How to make the most of your 20s

[Seeds]

I don't understand what you wrote. What I do know , if you took out a loan 30 years ago for an investment ppty , you would now own that property fully and not have to worry about interest rates.
2 more things- you could live in it debt free not having to pay any rent , and also have more dispensable income for items such as holidays or other investments.

Thats because there was a massive property boom in these years. A once in a 100 year event. Who knows what will happen in the next 30 years. My guess is it will be the worst 30 years for property in the last 100 due to a correction.

 

[Simon_Nesbit]

Thats because there was a massive property boom in these years. A once in a 100 year event. Who knows what will happen in the next 30 years. My guess is it will be the worst 30 years for property in the last 100 due to a correction.

A "massive property boom" that's has been incredibly consistent and lasted nearly 60 years so far? It's not a once in 100 year event, it's happening every year for over half a century.

The ONLY time property has stayed stagnant (the actual "once in 100 years" occurrence) was during a period of artificially restricted prices (Commonwealth controlled pricing arising from WWII until repealed in 1949). Prior to that you are going back to the late 1800s to WWI. What you are guessing will likely take another World War and full-scale Depression (1980s recession nothing in comparison). It's INCREDIBLY unlikely.

Even then, this person would still own the property outright. Even if the house managed to decrease in value in 30 years - they still own it.

 

[Simon_Nesbit]

The issue with property ownership is managing risk of ongoing costs.

Invest in shares once and they essentially take care of themselves after that. Reinvest the dividends, ride the wave of valuations. You only lose if you actually sell (or company goes bankrupt or gets delisted).

By utilising leverage, Property returns far outweigh shares - but also include periods (generally first 3-5 years) where rental income is lower than outgoings (loan, maintenance, insurance, vacancies, etc) - requiring you to 'top up' to meet obligations every week/month/quarter. You still only lose if you sell - but if you cannot maintain cover for the costs, you may be forced to sell.

 

[Richard Cranium]

average house back 30 years ago cost about 3x annual wage. its about 10x today.

slightly tougher for people in their 20s to buy an investment property today I reckon...

 

[Seeds]

A "massive property boom" that's has been incredibly consistent and lasted nearly 60 years so far? It's not a once in 100 year event, it's happening every year for over half a century.

The ONLY time property has stayed stagnant (the actual "once in 100 years" occurrence) was during a period of artificially restricted prices (Commonwealth controlled pricing arising from WWII until repealed in 1949). Prior to that you are going back to the late 1800s to WWI. What you are guessing will likely take another World War and full-scale Depression (1980s recession nothing in comparison). It's INCREDIBLY unlikely.

Even then, this person would still own the property outright. Even if the house managed to decrease in value in 30 years - they still own it.

Your confusing returns with inflation. For a 100 years between 1890 and 1990 there was almost no real return to housing. In 100 years. And this is despite dramatic improvements in the quality of housing stock. Taking account of quality improvement the real returns were deeply negative. Its only in the past thirty years that we have seen sharp increases in real house prices.

 

[00Stinger]

I'm no expert but from what I've read I would never buy a small unit or apartment as an investment.

Yeah take it from my experience, not a great profit making idea

Low capital growth, fees a lot higher than normal property mostly due to body corporate

However rental returns are pretty good