Capital Growth And Saving To Buy Back In Sydney
Very interesting question. I’ll reflect on my own journey when I sort of read something or hear something like that. Whereas my position, I started investing in my mid twenties and at the time Sydney was the market that I found opportunity in, um, as well as Melbourne given where obviously fast forwarding well over a decade from that point where the markets are for someone potentially with a restricted budget, with the intention longterm to come back into Sydney is a few things that I’d look at their probably the couple of the which is a capital growth opportunities be cashflow that’s going to allow you to hold that property and obviously see as the intention is I want to come back to the Sydney market to buy their home. I would look at it to say the question for me is yes, capital growth is, is obviously paramount, but then the other questions that what’s your ability to save? Because if we’ve got a cohort of five, six, seven year timeframe between when you want to get back into Sydney, if you’re going to get put that deposit into a secondary market, whether it be Brisbane, whether it’d be Armadale, whether it be anywhere, you want to be able to make sure that you’re not necessarily restricting your ability to buy back in Sydney as you want to and, Secondly, I’d also want to make sure that part of that plan is to actually be able to retain that investment because if you’re planning to say, I want to invest and then, want to go and effectively pillage and take that money and then put it back into another market where I want to buy my home, chances are you’re not going to achieve either because you’re not going to get the capital growth. You’d expect the cycle you’d really want to be holding through. It’d be, I’d say minimum 10, more like 10, 15 years mindset. However, if you’re not going to give it that time, you probably going to get a restricted amount of growth and always. Our rule of thumb is probably expect about nine percent of your total property value has to go up before you’ve made a penny in property. You’ve got stamp duty, cost entry, costs, exit costs, any kind of capital gains tax until you’ve made between eight and nine percent, you’ve effectively made no money, so I would say that to answer the question, make sure that you have really the right intention here to make sure that part of this investment is to hold it and the numbers are even if that property doesn’t go up in value, that you’re still saving money to come into Sydney, but then secondly, if you’re going to look at assessing markets that those markets are going to fit. Obviously your borrowing capacity, but b, are also going to allow you to continue to save in the background. So somewhat cashflow neutral. Not necessarily been the only focus, but capital growth is also going to be an overall disclaimer aside. That’s the overall achievement that needs to be needs to be hammered in.