Hi All,
What is your thoughts about buying with this sellers market in Melbourne?
How would you buy if the property is asking $750K -Land 700 SQm -3 bed Home – rent 400 Pw ?
Current growth of the area is 10-12% for last 12 months. ( Burwood East)
Buy now or wait?
Will fix the interest?
MI
Wait for what exactly?
Hi JMSRACHEL,
Look like you got plenty of money and no need to worry. For me this hard money cannot spend without looking for the ROI.
Exactly What do you think? Obviously wait for price dropped isn’t? LOL
MI
Haha yes I am very cashed up! I don’t understand people. They over complicate matters. I have a mate waiting to buy since 2007, keeps telling me he’s waiting for the big drop in property prices. Reckons prices will drop at least 50%. While he’s been waiting I’ve added 3 to my portfolio.
If you see a good opportunity now to purchase a property at the right price what more do you need?
I agree you could be sitting on the sidelines for the next couple of years waiting.
In 1996 I had been in Australia for a year when a friend of mine said to me he thought Brisbane house prices were likely to correct in price over the next 12 months so he sat on the sideline.
Since then i have purchased and paid down 43 properties. He and his wife are so happy they have just paid off their PPOR but now realise some 18 years later they are so far behind the eight ball it is not funny.
Certainly we wouldn’t buy for our clients in a lot of Melbourne but there are plenty of other areas which are showing good opportunity.
You don’t have to spend a fortune to get on the investment band wagon just make sure you manage your risk and realise that property investment is a long term business not a short term get quick scheme.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Don’t purchase this property. Look for a property that has:
Weekly rent >= Price/1000 (at current interest rates)
In your case if your property ($750,000) doesn’t rent for $750 p.w. then I wouldn’t go near it (there are exceptions of course but $400 p.w. is too low).
So to answer your questions. Personally:
1. I wouldn’t buy in Melbourne in general (but there are certain properties in certain areas that are good)
2. I wouldn’t buy the property that you suggested. The rent is too low.
3. You can buy at any time. You just have to pick the right location and property.
4. Fixing or not fixing the interest rate depends on your risk level. If you want to avoid risk then fix it. The result will be that if interest rates go up, you will be better off but if they go down you will miss out on the savings.superAndrew | Property Analyser and Finder Tool
https://property-analyser.com.auHi All,
What is your thoughts about buying with this sellers market in Melbourne?
How would you buy if the property is asking $750K -Land 700 SQm -3 bed Home – rent 400 Pw ?
Current growth of the area is 10-12% for last 12 months. ( Burwood East)
Buy now or wait?
Will fix the interest?
MI
Burwood east is a fantastic area, close to Deakin and depending where exactly is close to Tram and will depend which train station. For that property the rent is low (is it on highbury rd?).
Burwood East has a strong asian influence and therefore no shortage of buyers in the current market and ensure you measure distance to nearest high school (PLC?)
Why people write off Melbourne I don’t know. Melbourne has continued to show great growth and in the right areas a fanatastic yield. Comes down to the right due diligence (price/ growth/ location/ yield)
Cheers, Ivan
Redwood | REDWOOD | SMSF | PROPERTY | FINANCE
http://redwoodadvisory.com.au
Email Me | Phone MeSMSF - PROPERTY INVESTMENT - WEALTH CREATION AND FINANCE SOLUTIONS
Totally agree with Redwood. You’re not going to go wrong in the long run investing in suburbs such as Burwood. These sought after areas will never have a huge drop in value to make it worth while waiting the extra couple years to invest.
If it fits your criteria and in your budget then pull the trigger.
Also, perhaps a quick make over might increase the rent. It does seem very low for the area so I think there is scope to increase rent.
The main question is what is the prurpose of your purchase?
We’re assuming you’re looking at this house as an IP. It’s a great area to live, close to Uni and transport etc.
It will always be in demand for those very same reasons.Are you looking for yield? If so, look elsewhere. If you want growth perhaps you’re on a winner.
Is there anything you could do to increase the value. Could you rent it on a room by room basis to students and increase the yield.
If you’re waiting for prices to drop, that’s nothing you have any control over.
Cheers,
Dwight
Dwight
Cashflow Positive Investor
Thanks for all the inputs.
Have you bought that one yet? It is may be a good buy if you plan to sub divide or have a major renovation (add rooms etc… ). But just buy and hold, it will slowly bleed you.
How would you buy if the property is asking $750K -Land 700 SQm -3 bed Home – rent 400 Pw ?
I would not care where such a property was located. These are not good numbers. You will be severely cashflow negative with such a property, meaning that the rent will come nowhere close to covering the mortgage and bills, so you’ll have to prop it up for a lot of years by working in a job or earning income via some other means, to subsidise it, before it even goes cashflow neutral, let alone cashflow positive.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
