I am just starting out and am yet to acquire my first property. Had one but lost it due to owners pulling out at last minute.
I understand 11 sec solution really doesn’t exist in this market cycle but understand other possibilities such as renovation, subdivision and so forth. Have looked all over Aussie.
Have read numerous books and mags. Stumbling and scared on where to start.
eg Frankston – am from NSW with a hubby and 3 young children. How do I purchase there without knowing the good/bad areas? Could do a day trip but would that be enough time?
Have bought and used Steve’s investment detective but all figures are coming back as minuses.
Houses versus units – units look good until you factor in body corp fees. House just not cutting the mustard.
Am desperate to get started. Please help by giving me some direction.
Any comments or recommendations would be greatly appreciated.
Don’t panic. In some of the towns I’m looking at prices are falling, not increasing.
I’d suggest that you work out what your strategy is:
1. Is it +cf or are you looking at -ve gearing where capital growth might occur. This will help you narrow down where you’re looking.
2. Do you have the time/skills for renovation, is cordinating renovation from a distance going to be a problem?
3. Are you going to need a managing agent? Some small towns don’t have them.Don’t do something that’s too far out of your comfort level the first time. Even around yiur own area, familiarity with its prices, future development and employment might give you some good opportunities for early buys.
Hi ss2306,
Okay first things first….take a deep breath, count to ten, and slowly release…….[biggrin]
Better??? [blink]Seriously, as a mum/wife/investor/head pencil sharpener in my house, I can apppreciate what you’re saying, and certainly buying interstate when you know little or nothing about a particular area is SCARY stuff; that’s why computers are such a god-send!!![angel]
Do a bit of research, look at the real estate websites, pick a few areas, see what prices are being sought to buy and to rent; look up council websites for those areas and see what infrastructure plans are in the pipeline and so on.
With regard to Frankston:
1. There are a few threads re Frankston (especially one or two recent ones). Use the search function (top left hand side of screen) and you will find it brings up a few pages relating to discussions/posts people have made on the area.
2. Take a look at these links:
http://www.id.com.au/frankston/forecastid/default.asp?WebID=10&MnID=1&PgID=1http://www.id.com.au/frankston/commprofile/sitemap.asp?WebID=120#AreaLinks
for starters. There are so many others; just use your search engine (ie. Google, Yahoo, Sensis) and type in “Frankston” and it will bring up heaps of things that will help.But to give you a quick overview…..
You won’t find +CF in Frankston, not even in the cheaper pockets of it (ie. North Frankston); only way they will become +CF is if you buy cheap and spend a little on the IP and increase the rental.
IMO the value in Frankston is two-fold, it’s near water and there are lots of new projects on the horizon for Frankston and it’s surrounding suburbs all along the Pennisula, thus allowing for great opportunity for good/excellent CG in the coming decade.
House or unit??? Much of a muchness really. I guess it really depends on the size of your purse/wallet. If things are tight, a unit may be the way to go, but if you finances can cope, go for a house.
One day should be enough time to give you a good feel for the area. Drive around it, look at the “less desirable” pockets of Frankston (ie. North) see the callibre of people there, then do the same for the South, be awed and inspired by the luxurious homes around Oliver’s Hill and so on. There are lots of cafes along the Pennisula, and if the weather is nice, try walking along the beach, ice-cream in hand (a MUST) [biggrin] and really make a day of it.[sunny]
Cheers,
Jo
Hi, new to this property investing stuff, in the research and learning stage, Frankston is my local area and I haven’t been able to find any CP+ propertys in the area, but are looking in regards to CG. Australian Property Investor magazine currently has an article on Frankston that may be of help. Also thanks to Jo for the links, have added to my research. Finding these forums very helpful and learning lots. Thanks all
Hi there
Monopoly is right. Don’t panic. Doing a bit of homework beforehand will probably prevent you from rushing headlong into impulsive buying. Look at your local area first, as it’s probably the one you are most familiar with. We are based in NSW and have one unit we are currently renting out. We also bought a block of land in Margaret River WA which in 12 months has gone up by $100k. An alternative might be for you to buy some land and either build on it or sell it. I know it is not bringing you in any rent, but might be a good start and allows you to learn without making massive financial mistakes. I too panicked at the beginning thinking that by the time I got myself organised there would be no more properties left. If you slow down and research you will reap the benefits.
Good luckSimon
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