Predictions on $RealEstate$ (1 Viewer)

[jayz]

say if u had the deposit to buy an inner city apartment or a brand new house at liverpool
which one would u choose right now?

 

[enak]

Inner city apartment. Nothing in Liverpool interests me. Assuming I had the amount for deposit, then I could also eat out every other night, and there are fine restaurants in the city. The opera house would also be close, which means I could go watch a concert every few days

 

[Bimbo]

Originally posted by jayz
say if u had the deposit to buy an inner city apartment or a brand new house at liverpool
which one would u choose right now?

is the inner city apartment new? and am i going to be living in this house myself, or is it an investment property?? if it's an i.p, than the brand new house in Liverpool because you will be able to claim the depreciation of the fixtures and fittings etc. Also, land is more valuable than the actual house or apartment itself, so i think i'd definitely got for the house in Liverpool.

 

[jayz]

Interesting views

Personally speaking i'd also go for the Liverpool property because of its long term investment profit returns (but i am not so sure if u could get much $ out of claims for old carpets and lighting etc)

On another case, say if u had $150000 and looking for investment opportunities, r u willing to purchase properties in regional areas, like wagga wagga and buy 5 properties or more

or

Would u put all the money in a relatively closer to the city house (e.g. one in Parra)?

 

[Bimbo]

Originally posted by jayz
Interesting views

Personally speaking i'd also go for the Liverpool property because of its long term investment profit returns (but i am not so sure if u could get much $ out of claims for old carpets and lighting etc)

On another case, say if u had $150000 and looking for investment opportunities, r u willing to purchase properties in regional areas, like wagga wagga and buy 5 properties or more

or

Would u put all the money in a relatively closer to the city house (e.g. one in Parra)?

from an investment point of view, yeah the newer house would be better because of the depreciation angle..but like you said, you can't claim much (if any) on older fixtures and fittings, for some older houses it would be hard enough gaining a copy of the original depreciation schedule.

I think for the 2nd case, i would stick with Parramatta, because there's a lot more rental demand in that area than there is in a regional area such as Wagga Wagga. Also, Parramatta would have way better capital growth, especially with the development plans for that area.

 

[jayz]

but hav u considered the possibility where by purchasing numerous properties in regional areas, there's more likelihood for a larger investment gain (through selling the purchased property), because using the $150000 u probably can only buy 1 property in Parra, however 5 properties in outer Sydney, Eventually the price of land will rise, hence u gain more through regional areas.

In terms of finding tenants for renting, heard on the radio, some guy set up his own business, which basically buys the properties his tenants wants to live in, ensuring positive gearing, plus he also uses limited capital, because he is an 'established' borrower (i.e. institutions lends $ to him) and he also earns an annual income of $200000 (sounds like a really good job to me).

The case I am trying to put forward, is basically, how come ppl with equity don't refinance in areas of large potentials for growth, rather, they continually boost the booming areas like inner city, where they know eventually the market will slow down drastically (I really wish), and how come the gov is doing nothing about this, because ultimately their future voters-us, wont even be able to afford a camp site in Coffs Harbour.

 

[enak]

There are other areas of investment which is more dynamic than real estate, espectially rural estates. Returns are also higher, but then the high risks are accounted for. For investment properties, you would have to wait a long while before it reaches a decent price to sell. Renting would be ok, but if you were to buy property in the country, your target market would be small, and then if you don't find tenants for it, how are you going to pay for the loan/rent.

 

[jayz]

i c your pt, but the fact that the gov is doing nothing about the housing booms in city areas, seems to me to be a very stupid idea, for instance, once housing become unaffordable for 1st home buyers, they will obviously protest like crazy, and in terms of effects to the battling AUSSIE economy, the booming housing market will eventually force gov to raise Irates, forcing the Australians become a hugely indebted country and with international trade relying heavily on low $AUS, high interest rates will reduce international competiveness and futher reduce terms of trade, External Stabiliity, foreign debt, ultimately slowing down the economy to the R word, 'recession' (which Howard hates to hear)

 

[enak]

Let it happen, and then we will see what the australian government will do about the situation. I hope to buy my first home in 3 years *puts in lotto entry*

 

[Bimbo]

I can see your points there..and i do agree, however, personally, i'm not a huge fan of regional areas. but like you said, why don't more people with equity investigate country areas more, where they are often more likely to get better returns on their money.

On another note entirely-Do you ever watch Today Tonight? I've watched it a few times when they've had some real estate stories on...ARGH!! Half the time they are like 'How you too can make millions in Real Estate', and then they show these people who claim to have this fantastic scheme they though of all by themselves, when probably all they really did was read a Jan Somers book or two...
As for that guy you spoke about, not a bad way to earn your living

Anyway, the last two days have been CRAZY for myself and my fiance. We've just moved into a new house (renting), and we've just put down a deposit for two investment properties that came up...the stress of it all! We hope to buy our first home mid next year, we weren't actually planning on buying anything this year but these were too good to pass up! I'd be interested to know what your own plans are with regards to future property purchases (Jayz & Enak, or anyone else reading this). For example, will you be buying your own home first, or an investment property?

 

[jayz]

i'd buy an investment/first home, i.e one which provides investment incentives and possibility to be a living home,
but um...
at the moment, dun' t fink i could even afford the deposit for an 'interesting' home (sigh)

 

[enak]

For example, will you be buying your own home first, or an investment property?

I hope to buy a home/apartment most likely an apartment in the city, as it would be most convenient. I don't think I would invest in property anytime soon as I would be way to busy with uni and work, I would probably have a shares portfolio with someone managing them (free fund management fees ). If all goes to plan, then I should have enough for a deposit for a house in a year or two and then pay it off in 8-10 years.

 

[jayz]

Hope u don't mind me asking, enak
how much money r u starting out with?

 

[enak]

Uhh, lot's , this is only happening if all goes according to plan, so essentially, I can't make any mistakes on my way.

 

[Bimbo]

Originally posted by enak
I hope to buy a home/apartment most likely an apartment in the city, as it would be most convenient. I don't think I would invest in property anytime soon as I would be way to busy with uni and work, I would probably have a shares portfolio with someone managing them (free fund management fees ). If all goes to plan, then I should have enough for a deposit for a house in a year or two and then pay it off in 8-10 years.

well we have officially had out offer accepted on our i.p's. It's two separate dwellings, but they're on the same title so they had to be sold together. Already have great tenants who are on leases, which i'm very happy about. NOOO not shares go for property!! Anyway, my fiance and i intend to buy our home early-mid next year, depending on how busy we are at the time...

Another question for you guys-where did you learn about property and investing and the like? It's quite refreshing to see other people around my age who actually have some knowledge, because so many people just little or no knowledge regarding investment etc.

 

[jayz]

i am not quite sure about the extent of my knowledge, 4 me the interest of real estate has to come from my 'passion' for investment (even though i closed my bank account mid this yr), in terms of knowledge, eh... i just read papers and some times listen to 702ABC radio at night (they talk about invest. once in a while) and read magazines like BRW and Shares...

I fink some ppl do know the knowledge but their knowledge usually come from deceptive sources (i.e. TT, ACA), while with the youth population, many aren't interested, cause they just don't hav the money to even dream about it. (i.e. ME)

 

[enak]

Originally posted by Bimbo
Another question for you guys-where did you learn about property and investing and the like? It's quite refreshing to see other people around my age who actually have some knowledge, because so many people just little or no knowledge regarding investment etc.

Mostly from other family members, then reading a little bit more about it, and the current state of investments in different areas.

I have relatives that are bankers, brokers and financial advisers

 

[jayz]

!u must be rich! any good suggestions for a good fund manager and borrower? (other than your relatives, lol)

 

[LaZy_KoReAn]

Originally posted by enak
I hope to buy a home/apartment most likely an apartment in the city, as it would be most convenient. I don't think I would invest in property anytime soon as I would be way to busy with uni and work, I would probably have a shares portfolio with someone managing them (free fund management fees ). If all goes to plan, then I should have enough for a deposit for a house in a year or two and then pay it off in 8-10 years.

apartments in the city?

minimum $300k rite?

YOU MUST BE DARN RICH BOY~! 20% deposit is $30,000

and your planning to repay the house in 8-10 years SHEEZ, people working in the professional workforce are struggling to keep on a 25 year loan

WAKE UP!!!! UNLESS YOUR REALLY RICH OR HAVE STRONG PASSIVE INCOME

 

[Bimbo]

Originally posted by enak
Mostly from other family members, then reading a little bit more about it, and the current state of investments in different areas.

I have relatives that are bankers, brokers and financial advisers

mine is mainly from family and work colleagues...my fiance is in real estate and development, his parents are developers, and my own parents are in domestic and international sales and development..

Enak and Jayz, check your PM's, i'm sending u my email address because it would be interesting to speak to you both sometime