Hi Everyone, Im Anika a brand new member to the forum and brand new to property investing, not even a small fish in the pond I'm more like the algi in it. I moved to Melbourne 4years ago from South Africa so not all that clued up on the ins and outs, but have been reading as much as I could. I'd like to get started this year with a 1st IP but it would be very small as my Yearly earnings are only around 60 000. Im more interested in rental yield at this stage and have been looking at western side of Melbourne and in brissy. Does anyone have any advise and should I wait till July for the stamp duty to be removed as this will be my 1st property? As you can imagine alot of businisses have tried getting me with their seminars and so forth, so would really appreciate some advice.Thank you in advance for your valuable time.
Welcome, some recent discussion in this thread. BREAKING NEWS: Massive Stamp Duty cuts in Victoria for first home buyers Keep reading through the threads, even non property for a laugh. Stay away from seminars until you're better educated. Find a good broker on this site to understand what your borrowing capacity will be and repayments. Don't buy anything until you have half a plan on getting there.
Welcome to the forum @Anika. You mentioned that this an investment, the stamp duty cut is only for FHB's i thought. I think you can live in there for an initial 6 months to get around it. Rental yield is terrible in Melbourne, if you want good yields then Brissie would be much better
Wondering whether good yields might lead to less capital gain. If so, then that will also be a consideration for what kind of investment approach one wants to take.
Welcome @Anika. As mentioned by Barny. Take the time to educate yourself first and draw up a plan. It won't be perfect but atleast it will give you an indication on the time frame and what steps you would need to do first. Read the forums, I have learned so much from this forum than any other seminars I have attended. And lastly, always ask. Connect with like-minded people. Attend the Property Chat meetings so that you can meet some of the members.There are two PC meetups every month. One on the west side and one held on the east side of Melbourne. I hope to see you around. Cheers!
It is almost certain that you will compromise capital growth if you chase yield or even factor in yield. The best prospective growth deals almost always yield terribly. Anika mentioned rental yield as a priority hence my answer.
@Anika Get yourself along to a Propertychat meetup - there a 2 every month in Melb - one in the west and one in the east. The east one is due to meet next tuesday - keep an eye out for the invite thread. The Y-man
true, but there are some, but few, exceptions. However, these exceptions will either be obvious and thus hotly contested or non obvious and lucky strikes.
Yeah exactly, there will always be the exception to the rule. There is always going to be the lucky guy who bought a high yielding property in the suburbs that got rezoned and trebled his money in 5 years but yeah generally speaking.
Thank you for the replies. I'll keep an eye out for the PC meet up. Hopefully the flying schedule will line up. I have been reading the forum, but if there's any other suggestions on books ( Besides the Robert Kiyosaki books) or sites please feel free to pass it on. I understand that focusing more on Yield, I'd potentially be sacrificing CG. I have a good broker, so that's one thing I can tick off. If anyone's feeling generous please feel free to shoot any other advise my way...
The question is also how much it compromises. For example, if you can get 5% yield in Brisbane and 3.5% in Melbourne, then if the Melbourne property has 1.5% more growth, it comes out even. Not sure how one would estimate the growth though to make a decision on this.
