Just wondering what people’s thoughts were as to buying a property off the plan? (say up to 12 months before settlement)
I’ve recently been looking at a few 2 bedroom Units in new developments, and while they seem expensive for the likely rental return, the prospect for capital growth is good.
Examples:
2 bedroom unit, water views, CBD area. $265,000, rent $360-$410pw. Body Corp $3000pa (approx)
2 bedroom + study, 5km to CBD, $330,000, rent $380-$420pw. Body Corp unknown
Both Units would be negatively geared, but after tax deductions may (I haven’t fully investigated yet) provide +ve cash flow.
Has anyone else look into this sort of investment? Trying to determine how they compare to buying an existing property with proven growth.
I’m 32, earning a reasonable wage, married with 3 kids. I have had my first IP for just over 12 months now and built up about $30k in equity.
I would like to build up a reasonably sized property portfolio to use as a retirement nest egg and maybe retire early. (Don’t we all!)
My plan? To do this I’m not sure how many properties I will need, just thought that each year I would look at the finances and if I found the right property, invest again.
Not much of a plan I know. I don’t know whether to build up a number of lower priced properties at around $100k range, (the first IP cost $110k) say 3 or 4, before moving into the higher priced properties. I’m hoping some of you good people might be able to give me some direction.
Since I’m online and since I’m not doing anything better… let’s have more of a look at your reply.
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I’m 32, earning a reasonable wage, married with 3 kids. I have had my first IP for just over 12 months now and built up about $30k in equity.
That sounds like an excellent start []
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I would like to build up a reasonably sized property portfolio to use as a retirement nest egg and maybe retire early. (Don’t we all!)
Well – the difference b/w a dream and reality is a quantifiable plan. Eg. how much in passive incopme per week do you need to cut down from 5 days to 4 days and have more time with the family? By waht date do you plan to have this accomplished?
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My plan? To do this I’m not sure how many properties I will need, just thought that each year I would look at the finances and if I found the right property, invest again.
Hmmm – sounds a bit wishy-washy to me! This is not the talk of a determined mind, but someone waiting for opportunity to find them. You need to work out how bad you want that early retirement.
quote:
Not much of a plan I know. I don’t know whether to build up a number of lower priced properties at around $100k range, (the first IP cost $110k) say 3 or 4, before moving into the higher priced properties. I’m hoping some of you good people might be able to give me some direction.
As a rule of thumb, it’s better to own 4 * $100k properties than 1 * $400k property.
That way you can spread your risk of vacancy wiping out your cashflow.
My advice would be to work harder at deciding what you want, for when you have a goal it’s just a matter of method (and effort) to get you there.
Bye,
Steve McKnight
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Remember that success comes from doing things differently.
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