In all seriousness, wilko1 thank you for that post it was probably the first one that has actually made me think of a few different options. The way you put it made me see it easier with the $100 positive per week or work on creating more equity. I personally want to get the best of both worlds ie get a property with development/subdivision potential that could be realized in the short term future. The only issue with that is I can't look in the rural areas I've been looking at currently and maybe shift my search to outer Melbourne suburbs instead. The higher yields aren't there but the development potential is, land doesn't sell at a decent enough price in the rural areas and the costs of doing a development in rural areas may not stack up to make a good enough profit to justify the headaches. 

So maybe I have to narrow down my search to the outer Melbourne suburbs which will have development potential, although lacking the higher yields your right I have to focus on building equity so early in my journey. I have a fairly decent deposit and if I look at purchasing in areas like Melton or Werribee I will still be able to find good enough yields to cope and it will be much easier for me to do any works to because it is more local for me.

This was always a very strong path for me to go down but I was in two different minds as to what I wanted to do. In the mean time I think I'll just research and see what I can look at doing which will be the most beneficial for me.

Thank you very much for your reply, I totally understand what your saying and it's already a major part of my searching criteria. I think we have gone a tiny bit off topic here. So if we go back to my initial question

I guess now that we have also established that I wouldn't shy away from something like a subdivision or possible future development these kind of properties are generally going to cost a few dollars more. Advice in this area is really what I'm after and I can see that all the kind people who have replied here have got some decent experiences to share. Is there any other ideas that might float my boat?

-Brendon

I'm not a believer in forecasting growth in this market. Nor do I trust any of the sources who talk about "Hot Spots" around Victoria. So I have decided to be a pro-active investor and make my own profits or income based on good deals.

I am definitely in an aggressive investing mindset, 6 months ago a deal fell thru which was on a sizeable block in which I had plans to subdivide, building plans ready to start and I was hoping to flip it within 12 – 18 months to a builder or take on the challenge with some investors if I couldn't get a sale. I pretty much had everything ready to go when my bid on the property was beaten by a huge margin and effectively made the deal not attractive at all and far to risky with the higher price so I decided to walk away from that one.

So I'm fairly capable of taking on deals like that but for now I won't be seeking those types of projects and stick to trying to get some positive cashflow happening. I do have a good team around me for guidance but now that I'm changing my mentality towards my investment plan I wanted to get some advice from the faithful around here.

-Brendon

Hi Steve, Thanks for the reply I really appreciate it!

I would be aiming to pay the personal loan down with my standard weekly savings that I have been putting aside for the past year or so. Rather than bringing money overseas from the US, I would let the money pool as a reserve for a rainy day and then when I get a larger sum I would consider bringing it over in larger sums rather than monthly rents.

You hit the nail on the head Steve, I want to get into the property game and I know that some people may frown upon this but if it’s going to get me into the market and begin my portfolio I’m happy to sacrifice a loss in interest repayments. Considering the higher return on rent that I will have an extremely hard time finding here in Melbourne or even Australia I guess that kind of a loss would be feasible in relation to an Australian investment.

I really want to get a hold of your US Property Power Pack and go through it a few times, unfortunately the money I’m spending on Xmas presents and general bills all landing at one time I have to miss! Grrr

Anyway thank you for your concerns Steve!

Brendon

How would I find out if the granny flat is legal or not? There isn’t any plans on the section 32 of the property.

-Brendon

Surely someone has something to add to this post?

I’m comfortable sharing my situation on here with like minded people Jamie M. Nearly every user here is on this forum for the same reason and maybe my question may answer someone elses similar situation!

I don’t know who the brokers are on here, I’m from Melbourne so does it matter if I do it face to face or is over the phone with interstate brokers the same experience and result?

If anyone thinks they could help me please contact me and share some insight. My email is [email protected] or you could PM or speak through here as I said I’m comfortable with either.

Regards Brendon