Hi guys, I am planning on buying my first home in the next few months. I know it is not near a capital city, so would buying a house in the Airlie Beach area, ie. Cannonvale, Jubilee poket etc be a bad investment. Thanks in advanced
Bronto, it's hard to tell, I think it depend on the area. Airlie Beach has been dropping since 2004 http://www.domain.com.au/public/SuburbProfile.aspx?suburb=Airlie Beach&postcode=4802&mode=buy I don't know the area so I don't know what this means but be careful with what you buy because prices in many holiday regions and especially at the upper end of the market could be coming down more. What are you thinking of buying? Are you buying it as an investment or do you intend to live in it? cheers
Airlie beach area Thanks Bill. I would be living in it, and it would be cannonvale most probebly yhat i would buy, it is about 2km from airlie beach. You can pick up a house bettween 350 and 450K is was thinking of the mid 300Ks or a unit around the low 200Ks. Any advise would be great. Oh and the median house price in cannonvale is 485K. Thanks again
It depends who you ask. In the end though, all forecasts are just people's opinion and it can be very difficult to differentiate who is informed and who is regurgitating information they have picked up from some dodgy biased source. I tend to lean towards the belief that in aggregate Australian house prices will drop somewhere between 5 - 12% in the next two years. Though that said there will no doubt be areas that appreciate in value over the next two year and there will be areas that will probably depreciate more than other areas. That's just my opinion, I know there are people on these forums that passionately think otherwise. So "are house prices going to drop" is such a complex question, especially in this climate, and it would be hard for anyone to predict the likely position of housing in 12 - 24 months with any certainty.
bronto It's impossible to know what will happen to property prices. I'd say that if you buy something which is nearly cash flow neural now it should be a somewhat safer bet than of you bought an expensive and highly negative geared one. Are you a first home buyer? cheers
Thanks guys, Yes I am a first homebuyer. Would really love to live there, and then get another property later on in the next few years Should I go the unit and just pay heaps off it and then get a house at a more suitable time. I could wait but am sick of paying rent. Thanks again
That's exactly what I'd do. With a smaller mortgage you will pay less interest, you will pay it off quickly and one day you can use this property as a stepping stone for something bigger.
thanks that makes sense. I should be able to get a unit quite cheap and pay it off quick. I make around 105k per annum. I should have it paid quick. I still want to buy houses too before the interest rates go up. Thanks again
bronto Happy Australian day. Is anything exciting hapenning up your way today? In regards to the property, since you are getting the FHOG and I am guessing you also have a considerable deposit concentrate on paying the loan off. The more you pay off the more equity you will have and you can use your equity as a deposit for your next property. I don't believe prices will take off anytime soon so you have a year or so to build up some equity in your new place. Since you are interested in houses, you could look at rental returns vs loan repayments. Once these get equal, it could be the time to move. How is the rental market up there? cheers
Thanks Bill, happy Australia Day to you. Nothing too exiting for me today. Working at the moment but only 2 days to go. Im a driller in the Oil and Gas industry. Good lifestyle work 2 weeks on 2 weeks off. I actually live on the Gold Coast at the moment but have wanted to move up north for a while. As for the rental markets, im not really sure, guessing it wont be as good as the Goldie. I probebly will get a unit in cannonvale and pay off quick to get the equity then buy a house in an investment property in a more suitable area for capital growth and rental demand and price? Thanks again for you input and advice. I have so much to learn.
