Hi no idea and welcome!

When looking at this property, have you looked at other sales prices in the area?

I'm not talking about realestate.com.au asking prices, but what the properties in the surrounding streets, and that are similar have sold for.

The reason I ask is that the main thing you need to do is research before you buy anything. Even if it looks like a good deal it mightt end up costing you a lot of money in the long run because you didn't know what you were buying.

So other questions you might ask are……

How long do properties take to sell in that area?

What is the condition of the house?

what restrictions are there on either the property of the use of the land?

Is there termite or structural damage?

Is there are feud between family members preventing a sale (seen it before)?

Is the agent rubbish?

There are heaps of questions you need to find the answers to before you run out an put an offer in.

Once you put an offer in writing the agent must submit it to the vendor (that is true for here in Vic, not sure what state you are in). The vendor can either accept it, ignore it or make a counter offer.

Hope this helps.

Cheers

D

Funny.

Oh and didn't Antonio get kicked off the other night for advertising and making offensive comments? Oh that's right he did.

Considering how much spruiking is going on on this site at the moment it's not the blind leading the blind it's the spruikers leading the blind.

Try to keep the advertising in your signatures guys and post to help, not to build your brand.

Cheers

Point to Freckle. 

Hunter Valley is looking good, low buy in price, ability to add value later through reno  or development. And good current cash flow. WA has bottomed and should head back up now so might be some opportunities there. hat to some locals about the changes in infill requirments, iit's looking good.

Melton still has a lot of new Housing going in, high vacancy rates, also has one of the worst literacy levels in the state… 

Plenty of other options if you at looking to do cf+ with profit in a few years, gotta

do homework.

Please excuse eerrors typing on phone, no Internet ATM  

Cheers

D

I don't have any pork, I'm applying. What about all my cats? What about the paper, can I get the paper delivered, is that extra?

LOL

D

Hi all,

Brendon, I'll put it another way.

I know all about investing. So should I buy a renovator around the 200k price and use all my savings or should I buy a renovator and only use most of my deposit money, then save up and buy another one?

I really would like to help you out, but essentially what you have said is "I know all about investing, should I buy property A, or buy property B using less money and buy another property B later?"

You tell us.

No one on here will be able to give you investment advice as such. Just like you knowing nothing about my situation, my risk profile, my ability to finance and hold debt, my personal circumstance etc, etc. You can't tell me what I should buy. No one can say "you should Buy this."

If you have done the homework, and know all about the areas you have researched, and know what you want to buy then before all that you should have a GOAL in place that you want to reach.

Just getting into the market is not really a long term goal.

What about where you see yourself, next year, or in 5 years. What about how this property will fit with the job or family commitments you see eventuating in the next 5-10 years. Or even next year.

I'm getting off topic, because it sounds like you want someone to tell you what to do, we'll help you as much as we can to learn the how to do, but we can't make your mind up for you.

Off topic – Freckle always has excellent points, he's annoying as all get out, but it's better to be challenged and think, than baa like a sheep. Having said that I disagree with having 200k in ur hand in 5 years as inflation will mean that the money you have now will be worth less in 5 years than it is now.

There is always a great return somewhere you just have to find it.

Helping? Off topic? Annoying? Good.

Cheers

D

Good reply Brendogs.

It's not that I'm questioning your intentions but I was hoping that you had already questioned yourself about what you want to gain from investing in property.

There are excellent cash flow deals to be had. If you don't have room in your life at this stage for either the extra work that comes with developing or the extra cash needed in renovating then cash flow is a good safe option.

You could, as you say, buy something to develop later, you could buy something that needs a bit off work, that is returning a healthy positive cash flow now, but you could add more value in a couple of years.

Don't worry about the kick in the guts that you get from following a property and having it not work out, this happens. If every property deal was profitable, and quick and super easy we'd all be minted (cheers JacM).

Keep some positivity (borrow some of Shell's she is wonderfully positive and try not to get bogged down in what happened previously.

In the back of the magazines as people have said previously are suburb stats. What you can do to start trying to find suburbs that may have cash cows is to have a look at the median sales prices and the weekly rent. start by looking at suburbs in the price bracket you want to invest. (The median price is just a guide for you so you don't look at suburbs way out of your prices range)

Then you can look at the rents. If the sales price is eg $400k  and the rent is $400 p/w, it's unlikely it will be CF+. How ever if the selling price is $200k and the rents are $350 you are probably looking at something good.

Then you can begin to see if that suburb is worth pursuing. And to expand on Shahins post,  Does it have infrastructure and jobs. Hospitals, schools, major chain supermarkets, fast food, what about petrol stations? Has it got discount department stores like a Target?

What about roads and rails? I personally don't look at any suburbs without rail. It can be light rail, but the rail has to be in the ground, it's easy to change a bus route, not so easy with a train.

Major HWYs, are they under construction, maybe you will get a little gain by buying while the road is being built. Are there uni's within easy commuting distance.

It sounds like a lot, and there is WAAAAYYYYY more info that you will need to gather. If JacM or someone could put up the yield calculation that would probably help you too.

Hope this helps give you a kicking off point. As for your questions as to what to buy, only you can decide what to buy after researching you options. No one on here will be able to tell you what to buy, many have tried to get that answer!

Cheers

D

Hi ksun,

I might get corrected here, but as far as I knew the builder has to have this as part of their building insurance. Have a look at the policy, the builder should give you a copy, the bank might need it too. Should be an item for public liability for 20 mil, or whatever the figure is nowadays.

Cheers

D

Sorry, I also meant to say "Great List Jamie" but my first post got deleted (operator error).

ABS website would be good too.

Cheers

D

Hi all,

You might also want to pick up a copy of Margaret Lomas book '20 Must Ask Questions for Every Property Investor'. it's a good starting point if you have never looked at any property before.

For reno's an flips you'll also need to speak to some realestate agents and start finding out prices for unrenovated and renovated properties. You need to be looking for a large gap between these two prices to even start contemplating a renovation in a suburb.

Good luck, there is heaps of information on here, and ask as many questions as you like

Cheers

D