Hi, we're new into property investment. We started several months ago but we always got outbid as we entered the market the same time Sydney started to heat up.
After reading a few news articles and talking to a few people (3 of our relatives are property investors well ahead of us and a few other, while not investors, are in the property industry too), we feel that the Sydney market is overheated and now is probably not a good time to buy since we're nearing (if not at) the peak cycle. Everyone's getting greedy and Warren Buffet said that's not a good sign.
So we turned our heads to an off-the-plan townhouse in Maidstone, Melbourne, near Highpoint shopping centre, river and uni (the good side of Maidstone as one called it). It's a 3 floors townhouse with 81sqm land to be finished in early 2015. The price after rebate is $505k.
We did the maths and think we should be financially ok ? some money left on our savings after 20% deposit and can still save monthly after the holding costs.
The best case scenario for us is for it to have good capital growth, and, coupled with our savings, we can get our 2nd property 3-5 years later.
The worst case scenario is a price decrease or flatline for the next several years, so we'll have to rely on saving slowly and possibly can only afford our 2nd property 7-10 years later.
Being the first timers that we are, we're very anxious about it. Can we please ask for some advise on this?
After reading a few news articles and talking to a few people (3 of our relatives are property investors well ahead of us and a few other, while not investors, are in the property industry too), we feel that the Sydney market is overheated and now is probably not a good time to buy since we're nearing (if not at) the peak cycle. Everyone's getting greedy and Warren Buffet said that's not a good sign.
So we turned our heads to an off-the-plan townhouse in Maidstone, Melbourne, near Highpoint shopping centre, river and uni (the good side of Maidstone as one called it). It's a 3 floors townhouse with 81sqm land to be finished in early 2015. The price after rebate is $505k.
We did the maths and think we should be financially ok ? some money left on our savings after 20% deposit and can still save monthly after the holding costs.
The best case scenario for us is for it to have good capital growth, and, coupled with our savings, we can get our 2nd property 3-5 years later.
The worst case scenario is a price decrease or flatline for the next several years, so we'll have to rely on saving slowly and possibly can only afford our 2nd property 7-10 years later.
Being the first timers that we are, we're very anxious about it. Can we please ask for some advise on this?
