Hi all, Loving the information from the forums' users as its helped me understand a lot of information being a newbie to this. A bit of a background, I live in a Sydney, picked up our first investment property a few months ago and now hoping to add to the portfolio in the next few weeks. Hopefully one who can share my experiences in the near future Catch you all around! Jae
Welcome @jaepee36 Congrats on achieving your first IP. What type of property and where did you buy? Lots of property professionals and big portfolio holders on here to learn from. Can never stop learning enough, especially the views of the older members who can view the Sydney market in context of history. Something the younger folks like myself can't get until we live longer hehe
Thanks all for the warm welcome We currently live in The Hills area. We bought vacant land in Riverstone 6 months ago (still being subdivided). A house to be built following and we will move in for tax purposes. It will then be turned into an investment property. Concurrently we are also looking at purchasing an apartment OTP at Lane Cove for our PPOR due for completion early 2019. Holding deposit on it but haven't exchanged contracts, have a bit over a week before we decide to pull the trigger!
Hi jaepee36, Have you considered the risks with OTP ? So much talk about the units over supply. Needless to say most on PC will caution. With lenders changing stance on these and the borrowings tightening, how are you looking to mitigate your risk of completing the deal?
Valid question Property Twins. We are not too concerned about the value of the Apartment. Primary place of residence and a 7-10 year plan. Based on research, we also think the area will hold its value. There are no more apartments going up in the immediate vicinity (last parcel of R4) and outside the Ryde/ Carlingford/ Epping area. Deal is closed in 18 months. Try for two loans, worst case sell our Riverstone IP and move on.
Sounds like a good plan. The value of the otp apartment affects how much the banks are willing to lend so its worth checking every so often. From experience settling two OTP units within 2 months of each other, its worth getting a feel of how borrowing numbers will look in a less than ideal scenario: higher interest rates and lower valuation of the OTP.. With 18mths, starting contingencies early can do no harm.
Thanks Zoolander. You did well with settling two units OTP! The bank interested in the second one when settling the first? I'm assuming so since you may have gone for a loan at the same time? Yes, fortunately as you said we will be building up the bank roll in the mean time between the two. Also fortunately, one is a vacant block of land that is nearing completion!
Welcome! So you are planning on Calling the Riverstone house your PPOR? Then changing to the OTP in 2019? If not, what tax purposes? Just curious that you have that right.
Hi Travelbug, yep as you say. CGT. FHOG as well as the place we are at is also one of my folks' investment properties.
