Strategy for a Young Adult

Discussion in 'Investment Strategy' started by Luclause, 14th Oct, 2019.

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  1. Propertunity

    Propertunity Well-Known Member

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    It may never happen. People have correctly predicted 15 of the last 3 recessions we've actually had. Look if you are going to hold property long term then you will go thru a few recessions and quite a few changes of government. You need to invest anyway. Otherwise, be like the crowd of non-achievers. You will ultimately become like those you listen to most.
    I wish I had a dollar for every time I heard this. The market is heading up. Let's assume it's on its way down, just to play your game. When are you going to buy? How do you pick the bottom? What if IR's start going up too? yadda yadda - there's always an excuse not to buy / do anything now. Hope is not a strategy.
    Lenders get tight on credit - lenders get loose on credit - there's always someone that will lend you money.
     
    Propertunity, 16th Oct, 2019
    #21
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  2. Luclause

    Luclause Member

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    @The Y-man yea that makes sense to me, seems there is a good amount of trust to have in the bank since they also have risks and considerations of themselves.

    Will definitely keep those things in mind for the future. I'm going to keep doing my research to understand what risks I'm taking on with a purchase.

    Any more insight is appreciated people!!

    Jason
     
    Luclause, 16th Oct, 2019
    #22
  3. John_BridgeToBricks

    John_BridgeToBricks Buyer's Agent Business Member

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    I think @Propertunity said it best above. Invest young, invest for growth and stick to the capital cities if your budget permits. Location is everything.

    Don't get stuck in the dead-end game of trying to predict where property prices are going next, or even where policy is going next - because yes, policy will change.

    But remember, real estate for centuries has been simply a representation of tangible wealth.

    I heard on a podcast recently something that really stuck with me. They said that the "inequality" that we see around the world isn't really income inequality, it is asset inequality. Ie, at a very raw level, the haves and haves nots are distinguished by those that have real estate, and those that do not have real estate.

    This is a long winded way of saying to go for it. All of the big investors wish they had started early, so even if you make a mistake, you will still be way ahead if you invest. Good luck, and over to you.
     
    John_BridgeToBricks, 16th Oct, 2019
    #23
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  4. The Y-man

    The Y-man Moderator Staff Member

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    @Luclause

    As you can see from above, "waiting to see if the price comes down" is not a really good strategy.

    What I believe IS a valid strategy is to "wait and build up more ammo to get into better deals".

    For example, there was a property passed in Sth Morang on the weekend - a prime time to potentially pick up a bargain - but you can't be in the game unless you have the money. In this case, the passed in price is not listed but the prop is up for sale for $740k. Because everyone is hunting for the $500~600k props, the upper edge ones are relatively cooler. I hope this makes sense - avoid diving into a hot market - cool market segments exist all the time.

    In the meantime, you might also want to explore investing your existing capital instead of saving - i.e. looking at managed funds, businesses, commercial and industrial prop.... Sure it will add an all new dimension in volatility (aka "risk") but do give it some thought. As I have written elsewhere, these alternatives are handy to learn early in any case in case you want to generate income.

    The Y-man
     
    The Y-man, 16th Oct, 2019
    #24
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  5. God_of_money

    God_of_money Well-Known Member

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    Do u mean this one?
    185 The Lakes Boulevard, South Morang VIC 3752 - House For Sale | Domain

    Price range $740-760k. A bit too far from train station. I dont think it is a bargain.. but happy to be corrected
     
    God_of_money, 20th Oct, 2019
    #25
  6. The Y-man

    The Y-man Moderator Staff Member

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    RE com has it at $740k (I read it as that's the upper edge price) -- so If I was looking I'd go in at 10% below that for a start.

    However, agree the land is small ~~ very much the sort of sub div you find in the new areas.
    Also agree that it is a tad far from the station - although looks like 386-387 runs 7 days a week.
    I don't mind the feel of the area though, and it's close to the local Coles rather than hitting the Westfield.

    In any case, as the OP is after a PPOR, there is a lot riding on the OP's tastes and what they like IMHO.

    The Y-man
     
    The Y-man, 20th Oct, 2019
    #26
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  7. albanga

    albanga Well-Known Member

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    Definitely go option 1 and don’t get caught up trying to time the market...you won’t win.
    Just be smart about your investment, don’t buy new. But something you can move into and add value overtime. This gives some defense to market movements.

    And know that even if you pick the top of the market, reality is your still probably further ahead than most people who choose to do nothing or wait to time the market. I have friends who have tried to time the market and are still out of it 8 years later and missed some huge opportunities.

    By jumping in you get thrusted into your education and knowledge is where it’s at.
    Good Luck!
     
    albanga, 21st Oct, 2019
    #27
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  8. Sackie

    Sackie Well-Known Member

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    @albanga
    I could write a book on people I know who have missed out on some fantastic opportunities. Their chief reasons were:

    1. Property is too expensive
    2. The market is risky ATM
    3. Some macro/ political issue they quoted.
    4. I want to buy but I'll wait and see how the next 6 months goes. ( Lol wait to see what exactly is still a mystery to me).

    Then the most recent Melb and Syd booms happened. Bam!

    I'm fairly certain most wound have missed out.


    This scenario will play out over and over again as time moves forward.

    Not so long ago I remember some folks saying property is not gonna move for at least 10 years. Then bam! A mini boom occurs. Lol.

    Buy when you find value and it meets your goals and own financial situation. If you're able to add value - all the better.

    That. Is. It.
     
    Last edited: 23rd Oct, 2019
    Sackie, 23rd Oct, 2019
    #28
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  9. Luclause

    Luclause Member

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    Sorry been quite MIA with all the hustle and bustle at work guys, finally getting a chance to read a number of all your replies and thank you so much!

    Regards,
    Jason
     
    Luclause, 27th Oct, 2019
    #29
  10. Cimbom

    Cimbom Well-Known Member

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    I would go with option 1. Of the suburbs on your list, I think Sunshine would be the one I'd try to stick to but you may need to up your budget by 50-100k to give you a decent amount of options. Good luck
     
    Cimbom, 27th Oct, 2019
    #30
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