Hi All,
My husband and I are anxious to improve our financial situation for the future. We have a small mortgage and reasonable equity in our home but very little savings. Should we invest in property now using our equity or is the market too expensive and stagnant now.?We live in Adelaide. I have looked around and haven’t had much success sourcing positive cash flow properties. Is it too late for us or should we perhaps wait a little longer to see what the market is doing in the new year. Any help or suggestions at all would be most appreciated [biggrin]Hi TriggerL,
I will be doing something similar next year with my step dad (using the equity in our family home). We are waiting till next year just to see how things in the market are going, thats a personal decision however. Anyone on this forum will tell you that you can make money in any market. My suggestion would be to talk to a few lenders, see what price range you can afford, and start looking![biggrin] if you find a great deal than what are you waiting for [exhappy] if your looking for cashflow properties than the deal is more important than timing.
Goodluck!
It is funny i had some clients 20 years ago who were going to wait until next year before they lept in and tried to imporve their financial position.
Some 20 years later they still have not done anything and spend their time regreting.
Just because you do not happen to find a +cash flow property in realestate.com or domain.com it odes not mean you are not able to make money in this current market.
Wrapping (not in SA), flipping, developing or rehabbing are all ways to generate cash flow in the current market. Shared Equity schemes and helping others who cannot afford 100% of the current price but want a foothold in the market and are happy to forgive some of the future capital appreciation all give you a great income in any market.
With equity you have many options available to you and each year you sit and ponder another year goes by.
One of the Companies i started in 1996 specialised for 9 years in wrapping and that has provided a substantial monthly income as well as helping many buyers into their own home who without out our help would have not have had a chance.
Sure prices will fluctuate and interest rates will go up and down but the general outlook for the economy is good. Ask you parent what they paid for their 1st property and see how that compares to todays prices.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner.
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Originally posted by Qlds007:It is funny i had some clients 20 years ago who were going to wait until next year before they lept in and tried to imporve their financial position.
Some 20 years later they still have not done anything and spend their time regreting.
you make a good point Qlds007. Just to clarify my position I had only finished school last year and am waiting for my pay to go up abit more before i commit myself. If i had the money i’d be using it thats for sure [biggrin]
Thanks for the responses. Fear and lack of knowledge are holding us back which is why i’m trying to build my knowledge base. I want to make an informed choice but we do want to act soon. We are quite conservative though and would probably prefer to build our confidence gradually. If anyone knows of any good contacts here in Adelaide, please feel free to share. We’d like to speak to someone soon. Thanks again
Hi Trigger L,
My parent’s had placed a deposit on an apartment off-the-plan in the Brisbane CBD approx. 3 yrs ago. Due to their financial situation they were unable to compete the transaction, so after weeks of discussion with my parent’s I had decided to pay them their 10% deposit and complete the transaction. I had never purhchased a property before so I was quite afraid due to lack of experience & knowledge in investment property.
I was happy to settle the property in July of this year and now I am eagerly looking for another property to buy, fix up and sell for a quick profit. I don’t think it is ever too late to purchase property. Why wait any longer to to improve or maximise your wealth. (Time goes by so fast!)
Perhaps you and your husband should look into creating wealth through property renovation. Perform a due dilgence and find properties that are available at a significant discount to market value. You could add value to these properties through rennovations and alterations (cosmetic fixtures i.e. paint, landscape, new doors etc.). You’ll be amazed with how much value that would add to the property! I guess you would know the next thing to do…use the increased equity and invest in more properties. Easier said then done right?! My point is, if I was never encouraged by my parent’s to take the next step for my future a couple of months ago, I wouldn’t have my first property today valued at $550,000. The market is stagnant but if you properly do research, I’m positive you and your husband will find something at a great price. I wish I started IP a long time ago!
I feared that I didn’t know or understand enough but you will learn as you go. I also recently made a great investment and purchased a home program course called ‘Pinnacle Property Masters’ founder ‘Damien Collins’. It has been a very educational course and a great source of information in investment property. You and your husband should look into it.
I wish I started IP a long time ago!
All the best and good luck.
Thanks so much Jessica3! [smiling]
Originally posted by TriggerL:If anyone knows of any good contacts here in Adelaide, please feel free to share.
If I remember correctly, Dr. X on this forum is SA based…?
Good luck, TriggerL!
Originally posted by TriggerL:Is it too late for us or should we perhaps wait a little longer to see what the market is doing in the new year.
It’s never too late. All markets are ‘mean-reverting’. The Adelaide housing market is currently a long way above its long-term mean valuation by any measure – income/wages / rental yield etc. I believe you have little to lose by waiting, saving, and timing the market. It’s not as hard as some say…
That said, if you do stumble across a quality property for a knock-down price, buying the right house for the right price becomes more important than timing.
F. [cowboy2]
Originally posted by foundation:Originally posted by TriggerL:Is it too late for us or should we perhaps wait a little longer to see what the market is doing in the new year.
It’s never too late. All markets are ‘mean-reverting’. The Adelaide housing market is currently a long way above its long-term mean valuation by any measure – income/wages / rental yield etc. I believe you have little to lose by waiting, saving, and timing the market. It’s not as hard as some say…
That said, if you do stumble across a quality property for a knock-down price, buying the right house for the right price becomes more important than timing.
F. [cowboy2]
100% agree. There is no rush to invest today. Time spent saving a 20% + deposit will be rewarded with cheaper purchase costs. Unless, of course, a good deal chances by.
Foundation, What are your views on Timing the Market vs Time in the Market?
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
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