Going to buy ip soon , should I buy bluechip for growth or netural cashflow

Im 21 years old
If I get a bluechip I know it wil be negative , if I get a house say 30 away from cbd it wil take netural
Going to buy in brisbine
Got 90k saved up

Doesnt all property in general increase in value over time ? So it doesnt matter weather I get one close to the city or not because they will both Increase in value anyways.

And as for a deposit for my next ip I can save that up , I dont need to rely on equity build up to buy my next one(doesny mean I dont want it ) lol , so yeah if I buy a netural property I still would want it to increase in value obviously.
Im in a position where I can save up 1000 everyweek , thats how I got to the position to save up 90k , didnt take me very long ...

Also if you know of any good brisbine ba recommendation throw them at me

 

What has your research taught you so far, do you have a shortlist of options? Your answer will lead to more specific replies.
I think you asked the BA question before and got the usual recommendations but apologies if I'm wrong.

 

Providing your income is stable I would be tempted to go for a middle ring house with a decent land component.
At 21 it sounds like you may be living at home with low expenses and have the cashflow to take on a little risk, I would aim to make the most of this for a couple of years. You could quickly build up sufficient funds in your offset account so the IO loan repayments are reduced to a point where you no longer have to support it.
At some point in the future then use the offset account funds for a PPOR.
Property can and does stagnate for many years between growth spurts, you don't want the repayments to be a burden indefinitely.

 

What do you mean by middle ring house? As in one thats not to far away from the cbd but isnt bluechip either ?

 

La

What do you mean by short list of options ? Im thinking of getting a netural property
And yeah your right I did get a few recommendations but thought id ask again. When you first started buying ip did u use a ba ? Or was there no use back then

 

It varies depending on the size of the city but I was thinking of suburbs 5-15km from the cbd in the 475-650k price bracket.
And I'll add I don't think there is any such thing as a blue chip property, they can get hit hard too in a down turn.
To buy a property in this price range it might be worth building a slightly bigger deposit as well considering you are saving so fast.
I don't know how much research you have done but if its not much I would read all I could and study the market closely before buying anywhere.

 

I would keep researching, reading and learning.. the more you know the better you will do, there is no rush most markets have either peaked, close to peak, or falling

Don't consider a BA as you are new and you don't know what you don't know, very dangerous territory..they can smell you, not wise

 

A good BA should educate and assist a client through their investment, and not rip them off. You cant bundle us all into the shark category

 

I agree, but the poster is a newbie and I am suggesting in the first instance education is required otherwise he/she will be vulnerable

I am in no way referring to your BA service or anyone on PC

 

I just meant have you narrowed down any suburbs, types of property etc so that you have an idea of the numbers and can brief a BA on what you're looking for. You could post a link to the sort of thing you like the look of on here and people will critique for you, a good way to learn.

I've used BA's twice with excellent results, both from here BuyersAgent and JacM.

 

Freedomlife94, post: 245913, member: 5894"]

Doesnt all property in general increase in value over time ? So it doesnt matter weather I get one close to the city or not because they will both Increase in value anyways.

Put money in the bank and it will increase over time too. Having your money increase is not enough. You need your equity to increase as fast as possible with acceptable risk so you can then leverage onto your next and next to build that capital base you will need and then let the good buys, time and compounding make you wealthy long term (unless your also into value adding to greatly speed things up).

And as for a deposit for my next ip I can save that up , I dont need to rely on equity build up to buy my next one(doesny mean I dont want it ) lol , so yeah if I buy a netural property I still would want it to increase in value obviously.
Im in a position where I can save up 1000 everyweek , thats how I got to the position to save up 90k , didnt take me very long ...

Fantastic you can save that much but imo it shouldn't be the only factor as to whether you buy positive, neutral or negative. It should be based on your overall cashflow position, income and then what property is needed next to best move your portfolio forward and getting closer to your goals. Also being able to save 1000/week doesn't sound like your in dire need of a neutral property. base your decision on the overall merits of the deal in conjunction with your financial situation. If a netural deal is great then by all means go for it, but don't just go for it because it's neutral.

my 2 cents.

good luck.

 

Your right I do need to study more , its just I feel this pressure in me to do it asap so nothing goes up in value even more uno .
But condisering what u said about the markets atm I guess thats good for my position .

Haha yeah I know your right , most if em anyways

 

better if you purchased 3 years ago in 3 booming markets, now is a challenge for CG, adding value would be the way to go, therefore education is required to add value, skill is required with this strategy. Keep researching and learning

 

If only I had a deposit back then I would have , thanks for that. And would you say brisbine is a good place to buy it ? Would you know of any good suburbs ?

 

How much of a deposit do you think I need ? And have u invested in brisbine your self ?
And yeah I have alot of learning to do

 

No I dont actually not yet anyways , and yeah thats a good idea I will do that .
And for thoese ba's that u mentioned , is that what they are called ?

 

If you do a search for BuyersAgent on here you'll find Matt's details. Same for Jacqui Middleton who is JacM.

 

20% plus funds for legal fees and stamp duty would be ideal but at the same time you need a cash buffer for vacancies and maintenance.
After your first purchase it's likely minor maintenance issues will require sone attention.

I would consider sitting on your hands for a while longer, continue to quickly build your deposit and read all you can first so that you will be a knowledgeable buyer.

In terms of Brisbane, I can't see any reason why not currently. Yes I have investments there but I'm not currently looking in that market as I am trying to further diversify.

 

Who knows if Brissy will boom?? Its been talked about by property experts and on PC for years, we are still waiting.

I would be targeting areas in Melb that are in the middle ring that are still affordable, if you are looking at long term buy and hold Melb has far superior fundamentals than Brisbane.

Short terms gains, perhaps Brissy, but only target areas that are actually rising, warning DO NOT FOLLOW THE HERD, unless it makes sense, in other words you have contacted local agents on the ground and as many as you can and you have evidence that the market is moving, this means volume is shifting and days on the market are shorter. Don't take a risk by not doing your own homework.

MTR

 

@MTR there isn't a widespread 'boom' in all of Brisbane but there are quite a few suburbs which have moved very strongly in the last 2 years (some as much as 40%+ if you knew where and what to buy). Currently those suburbs and some of the neighbouring ones are still in very high demand. You just need to know where and what to buy . Most buyers just don't know. It's always a case of knowing markets within markets and monitoring them, then pouncing.