hi everyone,
I am looking to purchase my first investment property. I've spent some time narrowing down my criteria's for an investment..thinking of Seabrock-vic or SevenHills NSW.(Happy to consider other areas as well even interstate)
I am looking for capital growth but it is also important for me that the property can be easily rented out. My budget is under 300~350k.
I would really appreciate if anyone has any thoughts about the areas I have mentioned, particularly from a capital growth point of view
Looking forward to hearing the responses
Smart cube
Hi Smartcube,
When you say capital growth – are you talking about organic CG or are you wanting to potentially do something with the property? I am quite familiar with Seven Hills – it was decent sized blocks with good potential for duplex style development. Rental demand is strong however you want to look at finding something close to the station. House are generally in the high $300k but you will do well finding something for $350k.
TheFinanceShop | Elite Property Finance
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thanks shahin
iam talking about organic growth.iam not much into renovation.can you give me more information on sevenhills,if u have any leads PM me.
ta
I'd choose Seven Hills over Seabrook, based on the transport situation. There is only one road to the freeway from Seabrook and it is RAMMED every day. While it is vaguely walkable to Aircraft train station, I do believe that station will be closed when Williams Landing station is opened.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
I concur with JacM – Seven Hills seems to tick more boxes, and the Blacktown LGA is one of, if not the fastest growing in Australia. Plenty of potential for solid returns on well-located property in this area in my opinion. Proximity to transport is one of the keys to good future returns in this area.
Smartcube why are you asking for more info on Seven Hills? You need to research it yourself and thus be solid in your understanding of why you intend to invest in the suburb
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
I agree with jacm. Seabrook would probably be one of the worst suburbs to invest. I’d rather put my money on Laverton which is down the road.
Thanks for all the feedback.
what all should i be looking?
where do i do the research?
is there any site or anything i can refer to?
any tools that will help?
iam really new to this.thought of sevenhills becas one of our friend lives there.
Really keen to learn.
Any help would be really helpfull
Smartcube
Hi Smartcube. A daunting time number 1 is, but great to see you making a move. Perhaps thinking about some more specifics, including what you want to achieve med to long term, how many properties you would like to have (and why) and you are correct in saying in this climate especially that you want something easy to tennant. I would want a better reason than knowing someone that lives in an area to want to buy there. I would strongly suggest making sure that in this price range that your rental income goes a long way to wards covering your loan interest costs as a minimum, and deciding how conservative you want to be before zeroing on an area. Many prefer to buy where they live, others could not care less. A new house and land package at the right price can offer good long term steady growth if in the right place. Have you had a look at the 'top 100' article in the latest Your investment property mag to give you an idea on what can be bought in what area for what price and the growth and rental prospects. Not a bad guide to start with.
All the best with the journey.
Cheers
Among all the things I did to get comfortable with my decision to invest in an area was to watch the for sale and for rent ads in http://www.realestate.com.au for months… to see what cost what and how long it took to vanish from the screen (ie how long it took to rent). Look at the pictures so you can understand what an unrenovated place costs (or charges in rent) compared to a renovated place. And of course check the location of each property on googlemaps so you can get a feel for which areas cost more and why. When I found that my target area had things on the rental market for maximum 2 weeks (ie it took max 2 weeks to secure tenants for pretty much every single property) and with a yield of over 6%, I was comfortable.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
We have a couple of properties in Ballarat, 1 in Invermay Park we purchased in 2009 for 285k now worth around 340k and has a rental return of 6.4%,. We just purchased another in the suburb of Canadian for 290k that has just rented for $350 (6.27% ).
In short some suburbs in Ballarat are worth a look. Hope that helps
Hi smartcube, (and all)
Lotta good info here, you can read through old posts, have a look at some of the articles here on different types of investment. Grab some copies of API magazine and YIP magazine. Have a look at some books, there are a couple of great ones by Steve McKnight. Margaret Lomas also has one with 20 things you should look for in an area for it to perform well long term.
Start talking to some agents in the area, go to some opens and have a look at what is on the market, walk through some rental properties as well. Compare the prices. Start talking to a mortgage broker or your bank about what you can borrow, and what the repayments will be. Write down all the costs that you will have and work out what rent you will get per month and year.
The idea is that you are not out of pocket every month.You can have a more sustainable property investment being able to hold it long term, as it will pay for itself.
Good luck, let us know how you go, we were all there (some still are) at the very start and it was just as hard for us to get going, but the main thing is that you do as much research as you can, then make a firm, well thought out, strategic decision.
Cheers
D
DWolfe | www.homestagers.com.au
http://www.homestagers.com.au
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