Hi,
I am new to investing in property.
I am interested purchasing my first IP. This is a block of apartment located 5mins to a uni in caulfield which consist of 1bed room /bath room. Apart from the repayment, what sort of things to I need to consider?
Any advise would be greatly appreciated.
Cheers,
l
Hi I,
1. Learn about investing until you fully understand the risks, costs and rewards before you begin. Reading a few books is a good start (you will pick up a lot more information than just asking the odd question).
2. Just when you think you know enough get expert advice. Seek out a mentor (who has successfully invested before) and/or an accountant to check your numbers (including tax considerations).Hi I some of the costs to consider are insurance, strata levies, agent letting fee if you have an agent manage the property as well as what the occupancy rates for the property are. Sometimes these units can sit vacat for a long time frame over the long chrismas vacation, thus limitting your cashflow. You will also need to factor in water usage and possible repairs within the apartment and maybe larger repairs to common areas if there is insufficient funds in the starta 'pool' of funds.
Good luck
Read as many books as you can, such as those by Steve, Neil Jenman and margaret Lomas, each ahve a slighly different approach, but they all advocate the need to be properly educated and prepared.]Sonya
Hi I am not experienced. I will suggest you to consider risk, costs, profit first. As you are new try to gather more and more knowledge about real estate industry. If necessary take advices from experienced business persons.
Check with the bank / lender if they will lend against student apartments and if loan mortgage insurer will insure it as if no LMI you need 20% deposit .
Also are the apartments rented out all year round or just during the two semesters as university students get long holidays at the end of the year and between the two semesters.
Thank all for your post. I will take all advise in consideration.
Enjoy your day
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