First Time Investor

Hi All,

Just been approved to start shopping for an IP, looking to spend ~$800k. My PPOR is in Melbourne’s Eastern suburbs.

Just wondering what are the main factors that help you decide where/what to buy.

This will be a long term hold, currently been looking at properties with the potential to subdivide down the track.

Cheers

 

Welcome to the forum. There are many things to consider when looking for an investment property and this can change depending on your goals/circumstances. If you are looking for a long-term hold I would assume your focus is capital growth. As a general rule of thumb, I would look for an established property, in a strong demand suburb with value-add potential. If you are looking to subdivide down the track you will need a block size that will enable you to do this. When you find a property that ticks your boxes it would be wise to look at the property's zoning to determine if it is subdividable. You may benefit quite a lot from reading on the forum to get a better understanding of what fundamentals attribute to a quality investment vs what you may want to avoid. I hope this helps.

 

Good luck - suggest it will be outer Eastern if you are looking for a house.

Beware market around that budget seems extremely hot in Melbourne at the moment so prepared to move quickly when you find something that ticks your boxes.

 

Welcome to PC and congrats on taking the first step of your investing journey.

If you can get something that you can add value to that will be a bonus, however, these types of properties in a hot market sell fast and at a premium.

 

Have you bought your 1st IP?

I am on the same boat as you. Living in Melbourne's East suburbs and just started exploring to buy my 1st IP with the subdivided potential.

 

Why Melbourne?

 

Buy in Brisbane. Close your eyes and shoot a dart on the map. Where ever you buy in Brisbane, Logan, Moreton Bay, Redlands or Ipswich councils your going to make money.

This is the year for Brisbane to shine. Even moreso than it did in 2021. Its absolutely bonkers up there and its going to continue through 2022/2023.

 

counter-cyclical maybe.

 

Wouldn't it be less hassle to buy an IP with subdivide potential for the investor in the same state/city ? If I am planning to process the subdivision, it needs more presence of us. That's my opinion.

 

What should I need to do if I want to identify a property with subdivide potential in Brisbane by being in Melbourne. I can able to travel a few. I could able to filter realestate.com.au with description stating "STCA" . But before placing an offer, What can I do to make sure this property can be subdivided?

 

I generally like houses with a larger than average land component, ideally with a higher density zoning for the area.

Also, am I the only one that's predicting a username change to "Seckie"?

 

As above anything with STCA is exactly what it means. Subject to Council Approval.

If I knew well in advance of buying a property that any development plan would be approved heck I'd be a billionaire. LOL