Forum Replies Created
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Thank you Rolf.
There’s alot to learn, I’ll take my time.Hi Meegan
Last year might have been a good time to buy. It would have been a better time than right now because you have 20/20 hindsight and in many areas of Sydney the market has moved on over 20 %. I remember about July 2000 when the markets were “inflated and were going to suffer a post Olympic lull” Nothing much in the fundamentals has really changed since then, EXCEPT that rental rtns are now lower and orices are higher.
As has already been pointed out the issue of a tennant is your main concern. Yes a wrap alleviates this to some extent, but there are many wrappers that are sitting on a good capital gain over the last 2 years had they gone buy and hold.
The housing market vs the unit market in Sydney is still showing low vacancy rates, though with decreasing returns. In any case you cant expect 20 % growth and hope that rents will grow at the same rate.
If you cant hold the property at 10 % vacancy then perhaps its not an investment you should be making at this time.
Hope that helps
ta
Rolf
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Hi Scott, I’m new to all this, and thought buying an investment property was only to negative geared. Am I wrong????That is a buyers market. you have some awesome room to move with the people selling – negotiate down, find a tennant – long lease – lease option or instalment sale. sign the deal, buy refinance deal realise equity. As long as you have a long term tennant you are sweet. Like steve says – asset is the tenanet not the house or unit!!
U make money when you buy not when you sell…..ding ding ding!!!
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Thank you asalws, but what’s wrapping?????Hi Meegan,
I’m no expert in this, but I wouldn’t advise in buying property in Sydney unless you find yourself a real steal of a deal. As for seeing ‘For Lease’ Signs everywhere that does not sound good to me. Just think about it for a moment…If there are for lease signs everywhere, could it mean that there is an oversupply of rentals?
If there is it means you have alot of competition..meaning you can’t rent it out for a good return…and in Sydney it would most probably become a negative geared property, which is NOT GOOD.
You should learn about wrapping, it can be done in alomost any market with a good return.quote:
Hi Meegan,
I’m no expert in this, but I wouldn’t advise in buying property in Sydney unless you find yourself a real steal of a deal. As for seeing ‘For Lease’ Signs everywhere that does not sound good to me. Just think about it for a moment…If there are for lease signs everywhere, could it mean that there is an oversupply of rentals?
If there is it means you have alot of competition..meaning you can’t rent it out for a good return…and in Sydney it would most probably become a negative geared property, which is NOT GOOD.
You should learn about wrapping, it can be done in alomost any market with a good return.
