Am i missing something, i look at the Sydney property market and it does not seem worth investing in. I think I am at the wrong time in the cycle. I see all these people going on about their property portfolios, they were just lucky as they bought at the right time and have seen or locked in nice gains. For me investing in my first property in Sydney, it seems difficult/impossible to find positive cash investment. I can only negatively gear unless I put a large deposit down. I will have to find my own money to supplement rent shortfalls, with no prospect of price increased in my property for at least 2 years, then very small, no massive jump like others have enjoyed for at least 10 years. I am probably better waiting a few years. Can somebody help me? Any suggestions.
Isn’t this property investing thing just about being in the right place at the right time in the cycle.
Property investing is certainly easier at the right time in the cycle, but if it was always easy, then more people would be around to grab the great deals that are out there… even now.
Depending on your skill base, you have several options.
1. Around Aust. there is nearly always somewhere that is in a good place in the cycle… if you can`t find a deal in Sydney, try another state.
2 If you have handyman skills, find a place that needs work or can generate more rent by basic improvements. (turning a 2 bed house with a large lounge into a 3 bed house is a good trick.
3 If you have project management skills, try looking for a small duplex development. you basically get two houses wholesale, or you can sell one to help fund the other. (If the market is down, be careful about projecting generous profits, plus you would need your own legal and tax advice before proceeding though) Longer process too… maybe 18 months!
4 If you have deal making skills, you can find an opportunity and a third party to “take-out” the bits you dont want, which can often leave you with the bits you do want at wholesale prices. Tread very carefully though, do your figures, and no matter how good your friend on the take-out is, get a contract!
Ever played a game for the first time and learned the rules as you went… all the way thru, people are doing things you didn`t know you could do cause you didnt know the rules…
Property investing is basically playing a game, and right now, the only rules you know appear to be aware of is buy a property and try to get the rent to match or exceed your loan repayments. So you are limited to operate within those rules.
If you learn a few more rules, you can learn how to manipulate those rules. The investors who play at the highest levels know the rules more intimately than any of us, and they reap the rewards accordingly
Keep on the hunt for answers and never give up!
Freed@last
Thanks. that reply was relaly helpful. It is true, I ahev been looking at this from one angle.
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