What? Average salary in OZ is around 64K per year. LINK HERE
and you can still buy a cheap old small house just 1 hour north of sydney for 210K.
For a starter that's darn cheap!
Link to Cheap House
http://www.realestate.com.au/property-unit-nsw-liverpool-106653137
Come on ****ty apartments sell for less than $400K. look at the link above
I bought my first property in 2001 so just on 10 years since I bought it, But it was built in 1993 and still have the original kitchen and bathroom, budjeting to replace the kitchen and bathroom every 15years is over the top.
.
I also service my car every 80000k.
You are either not maintaining your property properly, or are not getting the rent/tenants you can get.
I have been investing in property for a considerably longer time, and 15% just does not, ever cover expenses.
With $20k rent, rates and insurance chews up a substantial percentage of $20k, and leaves little for maintenance.
But then again, there are a lot of "investors" who have no idea what their outgoings are.
I wonder how good the quarterly reports you get from your accountant are?
Liverpool lolol Tyson...what Sydney do you live in? Liverpool is an awful place...i remember refusing to met a woman i met on POF after i found out she lived in Liverpool.
My first memory of visiting Liverpool (on foot) involved walking behind a young man totally off his head on what i can only assume was heroin...it was as if he was walking in slow motion, taking 3 steps forward only to lose balance and take 3 steps back...this in one of the main street in the middle of a sunny Saturday afternoon.
No, Gorokan on the Central Coast is an older suburb that most oldies retired to back in the 60's and 70's, hence there is lot of fibro, timber or clad cottages. It is also an old tourist town just up from Toukley. There is some housing commission in the area but it's not overloaded. To be honest if one was hard up for cash and had to retire with limited funds you could buy a place for around 210K to 250K not far from the lake and club and just take it easy. Of course the commute to Sydney if you had to work could be a drag but what I was trying to point out was that there are cheap houses around, cheers.Is that a old housing commission area? a 3 hour commute to the city and back every day...12 hours a week commuting, its like working 6 days in 5, a couple of years of that and i would be ready to throw myself in front of the train!
I have gone years sometimes (2-3years) without having any maintaince requests,
In 10 years the property that I have owned the longest has only even has the following work done.
The rest is original, I have only ever 1 tenant change so both tenants have been longterm tenants and are happy with the house so why would I rush in and put new bathrooms etc in.
the maintaince costs very small over the years, offcourse there will be some big ticket items coming up, but if you divide the cost of them by the number of years it takes for them to wear out the cost per year is low, and you can get them done cheaper if you be smart about it, for example I will be recarpeting my properties soon and I have already made some calls and I will be getting a cheaper price by getting three properties done at once.
This thread is about the direction of, ie. "The future of Australian property prices" and that is it.
Back on topic:-
The popular press itself overall would suggest the bubble has popped and Australian property prices are at best sideways at the moment. Would be good to hear some comment on this assertion?
http://www.watoday.com.au/business/building-approvals-dive-most-in-8-years-20110303-1bfj9.html
If nobody is buying existing houses at auction or seeking to build new ones then time may be the only variable between flattening prices and a decline.
In the year to January, nationwide building approvals were down 24.8 per cent, the Australian Bureau of Statistics said today.
I am not referring to a cash vs. property debate for inflation hedging, as in general the majority of real assets will outperform cash.
I am asking:
1) Is property the best tool for hedging inflation and;
2) If so, which is better - property financed with cash or credit?
Hello greebly24, I wanted to quote your whole post but people don't like you doing that. Anyhow thanks for a well balance post and opinion. Just thought I would add that when I borrowed for my first mortgage in 1979 my interest rate was 11% then. Rates hit 17.5% at one stage many years later. I still made money on my properties regardless of that. It has never been easy to invest in and make money in property but one thing for sure prices just keep climbing. Yes you have some flat or slightly negative years but nothing like the share market crashes of 87 and 2009 where people lost half their money. Your post is good reading for anyone wishing to buy, everything you wrote should be considered, cheers and thanks.Take the nightmare mortgage rate of 12% and a five year property drop of 20%, then the picture would be disastrous for those first home buyers who were suckered in, or those middle-aged people who decided to unlock their equity, or those approaching retirement who have not other investments besides their own home. This nightmare has occurred in many other Western countries.
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