Hi from an avid learner!

Hi all!

I've been following this Forum for a few weeks now and the amount of knowledge it has provided me is just astounding, so I decided it was time to create myself an account and become an active member.


My main questions at the moment are around my first property, which I'd like to be around the 400k mark: should I wait for a few more months until I have a bigger deposit? Should I go for one property or two cheaper properties - or maybe two properties in the same price mark but with smaller deposits? Should I focus on positive cash flow or should I aim for something negatively geared?

So many questions! I'm not in a hurry, for now all I care about is learning, and I'm confident this Forum will be my best possible source of knowledge.

Thanks all in advance for everything I already learned from you!

 

Welcome to the forum!

A lot of what you're asking requires a bit more information about your longer term goals and plans, risk profile and so on.

Generally, a 12% deposit plus buying costs is a good start and you're not too far off that. Looking around the $400k mark gives you lots of options - you could look cheaper and make your deposit go a bit further for the next one but it all depends what you're hoping to achieve.

 

Hi @Jose Eduardo Slompo

Welcome to PC!!

Sounds like you both have strong incomes, and good potential to build a solid real estate portfolio.

Better to get a good quality property which will help you move forward in growing your real estate portfolio, rather than two cheaper properties. $400k sounds like a good starting point.

Depending on your circumstances, and risk profile 88% LVR is best value for the LMI you pay. You will need c. 17% of the purchase price ie around $68k to complete such a deal, plus Buyer's Agents - if you intend on using one. I would suggest saving this up over the next few months.

In terms of positive cash flow vs negatively geared, it will come back to the bottom line you are comfortable with. From personal experience, we have gone with neutral to positive cash flow, but at the same time well located properties close to amenities.