To buy or not to buy

[Noeyedear]

To buy or not to buy how far can it go. Looking to buy In Brisbane Suburbia at the moment. It seems like a property boom to me. In my local area almost impossible to buy 3bedroom house under 400k. So look at other areas like Slacks Creek yes can buy 3bedder for 300k but would I be better off holding off and letting equity grow and buy say in Blacktown in Sydney when market has bottomed out maybe 08/09 in Sydney. I know market is down in Blacktown because I have a nephew who paid 400k for house 3years ago. Speaking to him the other day he is struggling because house is valued at about 350k now. Just throwing this out there any thoughts appreciated.

 

[Jontxu]

Sydney on SALE

Hi there, there was a similar post not too long ago, from a fellow investor in a similar situation than you are. The boom in Brisbane looks like it is in full swing, this is when you need to be extra careful as you could end up overpaying like your nephew did in Syd a few years back. On the other hand, how many more signals do you need to realise that Sydney has bottomed? The key is to buy something in Brisbane or Sydney (or any place in Australia) that makes sense today, and the growth will be the icing on the cake. In other words, buy low = equity and sit on it.

Happy Investing
Jon Salvador
www.headinghome.com.au
For investors … from investors

 

[Noeyedear]

Thanks Jon,
I find it hard to believe there can be much more growth in Brissie at the moment. Wages are still ordinary compared to Southern States. There may be higher wages in mining areas. I just have a gut feeling that a $300k house in suburban Sydney has more upside in the shorterm than $300k house in suburban Brissie. I know either will be fine if it makes sense now as you say. But I guess I am just trying to open the door to the next purchase after this one a bit quicker.

 

[Spectre]

Noeyedear

For your consideration. Also have a look at the downloadable presentations

http://www.matusik.com.au/Default.aspx?tabid=119

Regards
Richard

 

[Noeyedear]

Thankyou Lukentel,
Very interesting reading.

 

[asdf]

I just have a gut feeling that a $300k house in suburban Sydney has more upside in the shorterm than $300k house in suburban Brissie.

Not sure who will want to live in that $300k house in Syd. You'd also be lucky to get 4% yield on that $300k with a maintenance list as long as the Magna Carta. Unless you're a handy builder with good contacts and unlimited access to free labour, any attempt to renovate these places WILL result in overcapitalisation.

Off course there are exceptions but those interstaters who think they can waltz on in and scoop up bargains in Syd should do a bit more DD. All sought after suburbs have already moved in the last 18 mths. All thats left on re.com.au are the scraps on main roads and irregular blocks. Have fun sorting em out...

 

[BDM]

Hi noeyedear,

I am in a similar situation here in Melbourne.

Prices seem to be rising before my eyes. Therefore, having a bigger base / starting point to begin with is obviously the way to go. However, in my situation, my employment future is uncertain, thus while I certainly qualify for loans now, repayments might be an issue in the forseeable future. Interest rates seem to be uncertain (ie rising). My fixed interest only loans are due for refinincing in a few months, and this will doubtless affect my cashflow.

But....

Prices are rising. If I had bought more proerties 10 years ago then I would be retired by now. Thus, it stands to reason that if I buy more properties now, I'll be retired in 10 years time.

I guess my problem is "fear", based purely on "What if... " !!!!!

So - I agree with you. To buy or not to buy - that is THE question.

Thanks,

BDM

 

[Aimjoy]

Prices are rising. If I had bought more proerties 10 years ago then I would be retired by now. Thus, it stands to reason that if I buy more properties now, I'll be retired in 10 years time.
I guess my problem is "fear", based purely on "What if... " !!!!!
So - I agree with you. To buy or not to buy - that is THE question.
BDM

And the actual answer IS? Just do it!

Aimy

 

[Noeyedear]

Ha ha Aimjoy,
I probably would have bought another IP by now if I hadn't come to this forum. But reading this forum is making me analyse every possibility. I am not in a hurry any more and if I buy the numbers will have to add up now not some time in the future.

Hi BDM good luck and may the force be with you.