Don't Buy Property in 2019

Thanks for clarifying

 

Yes, these will probably be in the burbs, land and house packages? cash flow positive because of depreciation, however if you are expecting growth when there is currently oversupply then you will be waiting a long time. Just what I see in the Perth market.
If there are other markets then all good and well, but I would not be parking money in an asset when I cant see growth in current climate.

Just my thoughts on this

 

So now perhaps its time for the patient mindset

7 Mindsets That Will Radically Improve Your Life Right Now

. Patient mindset.
There's a fine line between moving forward and standing still. The most successful people do all they can to move forward, but they also have the patience to wait and watch. Those who are impatient tend to lose out on great opportunities. Sometimes you have to wait for the right thing.

 

I will still be buying for me and for my clients but they will be in specific areas and equity will be forced out via renovations, subdivisions and new builds.

Some of the patient mindset is a must for the Perth market as it can take awhile to find the right buy that meets a conservative criteria. It can take 1-3mths to find a profitable development site whereas clients that are used to looking for a buy and hold IP might be able to find them quicker as the criteria and supply is a lot different.

 

Nope does not work in Perth...more infill where you are getting 5% plus about 100k in equity....

 

Hi Sash, any examples you care to share? Just interested to know. Thanks.

 

Sorry..I am looking at these areas....at the moment....

 

No drama

 

Great
But I assume you can not sell as the numbers wont stack up after all costs??

So its add value, access equity and hold??

 

On current trends Sydney might drop 7% by the end of first QTR or mid year..
Its going to be a pretty big year for those migrating from IO to P&I.

 

But bust cycles last more than a quarter last boom bust cycle in Sydney was 7 years.

We dont know how much it will drop, it will be dependent on product and area how far it drops , one shoe does not fit all

 

Could do, maybe I should have used a city other than Sydney to make my point (which was primarily meant to be that Labor's policy changes might be one reason to consider buying in 2019, though not necessarily in Sydney).

 

No these have to stack up as selling as well as everyone needs an exit plan if their circumstances change but some will chose not to and also hang in there for some additional CG as the Perth market picks up.

I meant that we'll be forcing out growth/equity via other means, not waiting for the market to rise.

 

@sash New Builds or existing?

 

Hi All, my partner and I recently split. He is very keen to sell our PPOR in Chermside West. He wants to list ASAP. Reading these posts makes me very, very nervous about selling as I know it’s the worst time. But, do I attempt to buy him out and service a huge mortgage by myself with the hope of selling down the track at a better time? And maintain a large family home full of memories by myself? Or do I cut my losses, take the hit and downsize to a more manageable place by myself? My current dilemma

 

I'm continuing to reno, develop and hopefully buy another site soon. 2020 will be a Syd market deal galore in certain areas so can't wait for that. Also Perth blue chip with add value on the radar . Exciting times ahead .

 

Hi Mel, I recently met a lady in a similar position to you. However, she lived in inner Melbourne. Splitting with husband. Her home was listed for auction, her and her ex were wanting $1,300,000. The auctioned was held but the highest they were offered was $1,000,000. The woman in this situation did not want to take a $300,000 loss. So she arranged to buy out her husband's share of the house, instead of letting someone else buy the home at this price. Obviously, when she originally purchased this property with her husband, they didn't pay anywhere near $1,000,000. The price had increased over the years compared to their initial purchase price.

She is now using Airbnb to hire out empty rooms in the house to help her pay the cost of mortgage. She thinks she got a bargain. Husband likely thinks he is getting market price regardless, although I don't know him personally.

I think you need to consider how much the house is worth today, and how much you paid for it originally. How long have you lived there for? What kind of mortgage can you afford to service? Do you see yourself finding a new partner in future? Unfortunately I know little about your area, so can't comment on the market in your area.

 

New psuedo development

 

@MissMel
I don't know that market well or your exact position but it's important to remember that you're going to be selling and then buying in the same market. So if the market moves you'll get some gains either with your current property or new one.

You may potentially get more gains with your current home, as it is worth more, but how you stated about trying to service a large mortgage by yourself it does sound a little stressful.

The real costs would be selling costs and then stamp duty on your new purchase.

It's a personal choice, all the best!