Time to buy?

>>The important point to note is that he is STILL waiting<<

Yeh, and he will ring a bell just before he starts buying.

Pisces

The market at the moment is very weird
so treat with caution
I see some properties achieve the reserves
and some not BUT even if they are not
been achieved some are sold
half of the actions last w/e in melbourne
were passed in with a vendor bid
one auction 3 weeks ago summons it up for me
Darling Rd malvern east Vic
Two of a pair on one block one sold about July/August last year $520000
3 weeks ago the other sold $354000
the only difference was one had an extra bedroom
added and better kitchen
IMHO I dont think the xtra bedroom was worth the
price diff
I could be wrong though

Scarecrow, I don’t necessarily agree that it’s best to buy a PPOR first to ‘get off the rent treadmill’. often if you do the numbers, the opposite is true.

Also if you factor in that not everyone can afford to buy where they want to live, first – well even if they could, it might make them broke. That’s basically the old-school think our parents did, buy a PPOR, hate debt, pay it off, and maybe if they are lucky later in life get an IP.

So back to the average person. Might not be able to buy in Syndey beachfront, where they want to live (i.e. me) but they maybe start investing already and get into an investment property.

Meaning, buying on numbers, to improve your finances, and not on emotion or because it looks cute or is a status symbol or makes you feel all secure or whatever.

There are also tax benefits to your investment property which you don’t get on your own home.

I rent for $450 a week with my partner, we rent an 800K approx house in Paddington. To buy we’d need a decent deposit, we had 80k, and then repayments would be – I think I worked out – 1200 a week or more, and that’s interest only. And no crazy capital gain in sight for a few years, they tell us…perhaps….did I mention no tax benefits either on your own home?…and not counting rates, insurance, or maintenance – talk about a liability keeping you broke and working.
Paying for it with after tax dollars, of course..

So what I decided to do instead is buy three IPs for the same price as a deposit on said 800k property, for 80k. That is not a typo, and that was only about a year ago. They all had 20 percent yields, cool, so now I get $325 a week in my bank account from the combined rents, and maybe about $100 of that is holding costs, leaving $200 odd a week, so basically I live rent free off my investment properties if you like, plus I can borrow against them and get more investment properties – which is what I’m about to do. When I end up with enough IPs to support the mortgage repayments on my chosen PPOR, that’s when I’ll buy one. Maybe just before the next boom will be a good time. I don’t think it’s going to take me that long actually, I’m following the Dave ‘no brainer’ technique as explained in ‘wrap secrets revealed’ part one. it’s a simple buy and hold strategy.

cheers-
mini