I have been looking at areas in rural NSW to invest, however I'm finding it hard to research the recent jobs and real estate trends for that area. Could anyone out there enlighten me on how they obtain this crucial information?
Also, Steve and others mention that you need to come up with 20% deposits, does anyone in the PI community know a good way to speed up the saving process for these deposits. I am working on multi stream incomes to start generating the necessary income, but with my wife at uni and 2 children at the most expensive end of schooling, we are finding it difficult to get that saving power.
The properties that we have been looking at have a ROI of 6.5 to 7 before outgoings (ie minus 1%) leaving 5.5 to 6.0% ROI after expenses. The area I have been concentrating on will be positively geared in the current environment with a total $135K outlay without deposit and the capital with be moderate to low. The flip side will be to concenrate on Brisbane and surrounds but I don't know enough about that area.
Thanks for reading.
Cheers Tony
Canberra
Hiya Tony
Welcome aboard
It's always good to see another Canberran on the forum. We're not related are we???Have you checked out the ABS for stats on jobs, etc?
With the deposits question – you don't need to come up with 20%
You can still get away with as little as a 5% deposit for IP purchases. Sure it will incur some mortgage insurance, but that doesn't neccesarily have to be a bad thing. It means you can buy more with less and leverage more of the banks money rather than your own. Mortgage insurance is also a deductible expense for IP purchases.
I wrote this article a couple of years ago for Australian Property Investor magazine on leveraging LMI.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Jamie,
Thanks for your insight into the jobs and LMI questions, and I looked over your article and that helped greatly, thanks. I'm not sure about being related but I would love to talk real estate a bit more with you as I joined Steve's property program some 10 months ago. I and have also commenced the internet acceleration program with Derek Gehyl to increase some passive income with the prospect of lauching my first website in the next month!!, however the passive income program has taken me away from the property program for a while. I am working and living in Canberra and it would be good to organise something locally as the property portfolio is my primary focus.
Regards Tony
Hi Tony,
The local council website may also have the trends, statistics etc.
I agree with Jamie in regards to not needing a 20% deposit. Aim to get creative with funding your projects, you might be able to get together with another person whom you trust and do a joint venture with, so you can get away with having a small amount of money and purchase a property.
You may also be able to sell the deals you find atm to build up your capital. People will pay between $1000 – $5000 for good deals.
Just a few suggestions to help get you started.
Hi Tony
There's a group of property investors that meet up at the Civic library once a month – you might get something out of attending. I went once to check it out – seemed ok.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Thanks Dee and Jamie, great advice, I’ll start expanding on what you’ve helped me with. And thanks for the Canberra advice Jamie!
Cheers tonyNo probs – I found their Facebook page if it helps https://www.facebook.com/events/135736236567359/?ref=ts
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
It's always good to see another Canberran on the forum. We're not related are we???
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