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Am I wrong ?

Discussion in 'General Property Chat' started by paba, 28th Jun, 2016.

  1. paba

    paba Member

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    Hi

    I have big questions & doubts in my mind.please help me out.

    Im family man with two kids n wife living in liverpool with a decent 2 bed townhouse..all mortgage paid off...plus hav $50k cash.
    I work in permanent job wifee do small home day care@current home.

    Has been thinking since a year abt next move..whether first IP or live in home..had almost decided on going for IP..but fear of missing out in sydney market..I want to buy a live in property(late thinking as market gone up so much )

    Now thinking 3 options :
    1. Delay/Dont buy live in property..but buy a first IP in brissy or somewhere for future growth
    2. Buy outside liverpool like edmondson park or byond new or old house where prices are less or affordable (may not guarantee kids availableavailable for home day care)
    3. Buy in liverpool susbubr itself contune with both of us work but pay.more mortgage life long (Am I wrong doing this at this stage in sydney suburb ?)

    Thus if you can please comment/suggest/advice on what is best option will be great help..Im in big dilemma..not getting sleep !

    Thanks a lot
     
  2. euro73

    euro73 Well-Known Member Business Member

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    if your existing property is satisfactory for your needs, and you dont really need to upgrade , I'd be looking really seriously at speaking with a broker from here, mapping out what you can do with equity releases and purchasing power, and putting a plan in place for 1 or 2 or 3 INV properties.

    In my mind, that's the smart play. Absolutely crazy to take on a bigger mortgage for a bigger home if you don't absolutely need to, especially when it will eat up all your borrowing capacity and more than likely prevent you from investing for many many years.

    It would be a different story if you already had a few INV properties up and running and under your belt ... then I'd be more enthusiastic about the idea of upgrading to a bigger place... but in your situation I'd be staying put and investing.

    But that's just me :) Others may have different views...
     
  3. marty998

    marty998 Well-Known Member

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    Only you know what the best option is for you and your family. Depends on your future plans and goals, your tolerance for risk and your capacity to achieve what you want in life.

    No one can provide you with that insight but you.

    Property shouldn't be bought just for the sake of it...
     
  4. albanga

    albanga Well-Known Member

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    You have an unencumbered townhouse worth what? Say 500k with 50kbin the bank and it's keeping you up at night??
     
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  5. paba

    paba Member

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    @euro73
    Thanks for your reply..that is absolutely straight forward opinion and made me think twice . before anything I take any decision..
    Thanks a lot
     
  6. monalisa

    monalisa Well-Known Member Premium Member

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    @paba

    If you are comfortable where you are, worthwhile considering your goals (including retirement goals), and then work backwards to determine how you can use property investment to create wealth.

    You can always create equity investing in other markets which haven't grown as much as Sydney, and can bring the money back to invest in Sydney.
     
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  7. Joynz

    Joynz Well-Known Member

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    Most importantly, this has to be a decision made by you and your wife equally!
     
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  8. paba

    paba Member

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    @marty998 I like your analogy..thanks for your reply
     
  9. JacM

    JacM VIC Buyer's Agent Business Member

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    Hi @paba

    To be burdened with choice is a terrible thing ... it confuses people !

    Maybe stop thinking about which house you should live in next and rather work out what your medium and long term goals are financially. Certain "options" you are thinking of might not take you closer to your goals and that will make it easy to rule those options out.
     
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  10. paba

    paba Member

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    @JacM
    Yep..I think that is probably best to work out options first...thanks for reply
     
  11. dabbler

    dabbler Well-Known Member

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    Yeah, same thoughts here.

    paba, whatever anyone tells you, or whatever you read here making it all seem easy peasy, having IP/s is often very far from easy, if you lose sleep with no problems (that is what I say you have), what will you do if you mortgage to the hilt and places are vacant, or roof comes off and no income & expensive repairs.

    it is risky......it is not easy, lot of people only look at last Sydney cycle or so, the party may be over for a long time here, Bris can get hit with a flood, labours policy could de stabilise, anyway, you get the idea.

    Do not take it as negative, just have your eyes open, a lot of the young ones on here are clueless to lot of realities and risks, and multiple places can be a pest to look after even with decent PMs.

    Buying property is not that hard, buying property that works for you & for the right reasons is better & is harder to find good deals, it is a lot of work.

    Regarding the new estates further out, I honestly think they are too expensive and the new buildings means they will not go up much in price any further till a next cycle, the property increase may match the building depreciating, better around where you are most likely as has pulled back a bit, but then again, probably would not buy now, but at the same time, if it is a home you want, that may be more important than IPs, you have to work that part out, just be careful not to act just on an urge that you missed out, many did.
     
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  12. Bayview

    Bayview Well-Known Member

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    You've missed it.

    Maybe look further afield for the first IP...an area that hasn't gone up yet, but is showing signs of some growth; newer rods, a Bunnings, KFC, etc - being built or planned, a new school...
     
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  13. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    @paba, figure out what you want first. A new house or to create wealth?

    Most agree Sydney's out of puff, so buying a place to live in Sydney probably won't help with wealth creation.

    Were it me, I'd be looking to investing and chat with a broker to work out what's possible and map out a plan in line with your goals.
     
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  14. paba

    paba Member

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    Thanks for that advice..
    All of the replies are really helping me to decide whats better...cheers