Browse Forums Real Estate 1 Sep 13, 2010 10:47 pm Hi Guys please advise! I intend to buy a house in south of Werribee but read a news today in Herald Sun in relation to datamonitor report about House prices which implies either significant fall in current house prices or sustain where they are. http://www.heraldsun.com.au/business/ho ... 5919936499 I am wondering shall I wait for few months till price start sinking or good time to buy now . Basically they are foreseeing " I just want to buy for investment purpose and will rent out straightaway. suggestions? thanks Re: Confused about right timing for buying house 2Sep 14, 2010 7:39 am If everyone believes the report then buy now. You won't have any competition and can negotiate down. Don't believe everything you read in the paper. If you see a property that ticks all the boxes buy it. There are bargains if you look. Remember if it is for an investment it's a number game. Re: Confused about right timing for buying house 3Sep 14, 2010 8:25 am I would be worried if your looking at bring an investor and take a newspapers view as your decision strategy! Why don't you spend some time understanding how rental for investment works such as return margins and tax implications. Do some homework in the area you intend to buy and understand the ceiling rent you can charge and if it's less than 5% stick your money in another investment. Re: Confused about right timing for buying house 4Sep 16, 2010 4:41 pm I'm no expert on the subject but I see it a little differently. At the moment rental received vs interest paid is at the lowest its ever been. Around 10-15 years ago they were almost on parr but now rental returns are appauling - especially on houses. Negative gearing might save you tax but only works on the basis of a negative return and a loss is a loss. The property investment market relies on only one thing and thats the property increasing in value. Without that it would be a terrible investment - one that makes a loss. In the short term interest rates are increasing and most people are predicting a period of sustained value or at worst a bubble burst. So based on that there is no reason to hurry into buying an investment property - you could be waiting a long time to see any returns. They say property is a long term investment but why buy an investment property in a stagnent market with negative returns. If it were me I'd take the wait and see approach. Re: Confused about right timing for buying house 5Sep 16, 2010 5:09 pm That's weird. My mum the other day was saying how she could get more in rent than she does with her bank term deposit...I wonder why that is...she's in Melbourne, but we were considering getting a property on the Gold Coast which would be rented out for about $350 a week. Hmm. How the hell did I become a senior member!? I know nothing! Re: Confused about right timing for buying house 6Sep 18, 2010 7:15 am Mozzie I'm no expert on the subject but I see it a little differently. At the moment rental received vs interest paid is at the lowest its ever been. Around 10-15 years ago they were almost on parr but now rental returns are appauling - especially on houses. Negative gearing might save you tax but only works on the basis of a negative return and a loss is a loss. The property investment market relies on only one thing and thats the property increasing in value. Without that it would be a terrible investment - one that makes a loss. In the short term interest rates are increasing and most people are predicting a period of sustained value or at worst a bubble burst. So based on that there is no reason to hurry into buying an investment property - you could be waiting a long time to see any returns. They say property is a long term investment but why buy an investment property in a stagnent market with negative returns. If it were me I'd take the wait and see approach. You're not looking hard enough. That may be true of the average property but I don't buy the average property and neither should any investor. What market is stagnant? That's generalist talk. I made over $100K equity gain last year in that "stagnant" market. Buy one that CAN be positive or neutral for day one. I'm not talking out in the sticks either. I'm buying properties in Sydney that are neutral. Just bought one that is now positive after reno. Why wait for a "maybe" good deal when they are there now. Look at houses individually. Do your DD on the area and buy. I meet people that have been waiting 10 years for the "right" time. There's no right time only right deals. 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