoughts before proceeding with a 3rd investment? Are you guys always confident and happy with every investment that you have purchased? Have you ever went against your gut instinct only to be later rewarded?
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P.s I have bought a 3br house in western sydney for 242K in orginal condition and 700m from station. Needs 10k reno and after reno will return around $310 per week.
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Spending around 50% of my free time on a calculator and just want to know if what i am going through is normal or if it means that I shouldnt proceed?
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I know the numbers are stacking up but i am just worried that I have bought at the top of the market and im sending much less activity in 1st home owner area.

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Your thoughts will be much apprecaited and beneficial to this scarey cat property invester.
 
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I know the numbers are stacking up but i am just worried that I have bought at the top of the market and im sending much less activity in 1st home owner area.

I don't really know the Sydney market, but from my bits of reading here and there, it sounds like it's far from top of the market. If the numbers stack up and you're in a comfortable position I'd say go for it.

I was really nervous buying my first IP a year ago. I had a PPOR and wondered should I be paying more off that first, what am I getting into etc. etc. I bought in Frankston here in Melbourne, and I had noticed prices had jumped a bit between September 2008 and March 2009 and wondered if I was buying at a bad time in April 2009... I don't regret it now, prices are still going up and I hardly have to think about it. I like the saying people use on here (unless you're after a quick profit by reno/redevelop etc.), it's not timing of the market, but time in the market.
 
LOL you just described me buying anything!

Truthfully, I don't think anyone else can answer this for you. Does this 'instinct mean anything or not? well it depends on your personality.

What has got you scared and balking at this purchase?

What is the worst case senario? Can you live with that?

good luck.

For what it is worth I talk DH out of buying our PPOR at least 4 times before we actually did proceed with the purchase, turned out to be a fantastic investment - increasing in value 25% in 2yrs.
 
LOL you just described me buying anything!

Truthfully, I don't think anyone else can answer this for you. Does this 'instinct mean anything or not? well it depends on your personality.

What has got you scared and balking at this purchase?

What is the worst case senario? Can you live with that?

good luck.

For what it is worth I talk DH out of buying our PPOR at least 4 times before we actually did proceed with the purchase, turned out to be a fantastic investment - increasing in value 25% in 2yrs.

Scared? Just the fact that it will mean in the short term my disposable income will take a hit, will be able to pay less off PPOR, the fact taht im buying in 1st (FHB) territory and interest rates are rising. The worst case scenario is the the market tanks and I regret the purchase. It is a long term buy and hold so no real loss. only paper loss if that happens.

at the end of the day i need to make a decision and need to be able to live with it whatever it may be. no regrets. I was just interested in finding out if all investors(those that buy often and maybe no so often) also get these 2nd thoughts whn it comes to buying a new place
 
The numbers sound OK. What will it be valued at after the reno? If there is increased equity as well as a decent yield go for it. The yield will be 6.4% with the reno. Not bad.

Does it fit in with your plan for the future? Does it have potential for development in the future? Lots of things to consider.

Things have gone up a bit in the last year in the west but not at the top of a boom. Sydney has been flat for a long time. It's only started moving recently (out there anyway).
 
Hi Travelbug,
Appreciate your comments. After the revenue it will be valued at around 250-260. As you can see there is not much in teh form of equity building. It is a cladding place out in the mt druitt suburbs so i doubt it will be revalued at more than that. Will be putting in new kitchen, paint, floorbaords, curtains and hte usual.(10k).

i am happy with the yield but they say that u make money when you buy and i am beleive i am paying top dollar for out that way for a unrenovated house that is only cladding and original. the only thing that is going for me right now is that the location of this place is really good. I would hate to think that in 3-5 years it has not moved up in value....
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it fits in with my plans(acquiring property with minimal impact to lifestyle- the yield supports me in that way). It has no development potential.
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thanks again,, you have given me more to think about...
 
Sounds like buyers remorse kicking in a little. Quite normal.
Go with the gut instincts that attracted you to the deal in the first place.
The other stuff creeping in now is probably just noise and anxiety.
Not sure why you think you bought at the top of the market. I think most would disagree.
 
I just want to know if this is normal to have many negative thoughts before proceeding with a 3rd investment?
Yes, as Rob said it is called buyer's remorse. You'll get over it. ;)

Have you ever went against your gut instinct only to be later rewarded?
No BUT as a doctor client of mine said to me recently: "I'm not really someone who relies on his gut. As high fidelity puts it - my gut has s**t for brains".

Spending around 50% of my free time on a calculator and just want to know if what i am going through is normal or if it means that I shouldnt proceed?
It means nothing.

.....i am just worried that I have bought at the top of the market
It is NOT the peak of the market. It is the first upswing of a new cycle. IMO.

and im sending much less activity in 1st home owner area.
I'm seeing less FHB activity too - and as predicted, it is investors and upgraders driving this market.
 
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