Hi Guys,
After reading this thread with interest I decided it was time to give my point of view. After Youngie posted his information and asked for some advice, I was very surprised at the amoumt of people that immediately said “NO, don’t do it….buy something positive cashflow”.
People simply put a negative spin on it without knowing all the facts – especially the location of the property, which apparently seems to be in a good growth area.
Fair enough the main idea of this forum is about positive cashflow, but cashflow to me is not the be all and end all. I can understand Youngie’s desire to make some hard cash that he can use for future deals as we all have a different strategy and follow a different plan and we all have to start somewhere.
Whatever you decide to do Youngie, make sure it follows your own personal plan and do your research thoroughly. Every deal has some element of risk to it but having your information right and getting the best advice will usually see the risk minimised.
Best of luck with whatever you choose to do.
Cheers,
Mathew.
Hi Youngie,
Like yourself I’m young and fairly new to the game. What I’ve found is that there’s a lot of barriers to entry in the real estate market, 90% of these are all in your mind though!
Finding the right entry point for your personal situation is what you should look at first. What do you want out investing? Is it you want an income to replace your job so you don’t have to work? Do you want to build wealth so that you can live comfortably later in life? Does this sort of investment suit you?
A few points I would consider in looking at a block.
1. Location – You can increase your likelyhood of good CG by researching where you buy. For example – Australian average CG is about 8%, you can increase your likelyhood of achieving higher than average CG by investing around major population growth areas, coastal areas, better climate etc. All of which the Gold Coast has going for it.
Within these areas you should look for;
2. Demand – is there a high resale demand in the specific area you’re looking at? Is the demand for owner occupier or investors, residential or commercial, town houses or units?
and,
3. An ‘A Grade’ site – blocks will always hold/increase in value the best on a premium site, ie: a bloke which has ocean views, gets a lot of sun, has special features such as convenient access.
4. You should also negotiate the lowest deposit you can, and the longest settlement. If they wont negotiate on deposit, hit them up for a longer settlement. The lower deposit and the longer the settlement the greater your returns will look. I would want to push for a definite settlement date prior to signing a purchase contract on the particular block you are looking at.
Cheers and good luck [
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