Hi all
I'm a long time reader, first time poster. I'm 22, living in Sydney, have some savings, and want to buy my first property (IP or PPOR). I still haven't used my FHOG and so I'd like to maximise use of it. I make around 50k gross, and I have money coming in from side businesses. Over the last year or so, I've accumulated around 30 to 40k of cash, and it's currently just sitting there in bank. So here I am, I want to get into property investing.
I have many questions in order to get me started.
- Firstly, a very broad general question for the more experienced posters / buyer agents out there – in general, what should my direction be for the next 2 years? What would you do if you were me?
- What should I do in order to maximise the benefit of my FHOG? Should I try and by a more expensive property in order to reach the cap of the FHOG's stamp duty exemption?
- What sort of legal structure (if any) should I set up for my situation? Again, I want to use my FHOG, so I assume I have no choice but to buy under my own name. Going forward however, should I be setting up a trust with corporate trustee?
- Generally, what sort of LVR is good? 80%? or more? I have a Finance degree so I understand the technical side of risk v return (the more leveraged, the more risk, the more return, basically) – but I just want to know how the pro's actually do it in reality.
- Following from q.4, I can raise up to 50k in cash in the short term, is it a good idea to go 90% LVR and buy a decent sized 500k first property? Or should I go small and buy 2 smaller properties? or should I go lower risk and do a 80% LVR for my first one?
- Are there any Sydney meets / gatherings of forum members? I would love to have a chat in person about the subject in general.
- Another broad question for the experts: what's YOUR method of finding out which suburbs to buy? e.g. I've spent my entire life in Sydney, so I know what are the good / bad parts of town etc. But that's just a 'feeling' – do you buy off feeling? Do you have some sort of analytical framework? Please tell me.
- I've done only light reading on the subject. Should I read a book?
Thank you all in advance – hoping to get some answers to form a good foundation in my knowledge, as I am a complete newbie at the moment.
Echelon6,
I can only write and fill you in with a limited amount of knowledge on this website.
I am happy for you to visit my office to give you an insight into property investing. You will require about three hours…..
As you have so much to learn this may be a good option, then you can come back to this and other sites to fill in the gaps and get a validation on my comments. Just a thought? Let me make it clear, there are many ways to skin a cat. I will not claim that I am the only person that could make you wealthy. I have had many discussions with the owners of large companies . They are wealthy people and have many angle's on how to make money, they clearly make plenty of $$$, through there strategies. After many discussions I have understood the value of taking on board the opinions and advice of many people and applying a little piece of their wisdom to my personal circumstances only when applicable. I never force the knowledge to fit me, but I apply the knowledge where applicable. i.e. what I have to say may not be you, but some may well be?????
Please note; I will not charge for my time,
I am located at Castle Hill in Sydney.Hi number 8 – that's very generous of you to offer your time !
I'm keen to have a casual chat with you about investing. I'll PM you to make arrangements
echelon6 I'm in the same boat only 23 and similiar capitol.
I'm going to head down the reno path sometime early next year. I'm currently weighing up whether to use the no stamp duty and FHOG option or scrap them both and avoid moving.
There are a few lower cost Townhouses that pop up on occassion in Balmain around the $500k mark. I've got my eye on them and would like to add value to one with a 70-100k budget for renos.
Let me know which path you're considering to take as I would be interested to know more and bounce ideas.
ClintHarris wrote:echelon6 I'm in the same boat only 23 and similiar capitol.I'm going to head down the reno path sometime early next year. I'm currently weighing up whether to use the no stamp duty and FHOG option or scrap them both and avoid moving.
There are a few lower cost Townhouses that pop up on occassion in Balmain around the $500k mark. I've got my eye on them and would like to add value to one with a 70-100k budget for renos.
Let me know which path you're considering to take as I would be interested to know more and bounce ideas.
Not sure in terms of what path, at the moment just looking for an asset class in which to park my cash
but I'll be trying to learn as much as I can before committing to anything at the start
Hi number 8,
I think there are a lot of first time investors (including me) that would find that three hours of your time very valuable in terms of the knowledge they would gain from it. Maybe you could set up a get together where a few people could email you to let you know who is coming and then we could all meet and bounce ideas off each other?
Lisa
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