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Hi from Sydney

Discussion in 'Introductions' started by SE OH, 12th Sep, 2016.

  1. SE OH

    SE OH Member

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    12th Sep, 2016
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    Location:
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    Hi everyone, I'm a Sydneysider and I'm glad I found this forum.

    I have PPOR in Sydney and am looking to buy my 1st investment property (more than likely interstate).

    For me, Brisbane seems to be a good option as it's heaps more affordable than Sydney and haven't had a boom for the last few years if I'm right.

    My investment strategy at the moment is to buy in capital cities, in middle ring suburbs (within 10 to 20 km from CBD) as inner suburbs ( within 10km from CBD) are too pricy.

    My concern is that I'm an average income earner so I'm not sure if I should look further into outer suburbs of capital cities. Not decided yet.

    It seems that there are a lot of experienced investors on this forum that I can learn from.

    I'm ready to fire questions so stay tuned guys haha :D

    Regards
    Se Oh
     
  2. MsAli

    MsAli Well-Known Member Premium Member

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    Hi @SE OH

    You've found the best resource for property education and it doesn't cost you much to join. .

    Sounds like you have clarity on what you want to buy. A bit of a loaded question. .what sort of a portfolio in terms of total value do you intend to accumulate (whether base value assuming any capital growth has been taken into account)?
     
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  3. SE OH

    SE OH Member

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    I'm not decided yet what price range for each property I'm targeting at. But my 1st goal is to accumulate 10 properties worth $3 to 5 million as a foundation portfolio
     
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  4. Jerry O

    Jerry O Well-Known Member Premium Member

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    Hey Se Oh,

    Welcome!
    If you are aware of a possible serviceability issue given that you are on a low income bracket then best to speak to a broker from the forums first to verify that. Once you know your affordability, then you can start your strategy from there. No point looking at million dollar homes if you can only afford half a mil. This will filter out some properties and you can focus more on the suburbs that is within your price range.
     
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  5. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Location:
    Canberra and Sydney
    Welcome aboard :)

    Cheers

    Jamie
     
  6. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Great goal and will require a lot from you. A lot. I would recommend you firstly learn as much as you can of the basics and network with other successful investors.

    Good luck.
     
  7. MsAli

    MsAli Well-Known Member Premium Member

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    Sounds like a great goal

    @Jerry O makes some good points.
     
  8. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    HI Se Oh,
    If you're on an average income, getting to a $3M portfolio is not going to be a walk in the park - you'll need to team up with a good broker straight away so they can recommend you some strategies to consider to help get to your goal.

    For eg, buy and hold will take a VERY long time to get you there with lending the way it is, so you'll need to look at more active strategies like small developments to start with. I don't mean jump straight into developing, but buying properties that you can develop when you're ready.
     
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  9. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Income is the machine that makes all the wheels turn and lights go on. Without it, nothing moves.
     
  10. SE OH

    SE OH Member

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    Hi @Jerry O
    I'm gonna buy with my sister to increase serviceability as I did with my PPOR a few years ago :)
     
  11. MsAli

    MsAli Well-Known Member Premium Member

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    It actually limits your ability to build a portfolio
     
  12. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    This can have quite big implications of it's own - unless you're going to continue buying with her into the future, this will severely limit your ability to borrow long term as most banks will consider the whole debt as yours, but only half of any rental income.

    You need a strategic broker to go through your options with you - as Jerry said, there's plenty here on the forums.
     
  13. Leo2413

    Leo2413 Well-Known Member Premium Member

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    This is why I always hammer on the fact that learning the basics is vital to long term success. Brokers can only do so much. Its the responsibility of the investor to take the time and put in the effort to learn the fundamentals first. Then enlist the help of brokers, solicitors, accountants etc etc.
     
  14. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    Welcome @SE OH. That Sydney PPOR should provide a good bit of starting capital if you can tap into it.

    As others have said, it's important to get a good team around you – why not drop Jess or Jamie a line (they're great brokers) so they can paint a picture of your options from here? Getting clear on things like your borrowing capacity and how you can go from $0 to $3-5mil is a critical step worth taking while you educate yourself.

    Keep reading and asking questions – you'll learn heaps.

    :)
     
  15. SE OH

    SE OH Member

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    Location:
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    Thanks for everyone's comment. I will keep reading books, articles and watching video clips to have solid understanding of how property investment works before I get started :)
     
  16. Azazel

    Azazel Well-Known Member

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    Location:
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    Hiya @SE OH , welcome aboard.
    You're right, plenty of experience around.
    Jump in and ask plenty of questions.