Hi all, New to forum and property investing. I’m thinking abou5 getting into the property investment market and am cintiplating purchasing a unit in 2 bed 2 bath and 2 car in Moorebank. The unit itself is only a few years old. I’m worried about the market becoming flooded with other units with risk of high vacancy rates. The other area I was thinking was a 4 bed house at Wyong on the Central Coast but am worried of low returns and vacancy rates. Another idea was to sit back for 6 mths and wait for the possible chance the market will drop further. Can anyone suggest their thoughts as to what they would do???
Holding any IP's in Brisbane? If not why not look in Brisbane for a house rather than a unit in Sydney?
I wouldn't do a thing until you spend a few months reading and learning some of the basics via books/forum. Failing to do that, I see any purchase you make with your current knowledge as strong moderate risk. With regards to Moorebank, among other issues I don't see any value for a unit in Moorebank, Its 37km from the CBD. You can buy a unit 12km from the CBD for only around 50k more. Not to mention the supply issues in Moorebank.
Moorebank House proud OO Chipping Norton waterfront is improving ,New Marina Lack of train line Intermodal depot coming for truck interchange Great middle class community Aspiring Huge amount of apartment stock 1500m up the road in Liverpool(Liverpool has station) Low yield Traffic getting a lot worse.A-LOT Has a boat ramp of Newbridge RD and you can get all the way to Port botany Lack of nice gathering place to go for a walk in the evening(Maybe when Marina opens there will be a waterfront walkway like what they are doing along George river in Liverpool Liverpool is becoming a CBD and an employer . So if you work in Liverpool this may be a good location.
Had a look at Brisbane a few weeks ago. Thing with Brisbane is that I don't know the market well enough, good and bad area's, expected rental return etc. I think I'd prefer to stay somewhere closer to where I know, but thanks for the suggestion.
Thanks for the info. I've decided to sit back and watch the market for a while. Market appears to be slowing and I'm not in a rush.
I was thinking about a unit in Chipping Norton. They seem to sell quickly and rental demand seems to be high. The thing that scares me off units is Strata fees against building insurance with a house. If I go for a house, I can't afford one in Sydney so will have to be up on the Central Coast..... maybe.
Watching the market is fine but spend the time to actually learn some of this stuff. Otherwise imo you won't really know what your watching/waiting for.
Hey John, welcome to the forum! Before considering what/ where to buy make sure you've worked out your "Why". As they say, failing to plan is planning to fail and in property, where you have such low-liquidity it's super important to get the strategy and structure right before moving forward. This forum and its members are a wealth of knowledge. I'm so thankful to be taught something by someone every time I contribute so I'd like to invite you to stick around and be active because it gets a lot more interesting the more you comment on and ask.
Ok, interesting. With the risk of sounding silly (but I suppose I’m new at this so have an excuse, hence why I’m here), what things should I be looking out for?? Obviously affordability and yield, but what else??
Never silly wanting to learn. There is a lot to your question. Pages and pages to write imho. Broadly speaking, you also want to know the Supply/Demand of the area your targeting (this is crucial), what type of stock to be targeting for the demographic, where the area/suburb is in the cycle, what type of stock do you need to purchase that A) meets your personal financial situation and B) is in line with your financial goals. Some preliminary goal setting is very good imo. Maybe with a broker or investor who has a successful portfolio themselves and can impart some knowledge. You can do what a lot people do and just purchase anything but then whats the point of a forum and learning how to approach things IMO in a better way to give you the best chance to achieve your goals long term. Can't learn the basics overnight. Get some books that have been well recommended time and again on here. This is the way i would want to start if i was a newbie. But ask 100 people and you'll get many different answers.
Ok, thanks for the recommendations. I was hopefully wanting something close(ish) to home (Sydney or Central Coast) as I know the areas and CC is more affordable than Sydney (hence why unit in Syd purchase). Higher supply/demand areas would assume be more expensive to purchase?? My thought with Moorebank/Chipping Norton would be close(ish) proximity to the new Sydney Airport yet close to M5 and major shopping/business district plus not too far from Sydney, but can’t justify $900 strata fees a quarter which is why I think house on the Central Coast (Gosford/Wyong area).
Just a quick thing about Strata fees. In isolation they dont mean much. Outgoings such as strata have to be looked at in overall contex of income vs expenses vs net profit and CG. Also a free standing house will have fees. Insurance Maintenance structural Maintenance grounds This can be greater than the $3600 strata fees are in an apartment building
“What things should I be looking out for?” Great open ended question here, very broad so I’ll start broad with some points that you may want more detail on as you go. Getting started (installing the plumbing): 1. Set your financial dream goals for now (I.e buy a property, get a new car) later (travel, kids in uni) and in retirement (dream experiences?) 2. Work out where you are now and how much you’re going to want later for your goals. 3. Forecast rough returns from property to help deliver the return needed for your goals Getting structure: 1. Get advice from a broker about investment friendly finance structures 2. Get advice from an accountant for tax friendly structures 3. Get advice from a lawyer/ financial planner about risk mitigation/ insurances and contingencies Getting clarity: 1. Learn about where you could afford to buy (both in price and risk) 2. Learn if those areas meet your wanted returns of growth and yield (this is a massive topic) 3. Learn if the type of property you can afford in that area that might give you the returns is what the market wants 4. Plan how you’re going to buy in that area (investing your time doing it yourself or $ by getting a buyers agent) Get going 1. Complete your team by getting a local conveyancer and building inspector in your search area 2. Get online searching and on the phone to agents 3. Inspect as many properties as you can 4. When you’re ready make an offer And then follow the process through to the end and rinse +’repeat! Plenty here for you to start learning about!
WOW!!! Thank you sooooo much for your reply. Over the past 6 mths I have been doing a lot of research and most of it is what’s mentioned. It’s good to know that someone has taken the care to reply to a total stranger with so much information and guidance. You have now helped settle my mind, few things to polish off and things starting to make sense. I really appreciate your reply
Thanks John; that's really nice of you to say. We'll be eagerly waiting to hear how your journey progresses
Buy High Growth Property WITHOUT Buyers Agents! Buy High Growth Property WITHOUT Dropping $15k On Buyers Agents Each Time! Helping People Achieve PASSIVE INCOME Using Our Unique Data-Driven System, So You Can Confidently Buy Top 5% Growth & Cashflow Property, Anywhere In Australia » Learn HOW Now!
