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

What books did you read? At the end of the day, where there's a will there's a way. But I know, it's not easy.

 

we just signed a contract and could have walked away , but we're doing it for the long term , so are going ahead .

Just wondering whether we should have kept that unit we have in Hobart ...

Cliff

 

I would seriously consider walking away. $4k is nothing in the scheme of things, especially on a 1.6m property. Realistically what happens if it’s only worth 1.4-1.5m in a year or 2. You’ve lost a lot more than $4k.

if your budget is 1.6m you would absolutely be able to buy 1 if not 2 quality investment grade properties that will set you up for life.

Think long term, not just today. That unit will date quickly, you have no land value and the building will quickly become old.

If it was me with that sort of budget, I’d spend $800-$900k on a ppor, and put $700k towards a well located IP somewhere else.

 

Ideally I would love to do something like this but unfortunately I work on the northern beaches and my hubby works in the city. (Sydney). For a 800-900k ppor house in a area where it's close to public transport it would be more then 1.5 hours for us to get to work... Even apartments in areas like Chatswood sell for 1.2-1.3 mil for a 2 bedroom. Would love suggestions for where to invest in Sydney at those price ranges though...

 

PPOR’s though IMO are investments and should be treated with a similar long term outlook.

Prime example is I have a close colleague who did exactly this. Purchased a Southbank apartment 6 years ago, recently got it valued less than purchase price.
His wife wants to move but they can’t because can’t afford it. They only now understand the massive issue their desire for lifestyle has and will forever cause on their finances.

I’m all for lifestyle but rent is the simple answer. I hear OP saying doesn’t like moving but really? Most apartments are owned by Chinese investors who love long term tenants and if you are made to move then you’ll find an IDENTICAL apartment within 3 floors. Hardly a hard move.

 

I think the answer for you is don’t invest.
It seems like you may be able to dodge a bullet on this one.
I agree their is a lot of uncertainty at the moment so why rush to purchase something?
Can’t you just rent for a while longer and spend the next 12 months in rapid education phase whilst at the same time watching what unfolds from the sidelines.

 

Please tell me when there is no uncertainty?

Property markets flat = no growth dead money

Markets growing = slight moment wait and see how it goes, risky to jump in yet

Markets growing fast = missed the boat on buying. Watch from sidelines.

Booming markets = collapse is imminent. Sell sell sell!


The fear and indecision never ends for some. Round and round we go

 

Yeah.. after alot of soul searching with the hubby we'll most likely back out once the banks valued it ... Although I was considering offering the vendor like 50k less to account for likely fall

 

This is exactly it Q.Q

 

No doubt!
I was more pointing towards the black swan Coronavirus. You know me mate I’m a forever optimist! When it comes to this though I’m really unsure on how it plays out.

It’s far bigger than my little brain can process

 

@Silveyr, you need to do a deep soulsearch. Why didnt you buy in the last 10 years? This will tell you something about your attitude to investing. Until you understand that you will always just react. And emotional reactions are usually bad ones long term.

 

Spend 1 week intensive in the Sackie boot camp and we'll have you fixed

 

I didn't buy in the last 10 years because I was studying and only started working a few years ago. Then I was overseas for while so finally back, settled and working so wanting to get something...

 

Does it have to be Sydney @Silveyr ? You could buy something mind-blowing in Brisbane Adelaide or Perth with that kind of money.

 

All our family is in Sydney... Even buying a investment property we kindof want to buy something in Sydney so even if everything does go to crap we can at least move into it..

 

Please let me osmose all your knowledge and the confidence!

 

There are some good property intro books that will help to demystify the process for you...I found Margaret Lomas 20 must ask questions very useful whether it be Sydney or any other location.

 

Yeah ...we did check all that and it seemed fine .... And the company is definitely going to stick around ..

 

Fair enough. It would appear that discovering this forum was a very, very good move. Stick around, read and save. Give it a few months and you'll be in a far smarter position to buy something. Good luck!