I put offer in on apartment and now I've got the worse buyers remorse

The vendor hasn't even accepted yet and it's probably the best value you can get within 7kms of the CBD but I just can't shake off this feeling of paranoia that when the market starts going down apartments in Melbourne, no matter what kind, are going to feel the brunt of it because there's so damn many of them and majority are owned by investors. They'll become worthless.

I'm in a tough spot because some apartments nearby are selling for 10% more than last year and I'm on the verge of being priced out of this location yet there are some apartments, even older ones, are still sitting on the market since November 2017, especially ones that require work or have body corporate issues which tells me investors are out which is usually the start of a downturn when investors start bailing.

I'm buying for somewhere to live but at the same time I don't want to be a sucker buying at the peak. I don't know if this is just standard buyers remorse or good judgment telling me it's better to wait or even reduce risk by buying a 1 bedroom instead of 2 bedroom.

I just thought I'd get some objective feedback before calling the agent and withdrawning my offer before the vendor accepts.

 

Have you signed a contract? If not, you haven't committed to anything and can walk away at any point.

Run the numbers on it from an investment perspective. What are the holding costs after rent and expenses? Taking an objective look might help your frame of mind.

Best of luck.

 

I think you would be increasing the risk by going for a 1 bedder as there are far more of them

 

Why do you pick this apartment and how long do you plan to live in it? If you really like it as a PPOR then consider if that's the price you want to pay.

 

I signed the contract but the vendor hasn't accepted yet. I heard you can withdraw your offer at any moment prior to the vendor accepting it. Worse case scenario I pay $500 for pulling out during the cooling off period which is 3 days. I'm not worried about losing $500.


There's no holding costs as I'm paying with my deposit so there's no mortgages. But I'm looking at sydney and getting paranoid Australia is gonna go into recession the prices are so inflated over there.

 

100% cash no mortgage?

Only you can decide whether your paranoia is justified. But if this happens every time you buy, when will you actually buy? Dont tell me when the market bottoms because youll panic then too.

 

It's great value in comparison to what's around. The location is great, the complex is great, the apartment layout is great and if the vendor accepted my offer it would be a great price compared to what's sold close by. I'm just paranoid about how vulnerable the apartment market is to a downturn. Even with apartment prices struggling in Melbourne for the last few years tons of new complexes are hitting the market this year. They'll be worthless if the market dives. Am I wrong?

 

1. The economy is going great guns
2. Melbourne has great long term prospects - our immigration rate is one of the highest in the world

Stress less mate - if it’s well priced and in a high demand location it will do well over the long run

 

Some people arent suited for property. How about some index funds?

 

If you are so worried and that the market is not going anywhere then why don't you just wait and see. Since there's so many apartments available now and in the near future then why take that plunge?

 

I'm thinking that I'll be set either way. If the market increases atleast im invested. If the market crashes I'll have 100k aside to buy up.

 

If you don't buy this....what's the alternative?

A cheap, well located PPOR is valuable for a whole bunch of reasons....not just cash.

 

btw @DrunkSailor it's CG that you after than there are better markets and way better products that you can potentially buying into instead of a generic one bedder that I can think off.

 

I'm seeing it from the perspective of it being a PPOR, i.e. I love the area and the property. For as long as I can afford to pay the loan, have buffer and am planning to be there for a long time, then I'll be less worried about market downturn.
It's a different matter if yo buy it in view of it being an IP.

 

Yeah you think I'm just stressing over nothing?

 

It's great value and I wouldn't want to miss out on if the market does continue to go upwards

 

Rarely does any property become worthless. Sure, values may drop a bit after you buy, or stay stagnant.

And a 2 bed apartment has wider appeal than a 1 bed so may be a safer option.

So long as you intend to hold the property for at least 7-10 years now may be a good time to buy. From what you say, it sounds like you have done your research and identified a good buy in this market. With all the doom and gloom about apartment oversupply I doubt prices are inflated.
Marg

 

They are going to reject your offer and then you are going to be so disappointed !

It all reads like you really want it.

 

It will come back to the product at the end of the day, if there is an oversupply of this stock in this suburb then yes there is an issue of prices either falling back or little/no growth in the future. If you look a the current boom cycle in Melb, apartments did not perform as well as houses etc. Why??

Being the devils advocate here.... if its a primary residence then I guess the same rules don't apply?? What are your options?? Will this mean you need to live further away from CBD, a matter of weighing it up. You could be sacrificing future growth for convenience/lifestyle..... no right or wrong.... choice

 

Mate if you want to live there and its a great price I'd be buying - it is Melbourne after all, prices will go up over time. Might be stagnant or even go down initially but you're in it for the longhaul - sounds like a good buy. I'd like to get a pad at the Docklands if I could afford it - I like the area and amenities I'd buy.