How Much Will My Ute Be Worth In 5 Years

[lowriding]

Go buy a house NOW. Don't wait, the time you spend waiting will mean you'll have missed out on a few years of value appreciation.

My story..

As a 21 yo and earning 35K a year I managed to buy a large old house in Norlane near Geelong with a small amount of money I wrangled together. I've got housemates in here help paying the board, bills etc and I'm slowly but surely fixing the place up. Already, I've had good estimates that my property is now doubled in its value.

Now @ 24 I'm using that collateral in the existing property to build a new house in Pt Cook (closer to Melb where I work). I've already called that yet to be built house the '2-3 year' house as once it's built my g/f and I will move in... bring in some tenants to fill the room and help with board. The idea after 2-3 years is to pull some cash out of one of the houses, maybe do the right thing by the g/f and go o/s... or build another house.

The earlier you get into creating positive debt the better off you'll be in the long run. If you can live at home then by all means invest your money in a property NOW.

Just remember, don't buy apartments they have no land value and that is what appreciates... the house on the property incurs expenses, gets old and depreciates. Also, remember that the older run down areas eventually get re-built as young families and couples move back into the area.

I sound like that wa*ker on late night tv prattling on about getting into property hehe

You need to spend money to make money and keeping it locked up in the bank is a waste of time and just allows them to invest that money itself.

PM me if you have any queries.

I don't know about you... but I wanna retire as early as possible. 

Cheers,

Miyagi

<{POST_SNAPBACK}>

While the idea of buying now is generally sound , your example above is irrellevent . In your instance (and mine for eg) houses have appreciated markedly in the last 3 or 4 years,in which case buying yesterday or today NOW makes a lot of sense . However almost certainly rises this will NOT happen for the next 4+ years Very Mild rise or likely drops will occur. Putting $$ into something now which does not rise for 3 or 4 years is doing one thing -loosing money.Better off sticking it in a alternative source (shares/term deps / funds ) which should return a % for a couple of years , when rednut is ready to buy the housing market will be getting ready to fire again he can move the funds out to it.

[Mondie]

Lowriding, what you say is generally true BUT the housing market is made up of many markets. There will always be areas that are rising while others are stagnat. Its all abput researching the right areas moreso than timing.

Shares, housing or whatever, acting now is most important

[rboksic]

I was told today that the interest rates are set to rise 3% at the end of the year, if it does you may what to buy then.

Rob

[rboksic]

I was told today that the interest rates are set to rise 3% at the end of the year, if it does you may what to buy then.

As for the value of your car plan for the worst price and dont hope for the best as it might not happen

Rob

[Antisocial]

Whatever you do, look into it thoroughly before you invest your hard earned.

I bought a huge block of land in the best part of town intending to build a house on it.

Then there was a recession, I got retrenched had to leave town to get another job as did many others. Property values slumped.

Bought it for $32,000 paid over $1k a year rates alone plus interest for over 7 years then sold it for $21,000.

Sure if I had held on to it for another 5 years I may have got my money back but maybe not.

Yes over the last 5 years the equity in my current house had increased by about $200,000 and well and truly made up for any money I lost on the previous deal.

As others have said don't expect the same sort of growth out of property over the next 5 years as you have seen over the last 5.

But rest assured the world will try hard to stuff up any plans you make for your life.

And as soon as you start to say in 5 years I will do this and sell that you may be in for some heartache.

Just remember most investment is a long term thing and to make money you must sell when the market dictates, which is not necessarily at a time that may suite you.

[SOON2BXR6T]

Because of the current FBT / Tax implecations, people like me have to sell our 5 yo T's for a fixed price.

So a head's up to everyone, that my T in just under 4 years will be going for just under $16K, with all the options I have and around 150K km's on the clock.

It will also be in great condition as I love the car and look after it really well both in the way I drive it and take care of it.

So be warned that is what the tax dept says I have to do and there are plenty of other's like me........... lol, anyone want a good car in 4 years?

<{POST_SNAPBACK}>

I certainly hope to get more than the lease 'balloon' figure for mine. Made 8K on my last one!!

quote from bmw finance novated lease info on website:

At contract end, if the employee makes a profit on sale (the market value of the vehicle exceeds the residual value on the contract), no tax will be payable on that profit, where the benefit gained is the result of a sale at arms length. (Granby’s Case, Federal Court 28/4/1995). For clarification of any taxation aspects, independent advice should be sought.

http://www.bmwfinance.com.au/index.aspx?product=123

Edited 14/02/05 02:59 AM by SOON2BXR6T

[vuster]

I was like Miyagi. At 21 I also bought my house and rented it out. This was about 4 years ago. It appreciated over the first couple of years and I managed to buy a couple more. I sold one of these properties for 2.5 times what I bought it for in 1 year. Quite lucky indeed.

At the age of 21 I had to decide to buy a car or save a bit more for a deposit. Chose the house and that has saved me many many years of working for peanuts.

Saying all that, things are much different now and gains like in the past won't happen for awhile so it's not that bad if you decide to wait a few years. I would put the money in shares or some other investment and wait for the right time to buy a house. But if you are currently renting then I guess buying now will be more attractive.