Investment property

[The Edukator]

What risk? And where is a “safe” place to invest?

Edit- why would an established capital suburb be safer?

And in what way do you mean safer?

Its safer because it is established and has a track record of X amount of growth as a result of Y demographic having higher than average incomes and being closer to Z infrastructure. Eg, Ascot Vale, Richmond, Malvern.

alternatively you could purchase in a new housing estate that has promises of infrastructure and other attractive qualities.

 

[checkraiseulite]

‘geelong’ is not a single market.

i agree it’s a great place to invest (particularly near the train stations and hospital)

 

[DangerousD]

I hope the whole thing crashes and I will have zero empathy for those who borrowed at the absolute max of their capacity for their one house and even schadenfreude for those who get stuffed with multiple properties

No empathy for everyday people who save for years and need to borrow their absolute maximum to get their foot in the door and the whole thing crashes? Seems odd.

 

[Deliverance]

I feel for them to an extent. It was immoral for APRA to lower their lending standards.

 

[Beerfish]

It was also ****ed for them to increase them for the whole country just because Sydney and Melbourne were booming.

 

[Deliverance]

It was also f’ed for them to increase them for the whole country just because Sydney and Melbourne were booming.

Almost the entire country was suffering decreasing affordability in 2018.

 

[Beerfish]

Almost the entire country was suffering decreasing affordability in 2018.

And making it even harder for anyone to get a loan in a market that was already in the toilet was of no help to anyone. A one size fits all approach to a country with discrete markets at different stages of the property cycle is dumb.

 

[Deliverance]

And making it even harder for anyone to get a loan in a market that was already in the toilet was of no help to anyone. A one size fits all approach to a country with discrete markets at different stages of the property cycle is dumb.

Allowing people to borrow more and fuel the bubble is even dumber. Especially at a time if record low interest rates and poor wage growth.

 

[Beerfish]

Allowing people to borrow more and fuel the bubble is even dumber. Especially at a time if record low interest rates and poor wage growth.

It's not all about Melbourne and Sydney. In Perth there were lots relatively cheap properties for sale but no buyers because nobody could get finance because people were paying $1million+ for bedsits on the east coast.

 

[DangerousD]

Allowing people to borrow more and fuel the bubble is even dumber. Especially at a time if record low interest rates and poor wage growth.

When interest rates inevitably increase, we will have a fire sale, many will benefit from the misfortune of others. Tightening of lending criteria had the desired outcome for the market, a slight correction but a negative reaction for the banks, less money.

unless the government intervenes with meaningful policy that helps people get in to the market, the status quo will remain.

 

[Deliverance]

It's not all about Melbourne and Sydney. In Perth there were lots relatively cheap properties for sale but no buyers because nobody could get finance because people were paying $1million+ for bedsits on the east coast.

I know it's not about Melb and Syd. Affordability was decreasing everywhere except NSW in 2018. Giving people homebuyers bonuses and easier lending standards doesn't help with affordability. It does the opposite, prices rise. Which is exactly what has happened since APRA eased lending criteria.

 

[Deliverance]

When interest rates inevitably increase, we will have a fire sale, many will benefit from the misfortune of others. Tightening of lending criteria had the desired outcome for the market, a slight correction but a negative reaction for the banks, less money.

unless the government intervenes with meaningful policy that helps people get in to the market, the status quo will remain.

Agreed, only one party came to the election with a policy to reduce housing prices. And we know how that ended up, sadly for young people competing against older Aussies like me.

 

[DangerousD]

Agreed, only one party came to the election with a policy to reduce housing prices. And we know how that ended up, sadly for young people competing against older Aussies like me.

It’s a topic and industry that I’m very passionate about, I am a Labor voter based on my values, but there housing policy would possibly have had a negative effect on my investments.
At the end of the day I did what I thought was right for the whole and voted with them as I didn’t believe the policy would have brought down prices, just raise additional funds to in theory, fund more housing projects.

Its quite hard to bring down house prices in areas with massive population growth, the demand far exceeds the supply, making it more expensive to sell, by decreasing the CGT discount, doesn’t encourage people to sell and get stock on the market.

But at least it was making an effort to halt or slow the divide between the haves and the have nots.

 

[maryjames]

With this pandemic are investors looking at selling there investment or this Year?

 

[burge13]

With this pandemic are investors looking at selling there investment or this Year?

When those that deferred payments have to pay the increased payments, mixed with jobkeeper ending, I think there'll be a dip in prices.

Stupidly there are 30+ house and land packages a week popping up near me, I have NFI who's buying them. I'll be looking for land in the same area that can be subdivided down the track. Once the H&L packages here cease you'd have the only big block within 20km...

 

[Power Raid]

With this pandemic are investors looking at selling there investment or this Year?

the govt will load up on debt to stimulate the economy and preserve asset prices

this means 1) don't hold cash 2) don't be young and be the poor mug paying off the debt to preserve wealthy peoples assets

 

[The Edukator]

When those that deferred payments have to pay the increased payments, mixed with jobkeeper ending, I think there'll be a dip in prices.

Stupidly there are 30+ house and land packages a week popping up near me, I have NFI who's buying them. I'll be looking for land in the same area that can be subdivided down the track. Once the H&L packages here cease you'd have the only big block within 20km...

The people buying these then wonder why they aren't getting any capital growth.

 

[Deliverance]

There's obvious concerns about capital growth. Any high yield places people can recommend in Vic?

 

[Lyyynnnchy]

There's obvious concerns about capital growth. Any high yield places people can recommend in Vic?

I’d be looking for city fringe, walk up, no lift, pool etc. Liveable but pretty standard condition

Should be able to find something that’ll break even with cap gains and potential renovation as value add down the track

Low strata and a well maintained block a must. Look through last 5 years of strata minutes to make sure minimal issues with the building

Also look for a unique point of difference for when renovating, renting or selling down the track ie oversized internals to compete with all the shoeboxes, oversized north facing balcony or courtyard to compete with all the cheap unuseable balconies on a lot of the the new builds or even a 1 or 2 bed apartment that you can add another bedroom to through renovation

Not many that fit all the above criteria however you have plenty of time. Prices unlikely to move anywhere but down over the next 12 months

 

[Deliverance]

I’d be looking for city fringe, walk up, no lift, pool etc. Liveable but pretty standard condition

Should be able to find something that’ll break even with cap gains and potential renovation as value add down the track

Low strata and a well maintained block a must. Look through last 5 years of strata minutes to make sure minimal issues with the building

Also look for a unique point of difference for when renovating, renting or selling down the track ie oversized internals to compete with all the shoeboxes, oversized north facing balcony or courtyard to compete with all the cheap unuseable balconies on a lot of the the new builds or even a 1 or 2 bed apartment that you can add another bedroom to through renovation

Not many that fit all the above criteria however you have plenty of time. Prices unlikely to move anywhere but down over the next 12 months

Never bought a townhouse or apartment before (married to a wog ). Will look in to it.

 

[burge13]

Oversupply of apartments. I wouldn't recommend that at all personally

Value is in the land. Something slightly further out but on a big block that could be subdivided down the line (after everyone around you has done it) would surely provide greater benefit? You could be the only one within 20km on a 900sqm block in 10 years the way we're going...

Obviously Melbourne different to Adelaide but fundamentally point should ring true re block size

 

[Mofra]

There's obvious concerns about capital growth. Any high yield places people can recommend in Vic?

I bought a property that was neutrally geared from day dot in Ballarat a few years ago. Positively geared a little now, although rate reductions have helped that. There are suburbs to avoid there just like any decent sized regional city.

 

[Lyyynnnchy]

Oversupply of apartments. I wouldn't recommend that at all personally

Value is in the land. Something slightly further out but on a big block that could be subdivided down the line (after everyone around you has done it) would surely provide greater benefit? You could be the only one within 20km on a 900sqm block in 10 years the way we're going...

Obviously Melbourne different to Adelaide but fundamentally point should ring true re block size

Poster wanted positively geared. Near on impossible to buy a positively geared house in metro Melbourne and regionals aren’t recommended for new investors

 

[Hamingja]

Hobart would have been positively geared over the last few years. With no tourism and downturn in the numbers of international students it will get brutal down here in the next 18 months though I reckon. Overpriced now and due a correction.

 

[The Edukator]

Poster wanted positively geared. Near on impossible to buy a positively geared house in metro Melbourne and regionals aren’t recommended for new investors

Commercial Property. + Cash Flow.