I have 500k. I am in my mid 40s and I would like to put that into a property.
I'm so new at this, and don't want to get <moderator: delete language> advice from a realtor trying to make a buck. This is the only money I have and I'm not good with numbers etc so I need to keep it simple, and just buy a good buy.Any advice or suggestions would be much appreciated.
By the time I retire, I am hoping the property I buy, together with my super (about 100k right now) will enable me to retire without hardship ie go on a cruise through Canada or the Mediteranian, or… if I need 'care' to afford a comfortable & nice facility.
I considered buying a house in Bayswater, Croydon, Rowville, Boronia but I am now thinking that maintenance issues & possible tenant issues in terms of the damage they can they do are greater than in a simple (& modern) apartment.
So now I'm thinking that a 1-2 bed apartment in Southbank, South Melbourne, South Yarra, St Kilda Road Melbourne for 400-500k might be a better option. They will be newer, easier to maintain.
How do I find out which has the best return for me in 5, 10, 15, 25 years? House or apartment?
With so many apartments going up, will they be easy to sell or rent out?
How do apartments in Docklands compare as ip's to those near the casino in South Bnk, South Melbourne?What are the key things I need to look for and look out for?
I forgot o say that the reason I chose Melbourne is because I live in Melbourne.
Hi Bianca 321,
500k is a lot of money.
if i was you , I would buy 2-3 house in the other suburb of Melboure, in that way, you spead out the risk of just putting all the money on one property. at the same time you can enjoy collecting 2-3 streams of rental income. do some renovation and purchse couple more properties along the way, and by the time of your retirement you may have 3-4 properties in your profolio. if you comfortable about the debt level just keep it. otherwise sell 1 or 2 to pay off the debt and keep 1-2 to enjoy the debt free rental income.I think it's a better way than just have 1 unit/apartment when you retire.
Just my thought I hope it can give you some idea
happy investingTaylor Chang
Hi bianca, I hear your message – you’re looking for security, capital growth over the long term, few investment worries etc & not necessarily buying 2 or 3 more over time.
You may consider buying in an area that you know eg say off Chapel St or around Richmond or the inner suburbs.
As a long term hold a new/newer property will require less maintainence but this will change over time, things do wear out/need painting etc ..
Capital values of new property will drop over the short-term but this is a long term investment.
Does the budget include borrowing or is it your savings only? There may be some advantages in borrowing.
You’ll probably hate me for it, because I know real investors are risk takers. But I dont want any debt. I have some bad experiences. So while I know that I could use 500k in cash more wisely by getting a couple of properties and growing my property portfolio, I just want to get one property and have that paid for., and know its there. Maybe once I have that I can start to feel secure enough to take some risks with the next one. I have been through crippling debt and my goal has been to fully own one investment property. I need to fulfill that, and then start to think more broadly about my options.
Chapel St and Richmond are good places for me to look into as well, thanks for that. I think around Chapel St and St Kilda Road offers a mix of being close to transport, close to the city, close to the Bay and also close to parks which provides a nicer lifestyle than inner city or docklands. They can have a suburban feel while being so close to the city. This may attract demand for properties in those areas?
There are additional costs with an investment apartment you need to consider, which may end up costing more then maintenance costs of a house.
things to consider for inter suburb apartments
yearly owners corporation fees, anywhere from $800-$5000
many older properties dont have split meters, so total cost of the water
council rates may be higher then outer suburbs
owners corporation meetings etc, having to deal with other investors, get approval when certain changes to need/want to do.. or you get out voted for some type of work every unit will need to then pay foryou said you dont want to take risks, personally i think spending all your capital on one property could lead to higher risk approach. if the growth is low over the next 10 years your 500k might not grow but so much.
Thanks for that – I had not considered those things. The more I read and think, the more I like the idea of owning land. There is a lovely house in Boronia and another in Chelsea for under 500k. Chelsea should be a good area to buy in as it’s near the beach, has a train line, shops, freeway…..
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