Hi everyone,
Currently I live in my own home which I still have mortage repayment and recently invested in a Property in Tweed Heads as it seems so out of reach to invest in Melbourne anymore. We purchased a unit for $180k and it brings rental income weekly of $190 – so we’re out of pocket about $300 a months – I know it’s not a positively geared investment at this stage as we only made a depost of 5% rather than 10% – this was all we had at the time and we thought we could get our foot into investing with this. One thing I’m not too happy about is not being able to physically monitor the property – so a bit costly for the plumber or electrician to go round doing tid bits that we could have done!
Anwyway, we are now saving to invest in Melbourne and have about 20k but it seems hardly enough to buy anything. Any advice? I looked at a few student studios at a cost of 130k with rental income of about $200 a week but not really sure as the annual fees seem quite high eg around $2000 a year.
[confused2]
Thanks.Rose
Hi Rose,
Or should I say “neighbour” I am minutes away from you!!!!! South Morang!!!
Depends on where you want to invest in Melbourne, how much, what kind of return you want etc etc.
There are some great bargain around in our neck of the woods (yours and mine) so keep a sharp eye out; they’re definitely there!!!
Try http://www.realestate.com.au for starters, local paper and talk to agents, tell them you price range and ask them to help; these days if they know you’re a buyer they will definitely call you back (hey, I read that somewhere, oh yeah, API magazine) but it’s sooooooo true, 18 months ago I left messages left, right & centre, and trying to get their attention was like extracting teeth; now my phone is ringing off the hook!!!!!
Jo
g’day – if you are happy with a 5 pct type return near melbourne i would invest in places like warburton, healseville, ie 45 mins-1hr east to nth east of melbourne. 20k will still be enuf for a 10 pct deposit on a small house and these places although already popular in the last 12 months will continue to do well. sea changes already priced out of the coast will head for the hills and the wine districts and the sense of community which these places have. btw the developers think warburton is flash and plently of spending is penciled in there for the next few years….
Thanks for your advice everyone!
Jo, I was in South Morang the other night grooming a dog – it is so beautiful around that way – especially Mill Park Lakes – it’s just so peacefull and serene. It’s just developing so quickly.
Up Epping way is the same too. I have been living in Lalor for over 25 years and the changes we have seen all these years is just incredible. My parents bought their 3 bedroom home in Thomastown for about $52k back in 1985 – now it’s more than trippled what it’s worth – it’s now about $350.
I will look at Healesville – I always thought it was very far but no doubt just like Thomastown and Lalor seemed far is now considered close to the City so Healesville probably wouldn’t be considered to far too[biggrin]!
Take care.
Rose
http://www.elegantdog.bizRose
Rose,
To be able to pay $300 per month to keep your first property going and then to save for another shows you are both hard working and disciplined, most people wouldn’t manage that.
But I question getting into a second property before making money on the first. Are you investing for cash flow or capital gain? Perhaps you could look into ways to turn your first property into positive cash flow or sell your first and get a new property that has positive cash flow.
It seems to me what you want to do is first make money on your first investment, then seek to duplicate that. But if you keep on duplicating your first result, you will end up working harder and harder just to keep your investments going in the hope that their value will go up enough to justify all your effort and expense.
regards,
Paul
hey rose you really very lucky to live near someone like jo she is so sweet and very helpful maybe you can contact her i know she will help she has done heaps for me and nothing is ever trouble to her all you gotta do is ask! she knows her stuff to! [biggrin]
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