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

Discussion in 'What to buy' started by LouisVuitton, 30th May, 2020.

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  1. Trainee

    Trainee Well-Known Member

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    because they are being paid by developers. Do you understand this yet?
     
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  2. LouisVuitton

    LouisVuitton Well-Known Member

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    I understand what you're saying. I will pay some LMI, so do u suggest buying 2 properties in 1 go or do u mean something else?

    That's true, i mean't in rare suburbs where we can't afford 1 Million+ Houses, but we can afford town houses in those suburbs.
     
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  3. LouisVuitton

    LouisVuitton Well-Known Member

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    Yes i need to increase my budget.

    What would you consider a "good" broker?
     
  4. LouisVuitton

    LouisVuitton Well-Known Member

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    Yeah i understand that now
     
  5. Westie

    Westie Well-Known Member

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    This thread should be stickied I reckon, @Simon Hampel. Top-shelf, crash course on what not to do when you're as young as the OP.
     
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  6. ParalysisAnalyst

    ParalysisAnalyst Member

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    Go listen to the property couch episode 1-20 which covers a lot of what is happening to you right now.
     
  7. SoloMum

    SoloMum Well-Known Member

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    I want to echo the very wise advice in this thread. @LouisVuitton ; my first property was an off the plan apartment in Canberra, and it was a very poor financial decision. I was influenced by the government grants for first home buyers/new builds and advice from my family. It has not had any capital growth in the ten years I have owned it. Yield is good because I have been very strategic about offering it furnished but when rents were lower (because of the stock in the market) the corresponding tenant quality also caused issues with care of the property.

    I am holding on to it... but when I look at the numbers it is line-ball in terms of whether it makes sense to keep it.

    It has taken me a good decade to save the next deposit and had I bought an established house made of bricks on a slightly further out location I would have been waaaay better off; better still I could have bought in a different state!

    Good luck with your research and if you follow the advice above (and not from the agent or developer’s agent) you will do well, because you have lots of time to accumulate and learn your own lessons along the way
     
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  8. Lacrim

    Lacrim Well-Known Member

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    Well, if you want to build a large portfolio, and unless you're on a huge income, I suggest you get your hands dirty and buy the older properties....because buying brand new props is not the way to get there.
     
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  9. Trainee

    Trainee Well-Known Member

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    The problem is not that people hold different viewpoints (eg benefits of new v old, or different areas, or whatever). Its when beliefs are held with no evidence or experience to back it up. And ignorance of so many other things that do come with experience (or listening to those with experience).

    so, asking other newbies what they have done is also asking for directions up the garden path. Imho.
     
    Last edited: 6th Jun, 2020
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  10. LouisVuitton

    LouisVuitton Well-Known Member

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    Thanks for sharing your experience man!

    Yes, i've learn't a lot and still learning more. Can't wait to close my first deal :)
     
  11. LouisVuitton

    LouisVuitton Well-Known Member

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    Exactly, i know that now :) I know my game plan

    I'm willing to get my hands dirty
     
  12. Trainee

    Trainee Well-Known Member

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    Do you know how to calculate after tax cashflow, for your specific situation?

    getting your hands dirty without knowing what you are doing just gets you a handful of mud. Or worse.
     
  13. leo3192

    leo3192 Member

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    Hi guys, Just seeking some clarification with both of your comments here. As a relatively new investor I am confused.
    I thought FHOG payments were giving to owner occupied buyer's only?
    Can a first time buyer non occupier be elligible?? This would be awesome for me haha
    Also could you explain ur point on the effects of FHOG towards deprecation please I'd love to understand a bit better.
    Thanks guys
     
  14. LouisVuitton

    LouisVuitton Well-Known Member

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    FHOG is for owner occupied only. The house has to be maximum 5 years old i believe you can contact your state to see if you are eligible By phone | State Revenue Office they'll answer any questions you have regarding FHOG.

    It's up to you if you wanna claim the grant and live in the house for a year so you can fix it up if it's need renovations and then you can rent it out after a year.

    Or you can forget the FHOG and rent it out straight away.

    So you have to do the maths on which one is profitable for you.

    Either way if u claim the FHOG you'll have to use that money to pay the loan re-payments anyway, if you put the property on rent then the rent money will go towards the loan re-payments too depending on your cash-flow. So it all comes down to the maths and your circumstances.

    Don't know much about depreciation, that's irrelevant to FHOG. FHOG is just money that the government gives you.