VIC First Time Investors Advice please

Discussion in 'Where to Buy' started by bricksnmortar85, 6th Dec, 2021.

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  1. bricksnmortar85

    bricksnmortar85 Well-Known Member

    Joined:
    6th Dec, 2021
    Posts:
    189
    Location:
    Melbourne
    Hello,
    long time watcher, first time poster.
    We are looking to buy our first investment. Deposit will be paid with cash we have saved. We have approx 500K in equity in a house we own. We are looking at buying regionally Hamilton,Wodonga, Tralagon. We are fousing on high rental yields. Any advice for our first IP purchase. Common pitfalls, anything we should consider. We are looking to spend 350-400.
     
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  2. Branden

    Branden Well-Known Member Business Member

    Joined:
    12th Aug, 2018
    Posts:
    627
    Location:
    Blacktown, NSW
    Great to hear you are looking at buying your first investment property. Although, I have not researched the listed areas extensively there are a few things you may wish to consider. Firstly, if buying regional you really want to know the market well to ensure you understand what you are getting yourself into. I suppose this applies everywhere but with smaller regionals, it can be riskier if sufficient research isn't done.

    From a rental perspective, ensure you complete a cash-flow analysis prior to purchasing and don't rely on the selling agent. Many times, listed properties may highlight an extremely high gross yield, however, once you factor in numerous expenses it may not actually be worthwhile.

    Do you have a specific yield you are targeting? I ask because at the 300-400k price point you could potentially still purchase in a metro market and achieve a strong rental yield.
     
  3. Sackie

    Sackie Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    25,035
    Location:
    Vaucluse, Sydney.
    What's the reason for this focus?
     

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