Ring the council – talk to the rates section. They use the VG valuation to calculate the rates assessments. While you're on the phone – ask them the date the VG's val was done.

A council land valuation (or Valuer General's) is in no way shape or form an indication of likely sale price. It is calculated very conservatively, only refers to the land component and is very often out of date by some years. D did very well to buy at that price.

Hi hvhomeowner,

Property investors typically want capital growth as well as rental yield. Golf course properties are usually pretty good for cap. growth. REAs say $320 – $350pw rental income – but how much is your property priced at?

I suggest you read up on the qualifications for the FHOG/B. As long as you have never lived in your IP you can still claim the grant for your first PPOR. Some people have 3 x IPs and still legitimately claim the grant for their first home.

I'm going to ignore those continual snipes – they are getting boring – grow up.

OK so you want a balanced view of "my idea" of buying property as you can afford it. I suspect a few others before me had the same idea – so I can't claim it as mine. But at least the Q's are starting to become a bit more intelligent. The pitfalls of buying (or investing) in real estate:
1. Something happens to the property:- landslip, falls in a sink hole, gets washed away by the sea/tides, gets flooded, gets a termite infestation, catches fire and burns down, has an aircraft crash into it – destroying it, has a truck crash into it, get damaged by a tree falling on it in a storm etc
2. Something happens to the land. It gets rezoned by council, it gets resumed by main roads department, flight path appears over head, housing commission buys the house next door, bikie gang buys the house next door, they discover radio-active waste on the land, they discover some other contaminant on the land etc
3. Something happens to the finance. The mortgage gets sold to another lender who jacks up the interest rate, interest rates rise making it un-affordable to you, the house price falls and the mortgagor wants you to tip in extra cash so they feel comfortable, etc.
4. Something happens to you tenant's ability to pay rent.
5. Something happens to your ability to fund any shorfall in operating expenses over time.

This is not a complete list, its all I can think on on the run. But I do know this: There is no such thing as risk-free investing. What anybody has to do is mitigate their risk to as low as possible.

If you think about each and every one of the points I've made above there is an answer that will either eliminate the risk entirely or minimise it to something acceptable. Otherwise you don't invest.

That's just silly. Nobody (or very few) get rich by buying one house. The ones that I know of that did – lucked out. The town grew up and out to be around them and their little 5 acre farm became prime residential land suitable for sub-division. So they became 'overnight' millionaires in 10 years. Very few people engage in this type of speculation (as I'd call it) rather than investing.

Monas, In that case I would be taking the free FHOG/B money  from the Feds + the stamp duty relief from the Vic Govt + their extras too $3K (I think) and buy yourself a PPOR unit in Richmond.

You only need to stay there 6 months to qualify for the FHOG/B. If you like it – stay. If you want to make it an IP – then you can do that too – and go rent somewhere else.

But it is hard to say NO to so much free cash – its a one-off opportunity.

All the best with it.

You can take that cynical view. But I am putting my money where my mouth is. I purchased a lot post-2000. I have not purchased for myself for 2 years BUT I am buying NOW (for myself).

Also, not one of my clients has asked me for my 'recommendation'. When clients approach me to help them buy a property, they've already decided that they are 'in'. All they are looking for is someone to act for them and get them a good property at the lowest price.

I'm sorry that you are poor and also living in one of the wealthiest nations on earth. But I'd caution intending investors or intending FHBs against listening to the views of someone who has personally never invested and whose only argument is the ones you have put forward. I would also caution people against just listening to MY views. I am biased but I make no secret of the fact that I am a BA – so I declare my bias up-front. People need to make their own assessments in the light of that.

You might not have professed to be a RE expert but you came across with some very definte views of how you think the market will perform into the future and also the reasons why. I have no problem with you holding a different view than mine. In any market you get people that sell and people that buy – obvoiusly these hold differing views of the same market. But your views hold less weight when you have no skin in the game.

I have no issues with that either….it is what forums are about, after all.

and I do not believe that for all the reasons stated previously. But we've both made our points.

  OK but you are saying Kris should time her entry into the market and based on some assumptions that you hold to be true. Your assumptions may well prove incorrect and if so it would be poor advice for Kris to be taking.

Thank-you, I've taken big risks and they've paid off. They might have gone the other way too, eek!

This is your choice to live that way I guess – at least I hope it is by your choice. I do understand it, but it is not how I want to live. I have some dreams that are unachievable without the intelligent use of some good debt.

There comes a certain point in a person's life where you realise it is not all about you. I've made some mistakes in my life – one of them being not investing earlier. I like to help people avoid some of the pitfalls of where I've been. If that comes across as spruiking – then so be it – nothing I can do about that. It is more in the mind of the listener than me. I make more money out of my investments than from working. It has taken some years to get to that point. I make nothing from posting on this forum except the warm fuzzy feeling that it may help someone, who in all likelihood I will probably never meet, along their way.
People have helped me, many without ever knowing it – if I can give something back then fine. If you can't agree with what I say – fine – its not for you – its for someone else.
I wish you well sweeper, I've enjoyed the banter.
I hope over time your views change but I can accept that you may not want to – its a free choice. Cheers.

  Yes you do John

No – no such thing, unless its a peculiar state thing. Which state are you buying in?

Nope.

FHB are just people like anyone else. So are investors – just people. Yes I buy when other people are buying. Yes I buy when other people are not buying. I buy when I can afford it. I buy when clients hire my services to buy for them. Otherwise I don't buy. I go to the beach or have a coffee or a massage.

Well this is your idea. I did not advise you to wait for demand to fall…..and I do not believe that demand will fall – which is why I advised Kris to buy.

I already named the source – you are not reading properly. Go back and read my previous post – ABS and other data collectors. You can read all this stuff for yourself if you can use google.

I DO NOT buy because spruikers say that. I buy because that is what property does. I could not care less what spruikers say – or doom and gloomers for that matter either.

  Correct. I buy if we have a market contraction. I buy when others are uncertain. I buy when others become unemployed. I buy in recessions and I buy in good times. I buy when I had to pay 11% interest and I'm buying now when I'm paying 5.2% interest. The only time I don't buy is when I cannot afford to.

  I could not care less about the up and down house price over a few months or years. I know based on the past, that in 10 years time I will have more equity than I have now. I've been doing it for nearly 30 years.

  I'll let others be the judge of whether I'm 1 hell of a Buyers Agent…..but before I was a BA I was (and still am) a reasonably successful investor. I enjoy being a BA as I get to do what I love for a living and help others achieve some measure of success at the same time.