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Discussion in 'General Property Chat' started by EErock, 21st Jan, 2016.

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  1. EErock

    EErock New Member

    Joined:
    21st Jan, 2016
    Posts:
    3
    Location:
    sydney
    Hello all,

    Im in the process of reading and learning about property investing. I have been saving for many years to eventually buy my own property. I am now ready to buy.

    However i have decided to follow the investment path rather than buying in a preferred suburb in Sydney which could potentially be a bad investment option.

    They types of properties I'm interested in are properties with potential to build a granny flat in Western Sydney. Ive crunched the numbers and it looks promising.

    I am hoping someone can lead me in the right direction or a thread which will provide me with some initial advice about strategising to invest in property and build up a portfolio.

    I am interested in the Sydney market despite the current conditions.

    Any comments/tips will be very much appreciated.

    My apologies in advance if i sound clueless!
     
  2. rmb

    rmb Member

    Joined:
    19th Jan, 2016
    Posts:
    7
    Location:
    Sydney
    Dear EErock,

    I think your on the right path. With planned changes in infrastructure and a good rail service, Western Sydney will still grow. Of course you need to do your research for each particular potential purchase but it looks like you are already doing this. If your numbers stack up so that you (ideally) do not need to dip into your own pocket, it should do fine. If it's cash flow positive, all the better. Having a land component in my opinion helps in reducing the potential for any possible downturn in price. But location is still key.
     
    Last edited: 21st Jan, 2016
  3. MsAli

    MsAli Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    1,147
    Location:
    Sydney, Australia
    @EErock - You've found a good place early in your IP journey. Well done for that.

    A couple of questions...

    Sounds like you are aware of where the Sydney market is right now. What's your reason for selecting Western Sydney at this stage?

    What has lead you to the decision to build a granny flat?

    Where do you see yourself in the next 5 years?
     
  4. EErock

    EErock New Member

    Joined:
    21st Jan, 2016
    Posts:
    3
    Location:
    sydney
    Hi MsAli,

    Thank you for your response.

    The main reason i have decided on Western Sydney is because i am familiar with the demographics as well as Council requirements.

    Regarding building a granny flat; I'm interested properties which will provide me a dual income, mainly to service an interest only loan.

    In 5 years i would like to be in a position where i have multiple properties in my portfolio.

    Am i thinking in the right direction?
     
  5. EErock

    EErock New Member

    Joined:
    21st Jan, 2016
    Posts:
    3
    Location:
    sydney
    Dear rmb,

    Your response is much appreciated.
     
  6. MsAli

    MsAli Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    1,147
    Location:
    Sydney, Australia
    Understood
    A few more q's =)
    • What's the buy price you're looking at?
    • What will the granny flat build cost? What would be the holding cost for the granny flat loan while it's being built?
    • What will be the end value of the property (house + granny flat)? Is it going to be worth what you spend on it?
    • What will be the house rent + granny flat rent? What will be the resulting gross rental yield?
    Your goal to be able to service the loan is all well and good, however capital growth is what will enable you into multiple properties in your portfolio.

    If you look at a clock, with 12 as the peak and 6 as the bottom, where do you think Sydney points to right now?
     
    Last edited: 22nd Jan, 2016