Hi all,
Im ready to start my road to hopeful $$$ with investing in property. the thing is im doing my research and i keep going round and round. here is my question
What is the best investment to start with? I have a few options im interested in. i have on average $300000 equity a good mining job so im ok for finance.
1. buying land – subdivision in future development in Perth suburbs
2. normal house rental relying on capital and good yields .
3. Multi units in certain areas of CBD Perth and surrounding areas.
If any one has any good or bad reason that can assist me in my decisions would be excellent.
May i thank you in advance for your reply messages
Dave
Hi Dave,
Welcome !! You seem like you are in a great position to get going. With a bunch of equity and what I presume is a very good income (for now at least??) probably the best I can suggest is to have you think of what kinds of investments would "fit" with your situation.
e.g. if you are in a FIFO situation, with perhaps several days between shifts, you might be able to take on more time-consuming investments (e.g. developing, renos, etc).
Have a think though re your current situation and any possible risks, and how investing might help to mitigate them. e.g. we hear in the media of uncertainty re mining projects and possible future lay-offs. Is this something that might impact you any time soon? If so, then an investment that is more highly cashflow positive might make more sense – like a small block of units, or two/three positive geared homes (with good land sizes and locations that can become developments down the track).
Or, you might be feeling comfortable with your work situation, in which case concentrating on growth of equity may be more important to you. (developing, renovations,etc)
From your comments re equity, it sounds like you are well on your way to paying off your PPOR (?) It is always worth spending time looking at its financial settings too. Maybe sit down with a good adviser re your finances and align your current situation with your goals. Meanwhile keep on reading, asking questions, and taking in the replies from others. There is a wealth of experience here, and hopefully others will share their thoughts to help you on your way.
Do let us know what transpires too,
Benny
Hi Benny,
Thanks and yes my job is in production not construction so fingers x. I have set up a offset account and im thinking of x coll but the jury is out on that. i like the sound of renos as this is a way of making good capital. but i would also like to buy houses that are ready to go ! I guess it will take some research.
Thanks again .
Hi Dave,
Benny is completely right in the fact you are very well set up to proceed into nearly any market, property, shares etc.
The question i have is, what is your strategy/reason/purpose towards investing in property? (wealth or early retirement or a hobby to renovate houses) and with this goal when do you want to achieve it (years)..?
Agree further with Benny re: PPOR nearly being paid off and seeking financial advice.
Any reason you like Perth? Have you done some research to find the goals/growth you need to make these subdivisions or multi units worth while instead of buying a few units and houses in areas with better growth potential..?
Cheers.
This is a good way to go. If you are new to the investing business then you should consult any property management professional first. This is big amount of money and you should cover all the risk factors first.
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This reply was modified 10 years, 6 months ago by
ericrowwen.
Certainly strategies 1 & 3 require a combination of indepth knowledge and a wee bit more than 300K so if you are happy to start in property then #2 seems to be the way to go.
In saying that I have to say i am not sure i would be rushing into buy in Perth at the moment as we are certainly at a market high. There are a lot better areas to dip your toe into for a buy and hold strategy.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
There are a lot better areas to dip your toe into for a buy and hold strategy.
Always interested in where these areas are of yours Richard. :)
LSP wouldn’t everyone like to know.
Hate to say we run a Buyers Agency operation and my business partner who is a long standing former member would divorce me overnight if I started publically starting where we are buying for our clients.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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This reply was modified 10 years, 6 months ago by
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