Hi guys. My first post on the forum,basically to say hi to all of you and to ask couple of questions..
I would be moving overseas in two years time, may be for good. I want to buy a property now which will give me some good returns in two years time because i will be selling of this property when I leave. what kind of returns should i expect in 2 yrs if any, bearing in mind i will be taking out home loan to buy this property. Will the initial expenses + loan interest out do the returns at the end of the day?
Iam in melbourne and looking around for something in the range of $125-150k.
another thing that crossed my mind is to may buy land in suburbs like bacchus marsh, mornington etc for around 60-80k.I only have 30k saved up towards the deposit and will have to pay off the loan in 2 yrs time, therefore cant afford to buy something very expensive.
I need your advices guys, what investment will best suit me, will give me more returns or is it even worth comtemplating about investing in property given that i will be selling it off in 2 yrs?
Property may not be you best investment choice. A 2 year timeframe is short – perhaps too short to recoup buying and selling costs let alone a profit – esp in this stagnant market.
Why sell it when you go overseas? Why not hold it longer term?
If you do need to sell perhaps consider another asset class that is more liquid?
All the best,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Thanks for your reply simon. There is no particular reason why i want to sell of the property when i leave–may be because i think that managing a property from another country would be hard, but then iam just new at all this.
By the way whats the average increase in property price in an average suburb a yr, 10%- 15% is it? help guys?
That is not a reason to sell. A good PM will look after nearly everything for you in your absence.
Some really really rough estimates are 5% growth and 5% yield pa. Of course this growth is averaged over a longer period and could even be as high as 10% if you hold it over a boom. Some folks count on doubling the value every 7-10 years which is historically achievable.
All the best,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
My adive is leave your money in your pocket 2 years by the time you pay stamps and selling costs you will have a tuff time making any money
Monopoly, my favourite game
Search for potential CF+ deal…. When you leave rent it out. While over seas recieve a few bucks extra weekly… When you come back then sell and take advantage of capital gains…
Just Ideas….Thanks guys for all your advices–you all have been great so far in helping this newbie.
From your responses i do understand now that selling the house in 2 yrs time wont yeild any profits what so ever.That make lot of sense.
Now considering i would not sell it and would rent it out when i leave(as per yous advices)–which suburs out of list below do yous think have more potential both in CF and CG? Suburs that fit in my budget are:
1) Cranbourne
2) Noble park
3) Springvale
4) Frankston (to less extent)i can only look for 1 or 2(if i push it;)) bedroom UNITS. i know nobody can predict future but given that you all are so experienced and deal with this sort of stuff day in day out, i expect some knowledgable and fruitful reponses:)
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