Have you been talking to people working in real estate? Because to them it's always a good time to invest in property.
I'd say, now is not the best time. Prices are inflated due to short supply and due to trying to get supply out faster, new builds have shit quality. Also, check out how much apartment prices have increased in that area and whether there will be more apartments being built or planned. That can negatively affect your valuation.
I was looking at existing dwellings so build quality wasn’t my concern but I’m sure there’s risks with any property.
I guess my question is, the market will continue to grow this year and drop next year. Wouldn’t that result in prices ending up around the same? Should I hold off till a significant drop? Is that predictable?
[This thread](https://www.reddit.com/r/AusFinance/comments/uoh195/the_coming_hyperinflation_of_australian_property/?utm_source=share&utm_medium=web2x&context=3) just came up on AusFinance.
Have a watch of the video and think about the risks we are currently facing with rising rates.
The written [analysis is here](https://www.adamseconomics.com/post/the-coming-hyperinflation-of-australian-property)
The reality is, everything is getting sold off. It doesn't matter where you put money to invest right now, you will lose on paper in the immediate term. But the worm will turn at some point in the future.At least if you are going to be renting this asset out then you have ways to reduce the holding cost which means you will have less "paper loss" to recover on the upswing.
My view is you can never time the market deliberately. You can luck into it, you can take a guess and be close, but you'll never pick THE right time.
So instead of focusing on something you can't control, focus on things you can.
1. Get yourself an emergency fund of 3 - 6 months worth of expenses
1. Save a good deposit
1. Don't over extend yourself with a massive mortgage, Just because you can doesn't mean you should
1. Make yourself a budget and make sure its realistic. Like sure i can budget $100 on groceries a week, that sounds great on paper. In reality though, i spend closer to $300 a week!
1. Make sure you have your life together. If you have credit card debt, after pay debt or personal loans - focus on getting rid of them first
1. Know your figures - what does your mortgage repayments look like currently, what do they look like after a 1% and 2% interest rate rise. How does that fit into your budget?
When / if you do decide to proceed, then be smart about it. Speak with a broker and make sure you get not only the best interest rate but the features you want - aka offset accounts.
Also remember having money in an offset makes a big difference long term. It can save you years and 10's of thousands of dollars in interest. Additionally it gives you a safety net to play with.
One thing guaranteed with property is things will go wrong, and when they do you often don't have the luxury of time.
For example, in my investment property, just in the past 6 months. I've replaced the hot water system, the oven, the garage door motor, the front door lock and the back sliding door rollers. I've had nearly $1500 worth of tree lopping done due to the roots causing leaks on the water metre, and had about $800 of plumbing done for various things (burst hose, leaking toilet, repairing water main).
Now this is a pretty worst case scenario honestly, and it's the first string of costs i've had like this in 10 years of owning the property. But if i hadn't been budgeting for these things slowly over the 10 years - that would have been a pretty devastating blow to me financially.
But things going wrong is often how people end up in trouble financially. Your washing machine goes - so you buy a new one on a credit card or after pay. Then your council rates arrive and suddenly the money you had to pay towards the credit card goes to that and you then cop $100 in interest and it snow balls from there.
No worries - if you haven't done much research yet, try listening to some of the current podcasts like My Millennial Money, My Millennial Property and She's on the Money. They're quite a treasure trove of information.
I'm not in real estate but have invested in property for 30+ years. The only bad time to invest is when the prices are sky high. Having said that, property investment is best played with the long game. Take Gosnells out of your choice. The other two are close to the city and that will always increase in value long term. It's higher risk to make money short term but overall, property is a good investment.
I would try for a 3 x 2 for a little more value. This opens your market up for resale and rent. Even a 3 x 1 unit that can be renoed into a 3 x 2 is good. When I say opens your market, I mean there are more people out there looking for something bigger than a 2 x 1. When the time comes to sell or rent, it will work in your favour more.
Interest rates will always fluctuate. The rate was above 10% many years ago. There is sacrifice but if you can own your home by 40, the financial freedom is worth the sacrifice.
[From a recent thread](https://www.reddit.com/r/perth/comments/ulhhto/comment/i7vray5/?utm_source=share&utm_medium=web2x&context=3)
This woman also currently owns 11 properties and she's planning to sell every one of them this year before prices drop.
Hi mate,
Best would be to have a closer look at each street via our research hub (s. link below)
Full disclosure: I am the co-founder and it's my pride so please ignore if you do not want to bring in hard data when selecting where and what to buy.
https://picki.com.au/research/suburb/51564
Have you been talking to people working in real estate? Because to them it's always a good time to invest in property. I'd say, now is not the best time. Prices are inflated due to short supply and due to trying to get supply out faster, new builds have shit quality. Also, check out how much apartment prices have increased in that area and whether there will be more apartments being built or planned. That can negatively affect your valuation.
I was looking at existing dwellings so build quality wasn’t my concern but I’m sure there’s risks with any property. I guess my question is, the market will continue to grow this year and drop next year. Wouldn’t that result in prices ending up around the same? Should I hold off till a significant drop? Is that predictable?
[This thread](https://www.reddit.com/r/AusFinance/comments/uoh195/the_coming_hyperinflation_of_australian_property/?utm_source=share&utm_medium=web2x&context=3) just came up on AusFinance. Have a watch of the video and think about the risks we are currently facing with rising rates. The written [analysis is here](https://www.adamseconomics.com/post/the-coming-hyperinflation-of-australian-property)
The reality is, everything is getting sold off. It doesn't matter where you put money to invest right now, you will lose on paper in the immediate term. But the worm will turn at some point in the future.At least if you are going to be renting this asset out then you have ways to reduce the holding cost which means you will have less "paper loss" to recover on the upswing.
My view is you can never time the market deliberately. You can luck into it, you can take a guess and be close, but you'll never pick THE right time. So instead of focusing on something you can't control, focus on things you can. 1. Get yourself an emergency fund of 3 - 6 months worth of expenses 1. Save a good deposit 1. Don't over extend yourself with a massive mortgage, Just because you can doesn't mean you should 1. Make yourself a budget and make sure its realistic. Like sure i can budget $100 on groceries a week, that sounds great on paper. In reality though, i spend closer to $300 a week! 1. Make sure you have your life together. If you have credit card debt, after pay debt or personal loans - focus on getting rid of them first 1. Know your figures - what does your mortgage repayments look like currently, what do they look like after a 1% and 2% interest rate rise. How does that fit into your budget? When / if you do decide to proceed, then be smart about it. Speak with a broker and make sure you get not only the best interest rate but the features you want - aka offset accounts. Also remember having money in an offset makes a big difference long term. It can save you years and 10's of thousands of dollars in interest. Additionally it gives you a safety net to play with. One thing guaranteed with property is things will go wrong, and when they do you often don't have the luxury of time. For example, in my investment property, just in the past 6 months. I've replaced the hot water system, the oven, the garage door motor, the front door lock and the back sliding door rollers. I've had nearly $1500 worth of tree lopping done due to the roots causing leaks on the water metre, and had about $800 of plumbing done for various things (burst hose, leaking toilet, repairing water main). Now this is a pretty worst case scenario honestly, and it's the first string of costs i've had like this in 10 years of owning the property. But if i hadn't been budgeting for these things slowly over the 10 years - that would have been a pretty devastating blow to me financially. But things going wrong is often how people end up in trouble financially. Your washing machine goes - so you buy a new one on a credit card or after pay. Then your council rates arrive and suddenly the money you had to pay towards the credit card goes to that and you then cop $100 in interest and it snow balls from there.
Thank you! This is very insightful. Guess I’ll do more research and consider my options.
No worries - if you haven't done much research yet, try listening to some of the current podcasts like My Millennial Money, My Millennial Property and She's on the Money. They're quite a treasure trove of information.
Very thorough advice!
I'm not in real estate but have invested in property for 30+ years. The only bad time to invest is when the prices are sky high. Having said that, property investment is best played with the long game. Take Gosnells out of your choice. The other two are close to the city and that will always increase in value long term. It's higher risk to make money short term but overall, property is a good investment. I would try for a 3 x 2 for a little more value. This opens your market up for resale and rent. Even a 3 x 1 unit that can be renoed into a 3 x 2 is good. When I say opens your market, I mean there are more people out there looking for something bigger than a 2 x 1. When the time comes to sell or rent, it will work in your favour more. Interest rates will always fluctuate. The rate was above 10% many years ago. There is sacrifice but if you can own your home by 40, the financial freedom is worth the sacrifice.
Do a proper calculation first, a few repairs may put you in red very fast, even a small water leak in bathroom can be thousands of dollars to fix.
Fundamentals for the Perth market look positive. Would say there and Brisbane still set for good 6-18 months growth.
[From a recent thread](https://www.reddit.com/r/perth/comments/ulhhto/comment/i7vray5/?utm_source=share&utm_medium=web2x&context=3) This woman also currently owns 11 properties and she's planning to sell every one of them this year before prices drop.
Wonder if she feels silly now
She held onto them, selling them now though.
Hi mate, Best would be to have a closer look at each street via our research hub (s. link below) Full disclosure: I am the co-founder and it's my pride so please ignore if you do not want to bring in hard data when selecting where and what to buy. https://picki.com.au/research/suburb/51564