Buying our first IP !

Hi there, we are from south east melbourne with PPOR and now looking to buy our first IP in near future. We have equity in our house, which we would like to choose. I would like to start small like buying a unit. I am here to learn as i am complete novice terms of property market.

 

Hi @Small_investor
Welcome to PC!!
What would your goal be with the unit you will purchase? It is worthwhile working out your overall goal with real estate investing - I know it is not always easy when starting out, but in my view, first and foremost determine what you are trying to achieve - whether it is passive income or building wealth via investing, and then work backward to determine how you will get there.
There are a number of strategies one can use - read up in the forum and see what others have done to achieve what you are trying to achieve.
Talk to other investors, and surround yourself with like minded people - and this is where PC is an excellent resource.
All the best!

 

If unit is your direction then target:
1970's built
These typically have low body Corp costs (no elevators, lifts, rollerdoors, expensive common areas) that will chew up your cashflow
Are relatively easy to renovate and create equity
Typically structurally sound (have been solid for almost 50 years). The newer builds today are slapped together.
No more than 8-10 units on the block

 

Thanks for the reply.My goal is passive income in short term and equity over long time. I will be reading the forum very carefully and educate myself. Thanks everyone

 

Welcome to the forum.

What areas have you been looking at in particular?

 

What budget have you set for your first IP?

Sounds like you may be looking for a high yielding first investment.

Where neutral to positively geared, as rents rise it should give you passive income - but unless you got something which had an upside (e.g. dual occupancy), it may be challenging. How much passive income are you looking for?

Typically you need 20-25 times of paid off income producing assets to have the passive income you are after.

It is great to have a neutral to positively geared property, as it will assist with servicing your debt, and build a real estate portfolio. However, its important to ensure where you are buying has an upside, and potential for capital growth.

Good luck!

 

I was looking at Cranbourne,Frankston and Melton. Also,some units in noble park