hi people, i am 20 years old and bought my first investment property when i was 18, the house is now possitively geared, and know now i can go and buy another house, i work in the construction industry and people say, the market is going to crash wait daniel wait. i am looking to buy i believe in a "hot spot" melton. melton is going to grow and grow and i believe is a great choice for buying but since i am young feel worried i will loose money because maybe australia will see hard times like usa, which will only come? What do u believe?? Cheers Daniel
If you can afford the costs, as well as your living costs and your other property, I would do it. If you hold it long term then even if it goes down for a couple of years it'll come back up and a few years after that you'll be laughing – while those who are worried about buying still haven't bought. Obviously do your research and try to buy in a growth area – and with good cash flow ratios and strong demand for rentals. Even in the US people still need to rent somewhere.
Also, if there is a time in your life when you can most afford for a property to lose value (temporarily) it is while you are young, you don't need to cash it in for ages, it's not like you are retiring next year.
Hi Daniel,,
um just a question is melton near melbourne? why do you think it is a good area? what is the average house price?I'll give u a heads up place as well, Geraldton WA is my hometown. big things are happening here, china has put down billions on the table to build a deepwater port and predicting will be the next mining hub. houses are expensive, but land is quiet cheap could get a block for 150k or less. its on the coast and is a good lil place
could be CF+ if you built, -but this takes time doesnt. houses avg 350k + becareful of cheaper suburbs.Mel_d01,
Which suburbs should be avoided?
I would think about strategy. If you buy an investment and hang onto it for the long term, then it doesn't matter if the market melts down. Pick a house in an area with some guarenteed rentability, good location, transport, schools, shops etc, then ride the waves. Also if your first investment is positively geared, then you have some cushioning should your second investment find hardtimes.
Sounds to me like you are smart enough to do your own research and not worry about what 'others' tell you. If you are ready to invest again, buy well and hang onto it, it doesn't really matter if the market has a down turn cause you have buffered yourself from the storm.
Melton is a hot spot – I have heard it being talked about quite a bit.. I believe Margaret Lomas has mentioned it but I might be wrong..
Personally, I would go for it, don’t rush in though make sure you research what houses are going for and get yourself a good deal.. be a strong negotiator and get yourself a good deal (that is why i love private sale and hate auctions).. I don’t think there is ever a bad time to buy if you get yourself a bargain..
Dude, you are definitely on a right way. I have all the points to support you. Let me know if you are able to make money by buying your new property. I wish you all the best.
could be CF+ if you built, -but this takes time doesnt. houses avg 350k + becareful of cheaper suburbs.
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