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First home buyer - wait or buy an investment?
Topic Started: 10 Sep 2014, 10:33 PM (773 Views)
jayfirst
Unregistered

hi guys im new to this. sorry if this subject has been covered. i just did the mortgage calculator and cannot borrow much over 230k. i was wondering if i should keep saving and wait for pay rises or if i should buy a cheap investment and rent it out? at least then i am in the market. another question is i have a bout 40k saved so it wont be 20% of the property price, if i have a guarantor does that mean i can get out of having mortgage insurance?

thanks for your help

chat soon
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Waiting
Unregistered

I'd be waiting - too much uncertainty at the moment with everything else, China, Scotland and other issues overseas - believe it or not everything has a knock on effect. Confidence is down and looks to stay that way for a while.

Cash is king in a crisis so I'd be parking your deposit up and waiting at least 6-12 months. Worse case, houses will only track what extra you can save anyway.

At the moment there's no real fear of 'Missing Out' by holding.

Last in, first out as interest rates start to ebb upwards over the next 12-24 months, it's going to happen at some point and if you're in at the top, even above average pay raises won't fulfil the void left by raising interest rates. Plus you get the benefit of interest on savings if invested wisely when the rates do start to track back up!
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knightm
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It all depends on your goals. Do you need a poor soon? If you have access to cheap/free/goodenough rental and are happy to stay then investing is the most efficient way forward and you can choose your market based on the cycle and the ripple effect. No point buying an overpriced property in your area just because you want it now. (unless you really want it now)

matt
Haha ppor not poor nice slip!
Edited by knightm, 28 Sep 2014, 09:58 PM.
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goldbug
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Hi knightm, whose sock puppet are you?
Shadow was hopelessly wrong about the Gold Bull Market.
What else is he wrong about?
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knightm
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goldbug
28 Sep 2014, 10:22 PM
Hi knightm, whose sock puppet are you?
Hi Goldbug,

Thanks for the warm welcome.

I am nobody's sock puppet. My name is Matt Knight. I have been investing in property for over 11 years. I have been on SS forum (I presume you know what that is?) since 2003 with 1300 posts. I thought I would try the water over here, I see its not quite as warm.

How specifically did my post offend you?

Matt
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goldbug
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Your posts never offend me shadow, you should know that by now. Enjoy your stay at APF
Shadow was hopelessly wrong about the Gold Bull Market.
What else is he wrong about?
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John Frum
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goldbug
28 Sep 2014, 10:22 PM
Hi knightm, whose sock puppet are you?
Goldbug, sit!

Be nice to the visitors!
"It were not best that we should all think alike; it is difference of opinion that makes horse races." - Mark Twain on why he avoids discussing house prices over at MacroBusiness.
"Buy land, they're not making any more of it." - Georgist Land Tax proponent Mark Twain laughing in his grave at humourless idiots like skamy that continually use this quip to justify housing bubbles.
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hoofarted
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knightm
28 Sep 2014, 09:56 PM
matt
Haha ppor not poor nice slip!
That slip is awesome and quite appropriate.
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knightm
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John Frum
28 Sep 2014, 11:27 PM
Goldbug, sit!

Be nice to the visitors!
Hi John,

Is there any productive discussion regarding australian property here by real property investors or am I wasting my time? Im pretty tough to offend but won't bother with time wasting arguments or conspiracy theorists, life is a little too short.

Thanks
Matt
hoofarted
28 Sep 2014, 11:32 PM
That slip is awesome and quite appropriate.
I thought so!
Edited by knightm, 28 Sep 2014, 11:35 PM.
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