hi everyone
i just bought my first IP, and am considering using my FHOG to buy my own place to live in for 6 months before renting it out. just wondering in general, how long did you guys wait before buying your second IP? at the moment i’m still learning as well, so i dont want to rush into buying the second IP. and there are still work that needs to be done with the first IP. So is it better to wait till that deal is settled before starting on a new one?any advice, comments are greatly appreciated[thumbsupanim]
Originally posted by yessy:
hi everyone
i just bought my first IP, and am considering using my FHOG to buy my own place to live in for 6 months before renting it out. just wondering in general, how long did you guys wait before buying your second IP? at the moment i’m still learning as well, so i dont want to rush into buying the second IP. and there are still work that needs to be done with the first IP. So is it better to wait till that deal is settled before starting on a new one?any advice, comments are greatly appreciated[thumbsupanim]
To compare your progress to others is not a good idea. It is not a competition and there will always be someone who is doing more, and doing it quicker than you. Set your own goal; your own pace.
When I started, my goal was to buy one property every year for 10 years. I’m a bit ahead at the moment, but that can change.
There are many factors to consider before you buy again.
I would suggest getting educated on how to ‘crunch the numbers’ for the holding/purchasing costs/returns of an I.P.
Once you can do that then you need to overlay those figures onto your current financial situation to see whether you can afford to buy, hold and maintain another with safety.
Everytime I decide to buy another property I do a complete financial statement/analysis for my wife and I to ascertain how much we can spend, how much risk there will be and what the returns are on the property in question – what impact on our financial position is this next purchase going to have? I am risk averse, so I tread carefully.
Then I ring the bank. By this time I know what the answer will be.
It is a good idea to know all this before you ring them because they will ask you for the figures anyway.Cheers,
Marc.
[email protected]hi marc
thanks for your advice…
i definitely wasnt trying to compare myself with others… just curious to hear about other people’s experiences, how they go from buying one to the next one [strum]Buy one as quick as you can get finance, if that means that it’s before the first one settles then go for it!!!!
Investment Property Management
http://www.adprop.com.au
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