The point being made abot the lock in 10 years was that some one indicated that a $400,000 balance woulf be worth 796K after 10 years at 7% rate. What you have done is absolutely right in fixing for a reasonable period as rates will change.
But remember that even if you buy a property that is 30% off its high price doesnt automaticallly mean it is a good investment. Maybe a good valued home, but not an investment. There are other factors such as the size of the block, the demographics, transport links. Bernard Salt about 6 months ago referred in an article about transaport ghettos. places where there is no transport links and with fuel costs being high (at the time) prices would suffer as people would be dependent of car usage which is (was at the time0 going to get more expensive.
Or buying at today prices aint necessarily a bad invement either.
As an example I am looking a large corner block which an old couple couldnt sell 2 years ago. even if i pay the old price, i have a bargin as I can build 10 1 bedroom units and based on current rentals, and interest rates, tax drpeciation, would cashflow positve. I could wait and be lucky and get it for 20% less or $100k, but over 10 untis it is only $10k. and it is getting easier to build, not cheaper, just easier, no need to be waiting and tradesmen playing god.
buying to live is differnet, buying to invest is diferent.
- Forums
- Property
- sydney house prices slump
sydney house prices slump, page-71
-
- There are more pages in this discussion • 5 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Featured News
The Watchlist
HAR
HARANGA RESOURCES LIMITED.
Peter Batten, MD
Peter Batten
MD
Previous Video
Next Video
SPONSORED BY The Market Online