Hi all,
My wife and I are considering getting a IP. We have roughly $400K equity in our $850K home in Sydney. Also my company (as in, it’s mine and mine alone) has about $100K in the bank – sitting waiting to be put to good use.
The kicker is that we are expecting our first child in June – so need to be careful about outgoings.
So what are our options for getting an IP? Do we do it ourselves, or go with a reputable company that specialised in this sort of thing? If the latter can you suggest any such companies? I’ve heard of a crew called OzInvest.com.au who offer a 5 year rental guarantee – heard of em?
Any and all opinions appreciated.
Cheers,
Hi pocketscience,
You could no doubt do it yourself if you have time, (?) running a company and with a new bub on the way (CONGRATULATIONS)[baby]
or you could use a buyers agent and tell them what you are looking for, or you could use a company who specialises in that sort of thing as you suggest.
Here is a link you might want to check out, I haven’t used them so its not a recommendation, but I have heard some good reports. IMHO they look extremely well organised.[biggrin]
http://hunterhousehunters.com.au/
Regards,Sharon
Thanks for the congrats and the link Sharon – much appreciated.
FWIW I doubt very much if I’ll have the time to handle it myself, for obvious reasons!
Cheers,
Hi Science,
I do not recommend you purchase something with a guarantee without a great deal of research.
There have been occasions where the gurantee was worthless and provided by a $2 shelf company, instances where you the vendor paid for the guarantee through an inflated purchase price, or the guarantee didn’t relfect the broader market and was used to make the returns more attractive to investors.
Certainly not saying this is the case here but more a word to look closely.
First time investors are sometimes seduced by the attractiveness of ‘guaranteed rentals’ when in reality a well chosen property in an area of demand usually incur minimal vacancies.
The current trend is for vacancies in some parts of some city markets to be reducing so the ‘threat’ of vacancy is reducing.
As to whether or not you need someone else to find the property that really is an individual’s choice. Many people here prefer to do their own sourcing – whereas equally there are others who are happy to use a third party.
Derek
[email protected]Property investment advice and researched property in quality locations available.
I wouldn’t take much notice of the rental guarantees unless you visit the area, check around with real estate agents and see for yourself what is renting and for how much, types of properties, etc.
I can only talk of my strategy for my own reasons and time frame in looking at the cheaper end of the property market and also units, bought 11 (houses and units) in 18 months. But then it is up to you to decide what type of property and where you are comfortable about investing, meaning near your own area, your own state, or interstate. Hypothetically it seems like you could afford a property up to say $200,000 using some of your funds for deposit and expenses. Check out houses and units and their rentals, rates and b/cs. I hope your money is in a bank getting 5%+ on call, not just sitting there!!! Anyway, good luck and congrats on baby.
Anna
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