Property vs ETFs Investing | 8 Years Growth In 6 Months!

Рет қаралды 5,251

Күн бұрын

Пікірлер: 17

@nadia9254 Ай бұрын

Could you make a video about if a young first time buyer should go with a first home buyers loan or investment property, the pros and cons and how it works please?

@williamcrossan9333 Ай бұрын

It's getting hard not to buy negative geared property. A recent example would be 40 Wongabel St Kenmore, which sold recently for $1.27 million. It went up for rent straight after for $775 / week. Now I get that this is likely to be bought by someone who will move in at a later date. But it's typical now, of the sort of returns in good suburbs, for houses with "owner occupier appeal". This house would be $40K negative per year! How do people keep buying property, and keep buying? You would need to earn $180K to hold this property. Just the one property. You wouldn't buy 3 or 4 of these.

@NoRegertsHere Ай бұрын

I think rents are going to climb significantly over the coming years.

@williamcrossan9333 Ай бұрын

@@NoRegertsHere Well rents have traditionally increased around 0.7% higher than wage growth over the long term. Brisbane rents have increased 58% since 2018, so they've surged far ahead of the wage growth curve. So, no I wouldn't think so at this stage. Yes, an acute shortage can drive them higher, but the renters will have to cut back on other spending.

@NoRegertsHere Ай бұрын

@@williamcrossan9333 I used this type of data to set my life up, thinking I was outsmarting the system by rent-vesting. That is, renting for lifestyle and investing the difference. The thing is, the numbers you quote are more or less averages. A given postcode becomes more and more desirable as even more desirable postcodes become more and more expensive. So the spending moves further out. Staying in a constant postcode, the rent increases over time at a rate faster than inflation and my wage couldn’t keep up. A given post code contributes to the average, but the average includes postcodes further out. In other words, to keep paying the same rent and only adjusting for inflation, I’d have to keep moving every few years. Better path if I was to do it again is to buy in the best area I could afford, and debt recycle the mortgage into shares. That way living costs are fixed and more expensive for the first few years and in a couple of suburbs further out than where I could’ve rented to start with, but within a few years, I’m ahead and getting further ahead faster as the years go on.

@williamcrossan9333 Ай бұрын

@@NoRegertsHere I would add too, that the vast numbers of people coming into this country, are largely expected by business (and the government) to work cheaper, than the existing labour force. Short term gains for long term pain.

@NoRegertsHere Ай бұрын

@@williamcrossan9333 yeah that will have this effect. Australia needs more people. Unfortunately we are lagging in housing due to government decisions during Covid for a whole range of things, plus long standing poor planning for zoning and infrastructure

@admiral.greenbull3055 Ай бұрын

Im not against property investment. But maybe you should run the exact numbers before saying that it outperformed the etfs in your 8 years compare to your newly bought property.