Mike,
I just turned 26 and I purchased my first property at 22 – I now have 3 properties and about 100k in shares.
I think the common theme coming through from everyone elses comments is that you hopefully won't need to sell any investment properties in 4 years to purchase a house.
The next thing I would say is that whilst you need to plan for the future, don't be set on purchasing your PPOR at 25 – I own a PPOR which is geared to about 50%, however this has slowed my investing plans. I have plenty of equity available in my properties, but paying off your own, non-deductible mortgage makes it harder to acquire more IP's because your home makes no income!
The last piece of advice I would give you is to purchase a 2 bedroom place rather than a 1BR. I know how expensive property will be in Carlton, but the 2BR opens you up to such a wider rental market, and gives you some more options with future improvements.
I was/am lucky enough to have a pretty good mentor at your age, and consequently I am now in a strong position financially for my age. Feel free to post more questions in the forums and I will try to assist, or send me a private message if you would like me to go into more detail about any posts I make.
Cheers,
YIThanks a lot for your reply guys.
I am trying to gain as much knowledge in this area as I can. Ask as many questions as I can and take it all in.
Now with my carlton 1br apartment it is a quest serviced apartment. Quest operating it as a 4 star hotel.
I am looking between 190 to 210k with a rental return of around $1293per month.
Is the whole quest thing something to look out for. What are your thoughts about these types of properties.
If this is your first property you should probably keep shopping. There are many people who invest in quest and others and have good returns etc. But…… You are probably looking for a kick start to your property investment. This means trying to get some capital gain as well as an income.
If it were me buying I would go back and explore the Melton option. I would personally not live in Melton but the house isn't for me it's for rent. The Carlton option limits who you can rent to and may limit how much CG you see in the future. Have you spoken to to the bank to see how much they will lend you on the unit?
D
DWolfe | www.homestagers.com.au
http://www.homestagers.com.au
Email Medwolfe
Im not to concerned about positive income. Being negative by 30 dollars or so doesnt bother me.
I am after capital gain to then use that gained equity to leverage myself another property in 12 months time. I dont see why the carlton apartment couldnt give me that gain. I think the area is perfect for it. close to shops , uni, cafes , restaurants, public transport.
I thought I dont really have to worry about the rental market the property appears to as I wont be needing to find tennants since quest basically is gauranteed rent for the lease.
I am working on finance at the moment. Finding it hard. Broker is saying since im looking at using my parents house as security the 'family pledge' type of loan doesnt allow purchase for IPs only owner occupiers and also my parents mortgage is not through a main bank its through a smaller broker which also seems to be causing issues
There is another thread going on at the moment dealing with the question of serviced apartments. Take a look :
https://www.propertyinvesting.com/forums/property-investing/help-needed/4330114
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
I did have a look over that thread. Its more relevant to a owner occupier situation.
Im looking at this as an investment property.
mikea1988
Why do you need to use a family pledge style loan for your IP why not get them to borrow the deposit funds in their own name and then onlend them to you at the same rate and repayment terms.
You would then claim the interest as a deduction on both loans and they inturn have a neutral income position.
Sounds to me this is all new for your Broker.
Richard Taylor | Australia's leading private lender
Mike,
I was in a similar position to you in December last year, as a 20 year old wanting to break into the market. I am a real estate agent in Adelaide and had the option of a 1 bedroom unit 4km from the CBD or a 3 bedroom house about 30km out of the city in a not so sought after suburb….. Everyone around me warned me off buying a 1 bedroom, but I weighed up my options and did my research…. and was confident it was going to get me further in a shorter space of time than the 3 bedder…..
I paid $162,500 in January 2009 for the 1 bedder….. lived in it for 6 months and did some minor upgrading and general home presentation…. tried my luck selling it in July to see if I could get a crazy figure and free up some cash, pay my car loan off and all in all be in a better financial position to really get my portfolio up and running……..
The end result – I sold it in 6 days for over $220,000…….. now I know you don't plan on selling for 4 years…… but what i'm getting at is the reason I did so well was based on my close to CBD location, good transport, close to Uni etc etc….
I've now purchased a 2 bedroom townhouse which I don't plan on selling and plan on adding to the portfolio from here on with already a fair bit of equity on my side…… GO THE 1 BEDDER!!!!
Cheers, Ben
Ahhh just read the new thread about it being a Quest apartment……. Hmmm…… I'd steer clear if I were you! That changes the whole dynamic…..
Cheers guys
After alot of research into serviced apartments and the associated fees and low capital growth due to restricting myself to only being able to sell to investors Im staying away from the serviced apartment in carlton.
I can get myself a 3bdr home in melton for 200plus close to the main shops and public transport. There are also alot of developments on the way there.
I think this is the better option. Hopefully I will see some growth over the next 12 months aswell as put any extra cash I have into it and then use the equity to leverage myself into another property.
Phew, thank goodness! Smart decision!!! Do it matie. Furthermore, do not stress if you not see the growth you desire in 12 months. It's the average over a few years that matters. An area can sit stagnant for two years and then BAM, up she goes 40%.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Yeah have to say had a sigh of relief too!
D
DWolfe | www.homestagers.com.au
http://www.homestagers.com.au
Email MeHow woudl everyone feel about the property being in a serviced apartment block but not having the same restrictions on renting or living in the apartment?
My main concern is higher strata to maintain the building more so than a regular block. In this case would you still support the idea of the 1 bdrm apartment?
I appreciate any advice greatly! I've been pondering this alot during my Christmas break and am now swinging back to buying this property!
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