What would you do and why if you have $200K in bank, and have a family with 2 kids and you are in early 30s.
First Home or Investment?
aussie-bargainer on 11/10/2017 - 23:41
Last edited 12/10/2017 - 09:37 by 1 other user
Last edited 12/10/2017 - 09:37 by 1 other user
Poll Options
- 43First home
- 5Investment
- 4Something else
Comments
It is funny how the banks try and spruik that we have record low interest rates right now. Sure, compared to the past they are low but compare them to the rest of the world and they are ridiculously high. Our banks are some of the most profitable in the world at the expense of the people. People waiting for the housing market to crash will be waiting a long time. Most politicians have huge investment property portfolios. Do you think they will do anything to endanger that? Not saying that house prices aren't overpriced in this country because they obviously are. Just don't expect the bottom to fall out of the market.
we will see.
Need more information, my friend.
Income?
Outgoing expenses?
Purchase price?I'd lean towards owner occupied, but it's too hard to say.
…and where you would be considering buying??
$7500 monthly single income
approx $2500 all expenses including rent
SydneyAre we talking the same "Sydney" city in Australia - $2,500 all inclusive expenses and rent !!!!
@CheapSticks: $1500 rent and I am sure I am spending another 1000-1200 more for living.
I have read so many people saying $2500 is too less, not sure about there lifestyle and where they spend most.
$375 per week for rent - where are you renting?
And $1k seems way too low for family of 2
How long is a piece of string?
Do you like your job? If you get a mortgage you might be stuck there for X years?
Is your marriage happy and stable? Easier to sell off an investment home and split the profits if your marriage breaks up.
Can you pay off a mortgage fast?
Are you happy to pay the banksters hundreds of thousands of dollars in 'interest' on money that they merely 'invent' into existence anyway?Too many questions that only you can answer. Personally I see a LOT of bubbles around ATM, not just in real estate. We sold all our RE investments a few years ago (probably jumped the gun) because I can't see prices continuing given both Australia's and the worlds precarious financial position. Until things change I'll find other uses for my money. :)
I like my job. X years not a issue.
Happily married. -0% chance of breakup.Can you pay off a mortgage fast?: I think so.
Are you happy to pay the banksters hundreds of thousands of dollars in 'interest' on money that they merely 'invent' into existence anyway?: This is same for investment/first home.
Until things change I'll find other uses for my money. :) waited for 1-2 years for that only to get prices increase by 100K-150K for same properties. any other uses though?
What would you do … if you have $200K in bank
I'd probably ring the bank to tell them they'd made a mistake.
Such a honest person you are :)
You had 200k sitting on your account for this long. If you happy with your current living arrangement and expenses.
just go for investment property, then buy a first home.Whenever you try to enter in property, 50% says bubble is about to burst so wait. waited for 1-2 years only to find prices increase by 100K-150K for same properties
Get a house… Get a Loan… Its the dream!!!!
There's nothing like having your own home where you can bang nails in the wall if you want to and keep the garden how you like and have all the animals you please, with nobody to answer to but yourself (and your family)!
……..and the bank. Otherwise I agree with you, OWNING your home would be ideal, just being a placeholder for the banks is a different thing. Everyone has their own comfort levels though. :)
True! Depending where he lives, $200K could be a large chunk of the home paid for already. You can get a nice house where I am for $300K-$500K. If he was in Sydney though the $200K would only be like a 10% deposit :-p
That's a fair point too. :)
Sydney it is :(
$100k on black
and the other 100k on red just to be safe
Then you roll 0.
another 100K on odd ?
It's not a bad time to buy in Sydney to be honest. Just got off the phone with an agent after getting a valuation and it is a bit of a buyer's market - the market has cooled and there's a bit of stock around and purchaser are more wary to invest huge amounts of money so there's less competition. It is a bit suburb relative though.
IMO there's never going to be a crash like people keep wishing for, just cooling and stagnating, so now is as good a time as any.
Not often you see "buyer's market" when talking about a median house price of >$1m.
I'm not sure about Sydney,
but brisbane bubble has popped.
https://www.ozbargain.com.au/node/332266
FYI, Hamilton is inner-city premium high-end suburb - with riverfront harbour full of yatch/boats.
Buy two units. Rent one stay in one. Save tax. Enjoy life. A house would be hard to buy. And with dependents loans would be hard to get. You expenses are less. Banks don consider that. First get a unit. Then buy another as investment and you are sorted. Disclaimer this is just my view and not a financial advise.
Thanks.
Rent one stay in one. Save tax. can you explain save tax part?
Interest/Tenancy Costs/ Maintenance/Depreciation all can be used to claim tax deductions. Read more about it by googling and if you feel it's good and may work for you then see a tax consultant.
Be prepared for holding of some money till you do a tax filing to get back some of it. All depends if you work with a TFN or have a ABN. A consultant can help you for whatever situation you are in. And also make sure you are financially crippled if there is no tenancy for a few weeks. Also I personally feel keep some money for some unforeseen circumstances and do not invest all of your savings.
wait for interest rates to rise, and not support current ponzi scheme