Hi all I have been reading this forum for the last month and find it very helpful. I am from rosanna in victoria. My wife and I have decided to look into an investment property as the market is stabilising. Our preferred suburbs in vic are from the following suburbs – Fitzroy North, Northcote, Thornbury, Preston, Newport, Point Cook. We have stuck to a limit of around 400-430K. My question is should we hold off on buying an investment property and see how the market goes? and are these suburbs we have selected a good choice for investing? So far I havent done a huge amount of research but I have read the inner north holds a good percentage of rental properties. Plus of all the areas listed we are looking for a single front victorian home apart from point cook which you can get a decent newish home for around 300k. Any info appreciated.
cheers, stifla.stifla – good suburbs to chose. i live in one of them and i reckon all of them present good value. ie they are all growth suburbs.
problem is return in these suburbs although above average is probably only 3-4 pct. slightly higher for units. so if you borrow a large percentage of that 400-440 k you are talking a fair bit of your own money….
i personally am gonna wait a little while until i have a better idea of the direction the market is going. when rents increase or the price decreases another 10 pct then i will jump in. the danger is that you could be left with low capital growth and low income for some time…
why not start smaller with less risk and buy a unti for 200k or a 2 bedder near latrobe uni for 220k….thats the way im thinking anyway
this way you have less risk (less capital/loan, and slight;ly higher return say 4-5 pct)
and in this way you have a foot in the door
cheers
I agree with rogue. Thats how I started with a 2 bed unit and then you learn heaps about real estate (dealing with agents, tenants, property managers, repairmen etc) without over committing.
Things will be slow for the next few years but you get your foot in the door and start to gain some experience.
Thanks for that info guys. Good advice.
Originally posted by stifla:, . My question is should we hold off on buying an investment property and see how the market goes?
It depends what everyone else does. If they all hold off the market goes down, if they all come back the market goes on. It’s your money and your pick.
Wish I knew.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
