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NSW Advice needed!

Discussion in 'Where to Buy' started by natalie86, 26th Aug, 2015.

  1. natalie86

    natalie86 Member

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    26th Aug, 2015
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    Location:
    Sydney
    I am a newbie to the forums, and a semi newbie to investing.

    I purchased my first IP in 2013 in Emerton for $241,000 and sold less than 2 years later for $465,000.
    I purchased another 2 properties this year which I plan on holding on to for now -

    IP #1 - House in Campbelltown on 900 sqm block. Purchased for $380k, current value $620k
    IP #2 - Unit in Jamisontown. Purchased for $363k, current value $390k

    The bank has just pre-approved me for another 400k which will max out my borrowing limit, so I need to be extra cautious about what my next steps will be.

    I have looked at OTP units in Sydney's west which are in line with current market prices and I believe will be true to value in completion in 2017, however this would be a dead end for me as my borrowing limit would be maxed out.
    I was thinking it may be a better option purchasing 2 x properties in Logan/Caboolture South which would be positive geared, however I am worried there will no long term growth.

    Should I stick to Sydney? Look to smaller rural towns? Melbourne CBD?
    Any advice on where to go from here would be much appreciated :)
     
    Last edited: 26th Aug, 2015
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  2. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    Welcome aboard @natalie86.

    I would run, very fast, from buying OTP in Sydney. Especially in the west. You can search and find a lot of discussion about OTP here. There are many risks involved which people oven overlook or simply aren't aware of :)

    Most of the experienced investors are buying in Brisbane at the moment so you might be on the right track looking up there. That's where I just purchased.

    Are you dealing directly with a bank for finance? You may have a little more borrowing capacity than you realise if you're not using a broker.
     
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  3. Leo2413

    Leo2413 Well-Known Member Premium Member

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    HI @natalie86 I agree with @Steven Ryan to stay away from OTP in Sydney's West and also many of the inner CBDs in massive complexes. You have done quite well so far and for the budget you have I would be looking in Brisbane as a relatively safe bet that it should have steady growth to good growth in the medium terms at least. Try to buy a house with your budget, as close to the CBD as your budget will allow and I would also try to get something that you possibly can add value to in the future, even a simple cosmetic reno perhaps. Also agree with @Steven Ryan about making sure you have a great Finance broker who invests in property themselves. It can make a massive difference.
     
    Last edited: 26th Aug, 2015
  4. Azazel

    Azazel Well-Known Member

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    Hi Natalie, I would avoid Sydney altogether at the moment, at or approaching peak of market.
    Not OTP for you!
     
  5. Brian84

    Brian84 Well-Known Member

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    Hi Natalie

    Welcome aboard. For a newbie it looks like you have made some good purchase in the past.

    Good luck you will learn alot more from this forum.
     
  6. lightbulbmoment

    lightbulbmoment Well-Known Member

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    nsw
    :D:DI havent even read the question im still looking at the picture.
     
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  7. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Hi Natalie, if you've got all your loans with one lender it may be worth getting them reviewed before moving forward, just to be sure they are structured correctly, not cross collateralised etc. Often when dealing directly with the bank you'll find they set you up in ways that aren't ideal at the best of times, but are especially poor for investors who hope to accumulate a decent portfolio.
    There's some great Sydney brokers on the forum who it may be worth chatting with before buying the next one.
     
  8. natalie86

    natalie86 Member

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    @Steven Ryan - Thanks for the response! I have sent you through an email. Please take a look when you get the chance.
    @Leo2413 and @Azazel - Appreciate the tips - looks like I'll definitely be cancelling that meeting with the sales rep to look at the OTP property.
    @lightbulbmoment - hahahahah made my night :p
    @Jess Peletier - I have a feeling the loans may not be structured correctly, so I will definitely look further into this. Thanks so much!
     
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  9. Brian84

    Brian84 Well-Known Member

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    It's not a dating website. Perhaps Ashley Maddison might be your kind of site
     
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  10. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Tell him you see it as high risk especially in this current climate :D would love to see what he says :)
     
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  11. lightbulbmoment

    lightbulbmoment Well-Known Member

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    :D
    Nah mate tinder. Success rate very high
     
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  12. Brian84

    Brian84 Well-Known Member

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    Hahaha even better lol. I forgot about that one. I was to caught up in Ashley Maddison.
     
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  13. JDP1

    JDP1 Well-Known Member

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    What are you seeking? Cg, yields, or a mix of both..?
     
  14. datto

    datto Well-Known Member

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    I concur with lightbulbmoment. Although I did notice an investment in 2770 with a nice profit. Beauty and money, what a combo!
     
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  15. Taku Ekanayake

    Taku Ekanayake Well-Known Member

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    And the not so experienced as well @Steven Ryan ;)
     
  16. natalie86

    natalie86 Member

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    @JDP1 A mix of both, however more CG so I can tap into the equity.
     
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  17. natalie86

    natalie86 Member

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    @datto - Hahah thanks - still on struggle street in the love department though!
     
  18. Brian84

    Brian84 Well-Known Member

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    Not anymore. I think lightbulbmoment just had a lightbulbmoment. It could be pc's first love match ;):D
     
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  19. Esh

    Esh Well-Known Member

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    How about doing something on the Cambelltown property sitting on a 900sqm block? Add value on something you already have ? This could add to capital and rental return
     
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  20. Brian84

    Brian84 Well-Known Member

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    Some townhouses possibly
     
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