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Hi from Sydney!

Discussion in 'Introductions' started by sprakk, 1st Oct, 2016.

  1. sprakk

    sprakk New Member

    Joined:
    1st Oct, 2016
    Posts:
    2
    Location:
    Sydney
    Hi everyone.

    Over the years I have been thinking about investing in property, and recently been more serious about the topic. I've been reading over past threads in this forum and I'd really like to say thank you to all the contributors, it really is a plethora of information covering a large number of topics.

    When it comes to investing, I am a complete amateur, or less than that. I've never really stepped out of my comfort zone, and hoping now that I'm getting a bit older, I'd like to see what's possible for my family and I.

    Some background information...
    • I'm 29, wife is 30. We have a 2 year old son and live in Western Sydney.
    • Own our own house with a hefty mortgage of just shy of $600k, on a property that according to the website "onthehouse", is valued around $830k (says "high accuracy" - for whatever it's worth).
    • I earn approximately $140k before tax, and my wife earns approximately $65k before tax.
    • Have two personal loans for two different cars, of about $35k and $20k, which are being paid off over the next 3-4 years.
    • Not much in the bank in terms of liquid assets, around $10k as most of our excess goes into paying off the higher interest rate loans on the cars.
    Reading through the many threads I've come to learn a few things about using equity in your principal place of residence, and other investment properties for purchasing other properties with as little as 5% deposit. Seeing this, it has piqued my interest and I would like to either purchase a smaller 2 bedroom unit in the West of Sydney as far as Penrith for around $350k, or if possible a 3 bedroom house around the outskirts of Brisbane for around 400k. However, I don't know how feasible it is given my current situation.

    I've considered speaking with a financial adviser, however, I have read some negative things in general, outside of some reputable groups and would probably be better off learning it myself so I have a better understanding of where my money's going.

    Really hoping to learn a lot from this community, and hoping one day to give back to it once I'm more knowledgeable on the subject of property. Great to be here! And apologies for the wall of text.
     
    Colin Rice likes this.
  2. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,140
    Location:
    Canberra and Sydney
    Hi and welcome aboard :)

    If you're looking to invest in property - a good broker and accountant would be more beneficial. But I'm obviously biased :)

    Cheers

    Jamie
     
  3. wombat777

    wombat777 Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    1,411
    Location:
    33°41'24.7"S 150°55'34.3"E
    Agree with @Jamie Moore above, you will get more out of finding a good broker and accountant ( I use and many others here use and recommend @Paul@PFI ). As for financial advice, there are plenty of learned souls here and you will learn a great deal from reading (and contributing) to the forums. Also try to get along to some of the meetups. I only started my investment journey January last year. By April of that year I signed my first contract. Shortly settling on a second property and considering a development.

    Without the forums and the great community I would have got nowhere. That said, you do need to put time into your own learnings - particularly researching and understanding property markets. Also learn to do the cashflow calculations as that will allow you to better understand the 'numbers'. After all it's that numbers that have to stack up at the end of the day, as well as understanding what makes a 'good investment'. That will give you much more confidence when it comes to buying.

    The other advice I give is to try and go to some of the spruiker seminars (choose wisely). They are good for rapid learning but keep your wallet closed when their 'sell/pitch' part of the spruik starts. Plenty of spruiker videos are readily available online. Also good for learning.
     
    Last edited: 1st Oct, 2016
  4. Colin Rice

    Colin Rice Mortgage Broker Australia Wide Business Member

    Joined:
    9th Jul, 2015
    Posts:
    1,078
    Location:
    Perth
    Looks like you have some options to explore.

    Most FPs will discourage you from property investing. Why? - they dont make any money from advising you to buy property unless flogging OTP for a hefty comm.

    Find a broker and accountant and you will be able to explore options and see whats possible. There are a few on here :)
     
  5. sprakk

    sprakk New Member

    Joined:
    1st Oct, 2016
    Posts:
    2
    Location:
    Sydney
    Thanks all, will definitely take advice to seek out a broker and accountant. Appreciate the welcome.:)
     
  6. MsAli

    MsAli Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    1,147
    Location:
    Sydney, Australia
    @sprakk

    Sydney equity should help you leap forward. The car loans may however impact the opportunity you can avail
     
  7. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,756
    Location:
    Perth WA
    Hi and welcome :)

    You may find putting the car loans into the mortgage will help with servicing - it will also lower the rate to help you pay them down more quickly. As long as you keep paying them down at the same rate you are now (ie, within a couple of years, don't stretch to 30) it will likely help you get ahead.
     
  8. TaylorChang

    TaylorChang Well-Known Member

    Joined:
    2nd Jul, 2015
    Posts:
    167
    Location:
    Sydney
    Welcome.

    I guess, from your post situation. There are a few things you can do immediately to improve your cashflow position.

    1) consolidate your personal/car loan into home loan (since generally home loan is much cheaper than personal/car loan)

    2) cash out some equity, even you are not using it at this stage. (equity is better to park in you pock rather than bank's pocket...... cash out is harder to get this day)

    hope you enjoy your time learning here :)