There are bargains out there true, but things are still overpriced... Especially in Sydney.
Don't forget that a valuers valuation does not mean that you will sell the house for that value or that there is any guarantee that it will sell for that value..
Might sell for more or might sell for less depends on the market, they are the true valuers...
I don't get all my info from newspapers, I am abit more experienced than that, but then again I also don't listen to real estate agents either... Have been burnt by them too many times.
When I say 20-30%, I mean after all costs are factored in, as you will also need to hold it for a year otherwise you will pay full tax on your profit.
For example you say you have 55k equity. So lets say you sold the house and made 55k after costs. If you held for less than a year then you will pay at least 30% tax on that. Doesn't leave you with much then does it. You can make more in a year from the stockmarket.
Say you hold on and rent. Okay you negative gear, interest rates are going up, now its starting to cost you to keep it, you might find that in two years your 55k equity might be chewed up by all your costs like(interest, council rates, maintanence, etc, etc, etc..) you can claim these on tax but not everything. If your property hasn't gone to at least 450k in two years then you ain't makin anything...
That is why I said forget about making 20-30% after two years, that is forget making 20-30% after costs and tax have been factored in, in 1-2 years...
I loved all those shows about how you just paint a house and bang it went up in value...
I found it quite amusing.. I mean it is like they are selling cars not property and people actually fall for it... That is what I find quite astounding.
As for gaining equity day one is that because you have put a deposit down of 20-30% and that is your equity or is it that a valuer has come in and said this property is worth 20-30% more than what you paid??
I tell you what when you sell then you know what its worth, not what a valuer tells you.
How many valuations have been blown out of proportion only to find out that when they did sell the property it is not worth anywhere near what the valuer valued it at...
Just like the stock market, a stock is worth only what someone is willing to pay.
I believe that property is a good long term investment not a speculative investment..
It is when people speculate on property that they get burnt and lose money...
