Welcome @rouke1

It comes down to a blend of lifestyle choices and opportunity cost.

Selling up would be a major family decision and force you to rent again which you have said is a problem. If you are not willing to stomach the change then you just need to work out the best way to minimise your cashflow costs now and invest the rest. You can do all the normal family budget things to keep costs low, also you could possibly refinance the family home to the lowest possible interest rate or even interest only to free up investing cash.

For many people the opportunity cost means they are technically better renting for longer and investing as aggressively as possible. If you are sure the are you are in (no idea as you have not said where) is low growth you could consider redeploying capital to a better market.

I also have never heard of them.

A quick look at their website leads me to remain cautious:

1 – they don’t say what they actually do
2 – they don’t disclose how they get paid
3 – they have quoted snippets of media with no dates or references
4 – the data in the articles is years old and out of touch

If I had to guess (and this is a guess) I would say they are property marketers – meaning they appear to teach people how to invest but really just offer new housing stock in far flung areas because they are paid by developers who cant get rid of that stock. Conflict of interest. If you are going to take property advice pay someone who only works for you, be the client not the patsy.

I may be wrong and am happy to be corrected.

Please be careful.

Hi,

I would echo Corey’s sentiments capital growth and cash flow need to be combined to build wealth. I find old duplex pairs can fit this bill, but new ones often will be a slow road to any growth. Growth is possible but not a given in a place like Ipswich with so much land. It had better be in a special spot with lots of demand and amenity to get the growth. With a new development product you also need to be very careful about your entry price.

Ah yes. this is a problem because the banks and valuers dont want to give the impression that they are lazy or flexible with their valuations. They have to have a reason to revise the price down. When negotiating contracts after building inspection reports you could try to get a rebate on the same purchase price rather than a change to the purchase price for this reason. Once vals are ordered, loan docs submitted the train has left the station its hard to bring it back. Now for you I think you will need to provide the report or change lenders. The only risk is they see the report and worry that there is more than 20k worth of work, which may result in a smaller loan amount. Hopefully not.

kingsun wrote:

Does anyone know of situation where….. bank valuation came back at agreed purchase price. Following building and pest we renegotiated a lower purchase price by $20k to cover some issues. Mortgage company has now asked the valuer to revise the valuation to new lower purchase price and valuer has requested our building and pest reports…..is this normal??? I thought valuation based on what they see and market, land etc….any help appreciated cause i cannot find any info on similar situation..

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Hi Benny,

As pointed out by moderator Benny there are other threads worth searching and reading. My path many years ago was to invest first, I believe this is a great option that few consider. The longer you stick around places like this the more you will learn.

Matt

Benny wrote:

Hi there,
I’m currently saving an would be about a year off a decent deposit for an investment, however i am currently renting an do not yet own my own home so my question is would it be financially smarter to buy a investment property first or a family home ? Because i feel if i brought a family home i would be locked down for a long time and would then be a long way off starting my journey as an investor. Any advice would be much appreciated.

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Its painful to have negative equity but the real issue is what does the future hold for Gladstone. How much research have you done with regard to industry, jobs, vacancy rate, stock on market and other housing market trends etc. These things will help paint a picture of the likely future of Gladstone. Then you need to decide whether your strategy and timeframes fit better with holding or selling. Opportunity cost is sometimes a bigger issue than being vindicated, on other occasions there is a case for waiting it out. Post what you find and we can all learn.

Jamie Moore wrote:

Salvi23 wrote:

Any recomendations for good buyers agents to help source areas Australia wide .

Hi Sal

Which particular area do you want to buy in?

Buyers agents generally concentrate on a particular area?

Or was your first post a set up for spam responses?

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:) You are so suspicious Jamie! I am sure Sal will be back to explain…maybe

I will play along. As mentioned many BA’s target a small area particularly in inner ring areas of capital cities as they are unique markets, high price and the kind of clients who are happy to pay tend to frequent them. A few BA’s spread themselves around. It tends to be a bit more work but creates opportunities for clients who want to spread their risk. You can either find ones that travel, or pick different BA’s in each area. It really depends what kind of markets/deals you are trying to do. Some specialize in new property which could be fine but watch out that they don’t get paid by the developer or that aren’t acting in your interest, they are acting on behalf of them and cant possibly manage to put you first its a conflict of interest.

I forgot this site. So cool.

https://www.givingwhatwecan.org/get-involved/how-rich-am-i

It is possible but as you identified the choice of area and property are key. Most renovators (houses) don’t have much profit in them. You need to target areas (within your budget) that have potential metrics and good property styles for good returns. If you can do that then the rest is logistics. Depends on how much time you want to invest and how much you want to trust someone. I ran a 25k reno in WA over the phone before, no project manager, it took twice as long as it should have but the jobs got done and the profit was enough. Lots of ways to skin a cat.

• This reply was modified 9 years, 7 months ago by  BuyersAgent.

No. They are not the best for most investors 9 times out of 10.