HI everyone, I am 34 years old. i m working in construction as a surveyor. Recently moved to the Shoalhaven region from Yamba NSW. I m usually moving every 3 years for works. I m making around 120k P.A and bought a house for 380k in Yamba in December 2017 with 280K left to repay. Probably not the best move short term but i m waiting to see what the local development brings and how the completion of the highway affects the town on mid to long terms. Finance is far from being my strong point but i m here to get better at it and purchase an IP when i reach confidence in my decision. Paying around 30k of tax a year i m sure there is some interesting move to do. Thanks for having me
Welcome aboard Yamba is a nice spot! I'm not sure what the property market is currently doing - but last time I looked it was starting to get a little pricey there. Cheers Jamie
Thanks mate. Very nice area and very busy in summer. Mild winter and very quiet. Quite a few developments happening over 3 stages with around 1000 lot released. Could you recommend a thread to start on the basics about active/passive investment and the different type of strategy to adopt ?
Generally the first port of call we direct people to is a good broker (read the posts of brokers on this site, and choose one that resonates with you) and find out your borrowing capacity. It gives a baseline from which to talk strategy. The Y-man p.s. in about 2 or 3 posts time, you should get someone asking you what your goals are
Great I will have a look at it. Got one that is part of my partners family but I m sure there is better one around. Thanks.
Welcome Jeremy! There's a lot to learn and you're in the right spot. Finance is a big one and you'll find investment lending differs dramatically from normal home financing in terms of strategy and planning...and mistakes can be permanent and expensive if you don't get it right from the start. Re active and passive investing...passive will only get you so far these days, so we tend to recommend buying something you can get active with at some stage, even if you'd like to start passive while you learn.
@Jess Peletier I m reading a lot of thread on this forum at the moment. I m also listening the podcast of Michael Yardney. I m definitely keen to get my first P.I. When you mean active you mean any subdivision, building a granny flat, renovating/extending ? Does it include using the CG of that PI to invest in another PI ?
Yes - small developments mostly, but GF's also can work...reno's can work especially if you're a builder or very handy. Using equity to buy more is very limited these days b/c the borrowing capacity is way tighter than it used to be. The pot of money each investors has available to them needs to stretch way further now, so buy and hold will definitely limit your progress to 2-3 IP's tops for most people with a normal risk appetite.
