Buying a house at 22 - should I do it?

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maryjames said:
Buy as close as you can to the city. Forget the country. You will build equity. In 8 years time when you are 30 you may have 2 other investment properties. The market may even double in 8 years. You purchase 400k now by then it may be 800k. I bought when young. I suggest it's a must. Otherwise you end up chasing when in 30s and 40s and by then property market will be more insane then it is now.
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bad bad advie, bad.
 
superfraser said:
I started in January this year, I've made 15.51% in growth so far this year, as well as being paid dividends, which I've reinvested. **note: I've had a lot of growth over the last week or so the timing of this post will make it appear a more successful strategy than it may prove to be.

I'd suggest signing up to the Barefoot Investor's Blueprint Newsletter ($400ish p.a.), if you're unfamiliar, this is Scott Pape, a dude who has been publishing articles in the Herald Sun, presenting on Triple M and on TV regularly. The newsletter is conservative, but a great place to start out. If you did that, my advice would be to devour as much 'beginner' information as possible before the US Election. If Trump is elected, the predicted uncertainty could lead to a crash, you'd be able to buy good quality companies at a discounted price, and then you could hold those shares whilst you travel.
Click to expand...

Trump won and the US market is up 15% and confidence is on the up and up.
 

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Todman said:
Trump won and the US market is up 15% and confidence is on the up and up.
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Thanks for the timely info.

If you read my post, I said "the predicted" not "my predicted" and I said "could lead to a crash" not "will lead to a crash".

......and using hindsight as you are, there were great buying opportunities immediately after Trump was elected.
 
Buy a house .. I wish I did in my twenties, I would have had a significantly larger investment portfolio by now.
If investing isn't your game, you'd have security because your weekly cost of mortgage/rent will be significantly less in 10 years time then your peers.

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Can anyone here assist with knowledge of pre approval and buying property at auctions or private seller.

They always ask for 10% deposit, do you need to specify in the contract that it's pending approval of finance and if that is rejected you get the full deposit refunded?

If the answer to above is no is it essential to get pre approval and does that cost anything?
 
kaiserchief13 said:
Can anyone here assist with knowledge of pre approval and buying property at auctions or private seller.

They always ask for 10% deposit, do you need to specify in the contract that it's pending approval of finance and if that is rejected you get the full deposit refunded?

If the answer to above is no is it essential to get pre approval and does that cost anything?
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At auction you have to have finance approved before buying . You pay 10% straight up and are in a binding contract.
Not buying at auction , you have 30, 60, or 90 day settlement. You choose . And yes it is subject to finance and building and pest inspection. Meaning you can pull out of the offer if you don't successfully obtain finance.

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kaiserchief13 said:
Can anyone here assist with knowledge of pre approval and buying property at auctions or private seller.

They always ask for 10% deposit, do you need to specify in the contract that it's pending approval of finance and if that is rejected you get the full deposit refunded?

If the answer to above is no is it essential to get pre approval and does that cost anything?
Click to expand...

PM me if you like.


Sent from my iPhone using Tapatalk
 
But it may double in 8 years. I mean it's not beyond the realms of possibility that I'll bang Miranda Kerr in that timeframe, but I'd be betting against that. But it may happen. #FaithKept

Buy as close as you can to the city. Forget the country. You will build equity. In 8 years time when you are 30 you may have 2 other investment properties. The market may even double in 8 years. You purchase 400k now by then it may be 800k. I bought when young. I suggest it's a must. Otherwise you end up chasing when in 30s and 40s and by then property market will be more insane then it is now.
Click to expand...

This is one of those good old fashioned good post and s**t post rolled into one examples.

Buy as close as you can to the city. Forget the country.
Click to expand...

Good advice, assuming you want to live in the city or are looking at a long term investment. I live near a bunch of houses that just won't ******* go down in price even though the market is poo because they are close to the city, near good schools, near good PT infrastructure etc.

You will build equity. In 8 years time when you are 30 you may have 2 other investment properties. The market may even double in 8 years. You purchase 400k now by then it may be 800k. I bought when young. I suggest it's a must. Otherwise you end up chasing when in 30s and 40s and by then property market will be more insane then it is now.
Click to expand...

House prices have plateaued. The whole "industry" doesn't work without turnover and you don't get turnover when nobody can afford anything.

Property spruikers seem to think that real estate values increase exponentially. This is a fallacy. The growth pattern is actually a natural log, i.e. the marginal increase over time is reducing. Otherwise my house would be worth millions by now.

They also have this bizarre perception that real estate is somehow disconnected from economic indicators, like wages and unemployment and exchange rate and things that influence people's ability to buy real estate. 'No it just doubles every 7-10 years. End of'. Righty-ho, then.

All the easy money has been made and people are finally cottoning on to the fact that houses worth a fortune doesn't actually benefit anyone other than those with multiple houses that are able to sell them at a profit. If my house doubled in value overnight that'd be great, apart from the fact that if I sold it and went to buy a way better house that would've doubled also. The only people I know that have made anything in the last few years have been those that have developed blocks of units - i.e. created something of value.

I bought in my 20s (24 I think, maybe 25) and got in at a decent post boom time (i.e. nowhere near as good as pre-2005 when I was a poor student with no money) but better than 2007 or 2010/11. I have my own place which is satisfying and as an investment down the track it's gone up a bit, but it's hardly a ticket to riches. Rents have gone down, values have stagnated or gone down for years - I'm happy with my decision but had I opted not to buy I'd hardly be in a s**t position now. The old 'gotta get in as soon as you can, this place will be worth double next year' thing is bullshit. It absolutely applied until a few years ago but the carousel stopped. It may well re-start, but it won't re-start just because.

My advice to potential first home buyers is (in no particular order) to:

1. Go old school. Do what your parents used to do (when it was easy obviously). Maximise deposit, buy within your means, build equity. Just GTFO of the 'buy, it'll go up, buy another, it'll go up, buy another' mindset. The absolute best position you can be in in Australia is to own your own home outright, then * what the market does.

2. Do your own research. Look at whether areas are going up or down, look at rents, look at interest rates etc.
 
Scotland said:
But it may double in 8 years. I mean it's not beyond the realms of possibility that I'll bang Miranda Kerr in that timeframe, but I'd be betting against that. But it may happen. #FaithKept



This is one of those good old fashioned good post and s**t post rolled into one examples.



Good advice, assuming you want to live in the city or are looking at a long term investment. I live near a bunch of houses that just won't ******* go down in price even though the market is poo because they are close to the city, near good schools, near good PT infrastructure etc.



House prices have plateaued. The whole "industry" doesn't work without turnover and you don't get turnover when nobody can afford anything.

Property spruikers seem to think that real estate values increase exponentially. This is a fallacy. The growth pattern is actually a natural log, i.e. the marginal increase over time is reducing. Otherwise my house would be worth millions by now.

They also have this bizarre perception that real estate is somehow disconnected from economic indicators, like wages and unemployment and exchange rate and things that influence people's ability to buy real estate. 'No it just doubles every 7-10 years. End of'. Righty-ho, then.

All the easy money has been made and people are finally cottoning on to the fact that houses worth a fortune doesn't actually benefit anyone other than those with multiple houses that are able to sell them at a profit. If my house doubled in value overnight that'd be great, apart from the fact that if I sold it and went to buy a way better house that would've doubled also. The only people I know that have made anything in the last few years have been those that have developed blocks of units - i.e. created something of value.

I bought in my 20s (24 I think, maybe 25) and got in at a decent post boom time (i.e. nowhere near as good as pre-2005 when I was a poor student with no money) but better than 2007 or 2010/11. I have my own place which is satisfying and as an investment down the track it's gone up a bit, but it's hardly a ticket to riches. Rents have gone down, values have stagnated or gone down for years - I'm happy with my decision but had I opted not to buy I'd hardly be in a s**t position now. The old 'gotta get in as soon as you can, this place will be worth double next year' thing is bullshit. It absolutely applied until a few years ago but the carousel stopped. It may well re-start, but it won't re-start just because.

My advice to potential first home buyers is (in no particular order) to:

1. Go old school. Do what your parents used to do (when it was easy obviously). Maximise deposit, buy within your means, build equity. Just GTFO of the 'buy, it'll go up, buy another, it'll go up, buy another' mindset. The absolute best position you can be in in Australia is to own your own home outright, then **** what the market does.

2. Do your own research. Look at whether areas are going up or down, look at rents, look at interest rates etc.
Click to expand...

Even more important than interest rate- loan structure.


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VineyIsLORD said:
Because even the head economist at Deloitte Australia is saying literally the same thing?

You dont understand economics.
Click to expand...

Not sure it was the head economist- I thought it was the forecaster? I read that, I think he said within 9 months inner city Melbourne and Sydney house prices will begin to drop.


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VineyIsLORD said:
Because even the head economist at Deloitte Australia is saying literally the same thing?

You dont understand economics.
Click to expand...

An economist is someone who tells you tomorrow why what they predicted yesterday didn't happen today

There's a 1000 experts telling you something different each time.

Maybe get your boots on the ground and see for yourself.

I have.


Edit:
VineyIsLORD said:
You dont understand economics.
Click to expand...

And for that matter, thats a bit ******* rich coming from a socialist!
 
Last edited:
The Edukator said:
An economist is someone who tells you tomorrow why what they predicted yesterday didn't happen today

There's a 1000 experts telling you something different each time.

Maybe get your boots on the ground and see for yourself.

I have.


Edit:


And for that matter, thats a bit ******* rich coming from a socialist!
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What is a socialist in your opinion? Be specific.

This is literally the absolute worst time to get on the housing bubble. Government, public institutions and the private sector all unanimous on trying to lower house prices relevant to income at the moment.
 
VineyIsLORD said:
What is a socialist in your opinion? Be specific.

This is literally the absolute worst time to get on the housing bubble. Government, public institutions and the private sector all unanimous on trying to lower house prices relevant to income at the moment.
Click to expand...

Dan Andrews just legislated the opposite :rolleyes:
 
kaiserchief13 said:
What are people's thoughts on units and apartments in Melbourne? Are they going to go down in value over the next few years?
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Units are all the rage at the moment. Minimum 2 Bedroom units in prime suburbs are now in demand as houses are unaffordable to most and units are pretty much houses without the space.

Competition for these though is extremely brutal, and good ones will all tick over 600k as that's the stamp duty cut off.

Apartments won't met you good capital gains unless it's decent sized ones in those older blocks that have been renovated etc. 1 bedrooms should always be avoided.
 
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