Hi SS Gurus,
I bought my PPOR in West Sydney 4 years back, and it almost doubled now. I bought 2 IP's in QLD. one in Logan area for 290K renting for 350. and one in Ipswich for 235K renting for 300, spent 5 K's on it (quoted for 15, but I took 1 week off, hired couple of students and did the work myself). and the valuation is now 275 in 3 months. Using this Equity, I will be able to purchase my IP No.3. and I still have some buffer to service additional loan.
Trying to look in Sydney for something around 400K (not interested in Strata), but it is very very hard. I looked at St Marys, Lethbridge Park, and the surrounding areas. the kind of auction sales are in place. you put an offer and the REA keeps calling you to increase the price, so much competition, more than 30 people in the open house, which usually ends on over valued purchase.
Spoke to an agent today about a house advertised for offers over 370, I asked him how much higher you would expect, he said around 60-80K's higher than the asked price.
My Question is, Should I buy over valued Property as the Sydney market will still have some room to increase. or go Back to QLD or SA and buy a property there. There are still good deals over there. I am planning to buy and Hold. My worry is I may not be able to buy in Sydney ever again.
I am sure there are many experts here who can advice. I am calculating my repayments on 7%, and I am keeping a buffer to cover me for 12 months without rent just in case of Crises.
Thanks
Ram
I bought my PPOR in West Sydney 4 years back, and it almost doubled now. I bought 2 IP's in QLD. one in Logan area for 290K renting for 350. and one in Ipswich for 235K renting for 300, spent 5 K's on it (quoted for 15, but I took 1 week off, hired couple of students and did the work myself). and the valuation is now 275 in 3 months. Using this Equity, I will be able to purchase my IP No.3. and I still have some buffer to service additional loan.
Trying to look in Sydney for something around 400K (not interested in Strata), but it is very very hard. I looked at St Marys, Lethbridge Park, and the surrounding areas. the kind of auction sales are in place. you put an offer and the REA keeps calling you to increase the price, so much competition, more than 30 people in the open house, which usually ends on over valued purchase.
Spoke to an agent today about a house advertised for offers over 370, I asked him how much higher you would expect, he said around 60-80K's higher than the asked price.
My Question is, Should I buy over valued Property as the Sydney market will still have some room to increase. or go Back to QLD or SA and buy a property there. There are still good deals over there. I am planning to buy and Hold. My worry is I may not be able to buy in Sydney ever again.
I am sure there are many experts here who can advice. I am calculating my repayments on 7%, and I am keeping a buffer to cover me for 12 months without rent just in case of Crises.
Thanks
Ram