Hi All,
I’m 27 years old, reside in Darwin with my parents and have approval of around $250-260,000
for which I am about to use for my very first IP but, the buring question is what:UNITS or HOUSES
I live in Darwin and I’m sure alot of you know the situation of the overflow of units in the CBD area so, I am a little hesitated to invest in that area in fear of a high vacancy rate etc…
I’m leaning towards a house as it seems more a ‘stronger’ purchase but, Im absolutely clueless to what I should look for.
I want to make this a CF+ if possible and avoid the NG method.
I am purchasing around $200 worth of books this weekend to help my knowledge but, I would love to hear your advice.
THANKS.
I used to live in darwin myself, and may look to invest there myself giving that the train line has now been completed. Although i cant give u ny advice for this area, so i recomend that u take a look at this report, it may help.
http://www.htw.com.au/pages/info_centre/review/MR%20Sep%202005.pdf
Adam
Hope it helps.Thanks Adam for your valuable comments.
btw, I did see that article in todays local newspaper…
22 views and only 1 reply.
Great Friendly Forum….
Fair Enough, the majority of the members on here dont know or live in Darwin but, general advice would be appreciated.
Hi GTR-PSP,
You seem a little disappointed that so many people have read your email and so few replied.
Maybe because you asked for advice and so few people can give you advice. Ultimately it is up to you and maybe peolple will be forthcoming with info rather than advice. We, for instance have bought a mixture of residential properties ,ie small block of flats, and houses . That suited us and the houses may provide more CG but right now the flats are providing more Pos Income.Our situation is different because we started with a larger base of funds available (not cash as such I might add, but funds available) so as I said prior, every person is different and do not become irritated nor disheartened because we/they are not replying.
Maybe we/they feel as they do not have any “advice” to offer.
“HERE ENDETH THE FIRST LESSON”
Good Luck and Cheers for now LenGTR-PSP
Check out “Darwin Updates,Please” in the General Property section of the forum.How about you just start doing some legwork, and look at some properties in your price range.
That will get your ideas flowing, seeing what is actually for sale.
Good advice Pen, GTR-PSP you obviously live in the area so spend the weekend(s) going to open houses and units. I’d say go and look at things both above and below your price range as well, this gives you a much better idea of what you can get for your money, whether spending a little bit on a cheaper place will increase it’s value etc. Take note of the types of properties that are owner occupied and which ones are rentals.
Just by doing this, you will find that you will be bumping into the same selling agents and will build up a raport with them, they have a wealth of knowledge and it’s suprising what information you will get out of them.
There is no rush, get to know the area from an investors point of view, and what you can get for your money, do the numbers and eventually it will just hit you when you walk into a place one day. This is it, this is a bargin.
Mal
Getting out of your comfort zone, can help you become comfortable
I agree with Shwing. Dont just look at the $250-260k range.
I got pre approval for $280k (for a PPOR) and had $44k saved (I sold my gtst and gtr).
I am also 27 years old, live with my parents, but reside in Sydney.I looked around for 6 months for a unit to buy (just doing research and seeing what I could afford in the suburbs around where I live and work). The only units I could afford were very old and small 2 bedders, or larger/newer 1 bedder.
My fiance and I went for a holiday a couple of months ago to Queensland and stayed in a very large unit overlooking the beach.
This is when it struck me. I would only be happy if I bought a unit as good as this one back in Sydney. I didnt sell my sports cars to purchase something I’m not excited about.After the holiday I started looking at cheap house/town houses around the $500k mark.
I knew I could get excited about one of these.I found a house/property which comprised of 2 garden units listed for $625k and returning $670pw in rent.
I spoke to my broker and he was surprised to learn that a lender would lend me $500k for this IP. My parents are willing to make up the rest so its a 80% LVR.
My offer on the property along with 2 other people. I missed out by 12hours.I’m now going after a house listed for $675k.
I’ve gone to another bank and maybe because I can get $500k from bank A, and because i’m serious about purchasing right now, they are seeing if they will lend me more.As backup (bank doesnt know this), my fiance starts work next year as a high school teachers which will make a loan > $500k easier to service.
My preference is anything as long as you get the land. There is no more land being made and I believe that you will get better CG.
My pics include, Houses, Blocks of flats, Duplex ect.
But remember that I do not know Darwin at all.CATA
Asset Protection Specialist
[email protected]Hi MRK25T,
Off the track, But how sacreligious can you get !!!! Selling your GTR.
Shame.Shame.Shame.Wow.
Thanks to all that replied and laid down your advice for me and others out there. Much Appreciated.
I purchased Steve’s first book tonite and 2 others based on IP which will hopefully make me go inside a square and how to look outside it :o)
I’ve decided to focus on houses instead of units now and have started looking at whats around for my price range….found 2 places online tonite and maybe check out the places more closely.
I shall let you know how I go from here on.
Now, Mr MRK25T……Why sell the GTR…could have just got rid of the GTST instead..hehehehe
I had a R33 GTR also which I sold to get married…luved the car but, we all have to make sacrifices. I also still have left over a Apexi Power FC, boost controller etc…need to get rid of these asap.
My wife just doesnt need to know what once it all starts to happen…A Nur R34 GTR is only a chequebook away!
Bye,
GTR in all honesty..look for Sales Demad..and Rental Demand..Find an area thats got both and you’re laughing..
I spent some time in Darwin years ago..they really are ‘troppo’ aren’t they [biggrin]
Foget Location Location Location..go Knowledge Knowledge Knowledge.. and you’ll be a winner..
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorHi GTR
I am familiar with the Darwin area. It is currently being very kind to my equity levels.
For Capital gain go houses. For yield go units, although I believe there is still some capital gain to be made from units, particularly in Palmerston and the northern suburbs.
Good luck
K
Camder, I loved both my Skylines but I lost a ton of money on them. Click on my WWW icon to see my old R33
It looks like GTR-PSP and I have the same goals; to purchase apreciating assets now and once we are financialy in a better position we can buy our toys back.
My desktop wallpaper on my work computer is a R34 Z-Tune. It helps me focus on why i’m working two jobs.What if you go to open houses (for lease) to judge how many people are interested in either houses or units, what properties they get excited about, how quickly they lease for, what type of people are looking, etc.
You could then find a pattern over a period of time.One of the agents I talked to when looking for a unit suggested 1 bedroom at least 50sqm, top floor, must have a balcony, garage. She said this area the 1 bedders get the better ROI but dont target the lower end of the market because these people who rent the cheapest unit in the market were causing problems because they really could not afford the rent and the agents had problems getting the money from them.
She also said the tenants didnt stay for long periods.
The problem she experienced with 2 bedders was that couples tenanted these and over the years as a property manager she noticed these didnt have many long term tenants because couples were frequently breaking up.I have no experience so maybe one of the forum’s more senior members can counter these opinions?
You must be logged in to reply to this topic. If you don't have an account, you can register here.
