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All sounds pretty good to me.
Excellent site Amanda, ty.
Originally posted by Marisa:Hi Munchwood
I also think it is initially a good idea to rent in Perth especially with the market cooling. In 12 months time you may find Perth better value.
Also, looking at purchasing around $300K-600K, not sure what u could purchase for $300K , as median is over $430K, maybe a 1 or 2 bedroom unit?? I think u would possibly need closer to $400K for a home in suburbs.
Depending on where u want to live u can rent a largish brand new 4×2 for as little as $270 per week in beachside location.
Can rent beachfront in some southern coastal areas for around $350 per week, these are properties worth $1M+.
Im pretty sure what Munchwood said is he is moving from a 300k house to one that will cost around 600k.
I pretty much echo the sentiments of other people in this thread. Rent first and buy later unless you have an issue with renting.
Damn, talk about dubious. Steves first book had tonnes of valuable information in it, and the second one was also somewhat helpful. Ill be purchasing this one too, but its hard to take property advice from someone who has just sold all of his real estate….
Or is the OP just pulling our leg?
I agree 100% Mortgage Hunter, although your comments do seem a little off topic.
I guess most of us here are aiming at positive cashflow rather than capital gains (as is the recurring theme in steves books – make money from day1). Any capital growth is just a bonus.
Local rents are definitely a good place to get an idea for how much your house could be rented out for.
A very rough calculation i do in my head when looking at potential properties is that the weekly rental income needs to be around double the cost price (if you remove the thousands).
That is:
A property costing $400k needs to pull in $800 per week in rent.
A proprety costing $140k needs to pull in $280 per week in rent.This is an approximation, but it is useful in quickly working out in your head how close to positive cashflow a property is.
