Help with my decision please... Put mini deposit down but now terrified about coronavirus recession.

Beer, good wine, seafood, ... and yes air-con

 

Because at the end of the day when the dust settles and sentiment normalises, no one gives a crap about all that stuff when it comes to buying a home and raising a family. It all comes down to 2 things.

Supply and demand.

 

I would be thankful that the Coronavirus got you thinking about your purchase and use that not out of fear of recession but of fear you have purchased an absolute lemon.

2 story apartment in a 70 floor tower are about as bad an investment you could get.

Run forest run

 

It's investing 101. When you have too much supply, low demand and dozens of units to compete with...it can't end great.

 

But it's not an investment....it's a PPOR. Why? I have no idea! It's not something I'd buy to live in, but maybe the OP likes living in a large appartment complex. Maybe he wants to walk to work & this is all he can afford. People make strange decisions sometimes.

 

My bad, I thought it was an investment. Tbh I see ppor as investment too, but I get most don't or necessarily need to.

 

Haha, me too. Arguments from Hubby....."why do you want to do X"? "because it will increase the value when we sell"......"But we won't be selling!"......."No, but we will at some time".

We've been house hunting for a new PPOR. Seen some cheapies with really bad floor plans, which are easy to fix. He rolls his eyes at me.

 

I'll be honest I do like living in apartments and this particular one has a lovely view.. The other thing is that I'm sick of moving house every 6-12 months and I'm not sure how well I'll do with rentvesting. It seemed like a good idea at the time. Now I'm starting to doubt myself with all the news about coronavirus and people talking about how bad a investment apartments are.

 

It's called buyers remorse
Think about the reasons you bought it in the first place, forget about corona virus and how it relates to this property for a minute

 

Apartments are not all bad investments. I own quite a few which have done well. But not all apartments are equal. And buying an apartment in a large complex in a market where apartments lag behind houses in growth and there is likely still an oversupply will generally make a poor investment, leaving ppor out of it.

IMHO coronavirus is the least of your worries affecting poor investing outcomes. In terms of investing, you are by a mile your biggest risk factor ATM due to your lack of investing education.

 

The maker of Corona (beer) has already lost sales of R4.3 billion to the coronavirus

well, corona beer sales have dropped $100s million due to the virus,

my consumption of monthly corona has dropped from like 2 to 1 as well

 

This is true we originally were looking for free standing or town houses to buy as an investment property but recently had to move rentals. The moving process was terrible and then we ended up not having more then a minute of hot water in apartment for the first 3 weeks. That plus the fact that we only have a 6 month lease made me want to get a nice property to live in so we wouldn't have to move so much. My husband and I don't mind or even like living in apartments in CBDs especially with all the convenience. (We just moved from Parramatta CBD). I know it is over supplied. The apartment we found and liked is very high up in the building with great views though and a good lay out. And I was really looking forward to moving into it when we put the deposit down last week. But our hot water got fixed and we've settled in a bit to our apartment now. Plus all the news of the virus and the stock market tanking just makes me feel like we made the wrong decision. Plus I know owner occupier is great for capital gains ... Which is pointless in apartments because less capital gains... So now I'm torn between giving up our mini deposit or just stick through with it....

 

If you like the apartment you have a deposit on and it's your ppor and happy not to view it as an investment etc, then I don't see the issue.

Forget about the virus/stock market crashing etc. It's all nonsense and has nothing to do with you buying a ppor you like. It's distractions such as those which stops many people from progressing in life. There will always be a catastrophe around the corner. Ignore it all.

If you love the unit, think you're paying a fair price, can afford it and your not viewing it as a super investment, then go for it.

 

If you liked it when you bought it, the long term prospects havent really changed.

 

Or maybe reverse psychology ie people are thinking other people are spooked by the coronavirus so decide they better buy now in the hope of nabbing a bargain. If more than less would be buyers are perceiving it this way, then....

 

Same principal applies to the stockmarket... is it a good time to buy today? If not today, when and how will you decide it is the perfect time to buy?

 

Warren Buffett has a saying about the stock market and investing in general: “Be fearful when others are greedy and greedy when others are fearful.” Time and again, the value investor has used this philosophy to pounce on opportunities.

 

Exactly how much is this mini-deposit in $'s please? ......and what makes you think it is not refundable? Since this for a NSW purchase, the deposit/s and contracts still have to comply with NSW conveyancing practice.

 

Mini Deposit is around 4k. I thought if you changed your mind or finance didn't fall through in the cooling off period you forfeit it?