First Home Buyer - looking to start small

Discussion in 'What to buy' started by JoshB, 11th Jan, 2019.

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  1. Kapot

    Kapot Well-Known Member

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    Should not it be in total 427 + 0.25 * 400k / 7 / 52 = 702 ?
    Besides that +10% on 385 is 385*1.1 = 423 (not 427)
    Though, this is not changing the overall picture.
     
    Kapot, 18th Jan, 2019
    #21
  2. The Y-man

    The Y-man Moderator Staff Member

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    I'll blame it on rounding errors - close enough! :p

    The Y-man
     
    The Y-man, 18th Jan, 2019
    #22
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  3. The Y-man

    The Y-man Moderator Staff Member

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    As far a resi properties, this has been the case for us.
    In a *hot* market, you can make that equity very quickly - so a property might cost you $20k a year to hold, but go up in value $200k.

    But there's the provisos - hot market, and ability to wear the costs.

    The Y-man
     
    The Y-man, 18th Jan, 2019
    #23
  4. JoshB

    JoshB Member

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    Thanks for all the info.

    Property doesn’t really seem worth it? Unless I go back in time and buy in Sydney 10 years ago.
     
    JoshB, 20th Jan, 2019
    #24
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  5. GX1

    GX1 Member

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    Hey, I think there is still some money to be made in property. But to expect the ridiculous gains that people have made in Sydney (and to a lesser extent, Melbourne) over the past couple of decades is a bit unrealistic. You could certainly set yourself up for retirement. If you really wanted to retire in 7 years through property, I would be looking at investing in overseas markets, not in Australian property.
     
    GX1, 20th Jan, 2019
    #25
  6. GX1

    GX1 Member

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    mind you - then you would have to be considering the value of the Australian dollar, and most likely have to jump through a few hoops if you didn't have much start off capital to begin with.
     
    GX1, 20th Jan, 2019
    #26
  7. The Y-man

    The Y-man Moderator Staff Member

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    Or go forward in time... to the next big boom.

    The Y-man
     
    The Y-man, 20th Jan, 2019
    #27
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  8. JoshB

    JoshB Member

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    Can we boom again like that though? Mortgages are already way out of whack with wages. We seem to be approaching the limit.
     
    JoshB, 21st Jan, 2019
    #28
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  9. The Y-man

    The Y-man Moderator Staff Member

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    One thing we can be certain of is that we cannot be certain of anything that is going to happen. :)

    The Y-man
     
    The Y-man, 21st Jan, 2019
    #29
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  10. The Y-man

    The Y-man Moderator Staff Member

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    This is where we need to think strategically.

    For example, where mortgages are way out of whack with wages, we might then look at:
    • is this the case in all cities?
    • is this the case in all suburbs? - there may be currently undesirable pockets that are located well, but may boom in the future
    • can we fit more people into the same space (this is the aim of developers)
    • can we put people in areas where there are currently no people? (these are the new estate developers)
    Another example: Suppose there is an area where currently the minimum land lot is 1 acre (low density res) that is only 20km of the city, with the next suburb already experiencing a sub-division boom (apartments, "villa" units, townhouses). Is it possible the council may change there mind in the future? Yes. Is it possible the acreage are worth more in the future because they are the only ones left in that radius from the CBD? Yes.

    There are many opportunities out there.

    The Y-man
     
    The Y-man, 21st Jan, 2019
    #30
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  11. Ron Cahill

    Ron Cahill Member

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    Will it cool down that much? I doubt it.
     
    Ron Cahill, 22nd Jan, 2019
    #31
  12. Jana

    Jana Well-Known Member

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    No Sydney wouldn’t come to that price.. I meant to say buying opportunity in Sydney.
     
    Jana, 22nd Jan, 2019
    #32
  13. JoshB

    JoshB Member

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    Thank you. Sounds like I'll definitely need expert advice if I'm going to consider this kind of thing.
     
    JoshB, 23rd Jan, 2019
    #33
  14. QldKoolies

    QldKoolies Well-Known Member

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    Hi JoshB, the power of realestate can be the leverage and it grows with time as your payment goes further into principal and inflation takes effect.
     
    QldKoolies, 3rd Feb, 2019
    #34
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