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it gets me about 500 a week…but if i put in furniture it might get me about 650 but i have to spend about 10-15k to do that. besides, overall, the strata is seriously killing the entire investment. i pay about 1300 per quarter…this is not gonna go down to be frank.
i think what you have to look at is if you buy now, how much would it go up…would it sell well and how much rent could you get for it. why buy 2 things and be stuck with 2 mortgages..i dont understand that concept bec when you buy a place for yourself, then rent the 2nd property you are paying 2 mortgages and if one investment is not that great then you are wasting your money where you could be pouring all your energy into paying off your own place quicker. i think people are made to believe they will always make money in investments. thats simply bull bec i learnt that either way, your income will never go up as much as your costs in everything in life today and if an investment is not bringing back at least 6% , its not a good investment. id still rent and buy something abit later with a healthier saving, with no strata fees and coucil rates…
ok…ill speak to a few agents. it seems the best way to go.
hi. thanks for that advice. Im actually living at home, its leased but i just am losing alot of money yearly paying off its balance and with the interest rates set to change again, ill be paying more and more and the strata fees are scary. can i ask you what a conveyancer does? do they help you set the price. I was told yest by a real estate agent that alot of the city agent charge up to 3000 dollars for advertising which they could do for free for you online.
Hi linda…you know im no expert in property investment and home buying as i made a massive mistake buying a place in the city. But recently ive become more savvy in my investment decisions as i paid a massive price. Near my house there are some gorgeous new houses being built which will be sold in 13 different stages in the future. The land was bought by government and private builders and they decided that a portion of it will remain housing commission. So i asked around and came to the realisation that these places that are nice and are worth about 360 brand new …is it me or is this just too good to be true. AFter a little inquiry i realised that the area is not that great and just near those new houses there are still alot of housing commissions which i do not wish to say that all people renting such houses are junkies, but there are always risks of having neighbours like that. In fact my brother read on the net that in that area alone, there was one house owned by an elderly where the house was robbed 20 times. The robbers often waited so that the old lady would get her insurance to replace her stuff with new ones and would re-rob her. I dont want to put you off, but do your homework bec you know what they say, when something is too good to be true, it usually is…and so when the price is so low, there is a catch….make sure you investigate crime rates around the area and reputation of the area as if you ever decide to get out of that mortgage, you might be forced to sell for less bec the area has been devalued due to it being labelled unsafe. anyhow, thats all i can say. im def no expert but learnt my lesson over the past 4 years….dont listen to agents fast, they just want your money and will tell you anything to sell something to you bec they make money out of you. if you show that you are ahead of them, they step back abit…and dont rush into buying..there is always property to buy even though people make it sound like there isnt and when people think there isnt they go rush buying and thats whats pushing prices up so high.
im totally with you on this strata business…its wasted money….thanks for your advice. its fantastic.
yes hence spending 1.2 million on a property which you bought 29 years ago for 533 would sound almost insane as youd never get that price for it most likely…unless for some strange reason australian is so populated that there are no properties left and ou can sell at even a higher prices but i cant see anyone desperate to live in the middle of the city for that price. Besides, they'd have to be on a mad salary.
hi quickchick, do you think this property would be worth 2 million one day? dont forget it will be 29 years old (if im still alive that is….) and would anyone in their right mind pay 2 million for a one bedder? can you imagine the strata by then? its scary. i think i have this emotional connection with the property cause its gorgeous and im in love with it and wish i had the money to live in it…but alas, its beyond my power…i must cut the emotional ties.
im seeing a financial advisor on friday…but it seems that its heading that way…selling is the best thing to do at the moment. thanks for your advice…as for the teaching salary…i have to move to a remote area of aust, apparently they pay 6 figure salaries there.
Dear V8ghia, thanks a million for all this advice. What im considering to be frank is, is it worth to keep a property youve bought for 553 almost and then keep it till you pay it off (on a teacher's salary) which should take exactly its loan life of 29 years, then once you are done with it, realise youve spent almost 1.2 million on it and its strata would have trippled by then (yet you are still a teacher and we know how much our salaries change…hardly ever), and the property would be 29 years old, meaning its value has actually diminished. Then as a pentioner, you are stuck with paying for such ridiculous strata fees and never actually really enjoying to move into this place if ever i decided to. This is a gorgeous brand new apartment in york street. as for what it will go for, ive looked at other sales in the building and the area, one room no garage one bath, goes for about 560 max.
Hi Marx I got a loan for 480000 dollars which would be paid off in 29 years. Im not sure what type of a loan this is but i will call nab tomorrow and find out and post another note for you. thank you for helping me.
Ktastrphe hi again…thank you for replying. I should be able to cover the mortgage if i sell about 560-580. Im still unsure of what is a an uncollateral loan.
Hi Terry. Thanks for your comment also. This year with the new variable ill be saving about 9600 dollars. But as soon as the interest rate changes, ill be back to paying even more than what my rate was fixed on before and with the interest rates on the rise, i dont think its going to look good in the future even if the price goes up slightly, i dont think ill make enough at the end from the sale as i would have spent even more on it just for an extra 30k, in which i would have spent already on it in the next 15 months if i kept it. it almost feels like a double edged sword this situation.
Hi Ktastrphe…Thanks for your comments here. Im not sure what is the meaning of uncollateraised loan. Do i need to ask the bank what that means? As for the market i think the prices are gonna go up and with my new variable rate, i would be paying less per month than what i used to before, however, thats only until the interest rates go up again and i think aust is heading towards more rate rises as i think we are gonna experience a late recession…i dont think we are actually out of the woods at all in terms of the WFC. That is a scary thing that the market could go worse and ill lose more again as i have waited 4 years to get the price back from 420 to an equilibrium at least. I must see an advisor for sure. when i think of all the strata fees, it kills me.
