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VIC First IP - Budget 450k - Sydneysider

Discussion in 'Where to Buy' started by Christ, 2nd Dec, 2016.

  1. Christ

    Christ New Member

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    2nd Dec, 2016
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    Location:
    Sydney
    Hi all, we are from Sydney. We are in the middle of property maze (we have never bought anything). We have some savings but cant afford any potential IP here in Sydney. So we think maybe it is better to turn to Melbourne. We digged through Whirlpool and luckily I found this forum. So much information!!! Thanks guys alot for sharing.

    So, here are some of my questions. It is great if you guys can shed some light....

    1. What is the best options for budget of 450-500k (H&L, existing propterties, potential area)? We prefer house. We can go with neutral or slightly negative returns (I think we cant expect more now)

    I know it is a big question. But maybe some recommendations will help me scale down the search...I picked up some like Sunshine West area for existing property, some new project in north melbourne, point cook, or far and new like Olivine of Mirvac...But well, there is so much to read...

    2. Should I use a buyer's avocate? Any recommendation for a good one. I talked to one, and the price is 13k for such budget. Is that reasonable? ANy risk with those?

    3. Well, if I buy IP in Melbourne, I will need to get an agent to take are of it all. Anyone has any experience about this? Any potential issue I should be aware of?

    Well, I know this is a lot to ask. I read lots and lots as well already but I think I should scale down a bit. Otherwise I may get messed up with this, easily.

    Thanks so much!!!
     
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  2. Inov8ive

    Inov8ive Well-Known Member

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    If you are looking at Melbourne and want something brand new or close to it then you should look at Tarneit and Truganina area. A lot happening over there at the moment and there are some good threads on here if you search them
     
    Christ likes this.
  3. standtall

    standtall Well-Known Member

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    Melbourne is not much different from Sydney in terms of property cycle. Stretch your budget a bit and with around $700K to play with, you can buy a decent house with 10K radius of CBD in Brisbane.

    No guarantees on Brisbane growth either unless you are looking at a 5 year timeframe.

    I have bought interstate without using a buyer agent. Get your foot on the ground where you intend to purchase and you will learn heaps.
     
    Christ likes this.
  4. igor1234

    igor1234 Active Member

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    1. depends what is the strategy. do you want positive cashflow, growth, how much do u want to do yourself etc...? you can easy buy even in south west sydney , a 2bd unit. may not be great investment, but u can afford it.

    2. up to u. 13k is reasonable for syd/mel other cities aremuch much cheaper.
    3. i previously dealt with same agent that soldthe property. otherwise just shop around.

    good luck!
     
    Christ likes this.
  5. Christ

    Christ New Member

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    Well, I think that I have just felt in the trap of first-home-buyer puzzle - afraid of making wrong decision and missing good deals somewhere :(. I think I have searched all over Sydney and now try to jump to Melbourne. I read lots of threads and I saw you have IP in Lakemba or Campsie in Sydney. We are living in Marrickville now. Campsie is not too far away. Do you think it is a good idea to buy some unit/townhouse in that area? I saw some appartments in the Clempton Village for urgent sale (like 655K for one with large terrace). Well it is nice to live in your own house and Campsie is not too bad...
     
    Last edited: 7th Dec, 2016
  6. Darren

    Darren Well-Known Member

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    I'm in a similar position to you in terms if investments so I'm no pro, take my post as you will.
    What I have learned from reading books going to meet ups and checking this forum regularly is that you will never reach your goals if you don't have any. How can you buy the best investment to get you closer to your goals if you don't know what your shopping for?
    There will be houses worth buying tomorrow and houses still worth buying in a year's time, question is where and what will get the best return on your investment at that particular time.
    Personally I believe there are advantages of using a BA if you understand what they are putting in front of you, at the end of the day no-one cares about your money or investment as much as you so the more you read and understand the more comfortable you will be when handing over your hard earned.
     
  7. JacM

    JacM VIC Buyer's Agent Business Member

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    Melbourne, Australia
    Hi @Christ

    While there will be a few different spots you'll be able to afford to buy in with that budget, the rental yield will differ in each area (generally the yield lessens the closer to the city you go). Have you had a chat to your broker to understand your minimum yield requirement in order to satisfy your bank? That will help narrow things down. :)
     
  8. Christ

    Christ New Member

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    Thanks Darren/JacM

    Yes, Jac is right. The problem with us is that we are not consistent in our target. Still wondering between a PPOR and IP. The Yield is not really our concern because our dual income is quite good and we have no problem with the bank for the loan (We are preapproved for 700k$). But we dont want to stretch that much, 500k or maximum 550k is our comfort zone. We now have two choices:

    1. Buying a unit in places like Campsie or somewhere like that as PPOR - live there. This options seems to satisfy the feeling of living in our own home but not bring much value in the future.
    2. Buy an IP. If and IP I want house - so Melbourne seems to be better choice. I don’t want to touch other State because I have no friend there. No touch base.

    Well...
     
  9. Tony Fleming

    Tony Fleming Well-Known Member Business Member

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  10. illmakeyourgrannyflat

    illmakeyourgrannyflat Member

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    Hi,

    Can you please explain what you mean by get your foot on the ground? As in go to the suburb yourself, speak to people there, go to real estate agents?.. Sorry if it sounds like a silly question. I'm on the same boat where I'm looking at purchasing interstate.
     
  11. larrylarry

    larrylarry Well-Known Member

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    Location:
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    it means:
    1. Fly to Melbourne
    2. Hire a car for few days and drive around the targeted areas.
    3. Tee up with local agents before booking the flights.
    4. Read up local papers if possible online.
    5. Perhaps meet up other pcers.
    6. Drive around in the day and evening.
    7. Observe local shops, schools, people etc.
    8. Check out houses online and make calls.
     
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  12. illmakeyourgrannyflat

    illmakeyourgrannyflat Member

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    Thanks @larrylarry :)
     
  13. larrylarry

    larrylarry Well-Known Member

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    No worries. Looking at statistics is not enough. Each property is unique and priced differently. Researching on grounds will assist you greatly.
     
  14. Chilliblue

    Chilliblue Well-Known Member

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    Will add look at the local council website and the state government sites as well
     
  15. larrylarry

    larrylarry Well-Known Member

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    Indeed. Council's planning etc.
     
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  16. standtall

    standtall Well-Known Member

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    @larrylarry explained it really well.
     
    illmakeyourgrannyflat likes this.
  17. JPN

    JPN New Member

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    19th Jan, 2017
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    Location:
    NSW
    Thankss everyone so much for great insight and recommendations!!! I am sorry, I have been out of the country for a while. And as suggested by @larrylarry , we decided to do the research and get on the ground ourselves. We will come to Mel next month and have contacted some local agents.

    Anyone have any suggestion about new house and land package in Point Cook/Werribee area? As an IP, I Know many ppl not recommend HL but the depreciation is really tempting to us, which can offer great savings with our salary package.

    Many thanks again, everyone :)
     
  18. JPN

    JPN New Member

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    Oh, sorry, I am the OP. I just realized that I logged in using my partners' account.
     
  19. melbournian

    melbournian Well-Known Member

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    This is the right way to approach buying interstate. you have to be on the ground. (unless you know the suburb inside out - but even then you want to see your investment)