Hi all,
I have the opportunity to buy a property at a discount to market value (family friend), Is it best to buy now or in a years time?
I guess interest rates will rise over the next few years. Is it best to fix the loan for 10 – 15 years in this case?
Im looking at the all in one or complete home loan as I've got spare money that will not go against the loan directly, but would be good to offset.
It is for a loan that I will live in for the short term and rent out in the long and hoping for growth.
Thanks
Buy now or buy later??
Ask that question to yourself everyday, for 10 years, and you will be following the buy never idea.
You need to be in it, get in as quick as you can, before you turn into one of those old people full of regrets(like oh "IF" I only bought an IP back then I would be…)For me I can't wait to get in, i'm so excited.
Yes, if you are in a position to buy and can buy below market then do it.
Buy now if you can. Anything below 'market' value is better than paying at market value or above.
You have to figure what loan features you would need in accordance with your plans. A 100% offset account would be good as you got some spare cash and plan to use that money in the future.
Regards
Daniel Lee
DraconisV wrote:Buy now or buy later??Ask that question to yourself everyday, for 10 years, and you will be following the buy never idea.
You need to be in it, get in as quick as you can, before you turn into one of those old people full of regrets(like oh "IF" I only bought an IP back then I would be…)For me I can't wait to get in, i'm so excited.
Your attitude concerns me-you do realise there is aways a downturn-nothing just keeps going up and up and up?
Yes there might be a down turn but do you plan on selling during that time. If you hold a property for 20 years you may see a couple of downturns but you may also see a couple of booms.Only sell during a boom. Never sell during a slump.
devo76 wrote:Yes there might be a down turn but do you plan on selling during that time. If you hold a property for 20 years you may see a couple of downturns but you may also see a couple of booms.Only sell during a boom. Never sell during a slump.If only it were that simple………
The reason for booms is everyone is making money and buying up, in the slumps Im sure all the people selling are selling because they HAVE to, not becasue they like taking a hit. Of course if you are in a position that alows you to be able to cover double your current repayments due to increases in interest rates then you wont have anything to worry about will you……
blogs wrote:devo76 wrote:Yes there might be a down turn but do you plan on selling during that time. If you hold a property for 20 years you may see a couple of downturns but you may also see a couple of booms.Only sell during a boom. Never sell during a slump.If only it were that simple………
The reason for booms is everyone is making money and buying up, in the slumps Im sure all the people selling are selling because they HAVE to, not becasue they like taking a hit. Of course if you are in a position that alows you to be able to cover double your current repayments due to increases in interest rates then you wont have anything to worry about will you……
Fair point but if you only make moves based on worse case cenario then you are greatly limiting your chances of getting ahead in life.Believ me i can be really bad at being negative, A trait my father gave me.But in the end you have to way up all the pro,s and con,s and go for it.No one ever got rich sitting back playing 100% safe.
go "Somers' .. grab it now … and hold it ….
U only live one .. so live it
Even if you buy now and have no or little growth for a few years you can still put money in an offset account and may have a positive CF position, then after those few years you will be laughing when the boom hits. Whereas if you sat back and said yea next week, next month, next year, next lifetime, you'll be sitting watching the news on TV with articles like "houses again reaching record highs".
Also house prices tend to go up overall, overtime(i know of slumps and booms), so the prices might get even more out of reach, and then your motivation will drop as you will see your dream escaping, then you will let go and watch it fly off into the distance leaving you with the rest of the population.
I tend to get the responses of my attitude is "blah blah" or you are so young, you know nothing, Some people on this forum show no respect. Blogs, you have't disrespected me, i'm just annoyed at how people don't treat me with any seriousness and just push me aside as a young dreamer who thinks everything will be served on a silver-platter and wealth will follow.
Chris.
If youj buy and never sell there is no such thing as a downturn.
L.A Aussie wrote:If youj buy and never sell there is no such thing as a downturn.when did sticking your head in the sand become an investment strategy?
crashy wrote:L.A Aussie wrote:If youj buy and never sell there is no such thing as a downturn.when did sticking your head in the sand become an investment strategy?
How is that sticking your head in the sand.If you can hold on its the smartest thing you could do.Your not ignoring a downturn your missing it all together.
Hmmmm. Entry and exit costs are very expensive – why not stick your head in the sand, it's got to be better than working your a off renovating…..
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