Forum Replies Created
Over how many years does that 10% per annum capital growth include as usually those figures only go back 10 years. Should we ignore those areas which might average 10% per year but that is due to outliers. Also what is generally considered a good vacancy rate?
Well I was looking and researching the Muswellbrook, Maitland and Cessnock areas up in the Hunter Valley. But I am not really sure if I have missed the boat on those areas or whether those areas are looking to grow quite substantially in the next 5-10 years. They are areas which may benefit from mining but are not solely dependent on mining. I am based in Sydney so I am open to areas in Sydney and regional NSW. My budget is more closer to the $250-300K mark.
Hi Pauline,
Does Toowoomba and Bathurst have potentially higher capital growth rates or are they seen more as better cash flow options. Because I would like to build a portfolio I am trying to see which areas will allow my property to build enough equity to purchase another property. I will probably need to build around $50-60K in equity in 3 years to buy the next property. Would Toowoomba and Bathurst allow me to do that. Would you see this with Orange too.
Thanks for your post.
Would you classify those areas in Queensland performing better from a capital growth or rental yield perspective. than Toowoomba, Orange and Bathurst?
Hi Matthew,
My goal is to build a property portfolio of 20 properties with a net worth value of $5 million in 10-12 years. As I am 21 I saw these areas as areas that I could afford, had key economic drivers. I am just not sure which of those areas would have the highest future rates of capital growth so I can build equity and purchase more property.
I am looking for a property around $250-300K that I would like to spend. Does anyone have recommendations on what I could buy which is a hotspot or warmspot if the areas I have talked about aren't and explain why those areas are hotspots or not.
Thanks,
$200,000 to $300,000 I would aim to spend for a property in Western Sydney.
Hi Shahin. Yeah I am starting out so I think residential is my best starting point for now. I am now leaning towards the South West and Western Sydney hubs. I have checked out the economic indicators for Penrith and GRP in that area has trended upwards for a few years now so from an economic perspective the area is growing. It is just trying to make that first move that helps me build a strong performing portfolio.
Hi Jamie and James,
I guess I have set $50,000 as the target to save as I would like to allocated $30-35K for deposit and other expenses and $15K to live off so it doesn't wipe me out completely. Yeah I was actually thinking on the lines of trying to do find a good mortgage broker. Do some of them able to come to your house for meetings or do they only operate Monday – Friday office hours. Where are you based Jamie as I am situated in South West Sydney. Also who would you recommend in going to actually write up a plan with steps based on my goal that I told you. Also anyone you recommend in terms of researching and selecting the right areas would be great too. Do you think I should allocated $10K extra for a buyer's agent or is there more cheaper effective options.
James, your point in regard to commercial property is also good. What would banks generally loan you in terms of LVR for commercial properties generally as Steve's book says that commercial property is the next step after residential. I just really want to make the right choices so I am in a position to build a property portfolio. Any other pointers would be great guys.
Thanks.
Hi Shahin and Jamie. Thank you very much for both responding as I really do appreciate any help I can get from you guys. I guess reading all these books has just made me confused as some say positive gearing is the way to go and some say buying units close to the city is the way to go as land and property is more scarce there so I am not really knowing what to do. What has been your strategy in terms of property investment and what strategies and areas have you found that have worked.
As I have only got my first full time job this year, I want to build a good record to show the banks my steady employment history and I am trying to save $50,000 until I will make my move. To Jamie's question, I want to invest in property as I want to be financially free by the time I am in my 30s. I want to be in a position where working is a choice rather than a necessity as I would like to support my family when I am that age. I would like to own enough properties so I am generating passive income of $100,000 – $200,000 potentially anually in the future.
I guess reading so much I have learnt that I need to develop a plan as I need to know how to get to where I want to be. Do any of you know any good property advisers who could possibly sit down with me and develop a plan as the books have helped me with the knowledge and I would just like some help in making my first stride in the property market.
At the moment I am starting to look at building a team. I have found an accountant who I believe is savvy when it comes to tax minimisation and asset structure. However I am still looking for financial advisers, property advisers, legal and conveyancing, builders etc to form my team.
In terms of Penrith or close to the city, demographics studies I have read say that younger generations prefer to be near the city due to lifestyle committments so I am a bit worried to know if the traditional 3 bedroom house out west will not generate much interest.
In terms of university debt, I guess I am concerned about indexation and inflation eventually making my HELP debt doubled and not sure if I should pay it off while it is lower now or just pay it off much slower.
