21 Years Old | Buying First IP Advise? (VIC)

Hmm obviously people who do it all by themselves won't have a sheet like this.

Maybe some companies do offer PIA reports to their clients. And i didn't make this report, i was given this report from my agent.

 

We'll either way i don't have to claim the FHOG, but if it doesn't affect anything then might as well

 

This is what people are very wary of. We don’t know if the agent has your best interest at heart, or if they are just trying to buy your business. Thus these questions from other forumites. You don’t want to have bought a 500k lemon, thus the probing questions. Who knows, it might be all well and good, but there’s been so many cases of young inexperienced buyers being conned by salespeople.

 

at the very least, you lose a year of rent, and first year expenses including interest are not deductible. How does that impact your cashflow?

then when you rent it out its not brand new, but a year old. Will you then be competing against brand new properties?

 

repeating for emphasis.
The agent who is being paid by the seller to find a buyer (you). They get paid if you buy. You do not pay them.

 

Thanks for the heads up, i'll do more research before committing to anything.

 

I'm not sure i'll have to do my research on that.

Depends on which property i buy, even if it's 1 year old it would rent fast because of it's location.

 

exactly!!! they have an agenda, and I can pretty much tell what it is and what sort of business they are,
these types of reports are as bad as generic property valuation software,

in fact, I think they are dangerous and misleading

 

Council rates, body corp fees, insurance only go up, interest rates can only go up. Rental rates will probably have to go down especially in Melbourne. Have you done some research on demand and supply where you want to buy? Have you thought about the probable what if's, if costs compound @ 2%, interest rates double very possible, may even tripple, if circumstances mean they dont, it may mean circumstances where rents could fall and there is no CG or even negative growth, have you considered that. Do pursue your dreams, nothing ventured nothing gained, follow your gut, ignore the knockers, No-body has a crystal ball, but go in with your eyes wide open be prepared and have contingency plans for different scenario's , so dont over commit. There can be issues with new houses that are sorted out by the time a house gets old. I find older houses have less issues with plumbing etc as the quality of materials and workmanship was much better and foundations have settled. the low pressure rated pipes in old houses are more reliable than the new high pressure pipes.

 

Wealth of information in this thread, hopefully @LouisVuitton takes some of it onboard.

 

There not businesses which lure people in by telling them schemes about investing if you think they're one of those.

But thanks for opening my eyes, now i'm going to thoroughly investigate what would be the best for me.

 

Thanks for this valuable information.

Now i am actually looking into some old houses with a big block of land.

 

Thanks for the heads up man.

Would you recommend i buy an old property with a big block of land in a good suburb instead of a new townhouse?

 

For sure! Land appreciates, buildings depreciate.

You have a lot of time on your hands. Research, read and don't use these agents. They are in it for themselves.

 

You risk being stuck for years if buying new as the value won't increase much due to the big comms built into new property prices. No increase in value = no equity.
You may be better paying some LMI so you can at least get 2 properties straight off.

It's got nothing to do with being a Millennial, the key point is land appreciates, if you agree and know this then WHY would you insist on brand new townhouses?? And what makes you think townhouses are the 'next wave' for property investing??

 

I can also confirm I've had many more problems with new builds than with old properties. In fact the older the better in my experience.

My first purchase was essentially a land value purchase of an old housing commission duplex that I did up. The equity gain I used to purchase more properties in relatively quick succession.

If I had bought a new build I would have been ruined frankly - investment journey wouldn't have gone anywhere.

 

need to increase your budget to do that and be prepared for really poor yield and be sure you will be in top tax bracket for a while (you have an ABN so I assume you are in a business which generally not as stable as a person on top bracket full timer)

You have an ABN and no existing relationship definitely get a good broker as others have mentioned

 

Thanks for the advice man.

Yeah that's why none of them would show me small houses with big land, i have to find it myself.