Invest now or wait ?

Should I buy my first ip soon or wait ? Looking to buy in Brisbane or possibly Melb

 

Definitely.

 

Hiya

Only you can make that decision.

Cheers

Jamie

 

If you have the deposit ready and the cashflow why not?

 

The ones making money in life are not waiting, they are doing.
If you make mistakes, better sooner than later.

 

Trying to time markets can be very difficult, as a saying goes.

Time in the market is better than timing the market.

Obviously if you can do both then you will get greater results.

To give you a crazy example, lets say 40 years ago my father bought a 2bed unit in St Kilda for 30k. Lets say he was sooo stupid and paid double (60k) today it would be worth 500-600k (median 2 bed is 609k according to re.com).

Of course if he bought 2 units at 30k each (60k) the assets would be worth approx. 1-1.2m.

 

I concur.

 

What if I bought in a mining town 6 years ago? Backwards. Or Melton, flatline for 10 years...

I agree with you in principle but it's reckless to say you can generate 700% return on something still today with time.. No one has a crystal ball like that..

But as Arnie says " you can't climb the ladder of success with the hand in the pocket"... (Grammar intended).

 

No one can consistently 'time the market' perfectly but there are ways to enter markets at much more opportunistic times (and more disastrous times) and then letting 'time in the market' take care of the rest.

Of course my personal favorite, adding value always works well to.

A nice combo is bmv at 8 o'clock , add value and sell/refinance at 10 to 12 o'clock.

 

Waiting can bring a lot more money than doing. Patience in the markets always pays out.
If you make a mistake sooner, later may never come...

 

OP referenced Melbourne or Brisbane, I will stick with my opinion.

If you are buying regional or mining towns they have different levels of risk and thus will swing further each way with results.

Buy in Sydney today (which has boomed already) and pay 2x the price (so even paying more than the boomed price) for what it is worth and in 40-50 years time I am almost certain it would of increased in value.

If the OP was asking for mining town or Melton I would of provided a different answer.

 

Mate this may be true, let's assume it is. But the problem is building the portfolio. You know you need to extract equity as soon as possible to keep funding deposits to expand. Also from a risk mitigation POW you don't want to be in a position to have negative equity by paying too much at a point in time even if you think in the very long term it may be a good return. But that's just my opinion.

 

Agreed Leo, I am really trying to emphasis a point that with Syd, Melb, Bris it is more time in the market and not timing. If you can time the market or have an understanding when a city has boomed (who doesn't know Sydney has boomed) then you can adjust your strategy.

There are many people who try very hard to time the market and keep saying I will wait for it to bottom out and then when it starts to bottom out they think oh it still has further to go. Using the property clock even if you bought at 4/5:00 you will still make money, same as buying at 9:00.

The part that will hurt you growing your portfolio is 10/11-4:00 but still doable just a slower and more risk (for less reward though).

To give you an idea yesterday I just received a contract (settlement likely end of August) for a house in the region where OP has mentioned.

Note I am not trying to push my own agenda it is up to the OP and everyone else to make up their own mind and select their own strategy that suits their goals and risk appetite (and cashflow )

 

Didn't mention anything about his timeframe etc.
could be buying at the top of a cycle 6 years from retirement.

My point was just don't be "bullish" under all circumstances.. A little Conservatism goes a long way..

 

OP: Should I buy my first ip soon or wait?

Using an assumption he is looking at buying now as it is likely implied with soon or wait part. The OP would likely be looking at the next 12 months or wait 3-5 years.

Again with every post we will never know all the details from a person post but to think they were talking soon (5 years) or wait (20 years) to me is idiotic.

Also if someone is going to buy purely off one post from a anonymous person on the internet that is unaware of their financials, risk, life, even name is rather stupid.

 

Invest now or wait???
Without knowing much of your financial situation, i will still vote for invest now THEN wait.

 

Buy when you can, subject to DD on areas.

 

That could be the difference between buying 1-2 IPs or buying 5-6 IPs.
Not recommended and a big difference at the end.

 

General feel on this forum is to go for it.

Then once that is going smoothly your next thoughts might be, do I leap in and buy IP#2, #3, #4 or do I wait....?

The only way to start building a portfolio is by getting a solid first one under your belt.
Just look for the Capital growth... it can be manufactured... as as long as its not costing you a packet load every week (and it really shouldn't given these low interest rates), then you can just let time do its thing