Forum Replies Created
Hayley,
Go for it!!. Whether you buy a foreclosure type house or just make some silly offers to people, this year is a good time to buy.
When you find "the one" and you think it looks like a great deal, buy yourself a Residex Property explorer or postcode explorer report – this only costs about $100- and it gives information about the property and importantly actual sale prices in the immediate area. Once you KNOW what the property is worth (be conservative and allow for it being worth less in the current market than late 2007), then make a very low offer.
Get your pre approval for finance and then look for deals where the seller has to sell in a hurry. You will be in a strong position to negotiate a low price with a short finance clause (or no finance clause, or perhaps subject to bank valuation).
This is exactly what I have just done and I picked up a bargain.There is no hurry, but I believe 2008 will be prove to be a great time to buy.
Good Luck. If you buy 10% or more below the current market price (which is say 10% lower than late 2007) then personally I don't think you can go too far wrong. Pick a resonable area that you are farmiliar with.
Julia, Please explain exactly what you mean by “salary sacrifice”. In my limited experience only certain types of jobs (say doctors or not for profit organisations) can salary sacrifice. i.e. funding a mortgage payment before tax is taken (not after).
I am able to get a property that is slightly negatively geared to a neutral situation as per your calculations but there will be a point where i can not claim any further depreciation etc to make up for the shortfall of incoming dollars(rent) as I will eventually run out of income to deduct against. This is a problem as it limits the potential of the portfolio (not to mention the ramifications if one was to lose a job etc).SuperTed, be more specific. Which area are you talking. I know a bit about Brisbane, someone else might know a bit about Melbourne etc. Also define the exact type of property you are asking about. E.G. I don’t think many people would have made money on inner city units in capital cities in the last 6 months. Good Luck.
HousesOnly has a point. There is no substitute for alot of research. Of course there will be areas in every state that decline in the near term but also areas in every state that will grow. Land on the Queensland coast from Gold Coast to Cairns looks pretty safe to me (within say 2km to waters edge) even if the Brisbane and Gold Coast CBD’s crash. Just my opinion. The title of the name “housesonly” to me sounds like you are switched on as house/land will ultimately be the most insulated from any slow or declining markets. Also excellent in the growing markets. Regards.
Houses only – No offence but Economics Degree Shmeconomics degree. Most people have a degree and it means absolutely squat. A degree (which I also have) is really only a tool to get your first job. Then one starts learning about the real world – and how economics really works.
I think you are definitely wrong about the South East Queensland market – in particular house/land (inner city unbits will probably decline in value). Land though is still tight Gold Coast and Brisbane and there are still ballots due to pent up demand. Yes, capital growth will moderate in the next few years but will still nevertheless grow. Many baby boomers will relocate to Queensland from Southern states. Many will buy in the next few years with a view to migrating later on. Make no mistake. It is happening. This will underpin prices. One does not need huge population growth to achieve capital growth (although we have a decent amount of population growth as well). My opinion only. Regards.
