Should I or should'nt I

Hi all,

Interested in your thoughts. I have been a long time reader of this post. I am keen to set myself and my family (4 boys) for the future. I'm in my mid-40's and starting to think ahead 20-25 years ahead. I am okay with I have to continue working but want to make sure when my kids (14 the eldest and 7 youngest) are given a little bit of a boost when they are bit older. At a minimum I would like to give them at least one house each to get them a head start when they are older.

My dilemma, I see Real Estate as an opportunity to get ahead. But everytime I think about buying, I get nervous - thinking I am buying at the peak. At this stage, I would like to buy in Melbourne (as I live there) and around the areas. I have a budget about $400K.

Any direction would be appreciated.

 

So you've got good intentions but you don't want to commit to buying now in case the market is at its peak. And what if the market had fallen say 10%? You wouldn't buy then in case the market hadn't reached the bottom yet?
Seriously you need to stop looking for reasons not to buy now. You have a lot to get done and limited time to do it. Just start and stop trying to time the market.

 

I guess a little bit nervous to take a risk

 

Risk is all relative...

How are you planning to buy it?

 

Well the investment .... $400K

 

No risk = no reward. I consider the alternative a bigger risk.

 

Yep, I agree. sometime the answer is in front of you....
But hard to see.

 

No I mean....are going to front up with cash? Or get a loan for the whole lot?

Both ways get you the property.

One is riskier than the other.

Might be worth having a read of @Terry_w 's posts on here....

 

I agree. Not investing is more risky than investing. If you're risk averse find something in your price range around Melbourne region and let your tenant pay down the debt. Not too much can go wrong in that scenario.

 

I would borrow the money....

 

For my first 3 IPs I was convinced I was buying at a peak. I wasn't even close. I also sold an IP in Melbourne in November 2015, convinced it was the top of the market. It wasn't!

It's all worked out for me, so no complaints. Just pointing out its actually quite hard to pick a peak or bottom of a market. But you can make money anyway.

 

Contact one of the brokers on here and they can help
work out the numbers for you @Simon Moore is really helpful and knowledgeable with investing stuff.

 

Is 45 years of age too late?

 

Timing the market is pretty hard. Better to just buy an asset and let time do the work, especially if you want something to pass to your kids. Just buy what you can comfortably afford and there's very little risk.

 

Thank you. That said, everywhere I seemed to read people say buy with land and standalone. I was thinking about $400K to spread my risk - will get me a unit. Do I pay $600K and get something with land?

 

Absolutely not. Plenty of late starters on here. Talk to someone and work out a strategy so you know what's possible for you and where you're heading to from day 1. Important to think this through early on to avoid buying something that prevents you goi g further if you decide you want to.

 

Any suggestion on who on this forum I could speak to?

 

Sounds like a case of analysis paralysis. If you are looking to hold long term 10 to 20 years I'd personally take the plunge. Plenty of information here on how to get started, what to look for in an investment etc.

Age is not a barrier but excuses are. Positive mindset makes a massive difference.

 

Avoid units. Massive oversupply coming. You could buy in Geelong. No need to overstretch, unless $600k is comfortable for you to afford.

 

Speak to a broker first. I like Simon Moore and he's in Melb. Do a search for him o n here. Also you should go to the next Melb meet up. There's one in the East and one in the West each month. Details in meet up section.