Can anyone shed some light?
I am reasonably new to investing and have been looking at purchasing my first positive geared property and I’m not quite sure how to go about it. After searching for a month or so on the net I might have found a property in a village for retirees and wanted an opinion whether it would be a good place to start investing.
Regards,
gabmar
Hi Gabmar,
One of the great things about property is the amount of leverage it allows. This is not extended to properties such as retirement units. If you have a lot of equity and are just after cashflow then it may be ok, but if you are starting out and do not have a large equity base then buying such an asset will hinder you in moving forward, in terms of adding to your investment portfolio.
Regards
Alistair Perryhey gabmar im a beginner like you and im looking for my first property as well, atm my strategy is to read as much information as i can and get insight into investing over the next 12 months before i knuckle down to try to secure my first deal…altho u may not have the time resources i suggest learning as much as possible first before jumping in the deep end to buy a first property
As someone who has worked with a few investors for a while and even bought a the odd property myself let me offer some well intentioned advice.
Each week I get calls from new investors who have just discovered serviced apartments, retirement villas, studio apartments etc.
These are all difficult investments as you need a higher deposit and the resale demand isn’t as high. This is why the numbers always look good as they cannot be valued at a normal yield.
If you are after growth then my advice is to look at 3-4 bedroom middle class homes in coastal cities and major centres. Of course budget doesn’t always allow for this and you may need to vary the theme according to your chosen market and budget but I am sure you get my drift. Another tip is to buy in areas with mainly owners not renters. Better demand and also better suburb maintenance and appeal.
If you are after after cashflow then you may need to head inland to more regional centres. Don’t be lured out to one industry or mining centres without doing a lot of homework on the area’s future.
Now it is even possible to get both growth and cashflow and this seems to be the holy grail for many .[biggrin]
All the above is a huge generalisation intended only to illustrate my point. Readers may very well have found wealth through retirement villas etc.
Anyway food for thought!
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
if your thinking long term resale, i cant comment on the retirement industry, but when it comes to houses doesnt everyone want to buy 4 bedrooms, 2 bathrooms, double garage, BV etc… because they think its easier to onsell later ?
Cheers Jeff
http://www.property.focusdevelopments.com.auOriginally posted by Blakeb:as the property market is extremely volatile at the moment. Timing is everything at the moment.
Blake can you expound on this please?
Most people are saying that the market is less than volatile with the poss exception of Perth.
I find that my buyers are in the driver’s seat and timing is the least of their problem?
Ta
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
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