Hi everyone, happy Sunday! I am very excited to find this forum. I am on my journey to my first IP and would like to get some insight from people in this forum. I have enough deposit, aiming for 450k - 550k range. I have been stuck for a while with which location and type of property to choose. Ideally, I'd like to have my IP in Victoria. Recently I attended an investment seminar promoting their strategy how to build property portfolio. Their strategy is buying land and house package in a few states as we can benefit in lower stamp duty and maintenance, higher depreciation. I'd like to hear what do you think about this strategy. Would you buy land and house package or existing property for a healthy and long term portfolio? Which suburb or state would you recommend for a newbie? Thank you!
Hi Ann welcome to the forums Much depends on what your goals and resources are while there is obvious benefit upside with new, the downside can be pretty sad if its the wrong product ta rolf
Welcome aboard Tread carefully with companies selling new properties - someone is making a lot of money out of the transaction and it’s usually not the buyer Cheers Jamie
Hi Ann Welcome I recently joined too and currently out looking for a property up to $550k in Melbourne, I’m only considering existing houses as my view is the capital growth I will gain from buying as close as i can get to the cbd given land scarcity will outweigh any reduced maintenance and tax benefits when compared to a new home. I don’t want to pay a premium and builders margin when I buy. Does the group that are promoting house and land packages have an invested interest - Will they benefit if you buy? I’m still at the stage of weighing up whether to buy a property on a full block in outer north west or townhouse/unit in Glenroy/sunshine/reservoir, happy hunting
I think the areas I am looking in the clock has definitely gone on to the buyers market half of it, less desirable properties and investment stock properties are becoming slow to move but houses aimed at fhb market are still getting good interest and in most cases a good result . Still think it’ll be a little while before we reach the oversupply point. I’m not concerned about buying at this stage in the cycle as we won’t be exposed should interest rates rise as our serviceability isn’t maxed out, if short term (5 years) prices go sideways or down as expected not too concerned as property will be held long term. Where do you see the overall market going from here?
I would tread very carefully - such properties might not be located near sufficient employment to force capital growth. You are also at risk of long vacancies if there is an oversupply of rental properties in the area which is a very real risk in new housing developments surrounded by lots of vacant land. An asset located closer to major employment centres that you can force to grow in value through renovation is an example of a safer approach.
