Overwhelmed and being driven crazy by other people's advice

Viewing 7 posts - 1 through 7 (of 7 total)

andrea01
Participant
@andrea01
Join Date: 2007
Post Count: 16
April 16, 2008 - 11:14 pm
Hi Guys,
As i mentioned in a previous post my husband and i are looking into buying our first ip.
As it's our first we want to start with something like a decent flat/unit in the inner city in Melbourne, we haven't chosen an area yet buy we are considering areas like st.kilda, hawthorn and even foortscray.
Now all of our family and some friends are telling us that we shouldn't buy flats or units and that we would get so much more for our money (3br house) in outer areas such as Greensborough and similar areas.
I'm certainly not a property expert but somehow i don't imagine areas like Greensborough having as much capital growth as inner city area.
Am i right or should i listen to our family/friends.
Thanks
Andrea
newbi2
Member
@newbi2
Join Date: 2008
Post Count: 227
April 16, 2008 - 11:49 pm
You will find as soon as you mention your plans, you will be bombarded with well intentioned though unsolicitored advice. It goes with the territory. It will be a matter of tuning out or just not starting the conversation inthe first place. If there is a sound basis for the comments then ask them to explain further but if it is an armchair investor that heard over the back fence that his neighbours brothers uncles bus driver lost money then change the subject.
There may be logic in what they say (after all land appreciates, buildings depreciate), but alot of opinions on investment properties (especially those that dont invest) is based on emotion ie what they would like, rather than what is often a better investment. Be confidant in your own research and logic, and if you are not, find someone who can support what you are trying to do and perhaps help give perspective (preferably someone who is currently investing). Gee that sounds like those on this forum!!!!!!
Happy hunting
Mick
kimb
Member
@kimb
Join Date: 2007
Post Count: 3
April 17, 2008 - 1:16 am
Hi Andrea,

I just posted a forum regarding the company I work for. This company researches inner city executive style apartments, as well as Lifestyle apartments, in tourism and industry related areas of Australia. At the moment we are marketing apartments in St Kilda, as our research has found, there is an undersupply or new apartments in this area, and this tightening of rental availabilty has driven rents sharply higher.
It really depends on your circumstance, whether house and land, or apartments are the way to go, I think both have positive and negative aspects to them.
Investing is a stong tool for wealth creation, you just need to do the research and then not be scared to get involved.
Best of luck Andrea,
if you have any questions dont hesitate to contact me, kimb.
suavemechanic
Participant
@suavemechanic
Join Date: 2004
Post Count: 106
April 17, 2008 - 7:36 am
i only show my tattoos to people who have tattoos and i try to only discuss investment with people who have investment property.
this policy works for me !
units can be great as a " set and forget "
the areas you mention are full of them so some one thought it was a good idea !
good luck
Daedalus
Member
@daedalus
Join Date: 2007
Post Count: 140
April 17, 2008 - 8:10 am
suavemechanic wrote:
i only show my tattoos to people who have tattoos and i try to only discuss investment with people who have investment property.
this policy works for me !
units can be great as a " set and forget "
the areas you mention are full of them so some one thought it was a good idea !
good luck
I agree.
Find someone with a number of investment properties and see what they have to say. Ignore anyone who has none, including accountants and bank managers.
Daedalus.
petrona
Member
@petrona
Join Date: 2008
Post Count: 35
April 17, 2008 - 9:49 am
There are pros and cons for both. However I prefer to stick to units which are close to the capital city, for the following reasons:
1. They're easy to tenant – there's always a lot of people who want to live close to town for work;
2. The strata looks after all the gardens, which removes one area of concern when renting a place;
3. Units are easy to resell, as they are investor friendly. There's also a market there for the first home buyers.
For us, units have worked out well. Just my 2 cents' worth.
Good luck with the decision!!
petrona
Pudestcon
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@pudestcon
Join Date: 2005
Post Count: 64
April 17, 2008 - 10:44 am
Some more food for thought…… Would you like 1 square metre of land in the CBD of Melbourne or 2000 hectares out the back of Birdsville? The point I am making is that it's not the amount of land you have but how valuable it is.