Hey guys as some of you probably already know i purchased my first IP not long ago. Still living at home.
Now, i want more. However there is one problem.. I dont know what to do or how to go about it. My girlfriend and I purchased a property in Frankston however we both reside in the Inner Northern Suburbs (Essendon – Moonee Ponds) and live with our parents.
Now come time in 4 Years when we decide to lets say get married, we would like to live in Essendon/Niddrie/Strathmore etc in a nice townhouse, which would be roughly 550k + I'm aussuming..by then…
Now as we have 1 IP, we dont know whether to build/develop and use the profit (lets say 100k) to pay for the house we want to have in the future, and buy it NOW, or continue to buy another IP.
We are both at university, but next year 2011-12 our combined income will be no less that $100k Gross. Can anyone put foward any suggestions to what we should do. I really dont want to develop in Frankston, because I never want to let go of property. And that will forver give me rent.
Does anyone have any suggestions or different perspective on things. We have started young because we really want to afford an area like Essendon as our first HOME together
Anyone?
NB: the goal is really by the time we are 23-25 (now 20) have a IP, house we live in, in the suburbs mentioned above and be sitting comfortably to afford to buy more!
I would suggest you sit down and write your goals. Then you should work out what you need to get the property you want – income and deposits etc. Then you work out how you will get there whether by wroking and borrowing the equity in the first one or by developing etc.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
hey wealthyjvd,
i am in exactly the same position as you in the same area. i bought IP in airport west and want to settle down in essendon strathmore area also. i am 24 and have been trying to work out how to go about getting IP2 also. i have decided i want to get number 2 before getting my house to live in. i find thats the only way to be able to afford these areas with a bit of equity so it is going to be tough.
terry is right about setting up goals financially. i have been working it out for the last few months and its going to take me till the middle to end of the year to top up my savings and build up some more equity to get number 2. I could do it now but it wont be in the areas we both want. It will be a 2 and half year turn around between IP 1 and 2, so i think that is not bad.Good luck with your planning.
Roy
Yeah these areas here are beautiful.
Are you aiming to buy IP 2 in Essendon/Strathmore. Or somewhere else, then later on, the third property by your home here.?
Thanks Terry i will definately do that/
Anyone else suggest anything?
i am aiming to buy IP 2 close to these areas. even if i have to go to glenroy side, that will be ok. But my PPOR will hopefully be in the essendon area. Its going to be hard work, but that is the goal.
Hey guys.
Just an update.
Im thinking of holding onto the IP i have in Frankston, that will eventually become a d/o development site for myself.
And also investing in a town like Bacchus Marsh, buying a run down house that is rentable for a few years, then developing the two, which would make some nice profit come 4-5 years down the track.
Maybe it could allow me to buy in the Areas i want. What do you guys think?
Also any renovation experts out there, that might beg to differ. Because I've been renovating at the moment and have fallen in love with it. I will have roughly $350-400k by the start of next year to purchase another property. Can any RENOKINGS provide some assistance. As i have noticed, the best returns are in the priciest areas.
John
PS: I though T/Houses in Essendon would be 550 in a few years time. Well i was surely mistaken. There is PEANUTS for even 600k NOW!!!
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