Hi,
I'm new to the Property Investment game and I anticipate that i'll be able to have enough saved in 1 – 1.5 years time to purchase my first IP (with the help of a loan from parents and the bank). For the time being, I've decided to do as much research as possible and familiarise myself with average selling prices, weekly rent amounts and capital gain percentages with various suburbs around the Sydney area.
Can anyone recommend any sites or magazines which will help me to monitor suburb statistics in Sydney? I've already put together a little spreadsheet with some median selling prices and rent values.. but I'm not exactly sure what sorts of capital gains are being made. Can anyone help me out?
I'm a uni student in my last semester of uni and I've secured a full time job for next year. If my short term goal is to purchase an investment property over the next year or two what is my best plan of attack? I'm not after anything too flashy just yet, just something to get the portfolio started to bring in some passive income and eventually give me some nice capital gain. I plan to live in it for 6 months before renting it out in order to make use of the government's Primary place of residence tax leniency on capital gains.
I'll be on an average-ish salary but I should be able to borrow a little bit from my parents.
Any advice or comments would be appreciated.
Get a copy of Australian Property Investor Magazine. It comes out every month and has a Sydney suburb profile in the back of the magazine.
In my opinion your best plan of attack would be to start out with a small apartment or flat and stay in it 12 – 24 months and try to pay off as much of the loan as possible. Why I am saying this is your starting wage as a graduate will be low and in 2 years time it will be much higher as you gain experience. I expect your salary would be $35,000 – $42,000 and this sounds like a lot but when superannuation and tax comes out of it , you are paid less.Also you didn't mention the first home buyers grant which you might be eligible to receive.
Hi duckster,
Thanks for the comments. I was considering getting a subscription to that magazine, but then i saw another one at the newsagent called property investor or something so i wasnt sure which one was the better out of the two. My starting salary will be slightly higher than that, but i think i know where my limits lie as to borrowing anyway so i dont intend to bite off more than i can chew.
The problem is that i've looked at all these suburb profiles, but I have no idea how to pick a particular property for an investment. Obviously location is one of the key factors.. but what other factors come into the equation? The more west you go from the city, the cheaper places get.. but whats the demand for rent like out that way?
Also, how does one read the economy? Whats the best way to know when you should buy/hold/sell etc? What indicators tell us if we're in a housing boom / recession?
Sorry if these are dumb questions.. I just want to be able to master everything about property investing.
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