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23/06/24
10:50
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Originally posted by rona142:
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I bought my first property off the plan in 2015 for $550k (we paid zero stamp duty and also got a FHOG of $15k so effective purchase price of $535k). We paid a 10% depoist upfront and nothing else was required to handover of the property. Settlement happened in June 2017 which is when we borrowed $400k @ 3.98%. From then until we sold the property mid 2023 rates dropped progressively to 2.34%. By the time we sold for $830k we owned the property outright. The proceeds of sale was $815k taking into account legal fees and agents commission. Over the life of the loan we would have paid less than $50k collectively in interest which still leaves us massively in front. Lets call purchase price plus interest $585k we still walked away $230k infront. When we first moved in our neighbours were paying ~$500/week in rent and by the time we left they were up to $650/week. Lets call it an average of $575/week for rent for them over the 6 years. Rental costs for 6 years = $179,400 vs less than $50k in interest plus I walk away with an extra $230k in capital gains in my pocket. We now have a bigger property and our monthly interest for the homeloan averages $550/week. To rent the same property it'd cost $1000/week. Again we're making accelerated repayment so we'll likely own it outright within 10 years even if interest rates stay where they are now.
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We purchase 2 units off the plan around 3 yrs ago and paid the total price up front $700,000 and the builder pays us 6% PA on our money until handover. Due to covid etc, it has taken 3 yrs and titles now, will be any day. 2 weeks ago we were asked, would we sell one of them for $450,000 as they had a buyer for that amount, two in fact. So that would mean, in 3 yrs our 700 has gone to 900 plus the 6% on our money over this period. Nar, don't buy property guys, as you'll get done over