Family members' keep preventing me from moving forward (by suggesting to wait for the market)

Discussion in 'Property Market Economics' started by Achimy, 14th May, 2018.

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  1. Achimy

    Achimy Member

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    I'm ready to buy, I've been ready for 3 (@#&*$() years!. I've procrastinated and procrastinated, but the longer i wait, the more i get sick of my job and the further away the financially independent lifestyle seems.

    I'm planning on using a buyer's agent, but everytime i say i'm going to use the service, Dad/uncle say to wait, as the market is going down (or slow down whatever). I think this will be happening in Sydney and Melb (i.e. it's already started). The area i'll most likely end up purchasing in is North Queensland. I'm not sure what I'm hoping to hear, but I need to know from seasoned experts at least, that if I'm ready to buy (with a significant cash balance), should I enter the property market sooner rather than later?

    My goal is similar to many others, to retire as early as possible. It's not like i'm going to go broke buying one property (and it's highly unlikely that a house less than 400k, will fall even lower than 300k). What are your opinions on the matter?
     
  2. Trainee

    Trainee Well-Known Member

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    Are you dad / uncle rich property investors?
     
  3. Kassy

    Kassy Well-Known Member

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    Think with your head and listen to your gut, other people be dammed...
     
  4. WattleIdo

    WattleIdo midas touch

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    Depends what market you're interested in. Plus, there will be differing opinions.
    My suggestion is to decide where you want to buy and then research research research. Look at graphs and buy when there's a significant dip. For Qld, that would be the last 5 years, wouldn't it?
    But seriously, why north Qld? Unless you'll be living there, it may be too transient for investing.Unless you have a good reason, I'd look at Perth, Adelaide, Darwin (all bottoming/ bummed out) or regional Vic or regional NSW (upward trajectory). Look for infrastructure projects.
    Forget the BA and do a few nights of a rip off course. I recommend Margaret Lomas but do your own finance. All the best.
     
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  5. Scott No Mates

    Scott No Mates Well-Known Member

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    Have a chat with a few BA's whonwork the area - get their opinion.
     
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  6. Ace in the Hole

    Ace in the Hole Well-Known Member

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    You don’t sound confident, especially seeking confirmation of the downside risk.
    The more knowledge you gain the more confident you will become.
    How exactly are the family members preventing your success?
     
  7. Achimy

    Achimy Member

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    Dad and Uncle have about 5 properties each (got lucky with Sydney boom in last 3-5 years). Dad has properties all within like a 15km radius...
     
  8. Achimy

    Achimy Member

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    I guess anytime I'm ready to take the next step in buying a property, they prevent me by saying something like "oh wait for the market" and then it makes me overthink and rethink etc etc and i just get stuck again
     
  9. Gockie

    Gockie Life is good ☺️ Premium Member

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    Personally... I'd still go Sydney or Melbourne over North Queensland. And I think prices in Sydney and Melbourne are currently coming down. But this is not advice.
     
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  10. Ross Forrester

    Ross Forrester Well-Known Member

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    Your Dad/uncle is acting out of concern and love for you. It is frustrating when you want to do so much and a family member holds you back when you know they are trying to help.

    Write up a solid plan of you and how you will get to where you want to be. Do not focus on one investment class but think long term as percentage returns on an investment with gearing, capital contributions, taxation ask a range of investment returns.

    Show that you are serious about becoming successful by yourself and present your business plan to family.

    The worst that will happen is that you will learn and demand respect. More likely some people will take on board a small portion of your ideas and start to move towards them.

    It is better than doing nothing.
     
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  11. eletronic_exp0430

    eletronic_exp0430 Well-Known Member

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    Not sure if you have heard that saying in property investing that listening to your friends, neighbors and family can be very detrimental especially if you have invested alot of time researching and your own due diligence.

    Honestly you remind me of when I first started out over 13 years ago. Sooooooo many people advising me against buying houses in Sydney. Especially back then in areas that were deemed "********s" and now considered quite good (i.e) Northmead, Wentworthville, Pendle Hill etc...even further out like St Marys, St Claire.

    If I had listened to them and continued to procrastinate I'd be millions and millions worse off. If your ready dive in and do it. No point being on the sidelines for 3 years.

    You already kind of screwed up. 3 years ago if you bought anywhere in Sydney you'd probably doubled your money already.
     
  12. Chabs

    Chabs Well-Known Member

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    Its quite simple really.. run the math and if the math works out then buy, if the math doesn't work out, keep hoarding your cash as more cash = more opportunities.

    The math is quite simple, what does it cost to hold over the period you're looking at and what is a realistic range for what the property may be worth, is it in an area where demand will go up or will demand go down/flatline?

    Is property your main means to wealth generation?
    • If yes, you need aggressiveness/value extraction using your time: purchase things where your actions may drive more gains, e.g. purchasing something old that can be renovated to improve value and install a g flat on the back to improve serviceability;
    • If no, buy something that more or less pays for itself over time that you can just buy and hodl, use property here for the leverage advantage (e.g. 80% LVR) and the awesome guaranteed savings plan an offset provides (e.g. currently between 3.9%-4.8% interest on your cash)
    For me I look for something that works with the second bullet point as essential, whilst also having as much characteristics as the former as possible as well.
     
  13. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    I have several clients waiting for the Syd market to cool

    from post 2000 olympic highs so as to not end up like Barcelona..............


    ta

    rolf
     
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  14. Sackie

    Sackie Well-Known Member

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    No one prevents you but you. Rule #1, take 100% personal responsibility, don't blame others. Learn what you need to learn to get the confidence to make a decision. Just leave the blame game behind asap. It won't serve you and the masses love to over indulge in it, that's why most of them get no where.
     
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  15. David Shih

    David Shih Mortgage Broker Business Member

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    One thing I learnt myself in this property game is time in the market - people who bought early will always make money out of the people who came to the party late.

    So there is really no best time - the best time is now. Do your due diligence to convince yourself the area that you believe is ripe of investing then simply believe in yourself and just jump in! Yes your family members can help guide you and give you their opinion, but eventually you'll need to develop your own judgement of everything in life, and that can start with steering your own financial destiny :)
     
  16. Tonibell

    Tonibell Well-Known Member

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    Don’t you just hate those lucky investors - particularly when they become know-it-all’s.

    Sounds like they have done very nicely though - even if they are missing out on the coming North Queensland boom.
     
  17. Trainee

    Trainee Well-Known Member

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    No, their making you doubt yourself. Thats your issue. Get over it.
     
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  18. Eric Wu

    Eric Wu Well-Known Member Business Member

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    we all have a few friends like these,
     
  19. Duck1234

    Duck1234 Well-Known Member

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    To be fair, they are right if they are talking about Sydney. If you don't buy well now, you might be in negative equity straightaway. Timing is kind of important
     
  20. C-mac

    C-mac Well-Known Member

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    Just adding another dimension here (not sure if it's been mentioned in the thread already?).

    You say you are ready to buy. However the lending environment is changing very rapidly. How old is your existing pre-approval? You may wanna get that checked out as your borrowing capacity could well be different now since the major banks have been a bit typist on granting pre-approvals.

    Echoing others. Research, research, research and truly map you're risk profile. Some markets are experiencing downward change, and you need to be cognisant of that and realistic of what just one property will do for your ambition to retire early (sadly, having just one investment-grade property is unlikely to move the needle much - but it is a GREAT start!).
     
    TMNT likes this.

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