Should I buy my first home or an investment property first?

[7smurfs]

As said previously, a lot of us on here are extremely wary of OTP investments.

Simply look at it this way:
- landlord selling land to make money, + land costs
- purchaser demolishes and cleans up the land for development, + costs
- council, architecture and materials/building, + costs
...
...
...
- Selling the OTP, + all costs + making money out of the development

So you are essentially paying a premium on all things thus limiting the potential capital gain.

Have a look at established properties in bluechip suburbs instead imo.

 

[matto_]

OTP are great in an environment of increasing values (not so when they are contracting like now).

Rent vs buy. Whole topic in itself. I have rented for a long period of time - and have no issue with landlord paying above the odds for me to live in the area I live in. (350/wk rent for propr worth about 700k).

 

[nano]

As said previously, a lot of us on here are extremely wary of OTP investments.

Simply look at it this way:
- landlord selling land to make money, + land costs
- purchaser demolishes and cleans up the land for development, + costs
- council, architecture and materials/building, + costs
...
...
...
- Selling the OTP, + all costs + making money out of the development

So you are essentially paying a premium on all things thus limiting the potential capital gain.

Have a look at established properties in bluechip suburbs instead imo.

7smurfs, is that a list of "potential capital gain activities" in descending order?
Correct me if i'm wrong, thanks.

 

[7smurfs]

7smurfs, is that a list of "potential capital gain activities" in descending order?
Correct me if i'm wrong, thanks.

Yep. My point is that they are trying to make a capital gain on every step, therefore by the time you purchase it, you've basically paid a premium upon a premium upon a premium.... etc

Of course not all end up like that and in high growth environments they can be considered a good investment.