Where are you looking to buy regional I assume broken hill/Wellington type areas if normal loans don’t apply? There are plenty of opportunities in regional hubs with 50,000 plus population with cahsflow and capital growth prospects that 10% is no issue. What are your goals in the long run? SMSF are a vehicle for retirement wealth not current wealth. I assume you want cash flow in your pocket from day one?

There are tons on the internet for free. Just try cash flow calculators. Remember you need to know the water and sewerage costs , council rates and insurance per annum. Don’t forgot them :)

It shouldn’t affect anything plenty of houses have sewerage pipes running under them. Congrats on the first IP. The first is always the favourite of the portfolio :)

Sorry to hear about your business income :/ hopefully it picks up soon. I’m in the process of setting up a SMSF. They are not for everyone though. Make sure you do plenty of research as a lot depends on your end goals/requirements. Redwood Advisory has a lot of information. I could be wrong but from what I can recall you still need serviceability in your personal name in case the smsf goes belly up. Good luck

You really need equity to build a substantial portfolio so I would sway more to the first option but then again its all got to do with your goals and end game plans. Are you looking to build a large portfolio? Have you talked to a broker you might be able to put down a 13% deposit and pay some lmi(it gets relatively cheaper at 87lvr). @coreybatt can probably help

As others have stated Regional would be your best bet for cash flow. Could squeeze some CG out with a renovation. Bathurst, Albury, wagga wagga and everyones favourite broken hill.

J.h2016 wrote:

Hey guys,I have been reading through posts and wondering if anyone has any advice for a first time investor? Any locations that any one recommends to buy?

Every single person has a different goal/dream. What may work for me may be terrible for you and vice versa. Read up on as many different strategies and sit down and work out what suits you best and then find a good broker and start becoming a multi millionaire :)

Not relevant to the above posting never used rocket group but thanks Ian for your inspiring YIP magazine in 2010 from memory. I was a low income earner at the time and from all the postings and articles from magazines/forums I always remember your story. 10+ properties later cheers for the motivation and inspiring story

Hi Sam that’s what I do with my portfolio. I try and use the same method. Buy 1 with 20% deposit(capital growth) use equity from 1st to buy cashflow repeat etc I was lucky that I got high growth quickly. Your young like me when I started so you have the most important thing on your side which is time. It depends on your long term goal and if your a low income or high income earner? But I think having a mix makes for a stronger portfolio.

Hi Johnny, Congrats on the purchases I started when I was your age and on a low wage I’m getting a bit old now my 26th birthday was the other day :(. The best advice I can give you is to change with the markets a lot of people set goals with how many properties they want but with the different economic cycles its best to try and know the markets and time them to your advantage. Also as others have stated we have so much time to correct our mistakes and stuff ups. Hopefully you don’t have any but my mentality was at the end of the day I will have an asset that worse case scenario I will have to live in, not too bad of a worst case scenario if you compare it to shares. Enjoy the ride of been a property investor :D