I’ve been casually reading about property investment for some time. Though of course, i’ve never really been in the position to get into anything.
In my recent perusing I found there are a number of low cost property investments which I was previously unaware of. Im not talking about cheap property, rather low cost property like – Small offices, car parks, storage units.
I was wondering if where I would be able to find out more about low cost investments and where they can be found? And when I say low cost, I am thinking under 100k down to say 10-30k
Any direction would be appreciated.
Thankyou,
Im unannounced.Can I just say before you go out buying a heap of small offices, car parks and storage units that you discuss it with a mortgage broker.
These items are very difficult to refinance or finance in the first place. Utilising equity later to increase your investment holdings, replicate if you like, will be difficult.
The return on investment should not be the only consideration. Suitability of security should also be a major factor. What one person thinks is a good deal will be discarded by many investors because they can’t keep growing if they buy unsuitable security types. One solution is to diversify your portfolio and make allowances for these problems.
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
Thank you for the heads up on financing. And that’s really the kind of thing I am interested in learning. Needing to be able to refinance is going to be important if I was to use the equity in that property to gain other properties I am guessing.
Being my first property I would think I would be looking for something that had a greater rental return than a growth property. Positively geared would be ideal if it could be done. Also, considering the current market, I would think there is going to be much growth in the market any time soon.
While I do understand why you recommend that I diversify, if I wanted to diversify, I would just go into some sort of fund – which isn’t the sort of inevstment I am looking for.
I am specifically looking at lower cost property investments because of the uncertainty of income I will have over the next year, but I am interested in doing something now. I would be particularly vunerable should the unthinkable happen. Paying $150 a week compared to $300 in such a case is much more managable.
Im unannounced.
You are taking a very narrow outlook regarding diversification. You can diversify by buying in different suburbs, different states, different countries. You can buy different security types, utilise different structures and purchase for different results. This is all property but could result in a very diversified portfolio that would see less volatility in changing markets.
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
And don’t forget, if it is hard to finannce, it will be hard to sell. The number of potential buyers will be limited, and therefore growth could be lower than with other investments.
Terryw
Discover Home Loans
Mortgage Broker
Click below to email meTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Maybe investing in a listed property trust could help while you build savings.
You would probably make more out of an ING, BankWest or Citibank account than a listed property trust.
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
terryw
Super, I accidentally hit enter too early.
terryw, you make a good point there. Thankyou.
Actually, if I wanted mitigate my risk -that- much I would probably put my money into a share market index fund rather than a listed property trust, or a 5-6% savings account. I see more potential there in the short term for that level of risk. [irrelivant]
Though of course, im still looking to reduce my exposure where possible. Which is why I have looked at these low cost option. Though, if low cost property just ‘isn’t done’ because of the difficulty in getting finance in addition to it’s unattractiveness to investors[?], then I will know to look at other ways to do what I am looking for.
Thankyou for the input.
Chance favors the prepared mind.
Im unannounced.
I see you are a Steven Segal fan!
It is not that they are unattractive but more so because they are restrictive. The reason they are cheap and such attractive investments in the first place is because a lot of other investors chose to stay away.
If you have heaps of cash, go for your life!!!
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
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