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Hi Melanie – I have just read through the whole story – thanks for sharing – can't wait to find out how it ends – I'd love to do reno's a bit further down the track – right now with a 4 yr and a 1 yr old we are sticking to buy n'holds and potential subdivides.
keep up the good work!!!
KathI'm in Melbourne too – For my most recent purchase (3 br house in Churchill Oct 08) I paid $650 including GST for conveyancing. So I think $1000 is a bit steep – regards Kath
Reno Queen – thanks for posting your progress – very interesting to see – I hope to do a reno some day – I have my eye on a 4 Br house which needs massive csometic stuff but I suspect nothing structural and it would be +CF once it was done but I have failed to convince my husband to go with it. He thinks anything we can't rent out immediately is too risky. The irony is it is also a big corner block so subdivision would be possible too. I shall just have to live vicariously through you for a while!!
cheers.IMO people want to see a trend of drops before they really start to believe it enough to go out and buy a home / houses – the next 12 mths are a great time to go shopping for property – in 2013 you'll look back and say "good job I went shopping"!!!
HI – Australian Property Magazine have just started publishing vacancy rate tables in the last two moths I think) – so you can compare vacancy 12 mths ago to vacancy now.
Last night I attended a Property Investment group in Blackburn Melbourne (the one run by Troy and Bec who I think feature in one of Steve's books) where one of the regular presenters illustrated the 3 main cycles of all economies – property / business / cash.
eg: property grows in value because debt is cheap so we all jump in, it increases in value due to demand, and so interest rates go up … finally an event occurs which causes doubt / collapse (in this instance it was the sub-prime debacle but if you trace back through histroy you will find similiar events) … and then property prices take a hit so people move their money into shares … and in this instance shares took a huge hit … so people move their money into cash (cash in the bank 8.5 %). Then the next BIG thing is interest rates start to drop and pressure eases off and after 5 or so drops people start to say "gee property looks good and so they buy an investment property or a home and it all starts again. Cyclic economics!
What he was saying made sense (though economics was never my strong point)
So (in answer to your question) the next party actually is in property but it may not start for another 12 months. Wealth which comes slowly is every bit as good as the fast stuff, in the end. (in fact it is better because it teaches you stuff along the way)
Want to jump out of the rat race and ignore all party goers? Then buy into property for a 7 to 10 yr timeframe and DON'T SELL until after at least one boom!! There is always a boom, eventually : )
regards kathlyn veronica
