Hi all, I have been a long time reader and first time poster. After reading on PC for quite some time, I have done a bit of home work and need some advice from the PC community on buying my first IP. Current Situation PPOR recently valued at $500K with current balance of about $150k. I have followed Terry’s finance tips and refinanced recently to release equity. Although, I can borrow more but for the 1st IP, I’d like to stick to bottom quarter($400-$450k). Strategy is to buy and hold for long term (We’re both in early 30s, so have some time on our hands). I’d like to stick to house with as big block of land as possible. Based on the budget, I have narrowed down my search to these areas – Broadmeadows/Jacana, Hoppers Crossing & Frankston. I have been to a few opens in these areas except Frankston and feel that market has moved really fast in the last 4-6 months in this price bracket. I feel that the ideal case of buying at 7’o clock is long gone in these areas. Would you suggest, buy now anyway since we are holding for long term or wait? Since this is my 1st IP, I’d like to stick to Melbourne market and not buy interstate whilst I’m still getting used to the game.
Hey @new_investor , welcome aboard. It's always a good time to buy somewhere. Not necessarily a good time where you live.
Depends on your goals and how quick you want to build your wealth. Ultimately, slow growth means slowly building your portfolio. So long term, it may indeed be a great deal but if it requires you to sacrifice short to medium term deals (and wealth) because the growth from your first place is too slow then you need to reassess your strategy/goals/plans.
Hi @new_investor , Like you I am also at the early stages of building my portfolio so its a steep learning curve for me as well, Margaret Lomas books "investing in the right property now" and "20 must ask questions" may help you out in deciding where and when to buy if you have not read them as yet.
I completely agree with you. But in this price range, I'm struggling to find suburbs in Melbourne market that are between 6-9 on property cycle. I'll keep looking and if you have any suggestions, please send through.
Thanks Darren, Appreciate your advice. I have read 20 must ask...but not the other book. I'll give it a go. Thanks again
Thanks @Leo2413 long term strategy is to have a comfortable lifestyle post retirement through rental income. I like what i do for a living and not necessarily looking for an early retirement (although having a choice at some point would be nice). Based on the projected calculations i have done, I'd be happy if my 1st IP grows at 5-6% with slightly -ve geared for first 2-3 years.
Hi @new_investor, Try to quantify that goal into numbers and years, then devise a plan for how each purchase is going to get you closer to that goal.
I still think there are plenty of good buys South Coast NSW. But it helps if you're familiar with an area.
I have no knowledge outside Victoria and won't mind using a BA to buy interstate. But so far,majority of PC memebers have encouraged to diy as you learn more in the long term.
This has got me thinking. I tried it last night in excel but not sure if i am doing it right. I might pm you my spreadsheet tonight for a quick eye over if you dont mind.
