Found this wonderful forum by coincidence. I had an account on Somersoft a while ago and then couldn't find any decent property forum until I found this community. We are a couple in mid-30s (arrived in Australia around 10 years ago) and currently own a PPOR and investment property in Sydney. I am looking to develop and grow a reasonable portfolio in next 5 years or so. As we don't have any other debts and have high incomes, I think we can be a little bit growth focussed but in general I am very conservative (focus on fundamentals, long term view) so lets see how that goes. - Investment property in Concord area (a 2 bed room unit, valued at 750K (bought in 2010 for 450K), renting well at $550 mark. - PPOR (bought this year at 800K mark, currently valued at 900K+, a house that can be turned into an IP later on due to very central location. We bought just before the peak but still decent gain in less than 1 year). We have around 40-60% equity to debt ratio and good cashflow to support further growth. A few options that I am considering (and would like feedback on) A couple of units in suburbs like Mt. Druit, Werrington, Kingswood, Penrith - $350K price range once the market settles a bit in next 3-4 months to 1 year. This is probably the easiest option. A couple of homes in Brisbane or Adelaide (with development potential). I guess my challenge would be finding good areas with low vacancy rates and handling all the issues while sitting in Sydney. Finding couple of smaller blocks in Penrith area (there have been some releases with 300 sqm blocks at around $300K mark), building 3-4 bedroom houses while staying within 550K budget and then turning them into rental properties. I would need my current portfolio to grow 10% in next 18 months to allow more borrowing. This plan probably has the most upside but also requires the most work. Most importantly, I look forward to learning and sharing knowledge with other investors on this forum. I will appreciate if other members are happy to give some feedback on the above three options also. Cheers ST
First off ST, this being your first post, welcome to the forum. What and where to buy is dependent upon your chosen investment strategy. You see property is merely the vehicle. The strategy is how you intend driving that vehicle. Unfortunately the mistake I see newbies and sometimes not so newbies is that they are property focused instead of strategy focused which is like putting the cart before the horse. Property investing is not about property rather about the strategy and the way you intend to use the vehicle to get to where you are wanting to go. No good buying a small shopping car if you intend driving interstate on a family holiday. What strategy/s are best for you is determined by where you are wanting to go, the time frame you want to get there in and how hands on along the way you want to be - all based around your personal risk profile. I hope this provides some food for thought. What is your chosen investment strategy?
Gday ST, welcome aboard. Good work on the Concorde unit, couldn't go wrong in Sydney in that time. But I would avoid more in Sydney for the time being, and I would probably go for Brisbane myself. But there are plenty of areas to research, helps if you're already familiar with certain areas.
Welcome Very nice position to be in at 30, well done! What got you into property? Some sage advice from Rixter too so would be good to keep that in mind.
Welcome Standtall I see you are considering Mt Druitt. Keep up the good work! Standtall you can sit down now.
Thanks everyone. I am having trouble using the 'quote' button so unable to reply individually! Does anyone know how it works?
Press '+quote'- 'insert quote' (bottom right of text box)- 'quote these messages' and it should show you what you're looking to quote.
Quote is now working for me. (btw great forum software - well done mods) thanks for asking this as I had to think for a while. I guess my strategy is to create strong assets with good cashflows allowing me to stop depending on my income from other business/jobs. In the short term, keep driving the equity up without leveraging my position too much and taking unnecessary risks. Mid 30s but still feel like 30 though What got me into property is the lack of other investment vehicles in Australia. I also run a tech start up but Australia is way behind in tech so a long time before that matures up and stock market doesnt allow me to leverage beyond what I can invest. Thanks - glad to be part of the community. yes, I think area has potential. I hate the agents though, we made an offer for $330K on a unit listed for 350K+, it was rejected immediately and 2 months later, it's now listed at 339K+ but agent never made an attempt to engage us back and negotiate.
That would be your goals on what you're wanting to achieve. By strategy I mean how are you going to attain those goals using property?
That's a million dollar question For me, it would have to be acquisition of cashflow friendly properties in potential growth areas and then holding them in the long term. Once I have 4-5 of those properties (1 a year would be a good target, given we can now save around $100K per annum from our incomes), I can then think about buying houses for subdividing and other high involvement investing. Though I have a tendency to get excited quickly, I am a very conservative investor by nature and wouldn't go for speculations or quick gains.
The secret to building real wealth is that there is no secrets. If you want to build wealth, beyond what you ever though possible, simply purchase good quality well located property (metro area's of capital cities) as fast as you can reasonably afford and then hold them for the long term thereby allowing time to weave its magic powers on the compounding capital growth -that's it! The faster you can make a buck the higher the risk and faster you can also lose it. Slow and steady wins the race with the lowest risk.
Welcome aboard @standtall. With a decent chunk of property held in Sydney, might be a good time to put some capital to work interstate. I bought a house in Bris (Moorooka) on a corner with LMR2 zoning (for development) recently. Very happy with it
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