All Topics / Help Needed! / What would you do?

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  • Profile photo of leah-987leah-987
    Member
    @leah-987
    Join Date: 2010
    Post Count: 1
    January 19, 2010 - 11:02 pm

    Hi, my name is Leah
    This is my first time posting so please be kind :)

    I have been working for a building company for 3yrs.
    Last yr my boss was doing a unit development- so I bought 1x unit at 190k (w/ the rest sold at 220k)
    My loan w/ the bank is 150k at a 3yr fixed rate of 4.59%
    I have no other debts.

    Im keen to get into property investing, and have since been utilising my contacts at work for their advice.(accountants, land developers, r/e agents & of course my boss). I've also been reading property books, and read 'your property investment' mag. As well as going through forums etc

    My question to everyone here is, what would you do next if in my situation!?
    -Buy an established house & hold or sell
    -Buy off the plan again (& get good deals through my boss) & hold or sell 
    -Dont buy, but rather keep researching for a couple of yrs
    -Anything else!?

    I'd appreciate your advice, as i know most people on here are exctremely switched on & highly experienced.
    Kind Regards,
    Leah

    Profile photo of lowy44lowy44
    Member
    @lowy44
    Join Date: 2009
    Post Count: 6
    January 24, 2010 - 8:52 pm

    Hi Leah,

    This would be a nice little money spinner i think. Rent would only have to be more than about $160 a week for it to be putting money strait into your pocket. I think I would be tempted to keep buying from your boss at below cost. They obviously do there research when deciding where to build, so I would imagine there would be no problems in getting tennants too. Having said that, all your eggs in one basket…..not a good idea. Maybe a house next?????

    Another option would depend on the value of your unit now. If it has amassed capital growth already, you can use the equity towards your next IP.  Maybe you could change your loan from interest only to P&I and use the excess rent to pay the unit off completely.

    Or, if you were to get another unit off the plan, you can always see what the interest in them is like once built. If the demand is high, raise the price and sell for a quick profit. If the rental edmand is high, rent it out. Opportunities are endless.

    hope this helps

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