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Sounds like you would be working hard and not really working smart.
the self Reno idea is great in theory, but (especially) in capital cities, it can be dangerous as markets can change and you could get stuck with it for longer than you thought.
Better off keeping it simple and buying a good investment property in a strong location, then get a hobby that is less stressful.
many of options and happy to help.
Probably need more info to make any real comment, but when buying your second property, just make sure you get your numbers sorted first to suit your lifestyle, so your cash flow is balanced. The only way to keep moving forward is to keep your cash flow strong.
No offense, but I am amazed that people still look to buy units and appartments as investment properties.
cash flow is horrible due to strata levies and costs, and being there will be another development being built next door, the value of your property then will be watered down.
there are so many better options to consider that will be far better from a cash flow and growth point of view.
Hi Colin
Firstly, you say you are looking to purchase an investment property in the area you live in. This is probably the number one mistake I see people make when they start their portfolio.
secondly, you are looking for a granny flat, or to build one. Why? For better income?
there are many other ways to achieve this.
you need to broaden your options and consider what you are looking to do further down the track and also what buying this property will do for you further down the track.
this point of decision making will make or break your investment strategy, so you need to choose wisely.
BHP are a Blue Chip company that need to look after their share holders. Their decision is one more for the current conditions. I believe they will still proceed with the project when the time and conditions are right again. Be that a new government or world commodity prices.
Whyalla is still a good place to get an early foot hold in.
Mackay is an awesome place to invest. We've sold plenty up that way because the numbers just work.
The projections for the area are amazing and there are many reasons why it will become and stay an investment hot spot for quite a while.
Happy to help if you need any advice.They are both locations that have too much risk attached to them. Roma in regards to it's flooding, where by Banks and insurance companies will be not looking at favorably, and Dysart as it is in a very much "transitional" stage.
There are a lot better options to be considering right now.Wouldn’t touch Roma. Many reasons why it might not be be a good investment.
Depends on your available funds, but there are a few other locations worth considering before the likes of Dysarthria or Roma.Below Market Value, I believe.
Have you considered the Hunter Valley NSW? Great location for SMSF purchases. Very steady growth and good entry point. Low $400K would see you in something brand new.
Hi Winadil
We deal with Clients all over the country and use Brokers and Solicitors from all over the place too. These days it's very easy to arrange most anything for a purchase, but you just want to make sure the people know what they are looking at structure wise and that there is some synergy between everyone, otherwise you might have a bit of a messy structure to sort through and it might make your journey more painful than it has to be.
From your numbers, your income look good, but you'll need to be careful as to what you buy price wise, as your deposit might be a bit tight.
You will probably need to go a 95%/95% loan. 95% on your home to get the deposit and 95% on the IP as you won't have much deposit.
We set up a purchase for a Client last week in Gladstone and we could only get around $25,000 – $30,000, but he was able to buy a brand new House and Land package in the hottest city in Aust, so if you can get the funds, the going to the best location would be your best bet.Hi Dean
We have been working in Gladstone for a while now and there are quite a few quirky things that you should be aware of, but apart from that, it's the No.1 hotspot in Australia right now, and probably will be for a while longer.
Like any large city, Gladstone has good and not so good locations to look at. House and land is where the money is made. We have Clients that have made VERY good growth on their purchases, and this is really because of buying a good size block in good area. I know there are cheaper locations, but buying cheap doesn't always mean better. 400sqm lots just won't get the same growth as what a 800 – 1000sqm lot will get and when you look at the difference in starting cost, the price really isn't that much different.
The big benefit of H&L packages is the saving on STD and as John said, the gain that can be made just by you being the one to build the House definately has it's benefits also. We have seen the same sort of price increase that John has mentioned. It really does work and there are some really good suburbs with plenty of potential for growth.
dangermouse99 wrote:It does sound a little hard. I thought it was a relatively easy way to get in and learn a bit more about IP while having positive cashflow.
My aim is to quit work in 5-7 years and have income from IPs to live the life I want. I thought of doing a few of these sort of properties and then selling one or so to pay back some of the debt and buy more over time (thats my exit startegy), but the capital appreciation just might not be there quick enough to make this a worthwhile investment. So i might have to look further abroad, I just wanted to get some valeuable opinions as I want to make sure im doing teh right thing.
Cheers
DeanDean, like everyone, your heart is in the right place with your ideas, but its the head that needs to keep things in check.
Property is a slow animal. If you try and push it you will get burnt.
I hurt my neck quite badly a few years ago and it took me 5 years to be able to do the things I loved again. I was doing all sorts of things to try and hurry up the healing process, many of which looking back probably did more damage than good.
The point is, you can't rush things that aren't meant to be rushed. Property is a great investment, but you need to take your time and look for property that suits your goals and also gives you enough room for the what if's.
There are easier ways to do it, just need to have a look at what other options are available.Wayward Anaconda wrote:Hi Newsam Yes i agree be very careful of one stop shops and also people on forums with their business and contact clearly stated on every post. If they were good at what they did they would not need to spend all day on forums gauging leads from first time investors as they would be too busy with word of mouth referrals. Good luck.Maybe these people are just passionate about what they do, and are sick or people giving crap advice.
That rule has been around for a while now.
We tried all those tricks (when you were allowed) but the simple fact is, you need growth in your investment. Once you have made some good growth, then you sell, pay a bit of CGT and then pay the rest off your home loan. Repeat until your home loan is gone.You just need to know where to buy to get that good growth.
As said, the Hunter valley is a great place and there are many good areas to look at for different reasons, and sometimes new is better than old. An older cheaper property will often be more expensive to run than a newer more expensive property due to the big tax deductionns on a new property.
Jmsrachel, what are you looking to do?
Don’t be scared about property and the costs. You have to think of it like a business. As long as your income is better than your out goings then you’ll be fine. Is all in the numbers.Sounds like a hard way to do it.
You need to ask yourself why are you buying it if it’s not about getting growth.
Over all the plan sounds good if everything comes together, but you have no exit strategy which is the most important thing to have in the business of buying and selling property.
What are your longer term goals? What are you looking to get out of doing this as part of your bigger plan?mattsta wrote:so what are some of the reasons why mackay would boom over the next few years? Im not familiar with them…There's about $80 Billion worth of reasons and 10's of thousands of people moving there for work.
jnb wrote:Hi Anthony thank you for your input. Any particular areas that your would recommend? thank yourWe are dealing in a few areas. I think there are a few areas just outside of town that are great value. Good size land and nice new developments, also closer to the mines, albeit by 20 mins. Buses leave from out the front taking the miners out to work and back, so a great spot from a miners point of view.
Qlds007 wrote:It never ceases to amaze me why investors become interested in One Stop Shops as they think they get a bargain by having a group of linked professionals all with vested interests promoting themselves and offering over priced properties to unsuspecting buyers.Cheers
Yours in Finance
I agree with Richard, you have to be careful. I notice there is nothing about "Them" on the site, just their property….!
A good way to make sure you keep them honest is research. Find out about the people. Their past, their future goals as a business. If they plan for World domination, then be careful as you will become a very small drop in their big ocean of Clients.
Experience is key and also putting your money where your mouth is. I have often bought in areas that I have sold in as I will only sell an area I believe in and would buy myself. No better way of showing you believe what you sell I recon.
