Forum Replies Created
In a market like we have now, you are able to pick up a similar established property for much less than one that is OTP. However, not everyone has the financial capacity to come up with the initial 20% and stamp duties.
Stamp duty may be seen as a worthwhile trade off when purchasing a well priced established property, but like others have said, you will need to do your due diligence.
Getting into the market is key, and we need to be mindful that not everyone is able to afford established properties. And down the track, our Asian counterparts will beat us to owning real estate in Australia.
Hi Sha,
If you buy the property as an IP and move into it, you will no longer be eligible for the FHOG.
However, if you purchase this initial property as an IP and purchase your PPOR in 3 years time you will then be eligible to the FHOG. It is dependent of if you have lived in the purchased property at any point in time.
What some have done is to purchase a property to access the FHOG, “live in” for the minimum of 6 months, and lease the property out after converting this into your IP. Like xdrew have mentioned, you have up to 6 years with this strategy. Your budget is sufficient for Melbourne’s market and you will be able to find a property in that range.
Cheers.
Hi Dellas,
All the areas you mentioned have shown pretty good capital growth.
In selecting an area to purchase, you have to conduct thorough research into the area. This includes demographics, geographic location (in relation to the city), past capital growth, government funding and infrastructure, etc. All this together with your gut instinct will help you decide on the best location that will suit your numbers.In saying that, once you have decided on a location you should take your time and be an expert in that suburb and 2-3 suburbs surrounding it. This will help you narrow down the search and possibly identify a "good buy" in and around the area you have been researching into.
Cheers.
Hi Grantos,
Although it may be favourable to submit an offer sooner rather than later (to knock out other potential buyers), it is still best to inspect the property. Real Estate Agents may also choose not to submit your offer if you have not seen the property as there is a possibility of it not being up to expectations when inspected (professionally taken pictures may lie).
But, if you so wish to get an offer in you might be able to get away with having a subtle clause in “subject to building inspection” or “subject to finance”. Although the latter is also not favourably looked upon by vendors if there are several potential buyers in the market.
Let us know what you decide.
Thank you Paul for clarifying this for me.
I was reading into this and thought it strange for a RTO concept be similarly inlined with a Instalment Contract.
What I was thinking is that how is an Instalment Contract going to improve cash flow and will the banks use this to support another loan for another IP?Hi All,
My name is Josh.
Have always been passionate about RE. Recently purchased my PPOR after securing my IP in 2009.
I have really enjoyed reading through the forums and expanding my knowledge base in creative ways of making my money work harder for me.
I also work in the Wealth Management industry as a Consultant, so as not to misrepresent.Glad to be here and have a great day!
Nutzcraw,
Having worked with Destiny closely in the past, I must say that they are pretty good. They have thousands of investors on their books and many of them are repeat clients (also due to the high cost outlaid).
However, like Andrew_A said, there are lots of choice out there and you have to make sure that the investment advice is right for your situation and achieves the outcomes you want (goals). Some of the unhappy Destiny clients that I have come across are those that take property investment as a short term view and hence when their property value is not what they thought it would be from the estimates given.
Do your own research and locate your own hotspot. If advice is needed, I believe this forum has plenty of avid and wise investors that may have done some due diligence in the area.
Hi Dellas,Just a brief suburb report on Lyndhurst.
The size of Lyndhurst is approximately 21 km². The population of Lyndhurst in 2001 was 1,539 people. By 2006 the population was 520 showing a population decline of 66% in the area during that time. The predominant age group in Lyndhurst is 20 – 29 years.
Households in Lyndhurst are primarily couples with children and are likely to be repaying between $600.00 – $800.00 per month on mortgage repayments. In general, people in Lyndhurst work in a non-specific occupation. In 2001, 83% of the homes in Lyndhurst were owner-occupied compared with 77% in 2006.
Currently the median sale price of houses in the area is $532,500.
Hi Jane,
You are best to gain advice from a professional valuer who values both commercial assets (ie, equipment and income generating works) and residential property.
These are independent valuers who offer their service for a fee. Look for someone who is accredited or have a certified valuer’s license.Hi Ellsey,
What you can also do in regards to reducing the rent is incorporate a rent increase within the lease agreement to bring it back to the amount that you were initially after.
You can also offer “1 week’s free rent” or family movie ticket vouchers for the successful applicant.Properties in growth areas have alot of competition between them, most agents will have your property opened 2 – 3 times a week for inspections at different times. Like what some others have said, make sure your agent is doing everything they can to lease your property in the shortest period of time.
