Join Australia's most dynamic and respected property investment community

Hi from north western Vic

Discussion in 'Introductions' started by C.C.T, 27th Apr, 2016.

  1. C.C.T

    C.C.T Member

    Joined:
    27th Apr, 2016
    Posts:
    5
    Location:
    Sunraysia
    Hi all,

    I'm a <30 year old living in the Sunraysia area. I'm late to the idea of investing etc. however I'm keenly reading up and absorbing as much as I can.

    I'm in the process of purchasing my PPOR, which is WELL with in my serviceability so I have room to buy an IP in the future.

    In the coming years, I plan on buying something <250k that's CF= or CF+
    I'm not a big earner, so to start with a CF=/CF+ approach is ideal for me.

    I did pick a PPOR that I feel would lend itself to becoming a cash flow rental in the future.
    From some initial number crunching I feel it would be cash neutral if it was rented right now.

    Are there any CF investors in the Sunraysia area willing to have a chat, or anywhere for that matter?

    For now, I have much reading and learning ahead of me!
     
  2. apk

    apk Well-Known Member

    Joined:
    11th Aug, 2015
    Posts:
    69
    Location:
    VIC
    Welcome to the forum
     
  3. JacM

    JacM VIC Buyer's Agent Business Member

    Joined:
    12th Jul, 2015
    Posts:
    1,106
    Location:
    Melbourne, Australia
    Hi @C.C.T

    Welcome to the forums and congratulations on your PPOR purchase :). The Sunraysia area is lovely. I'm quite familiar with it. I'd be pleased to have a chitchat with you on the phone to help you understand how to set yourself up to head towards your first IP purchase. You're welcome to give me a buzz if you like... my details are below.
     
  4. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    2,458
    Location:
    Sydney & Gold Coast
    Welcome @C.C.T . Under 30 isn't late to cotton on the the concept of investing :)

    You'll learn heaps here both reading an asking questions.

    If you want a really rough rule of thumb to work out if your PPOR would be cashflow neutral, you'd need to get 7% of the remaining debt on it per year, in rent.

    e.g. If you owe $300,000, you'd need about $21,000 in rent (approx $400/week).

    Do you have money leftover for a deposit for an IP after buying your PPOR?
     
  5. Azazel

    Azazel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    8,113
    Location:
    Brisbane
    Hello @C.C.T , welcome aboard.
    Where will you be looking for your 1st IP?
     
  6. Touristy

    Touristy Member

    Joined:
    18th Jun, 2015
    Posts:
    24
    Location:
    Mildura
    I'm in Mildura if you want to meet up sometime. No expert though but know the basics. Just read as much as you can on here. Nothing better. It will get addictive. Make sure you use a decent broker when starting. Most on here are more than helpful. Doesn't matter where they are and free to chat and annoy. Good luck.
     
  7. C.C.T

    C.C.T Member

    Joined:
    27th Apr, 2016
    Posts:
    5
    Location:
    Sunraysia
    Thank you all.

    Thanks for that Steven, by that rule then, it's about 7.5%.
    I'd suspect with a few minor cosmetic upgrades it could fetch a bit more.

    At this stage I don't have enough to make another purchase, I'd expect to start looking in 12 to 18 months.

    If I was to pick an area right now, I'd say it'll be close to home with in the Sunraysia area.
    Then possibly in Adelaide and surrounding areas. I understand the general sentiment around Adelaide is a bit bleak at the moment though?

    I'm only choosing those areas because I know them relatively well.
    With more reading and researching I'd expect my plans to change or my search area to move.
    My biggest hurdle would be areas that are affordable to me, <250k.

    I'm absolutely keen to chat to anyone who's actively invested in my area?

    Touristy, I'll PM you.

    Cheers,
     
  8. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    2,458
    Location:
    Sydney & Gold Coast
    @C.C.T - sounds like quite a return.

    Regarding where you buy, I'd suggest buying where you feel you'll best achieve your goals, not where you currently know well :) Sounds like you're open to that though so keep reading and learning.

    That said, plenty of folks around here are buying in Adelaide. It may not have the same growth drivers are the major capitals, but it is showing promise.

    Out of interest, what has determined your budget of <250k?
     
  9. C.C.T

    C.C.T Member

    Joined:
    27th Apr, 2016
    Posts:
    5
    Location:
    Sunraysia
    That budget is assumed from my maximum serviceable debt minus what's tied up in my PPOR. It's from what I've put through the calculators on the major bank web pages, maybe it's a bit conservative.

    It'll definitely be something to review when I'm looking to buy though.
     
  10. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    2,458
    Location:
    Sydney & Gold Coast
    Those online calculators are pretty hopeless–they don't ask for most of stuff that can make a big difference (they might be conservative but they might be too generous depending on your circumstances) :)

    Have a chat to one of the great brokers on here for a clearer idea. It's good to be empowered with some information before you get too far into the research.

    I remember a few years ago, going direct to my bank and hearing I could borrow a max of $300k.

    Then I spoke to a broker and added about $1mil of IPs to my portfolio.
     
  11. Azazel

    Azazel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    8,113
    Location:
    Brisbane
    It's not necessarily the best time to invest where you live. While it's good to be familiar with an area, there are more than likely areas that will perform better.
    True, Adelaide doesn't look great from a jobs perspective.
     
  12. C.C.T

    C.C.T Member

    Joined:
    27th Apr, 2016
    Posts:
    5
    Location:
    Sunraysia
    @Steven Ryan - Thanks Steven. I've got a long way to go, I've only just learnt of the APRA rules since joining the forum, so I'd say I have much more to learn on the financing side!

    @Azazel - I think I have the same feeling about Mildura too.
    Are you able to share some of your reasoning?
    Median prices have been on a steady rise for the past 3 years but from what I gather it's still early on the property clock.
    I'd be guessing anyone investing here would be for cash flow, so buying in an already rising market wouldn't be ideal.
     
  13. Azazel

    Azazel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    8,113
    Location:
    Brisbane
    I have no opinion on Mildura, just saying if we had 100 people from totally different areas in Australia saying it was the right time to buy where they lived, most of them would be wrong.
     
  14. C.C.T

    C.C.T Member

    Joined:
    27th Apr, 2016
    Posts:
    5
    Location:
    Sunraysia
    @Azazel - Ahahhh, apologies, I see what you're saying now.
     
  15. Azazel

    Azazel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    8,113
    Location:
    Brisbane
    No worries.
    But by the same token, sometimes it's good to be familiar with an area close to you.