Hey All,
Im able to borrow 300k max for my first property. I want to buy in the inner east of melb or somewhere like st kilda. near shops and train station. Currently im looking at a 2 bedroom with a balcony (i really really want a balcony its a must)
I have a few questions:
1. Should I stick to 2 bedrooms – as im finding hard to find something in this price range with a balcony that isn't looking into a wall and the entrance doesn't smell.
2. Should i get a 1 bedroom and get an awesome balcony with view in a great area like st kilda etc. – Im just worried about reselling in the future as 1 bedroom are harder to resell in the future are they not?
I am investing so i can move out and not rent. I would like to keep the property and rent it out in the future ( in 3-4 years)and grow my portfolio rather than sell it after a few years.
I would greatly appreciated any advice.
Thank you and Regards,
Joel
i'd go 1 bedder rather than tacky 2 bedder which would you rather rent if you were a tenant
Joel
does the "tackey" two bedder have the possibility of renovating therefore increasing your equity. Are you handy like that?
If you are only planning on being in it for a few years, then do you do this, increase your equity and then buy that really nice 2 bedder with a better balcony and view.
Just possibilities
Don
Hey Don,
I could definately do it up on the weekends. My dad is a builder so i can good tips and do it myself. However id have to find one that wasn't a large block and didn't smell hehe. I like the idea of a 1 bedroom because then its done and its notin the 300 mark. more like 250 for a nice one.
Your right tho i could do it up and increase the equity in it pretty easily.
Cheers
Joel
There are few things you should consider:
* Firstly, renting is the cheapest accommodation. Consider renting for living and use this property as an investment immediately.
* What is the profile of tenants in that area? Are they individuals, couples or young families. That will probably give you an indication of whether 1 BR or 2 BR will be in higher demaind.
* What is the size of the 1 BR unit. If its too small (I think <50 sqm), the lenders may only lend 65-70%.Personally, I would go for a 2 BR unit as they have higher demand. If there is a renovation opportunity thats even better. Opportunity for capital gain quicker.
Hope this helps.2 beds rent alot easier as even single people like to have a spare room for stuff and guests to sleep in,….
Hey again – i have another alternative… to buy with my sister- which i hav ea great relationship with. We could get someting worth 500k between us give or take 20k. . But then i have to divide the profit by half…
what do you think?
what sort of investment stratergy are you looking at,
How do you think you would structure this deal to include your sister,
you have to make sure you are both on the same page, from the word go,would you continue to go onto buy more together,
will you be wanting to buy faster than her,
do you both have the same investment time frame (will she want to pull her money out before you)
what sort of investment experiance does she have.I concur with Tysonboss1. What is your strategy for this property?
You make your profit when you buy, not when you sell. Begin with the end in mind. Who will buy this property from you when you are done with it (exit strategy). Answering this should point you toward which type to buy.
Carefull investing with family. Make sure you have a formal Joint Venture contract in place. It should cover;
– What happens if one of you wants out in a year?
– Who is going to manage the property?
– How much is each putting in?
– How will you distribute profits?
– What if one of you dies?Treat it like a business agreement
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