hello everyone..
im very new to this board; apologies if this has been asked before..
question; is now a good time to buy an investment property?
i was thinking of taking another few months (maybe till july next yr) until i buy my first invest prop. due to reports of rising stamp duty costs and such (maybe there will be govt intervention in the near future?).
is it more wise to buy during property market rise or when they stagnate a little. i predict the market to slow down as there will be increasing pressure to increase interest rates soon, the US will not even think about increasing their interest rates until at least next year.
apologies for any rambling here. tad bit tired. opinions much appreciated. [
]Hi rangersixth,
That is the $10 question !!
For the last few months, everyone has been thinking that the market is at it’s highest point, and it will slow down or even reverse. We are all still waiting for that, as prices continue to rise, every week or so!
The bottom line is: what are your goals, what are you trying to achieve. Cashflow positive, capital gains etc. When you know exactly then ask the question. If a deal is REALLY cashflow +ve, it doesn’t really matter what the market is doing.
If in doubt, flip a coin! We are really all guessing what the market is going to do.
Good luck,[
]Del
Don’t expect any stamp duty relief in the short term.
If they do reduce it by 50% (hypothetically) then the few thousand you might save will quickly dissappear as the market adjust upwards – consider how much more affordable first home ownership became after the FHOG – NOT!!
Cheers,
Simon Macks
Mortgage Hunter
[email protected]
0425 228 985wow, two very good points..
i suspect much more pondering is in store for me.
thank you both.. any others?
Hi rangersixth,
I wouldn’t try and second guess interest rates or the market, in terms of if, buts or maybes. I would do my homework in regards to knowing your own sleep at night factor, re: what you can afford, how much level of risk you can live with, what you want out of it… Do your own research and don’t take anything anyone else says for granted without checking it thoroughly yourself.
If you find a good deal and the numbers work, go for it. I do not envisage prices plummeting across the board when this bubble “bursts”, they’ll go down in some areas more than others, while others still will keep appreciating, and yes, there will be bargains around, just like there is at the moment. Yes, the property market is cyclical, but it’s not like the share market where you can potentially lose everything overnight. There are dozens of markets within the property market, so pick a couple, and scope them out, then make your move.
Take your time, go at your own pace, and don’t be too put off by what some of the doomsayers in the media and in forums like this have to say.
Good luck,
r
I am going to disagree with you Slim and agree with Richo.
If the numbers work then the numbers work. In every market there are opportunities and it is a matter of finding them. I will not say it is easy but then what worth achieving is.
The key is not to rush and to only do deals that make sense. It may mean only buying one house this year or it may mean using creative methods to make it work (Wraps, lease options, etc).Whatever you do make sure you are content with the decision. Note well content not comfortable as I believe that sometimes we have to be outside our comfort zone to pick up the real beauties. Make sure you understand what you are doing and then take a step out.
There are still opportunities just go find them…..
Enjoy
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(Andrew)“Character cannot be developed in ease and quiet. Only through experience of trial and suffering can the soul be strengthened, ambition inspired, and success achieved.”
hi all
in sa the govt. is looking to increase the stamp duty cost for ips and not ppor.
governments are just getting very greedy.
regards
alfI agree.
When investor attention turns back to the stockmarket again and we have a new wave of TV shows replacing the current stock I really feel that the prices will stop rising at a phenonomal rate. I think some top end stuff might take longer to sell and I would prefer not to be left holding a lot of OTP apartments in Syd and Mel.
I think that there will always be a demand for good middle class housing (3-4 bedrooms) all over the country.
Just my 2.2 cents worth (inc GST)
Happy Fathers Day.
Simon Macks
Mortgage Hunter
[email protected]
0425 228 985Agree with Simon. I think investors are starting to go back into the sharemarket. Just look at the number of penny dreadfuls that have moved & the amount of daytraders that have returned to the market.
I’ll take extra care when buying an IP. I’ll rather be cashed up at the moment.
If you find a cashflow +ve IP great. Just ask yourself – will it still be +ve if interest rates increase by 1-2% and rentals don’t increase (assuming you haven’t locked in a fixed interest rate)?
If not, can you carry the -ve cashflow from other income streams? Understanding that there might be little capital growth in the short-term.
If the answer to the above is yes, and you have done due diligence then go for it. If any answer is no, formulate a fallback plan if things go swampy. If your fallback plan is sound, proceed cautiously. If you haven’t got a fallback plan that is acceptable to you, think twice before proceeding.
My ten cents worth.
Cheers[
]Hey Alf,
Its not like our stamp duty is the highest in the country all ready!!!![}] Flamin’ SA government!
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