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Rick, regarding your comment about land being the bit that appreciates, I have heard this a lot from various people. However, Hans Jakobi (real estate guy who promotes positive cashflow strategies) seems to suggest that this is a myth and that units generally appreciate in line with houses.
I am trying to find some evidence to prove him wrong but haven’t yet. If only land appreciated (therefore don’t buy units cause they won’t go up) then if this holds true over the history of the property market in Oz since 1788 when the first fleet landed then you would see houses escalate to $1m today (say) while the units next door are still 3 pounds (having not moved from their 1788 prices because they have no land content). I’m using a ridiculous exaggeration but do you see my point? If you look at the market now, in an average sydney suburb, you might find a 3 bedroom house on a 700sqm block at around $650k, and a 3 bedroom townhouse at around 450k, and a 3 bedroom unit at around 380k. 10 years ago the house would have been worth about 250k, the townhouse about 190k and the unit 150k. To me, that doesn’t sound like wildly different capital growth between the different types of dwellings.
What do you think? Am I way off the mark here? Would appreciate your comments.
Regards,
eeshole
Hi Kate,
Thanks for posting! It’s encouraging to hear that there are so many others in similar circumstances. I have a wife & 3 kids, mortgage, car payments and we are living off just my income. We made a decision long ago that it was important to have someone at home with the kids full time. So we barely make ends meet month to month. Now that we have built up a small amount of equity in our PPoR, I am trying to take the first step into getting an investment property.
All the suggestions I might give you have been covered by others in previous replies, but I just wanted to lend you some support in your endeavours, there are plenty of struggling families out there trying to do something with their futures on limited funds. Never forget that the most important assets in your life is your family. Do what’s best for them, they must take priority over your investments, your career, yes even your home. Not saying you can’t have it all, but when resources are limited, you have to prioritise. I can gurantee your life will be richer and more meaningful if you invest yourself in your family first, then give the material things their rightful (important) place somewhere behind those dear to you.
Thanks everyone for all your posts in this great forum. It’s good to know that so many other people share the same kinds of challenges that I do. Despite the resistance from some of your partners, it looks like most if not all of you have at least taken a few steps down the road of investing. I am still trying to get buy in from my wife for our first IP. She thinks I have wrong priorities and I should concentrate on looking after the kids, being diligent in my job, saving on little expenses here and there, and fixing up little things around the house. I’m just going to keep plugging away, and one day she’ll see the benefits of investing. So thanks everyone for your supportive and helpful posts.
