Would it be WISE to purchase my first IP in Melbourne right now??

If I were you right now, I'd be seriously considering option B, market is way too hot to touch right now. I had a bigger budget $700-$750K, was looking late last year (Nov/Dec 16), prices shot up way too quickly where I was seriously looking - North - Rezza/Heildelberg West/Heidelberg Heights, started realising I realistically needed to increase up to $800K, got cold feet realised I shouldn't take any risks in this market....on the contrary, I can sleep well at night, eat a good lunch every weekend and enjoy time with my family.

On the contrary I had a mate similar to me income levels and family structure (2 kids) and bit the bullet on a property up North. He's having sleepless nights now as he is having buyers remorse knowing he may have purchased at the peak....He bet that the North will "close in" on the East on averaging 1 million.

I just wonder when in 6-12 months what I can afford to buy with 800K LOL

 

I still believe there is abit of movement left, not much through imo. Planning to sell my car regardless, it sits there and collects dust and I have full private use with my work car. Haven't looked into the Brisbane market as much as I have with the Melbourne market but the cheaper market and slow and steady market made it an appealing and safer option that I just recently considered.

Agreed, just $1mil above my price range.

 

Yeah thats what I am leaning towards. The way I see it, I'm still young and am just at the start of my career. I think I have missed my opportunity to get in this time around (was still studying and wasnt qualified) so I might have to keep on grinding and wait for the next opportunity.

Im thinking the same.... what can 500-550 get me in 6-12 months..... :S

 

Does it have to Melbourne? You can buy a house with a big land component in Brisbane and be cashflow positive (~5.2-7.5% yield). You're never too young to start investing, I wished I started investing in Uni instead of shares.

 

Brisbane has recently grabbed my attention. But to be honest, I haven't researched enough. Yeah wish I started earlier too, instead of blowing all my money on cars and going out
Any areas in particular that you recommend to look at in Brisbane? Keeping in mind my budget is 500k (or thereabouts)

 

Hi mate, although not in the Brisbane market it seems like most people in that range looking at the 10-15km mark. Suburbs like Mitchelton, Chermside, Mount Gravatt East, Keppera.

In my experience I have found buying in Brisbane still has great 'buying conditions' with a strong offer taken seriously and ability to buy well. It also may be a great time if your concerns of the Melbourne market going backwards as it is the correct stage of the property cycle.

Still think Melbourne is good buying in some areas!

 

If it makes you guys feel any better, I didnt start investing till 33 lol (in any way shape of form). I did recall there was this Asian sheila I knew at uni, I thought she was nuts to invest in Keysborough (2001) and being only 19/20ish..scared in a way....

My first ip wasn't really an ip...ppor but I needed it to live in.

 

I would go just with option 1 & 2, probably need to see which suburbs will make that leap. my bet is geelong (FHB), werribee. (these I believe will move) with all the stamp duty changes etc come 1st july. Option 3 : here are guys talking about booms for 2 years yet nothing really major has happened.

 

There is NO Melbourne market...there are hundreds of markets within this region. What a ludicrous thought to 'sit and wait and see'? Remember it's not 'timing' the market, it's 'time in' the market, (whichever sub-market you choose). I agree with buying something and improving it's value...relatively easy way to create some equity.

 

Hmm while timing the market is difficult, it's certainly more lucrative than 'time in' the market.
Look at suburbs like Cranbourne, Werribee, Carrum Downs, Frankston etc..
All had years of flat and slow growth, approx 8-10. Anyone buying and holding, selling during that time would of had an very average return.

Anyone buying there in 2014 onwards would of easily doubled the return in 3 years over anyone buying and selling in those areas the over the last 10 years.

 

i agree - that is very true - while ppl play percentages calling downs and ups (month by month) I mean so what ?? I have been nearly 30% falls in apartment prices in Melbourne (in the mid 2000s) and yet other grew - there are markets within markets in every city. in fact the auction result would be more accurate to evaluate demand.

only moronic comments that Chinese mainlanders buying up causing bubbles or saying bubbles are emerging coz rezoning shows no incentive to diversify or think out of the square to make a dollar and either you stay that way or reinvent yourself by looking at different suburbs, cities, H&L, renovation, etc.

 

I still reckon Logan is good value. Ipswich is also very good value at the moment for a CBD. Make you check that the place is not in flood areas.

 

I say Go for it, wait it out and buy Brisbane now.
Sorry I think chose all 3 options

 

As per this article: Now is a good time for OTP purchases in Victoria, says expert yes it is the safest way to invest for house only in VIC state.

 

Now is a good time for OTP purchases in Victoria, says expert - as Mandy Rice Davies put it, "they would say that, wouldn't they?". Ms Mays indicated another benefit with buying off-the-plan is that you only pay a 10 per cent deposit and are not required to settle on the purchase until the property construction is fully complete. “This often means there are months during which you are not servicing the loan but are already securing the asset.” “In many cases, by the time that the property is ready and settlement occurs, the property has already increased in value from what it was purchased for, giving you a potential for instant capital gain.”

Meanwhile in the real world 2212A/889 Collins Street Docklands VIC 3008 - for sale #1954934 - 2212A/889 Collins Street, Docklands ... North tower, Level 22, 10% price off from original contract price 685k. Settlement is due approximately in the middle of June/2017.

 

Completely agree with this. The sooner you can buy a property, the better. I'm in the same position as Michael - I'm 23, just starting out in my career, and looking to buy an IP in Melbourne under the 550k on a single income. It's a massive challenge but one that I should overcome sooner rather than later.

I guess that's the name of the game - you just never know with property.

Michael - I'd suggest you consider buying as soon as you are able to. Buy smartly, look for the right pocket, potentially under market value, something with obvious subdivision potential, a property which you can manufacture equity with. You've said it yourself - 550k in 6-12 months won't get you what it will get you today. So I don't see the value in playing the waiting game. Don't see house prices going down, if anything, it will just slow or stall.

 

I'm 33 and I still haven't started yet! I've taken option B for now, also because of other factors. Decent sized deposit sitting in the bank doing nothing more then 3% or so interest. Tough investing times, wish I could turn back the clock!

Had some great input from the PC community which may help you.

VIC - Best Melb Strategy (600-900k)

 

All good man, each to their own. I enjoyed every cent I earnt during my 20s travelling and learning about life.

 

Brisbane is a slow burn market now but it's still moving. Any correction in Brisbane is likely to be minimal so it's probably a safe option. In QLD FHBs get stamp duty exception on property under $510k but since you won't be living in it, you'll forego all FHB benefits and you can't ever get them again if you buy an IP...

 

The areas I have in mind would be Dallas, Westmeadows, Werribee, Belmont (and other areas around Geelong). Are there any other areas I should be looking out for?

Yeah I feel as if I'm a bit 'late' for property investing. Although I invested (And still am) in cryptocurrencies which has been going very well. But now I am ready for something more stable.. i.e. property

I'm hoping that the market will 'stall' so it buys be a bit of time I guess