Hi
I purchased a 3 bed t-house in Brisbane last year as PPOR, the plan is for my partner and I to finish the cosmetic renovations both inside and out by the end of the year (total of $10,000) and have it re-valued to see what equity we may have.
We currently have no persoanl debt, mortgage only (360k) and will be purchasing a car (trying for a baby) in the coming months which will put our savings at $20,000.
I work for a large Gas company in Queensland earning 150k, my partner works for the Uni of QLD on 60k so savings are moving along niclely.
The dillema is this… Working in the Surat basin for a Gas company I can see the huge potential for investing in Miles (where I currently work) as I know there will be billions invested in this region. I am also interested in vendor finance and setting up a positive cashflow portfolio with city based properties – ALSO there is the 10k building boost from the QLD govt for the next 6 months on all new properties…..
I am a little overwhelmed with options but one thing I know is that I will purchase within the next 6 months, so what are some options a more experienced person would take in this situation?
Thanks
Hi Ryallsy,
It's a common dilemma investors face. The more they look, the more they find. In that is created the burden of choice which is what you are facing. Better than no choice at all, but a problem.
You might get come clarity in this post on my blog.
http://www.theblockblog.com/propertyinvestment/4-reasons-why-you-should-kiss/In summary, you will need to look at your investing goal in detail, then work back from there. Everyone has a different starting point as well, so look at what you want to achieve in what timeframe. Then reassess the options in front of you in that light. Some strategies will light up while others may fade.
You may see a small range of options that suit and diversify your investing which is often best. Different strategies and different locations, so you are not exposed fully to the downturn in any one market, should it happen.
Don't feel pressured into any one strategy because of a timeframe ie; the building grant. You need each option to stand alone financially without special deals. They should only sweeten the process if available.
As a newbie, keep things as simple as possible and as clear in direction as you can. This will negate that inner turmoil you are feeling right now.
As much as people can give you their experience and direction they have followed, which is always valuable information, it is you who makes the final decision, so evaluate each option in front of you as thoroughly as possible. Use spreadsheets to evaluate your returns. Look at each case scenario and compare, then decide which strategy or strategies suit your goals best.
Ian
http://theblockblog.com
Free Property Investment Information, Tools & Resources for Investors with a Sense of Humour.Hi Ryallsy
I would (and I'm sure you have) think carefully about how the addition to the family is going to impact on your ability to make repayments on your liabilities.
Your contributing a significant portion to the household budget – so it's important to have some mitigators in place that will enable you to continue servicing your debts whilst you're out of the workforce for a period of time.
I know it's an obvious statement to make but it's something that people often don't consider.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Thanks for the responses
They are very much the responses I was expecting, it's up to me to make that first move, then I can ask for guidance on a particular technique.
I will devote time to working on exact goals this next break from work and decide on an action plan.
Keep the responses coming and any links to additional info is greatly appreciated.
Hi Ryallsy,
Are you planning to use equity in your townhouse to fund the purchase of the next property?
The reason I ask is I have a 2 year old townhouse on southern outskirts of Brisbane and it was recently revalued by my bank to be less than what I payed for it in 2009. I think the bank is being too conservative because I saw a sale only a month ago in the same complex for the same type of townhouse and it sold for $30k above my banks valuation.
Anyway, just saying, even with your renos, you might get a shock if you only purchased the property last year.
As for investing in Miles, I don't know the area but if you are confident with that the infrastructure is going ahead, then it could be a good bet.
Hi lifestylez
Are your properties in the Logan area? I noticed that prices for townhouses have dropped quite a bit since 2009.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Ry,
Like said above you need to set your goals and work back from there.
First thing to ask:
Do you want cash flow or capital gains?It is generally best to focus on one or the other.
Second thing to ask:
How much cash flow or capital gains to I want to achieve?Third thing to ask:
What is my exit strategy? Do I sell the properties, hold onto them? Pay them off completely or just keep them ticking over etc?Ryan McLean
ps. If you are interested in owner finance then I suggest you read my blog post on How To Make Any Property Cash Flow Positive Using Owner Finance
Ryan McLean | On Property
http://onproperty.com.au
Email Me
You must be logged in to reply to this topic. If you don't have an account, you can register here.
