I concur with JacM – Seven Hills seems to tick more boxes, and the Blacktown LGA is one of, if not the fastest growing in Australia. Plenty of potential for solid returns on well-located property in this area in my opinion. Proximity to transport is one of the keys to good future returns in this area.

There are certainly plenty of better property deals out there than the one you described in your current IP. I can’t advise because I don’t know enough about your situation and goals. However, I can tell you that one of my first IPs turned out to significantly impact my cash flow and inhibit my ability to expand my portfolio. The best option for me at the time was to sell it, take the hit, and move on to better opportunities.

Education is the key – the best advice I can give is to learn what other opportunities are out there, how you can access them, and how they will affect your financial goals.

Cheers
Kris

Renel,

I think that a BA can potentially be a very good investment in time saving. I have used them in the past primarily in order to save my own time and effort when I didn’t have any to spare. However, some care is needed when choosing one. The big problem I see with BAs is that they tend to be expensive. Especially for investors just starting out, the cost can be hard to justify when you are also trying to get your deposit and buying costs saved up. You also need to be wary of BAs who are receiving commissions and kickbacks from developers. Personally, I have a problem with this, as I don’t see how the BA can have the buyer’s best interests at heart if the BA directly benefits from the sale of the properties they recommend.

I want to prefix the next part of my post by saying that I’m fairly sure that I’m not breaking any forum rules by posting what follows, but if I am, then I am happy to have the post removed, and I apologise in advance for my ignorance (I have had a look around for some forum rules, but can’t find any).

Recognising that BAs can be prohibitively expensive, I am in the process of setting up a service (via my website, http://freedomthroughproperty.com), that identifies property deals that meet certain criteria. Included in the service will be access to the research that Freedom Through Property undertook in relation to individual properties. We will only be identifying around 3 to 6 properties per month, and as such will be limiting the number of subscribers to the service, and charging a very small subscription free. Freedom Through Property won’t be charging developers any advertising fees, nor will we be receiving commissions on any of the properties we identify. Our aim is to provide a small-scale, inexpensive and completely independent service as an alternative to traditional buyers’ agencies.

Also, in the interests of empowering investors, Freedom Through Property will be publishing a free ebook on the 8th of August that details the method we use to identify areas that are likely to experience exceptional growth. With the ebook, investors then have the choice of using our service to find properties, or alternatively doing the hard yards themselves. Feel free to PM me if you’d like any more information.

Again, apologies if I’ve offended anyone by discussing my business on the forums, but I do feel it is relevant to the original poster’s question.

Cheers
Kris

Hi Senajav

I agree with Richard in that $50k won’t go far in terms of undertaking a development. Have you considered starting a little smaller – say an existing well-located townhouse or small stand-alone house? Also, are you considering Laverton only, or are you looking in other areas? In my opinion, unless you’ve found yourself a really red-hot deal, you could get a better return on your investment elsewhere. Just my opinion.

Cheers
Kris

Another thing to consider when renting your property out is landlord’s insurance. You should be able to find a policy for under $300/year. It will cover you for damage caused to the property by the tenant, as well as any shortfall in rent if the tenant leaves without giving you written notice. Definitely worth it in my opinion.

Cheers
Kris

We are looking at doing something like this in the future. Would appreciate any updates on how you go with your development.