- Hi, everyone, think most of you guys are more experienced than me in this game. I have just joined the workforce. I am still renting.
I have been reading a couples of property investment books and also lots of online infomation available out there.
I am really overwhelmed by the vast amount of information and products(DVDs, booksssss and suburb reports/prediction). Now I am stuck to the point that I just feel not confident enough to actually go out there and start hunting becoz the more information I am exposed the more I realize how little I know, so I am abit scared actually doing things due to risk of losing big money…
Also some people say that the middle suburbs should enjoy great +CG due to the ripple effect, whilst some still see suburbs proximal to CBD and beach(even out to Seaford frankston) great for CG gain.
I may already be priced out of the middle suburbs likee DOncaster where I live(median something like 610+).
What opinion do you experienced people have for me? Feedbacks greatly appreciated
If you've just joined the workforce and are still renting, I assume you haven't got much of a deposit together yet?
If this is the case, I'd suggest that while you are saving, keep reading lots of books etc, there are a few posts on this forum about which ones to read. Use the search button in the top right hand corner.
But back to the finances; it's not much point looking at values, and areas, until you establish what your borrowing capabilities are, and you have a deposit saved. There is also the FHOG, but there are restrictions on using it for investment properties.
Also, with your first effort, especially if it an IP, you don't want to go too mad. You can buy plenty of places for around $200k which will be a fairly safe start, and go from there.
Spending $600k on one property is not necessary in the beginning. That's a lot of deposit required and big repayments if you have vacancies. You would be better off to buy 3 x $200k, or 2 x $300k properties; same returns or better, and spread the risk a bit more.
When you are ready to buy, and you know your budget etc, then pick an area that you think is affordable for you, will show signs of good cap growth, hopefully a decent rent return to help with the cashflow, and research the hell out of it to find the good value, the best positions, what the rental demand is like, what types of properties are in demand there etc.
Thank you sir you definitely have won my trust and respect if you were a agent/broker. I have got the direction now, just have to wait for the depost rolling bigger.
Yes L.A Aussie you do seem to be very informed about property investing and give good advice on this forum so thank you. I am in a similar position to the person above however have been in the workforce a few years but travelled alot and am now really knuckling down to save a deposit so the advice above is good.
Also of interest is your book and history you have web link too. My partner is a golf pro and we have recently moved to Wagga as he has taken the Assistant Professional position at a golf club here.
Cheers
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