Hi,
I am interested in getting your opinion on my project.
My Husband and myself have enough money to buy a 2 bedroom unit in Sydney with no loan.
We are thinking of buying a Unit and then buy investment properties with the equity we will have on our home and the saving we will make by not paying any rent.
Do you think this is a valid strategy considering the current market trend?
Do you have any tips, piece of information or advice to give us.Best Regards
S
“I have looked at some statistics from the ABS.
Basically it indicated that judging by past performance from 1976… we have a few years before things will pick up in Sydney.
The last cycles were 7 years & 11 years… We are now 2 years since the last peak and counting. Having said that, it’s always good to note that these are general figures. I’ve seen 25% cap growth on property bought this year in another city where statistically the growth has been around 4% for that city for the year.”That was something which I had posted on a similar thread.
Now keeping that in mind… you are in a great situation where you have a lot of cash to invest. Let’s assume you have $500K cash to play with. Honestly, I can’t see much return on that cash if invested in Sydney over the next few years… Perhaps things won’t budge until 2008/9.
Having said that if it were a lifestyle choice, you see a future in Sydney and you were to buy into blue-chip real estate. ie. Pyrmont, Neutral Bay, Mosman…. then perhaps it’s not a bad idea. Given that our population is expected to rise to 26 mio by 2026 (ABS) and demand will still be on the central areas… that’s where I would be looking. Research has shown that we expect to see more than 1.2 million people to call sydney home in 20 years. (Over 5M ppl)
Given the tragic state of our rail system (Blow up the pokies)….
if it takes 40 minutes to travel from outer sydney now… than I’m sure it will take atleast 1hr if not more in 20 years.
Where will people want to stay? 100 years ago it was Sydney city and it will be in 100 years time.Ofcourse it would come down to what your needs and wants are.
Personally I enjoy renting in Sydney with my gf.
We earn Sydney dollars, rent our car space out for $200 p/m (which pays for all our bills)… we don’t own a car… love using cabcharge…
walk to work… where we are thankful to work with great people… and invest in real estate outside sydney…
Not for everyone, but we’re doing ok, and if we can stand the neighbours… we can always move
Personally with $500K… I’d invest in a diversified $1.5 mio dollar portfolio…. (not just property) let the tenants pay of P&I and rent cheap elsewhere… before you know it, it’ll turn into passive income.
Perhaps then $2000 p/w income….Just an opinion… not for everyone.
No matter which way you decide, you guys have a good headstart.Regards,
Anthony.
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