Hi all,
My partner and I are looking at getting into res property investment. Our current place is valued at about $450,000 and we owe $210,000. We want to get the ball rolling. We have spoken with accontants who think it is a good idea. We are looking at long term investment. What areas should we look at. Should we buy units or houses ?
Any advise would be great
Hi all,We want to get the ball rolling. We have spoken with accontants who think it is a good idea. We are looking at long term investment. What areas should we look at. Should we buy units or houses ?
Any advise would be greatHi Rick,
It is hard to answer a question as broad as yours.
What exactly is the ‘it’ that is a good idea?From the information that you have provided, I can tell you that you have a lot of equity in your home that you can use for property investment. You may want to have a chat to you current financial institution to find out how much you can borrow.
Beyond that, i would be looking to educate myself on property investing techniques or niches. It appears that you are looking for a long term strategy, so buy and holds and wraps are two that come to mind for me. You need to find your own niche and be comfortable with it. This will also clarify what types of properties you should be looking at, and where they will be located.
Money secrets of the Rich by John Burley has been suggested reading by others on this forum, and I would second that. You may also like to search this forum for buy and hold and wrap information. I haven’t purchased fasttrack by Steve McKnight (but have purchased some of his other material which is high quality) but it appears to be a very compeditively priced product that will give you food for thought; and an introduction to ‘property investment’
As they say, every journey begins with a single step.
happy investing
Cheers,
Nathan.
Hi Rick_H & Partner
Welcome to the forum [
].My husband and I are also new to property investing, and in December last year we felt that we had best get on and start investing. We had been to a number of FREE negative gearing information evening and had the representatives visit our home so we could pump them for advice [
][][][][xx(].So whilst perusing the internet one night I came across an apartment in a location in NSW that we thought was a good area having lived there previously. So that was our due diligence. It gave us a negative return so we were happy [
][][][][xx(].Now only 3 months later we have still got good equity in our PPOR to use and thought lets start looking again, however this time we saw the reno kings on Today Tonight which prompted me to do some information searching and I found Steve McKnight and PI.com.
Well I have learnt so much in the past month that my advice to you is; the 3 L’s of property are not “location location location”, but “learn learn learn”. Spend the next week reading every thing you can and then think again – what else do I need to learn.
Education is leverage. Use it well.
Cheers & Good luck
Leigh K[]“If you will take on your self-doubt and laziness, you will find the door to your freedom.”
-Robert KiyosakiHi Rick_H,
Generally speaking, if you are looking for a long term investment, i’d go for a buy and hold approach in a good location (usual factors such as close to public transport, schools, shops etc).
Depending on your age, units usually provide a higher yield (which is what you want if you’re close to retirement) than houses.
But houses usually provide better capital gains (based on the land content) but also need more maintenance.
Older style properties within 5-10km of the CBD show the best growth over the longer term.Good luck and all the best with it.
Depends on where you are and what exactly you want…
What constitues “the best” investment will largely be based on you. If you want something low maintenance then a wrap or a strata title appartment may work better, if you want to raise the value yourself with your own hands (or tradespeople [
]) then maybe a renovation would be better. If you want to renovate then a house may be easier than a condo. If you don’t have much money, an appartment may be better than a house. The list goes on and on, and the only way out is to decide what your goal is and then ask *specific* questions to help you get there. EG– How much TIME can you afford to put into your investments (both in hours per week and yearss)
– What are you willing to risk?
– What aren’t you willing to risk?
– Which risks do you know how to mittigate (take some kind of action to minimise or make less likely)?
– What would/wouldn’t you be comfortable doing? (EG Mass lowball offers may get you the best deals, but are you willing to have irate vendors/agents on the phone regularly?)
– What would you ENJOY doing for years to come? (Dealing with renters? Leasing out to businesses? – You’ll only succeed at what you choose to do day to day, and you’ll only do what you like doing!)
– What are your partners responses to these questions? Can you live/work with these?It can seem a bit overwhelming at first, but my advice is to read LOTS, ignore anything from anyone who isn’t very successful actually doing what they preach, take notes on what seems good to you even after extensive research, then…
DO IT!
(and learn from the inevetable mistakes, but eventually get it right, make money and be happy doing it…
)Quasimodo
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We are all but half formed images of our true potential.
___________________________________________________________________________Hi Rick & Partner, we have purchased a mixture of houses and units, all at the lower end of the price scale. All have increased substantially (just been revalued) in 18 months and a number of units purchased since November have 10% returns & put money in the bank each month.
I check the real estate sites almost every day so I can keep up with prices in different areas, as well as rents and look at the area/suburb profiles too. They show what is there, nearness to schools, population, tourism, etc. I watch my own area and other towns I think/hear/read may be ok. We have also set our goals as to what we want to achieve and by when and are ahead of it already. That is in 18 months of purchasing. Seeing that property doubles in value 7-10 years, it’s encouraging to think that today’s properties, say you have $1.5m will be worth $3m, rents will have increased but your debt will still be the same. Good luck. Anna2
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