to buy or not to buy
- Thread starter mark
- Start date
Dear Mark,
There are always reasons NOT to buy. Typically these are said by people who will only ever own at most one property.
When you invest according to fundamentals ANYTIME is the right time to buy and it is all about your goals and finding the deals that are going to work for you.
Have you read Jan's "More Wealth from residential property?".
Cheers,
Sunstone.
There are always reasons NOT to buy. Typically these are said by people who will only ever own at most one property.
When you invest according to fundamentals ANYTIME is the right time to buy and it is all about your goals and finding the deals that are going to work for you.
Have you read Jan's "More Wealth from residential property?".
Cheers,
Sunstone.
Although I knew nothing about property investing and the state of the market at the time, the same was said before the Sydney Olympics wasn't it? Don't buy now, prices will fall.....
Who are the people who have been telling you to wait a year?
Regards
Adrian See
Who are the people who have been telling you to wait a year?
Regards
Adrian See
My brother in law is an arrogant sod who thinks he knows everything there is to know about property. He only has one IP and it took him 5 years to buy it (in sydney). He kept pointing up his nose at every opportunity, saying everything he saw was way overpriced and he should wait a while, wait a while, wait a while. He totally didn't understand the fundamentals of investing and let many a golden opportunity pass him by. In the end, I reckon he was always too scared to just make a deal and follow through with it. (And hey, making your first IP purchase is scary)
What I learned from watching him is that if you just follow the fundamentals you should be fine, and have some courage, particularly if you are a long term investor.
John
What I learned from watching him is that if you just follow the fundamentals you should be fine, and have some courage, particularly if you are a long term investor.
John
According to a lot of negative people who do not invest in Property- never is a right time to buy.
What if you can't find a tenant?
what if property prices fall?
What if you lose your Job?
what if interest rates go up?
what if you buy the wrong property?
what if you get sick and can't work?
What what what and more negativity!!
All I can say is don't listen. Knowledge to how property investing works is the answer. Do not be afraid of investing and do not be afraid of good debt. Reading and talking to positive people that have multiple properties will inspire you to take action today.
Spend your time on finding solutions to all of the above questions and you will become more confident in entering the property market.
Good luck
Marina.
What if you can't find a tenant?
what if property prices fall?
What if you lose your Job?
what if interest rates go up?
what if you buy the wrong property?
what if you get sick and can't work?
What what what and more negativity!!
All I can say is don't listen. Knowledge to how property investing works is the answer. Do not be afraid of investing and do not be afraid of good debt. Reading and talking to positive people that have multiple properties will inspire you to take action today.
Spend your time on finding solutions to all of the above questions and you will become more confident in entering the property market.
Good luck
Marina.
Hi everyone,
Well, just for some diversity, I am gunna say wait. Ok, if you are stalling because of fear, that is a different issue. But declining to purchase at the height of a boom is a valid strategy. I'm just not sure that the answers you have so far recognise this as a valid approach.
Robert Kyosaki talks about buying into a falling market as the best time to buy. He says that he waited 2-3 years to start buying when he first hatched his plan. The property market has always been cyclical. There is nothing wrong with trying to work within a cycle.
It also depends somewhat on the place. Melbourne, for example, is typically very cyclical. After the last large boom, it took 5 years for prices to reach the point they were at at the height of the boom. Given that you would almost certainly be negatively geared, that's called going backwards. Yes, you would catch up eventually, but as I said, I think trying to work within the cycles is perfectly valid. Assuming you would only do this because of procrastination is not right.
Anyway, I'm waiting until its a buyers market in Melbourne again. I believe there will eventually be a fall out from such a protracted boom. Eventually the market will fall into a slump again (I remember going to auctions 5 years ago and there would be noone there), and when it happens......I'll be ready.
Good luck everyone.
Gail
Well, just for some diversity, I am gunna say wait. Ok, if you are stalling because of fear, that is a different issue. But declining to purchase at the height of a boom is a valid strategy. I'm just not sure that the answers you have so far recognise this as a valid approach.
Robert Kyosaki talks about buying into a falling market as the best time to buy. He says that he waited 2-3 years to start buying when he first hatched his plan. The property market has always been cyclical. There is nothing wrong with trying to work within a cycle.
It also depends somewhat on the place. Melbourne, for example, is typically very cyclical. After the last large boom, it took 5 years for prices to reach the point they were at at the height of the boom. Given that you would almost certainly be negatively geared, that's called going backwards. Yes, you would catch up eventually, but as I said, I think trying to work within the cycles is perfectly valid. Assuming you would only do this because of procrastination is not right.
Anyway, I'm waiting until its a buyers market in Melbourne again. I believe there will eventually be a fall out from such a protracted boom. Eventually the market will fall into a slump again (I remember going to auctions 5 years ago and there would be noone there), and when it happens......I'll be ready.
Good luck everyone.
Gail
Hi
Well, despite everyone saying buy, buy, buy, I would still say be careful. This boom has seen many novice investors enter the market, buying inflated properties along the way. If the market slumps, there will be many investors bailing out when they realise that they have holding costs of $5,000 to $10,000 a year and their property is falling in value. You don't want to be one of them.
Look, if you can find a bargain well and good. But it has been a seller's market in many places for the last year or so. A year ago, we had this debate on the forum, and many very seasoned investors were saying hold off a bit - you make your money when you buy (one of my fav cliches). Some were even selling stock because of the ridiculously inflated prices. I can remember the last boom in Melbourne and I can remember the fallout - property prices do fall and the boom we are in now has been the longest since the war. If prices grow in the next couple of years (in Melbourne anyway), it will be a virtually unparalelled development. Sure, it might happen, but there is nothing wrong with planning around the likely scenario.
Anyway, I just feel that Mark was looking for some balanced advice, and people who completely (and sarcastically) rubbished any suggestion of ever waiting are being a bit unfair to what is a very valid strategy.
(Sorry about the long post - this thread got me a bit worked up!)
Good luck Mark
Gail
Well, despite everyone saying buy, buy, buy, I would still say be careful. This boom has seen many novice investors enter the market, buying inflated properties along the way. If the market slumps, there will be many investors bailing out when they realise that they have holding costs of $5,000 to $10,000 a year and their property is falling in value. You don't want to be one of them.
Look, if you can find a bargain well and good. But it has been a seller's market in many places for the last year or so. A year ago, we had this debate on the forum, and many very seasoned investors were saying hold off a bit - you make your money when you buy (one of my fav cliches). Some were even selling stock because of the ridiculously inflated prices. I can remember the last boom in Melbourne and I can remember the fallout - property prices do fall and the boom we are in now has been the longest since the war. If prices grow in the next couple of years (in Melbourne anyway), it will be a virtually unparalelled development. Sure, it might happen, but there is nothing wrong with planning around the likely scenario.
Anyway, I just feel that Mark was looking for some balanced advice, and people who completely (and sarcastically) rubbished any suggestion of ever waiting are being a bit unfair to what is a very valid strategy.
(Sorry about the long post - this thread got me a bit worked up!)
Good luck Mark
Gail
all vaild points, dont take opposite points of view too seriously, a lot of the time it can just be bait anyhow 
i dont think any of them were directed.
re negative price growth, I think this will only occur (if it occurs) in areas where investors hold a high % of stock and supply issues are prevelant
just my thoughts.....
i dont think any of them were directed.
re negative price growth, I think this will only occur (if it occurs) in areas where investors hold a high % of stock and supply issues are prevelant
just my thoughts.....
Hi Mark,
All you can do is keep an eye on properties in the areas you think have potential and do the sums.
In my opinion ...
If you can get yourself a quality cashflow+ property then grab it.
I know a lot of people will say 'but there are no CF+ quality IP's available at the moment'; don't waste you time listening to those people. Get out there and look at as many properties as it takes.
Keep your strategy simple and stick to it
All you can do is keep an eye on properties in the areas you think have potential and do the sums.
In my opinion ...
If you can get yourself a quality cashflow+ property then grab it.
I know a lot of people will say 'but there are no CF+ quality IP's available at the moment'; don't waste you time listening to those people. Get out there and look at as many properties as it takes.
Keep your strategy simple and stick to it
Deja Vu !
I remember reading very similar comments about holding off, the market will fall etc on this forum in late 2000.
So I did.
And the houses I was looking at in Dee Why/ Nth Curl Curl, that were in the low $400s, are now in the mid-$600s to $700s.
Maybe those thinking the market has peaked will be right this time around. And maybe they won't.
Residex were the only forecasters who predicted the market would continue to rise in 2001 (although they way under predicted the rise %).
And they are currently tipping Sydney houses to continue to grow in price at a respectable rate.
I remember reading very similar comments about holding off, the market will fall etc on this forum in late 2000.
So I did.
And the houses I was looking at in Dee Why/ Nth Curl Curl, that were in the low $400s, are now in the mid-$600s to $700s.
Maybe those thinking the market has peaked will be right this time around. And maybe they won't.
Residex were the only forecasters who predicted the market would continue to rise in 2001 (although they way under predicted the rise %).
And they are currently tipping Sydney houses to continue to grow in price at a respectable rate.
Hey WillG,
Nice to see you on the forum
I agree with you..........have a strategy and stick to it, but be prepared to make minor adjustments/tweaks along the way as necessary.
I also agree with gailh.......maybe now is a good time to hold off....but don't stop looking.
But if you look at the numbers/fundamentals and just keep looking then you will find a property that matches your strategy/goals. Admittedly now it's going to be harder.....maybe look at areas where many people don't.
Just my $0.02
Nice to see you on the forum
I agree with you..........have a strategy and stick to it, but be prepared to make minor adjustments/tweaks along the way as necessary.
I also agree with gailh.......maybe now is a good time to hold off....but don't stop looking.
But if you look at the numbers/fundamentals and just keep looking then you will find a property that matches your strategy/goals. Admittedly now it's going to be harder.....maybe look at areas where many people don't.
Just my $0.02
What is it that you are waiting for???
Christmas or New Year before you will start to buy your property???
What are those people telling you to wait for???
have you ever ask them?
if they say that the market is going to crush and go straight down from 500K down to 400K!!!
you know that this is not going to happen unless you are F in the head and you actually are stupid enough to listen to them.
if you got a brain you won't listen to them at all.
i bought some OTP for 650K each and some investor ask me to wait cos they say that the price will drop and they are still waiting but my 650K apartment have gone from 650K to about 2 mil each right now.
valuation done by NAB in dec 2002
if i'm stupid enough to listen to them and WAIT WAIT & WAIT...
i would have to pay 2 mil each for those apartments that i have right now instead of 650K.
if you were to buy and hold you can't lose out so you don't have to wait at all.
if they tell you to wait just ask them
how many properties have you got?
when is the last time they bought a property?
Regards
Jerry
Christmas or New Year before you will start to buy your property???
What are those people telling you to wait for???
have you ever ask them?
if they say that the market is going to crush and go straight down from 500K down to 400K!!!
you know that this is not going to happen unless you are F in the head and you actually are stupid enough to listen to them.
if you got a brain you won't listen to them at all.
i bought some OTP for 650K each and some investor ask me to wait cos they say that the price will drop and they are still waiting but my 650K apartment have gone from 650K to about 2 mil each right now.
valuation done by NAB in dec 2002
if i'm stupid enough to listen to them and WAIT WAIT & WAIT...
i would have to pay 2 mil each for those apartments that i have right now instead of 650K.
if you were to buy and hold you can't lose out so you don't have to wait at all.
if they tell you to wait just ask them
how many properties have you got?
when is the last time they bought a property?
Regards
Jerry
Hi All
Personally I would never advise anybody not to buy. My advice is to be sure of the figure and factor in an increased interest rate to make sure those figures work even when the interest rate doubles.
I would state that I am not buying right now as the criteria that I look for is not readily available.
So my vote goes with Gail and I seem to even share some strategies with her.
Cheers
Personally I would never advise anybody not to buy. My advice is to be sure of the figure and factor in an increased interest rate to make sure those figures work even when the interest rate doubles.
I would state that I am not buying right now as the criteria that I look for is not readily available.
So my vote goes with Gail and I seem to even share some strategies with her.
Cheers
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