I have been very eager to get into the property market for a while but because I am still a uni student I am finding it hard. I have been working my ass of to save a deposit and have gathered about $14k. My partner has just finished uni and started work so between us we have got a bit of buying power although not much. We are currently renting and we have decided that we want to get a few IP’S before we get our PPOR. To help us get into the game we were thinking of joining forces with a good friend of mine and buying a few cheap flats in Melbourne. We have been looking at the Geelong area.
I guess I have two questions to ask. First has anyone had any experience or advice about going into a partnership with a friend to buy property? I know Steve did and it looks like it worked out great, but is there anything that we have to look out for?
Secondly what do people think about 1 bedroom flats in the Geelong area? I know Geelong is a nice place and is a bit like a mini Melboure in that it is a city of its own but what are peoples thoughts on its future. As the property will most likely be –ve cash flow a guess im talking about CG possibility and vacancy rates.
Any thoughts, advice or experiences would be appreciated.
Hi cama
Personally I would never purchase a property with a friend.
Remember a friend today may not always be a friend tomorrow especially if anything goes wrong with the investment and you fall out over it.
You seem to have a half decent deposit although one thing you have to bear in mind is the purchasing costs in VIC especially when it comes to Stamp duty etc.
With your own PPOR and on the basis it is a first ever purchase you will qualify for the $7000 FHOG which I beleive is subsequently increased for VIC FHB.
Why not purchase a PPOR for you and your partner occupy the property for the required time and then consider accessing the equity for future IP purchases.
Having done over 180+ wraps with a friend and business partner who i have subseqently fallen out with and now no longer talking to although still trying to run and manage the properties i can assure you it is no worth it.
My 2 cents worth anyway
Cheers Richard
Ph: 07 3720 1888
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
Thanks for your input!
Ya i was a bit conserned about investing with a friend thats why i put this post. Think you might be right a lot of people seem to run into trouble when investing with a friend.
About the PPOR i was looking at doing what you said however because i have got an extreamly low income and my partner just started work i was a bit concerned that i would not be able to get a loan big enough for a place. That is why i was looking at investing with a friend. Maybe i should go to a broker and see what i would be able to get.
Thanks again.
Does anyone have anything to add about the Geelong question, this is the next concern i have.
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