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"The fact you had to come here to get help means you are not prepared enough, or not smart enough, probably both"
I am only new to property investing but the above line tells me that you lack the ability to think before you act/speak, which makes me wonder how you could possibly be a succesful investor.
When you started investing, how did you learn? Do you seriously think that there will never be a time that you have an idea or a question and would like some feedback from a third party? I would have thought a forum like this is beneficial to everyone, even the most experienced "investors" like yourself.
Now your points about a crash may or may not have some truth to them. I personally dont look at an Australian market as a whole. I think the Australian market can easily be broken up into seperate markets. For example the resources boom in WA (which is still just as crazy as ever) should make property investment in WA to be as good an option as ever. Im not sure how correct this is… after all, Im only new to investing and the reason I have joined a forum such as this is to try and learn some negative points as well as some positive.
But after all that, I think this thread has provided me with some really good infomation (good and bad). Doesnt hurt to hear a different point of view.
We intend to live in the house until we are in a position to purchase another property for investment, so most likely for a number of years. We will be getting finance with my parents as a garentee only (not an applicant) which still qualifies us for the FHOB grant, so yes we will be claiming that. My parents are currently on a variable interest home loan so they are paying the current interest rate the commenwealth bank offers (9.47% ?).
Speaking with the parents last night we did come to the conclusion that they would be unable to sell for possibly a number of years. This would obviously be something we would need to really look into should we choose to go ahead. But they are thinking that they will not be selling the house. Once it is paid off, they plan to downgrade to a small unit and use the current home as a rental.
So the ability to refinance after the first 2 years depends mainly on the increase in value of the property? That's an interesting issue, i was under the impression that we would be able to refinance after my parents have paid off their portion of the loan assuming both mine and my partners income has increased somewhat substantially…
