Hello,
I thought I would ask question as well about being new investor, as I believe to learn something new I need to ask and do some research.
I am 24 year working for one of the IT Company in Melbourne. I am planning to invest in property from last 6 months, but seems like I am not getting anywhere. I have attended few seminars, but getting bit confused, as we all know Investing in property is the biggest commitment most people ever do in their entire life financially. And may be that is the reason I am just being cautious about this.
My question is I like to buy house within 10-15 km of CBD and I am more interested in capital gain rather than positive cash flow. But the amount of loan what I am eligible right now is not enough for me buying a house that I prefer, should I wait or not.
I do not prefer to go outer suburbs as fuel prices are higher at the moment, and the historical data advises that capital growth in Outer suburbs will take longer time than the 10-15 km distance of CBD ( I might be wrong). But if anyone can please advise me pros and cons of investing in outer suburbs, that would be great.
I asked the same question to one of the successful property investor at seminar and he advised it is always a good time to buy investment property. I kind of do not agree with that, as we all know property market in Perth at its boom right now, while studying the market so far figured out as the interest rates are going up, even though the market in Melbourne is not affected that much, Sydney market is almost at the bottom of the cycle. The vacancy rates are at its lowest, definitely it is a good sign for investors.
In summary as doing some research by myself and some advise from few professionals made me confuse,
Am I just waiting for the opportunity to come to me? Or should I just jump in to the market.
Apologies for asking a dumb question.
I am just confused and stucked, hoping any of your advises can take me to the next stage.
Thanks in advance.
Happy New YearHi
Good on you on doing some through research and due diligence.
With regards to your maximum borrowing capacity i assume this has been advised to you by your local Bank. Remember each lender works on a different serviceability calculation and that one maybe the maximum with one lender maybe totally different with another.
As a MB i get asked regularly by clients “What is my maximum borrowing capacity” and they are quiet suprised when they hear the answer and the variance between lenders.
The property market has certainly come back a lot and i think over the next 6 months you should be able to find some good CG properties at affordable levels.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
I think if you are looking for capital gains, now may not be the best time to enter the market.
I am in the moment looking in regional centres with the aim to renovate and subdivide. I am following the advise from Steve’s third book. He calls it Problem + Solution = Profit. I rather call it unlocking the hidden equity in a property.
By doing that, I believe I can make money in any market. I am currently in the process of making two offers in a small regional centre. Both parties verbally agreed to long settlements (12 month) if I give them their asking price. This way I do not have to pay interest and tie up my capital while I subdivide and they do not have to drop their asking price.
I am now in the process (a bit hard over the holidays) to find out any potential hurdles in subdividing, costs for houses, prices fo similar properties in the area, etc. My intention is to split the block (3200m2 into five community titles) and build 4 more 3BR houses as well as doing up the existing house.
My current budget needs $145,000 of capital input for a gross profit of $118,000 6 month after settlement if I sell all houses. But I intent to keep two houses, which will now be positive cashflow. [biggrin][strum][strum]
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