Hi! - This forum is amazing

Discussion in 'Introductions' started by Quanty, 23rd Jan, 2020.

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  1. Quanty

    Quanty Member

    Joined:
    23rd Jan, 2020
    Posts:
    9
    Location:
    Melburne
    Hi all!

    I live in Melbourne, 22 years old (live at home) and looking to start my property journey. I discovered PC a few days ago and have honestly spent over 8 hours reading through past threads. A lot of this information is invaluable. Thank you all for the amazing contributions over the past 3? years. Special appreciation to Y-Man, Datageek and Sackie - I've learnt so much in just few days.

    I work in investments (superannuation) but started learning about investments through shares and financial freedom and then started property by reading Michael Yardney and listening to the property couch. Hoping to learn a lot more over the next few months before buying (next books are 20 questions and armchair guide)

    Nice to meet everyone!
     
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  2. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    10,087
    Location:
    Brisbane
    Welcome :)

    What’s your rough plan or is it too early? You’ll find plenty of ideas and guidance here.
     
  3. Quanty

    Quanty Member

    Joined:
    23rd Jan, 2020
    Posts:
    9
    Location:
    Melburne
    Thank you!

    I know I want buy in a location with high CG so I can use the equity to buy a second property in 5-10 years. I'm fortunate enough to have excess cash flow to handle a low yield.

    Haven't seen a broker yet but I'm guessing my borrowing capacity is a bit limited around 400-600k. So my current thinking is a 2/3 bedroom house in outer suburbs (looking northern/western suburbs in Melb) or a 1/2 bedroom apartment in closer inner areas (would consider south/southeast).

    Most people my age that have invested have actually chosen to invest in very outer fringe suburbs and are even building. Which from my current understanding isn't where the cg is expected to be in the next medium term given the low wage growth, interest rate environment. They would consider choosing to invest in an apartment a mistake (no land, strata etc). I'd like to think I understand a bit more about the demographic drivers of price growth but going against the grain is challenging - would be keen to hear if anyone has any similar experiences or thoughts.

    My understanding mostly comes from Michael Yardney who has a firm blue chip bias so I'm keen to learn other perspectives and would appreciate any and all advice! Is this enough of a plan to get started?
     
  4. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    10,087
    Location:
    Brisbane
    Certainly shows you’ve given it some thought. I’d start by checking with a broker from the forum to see what you could borrow.
     
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  5. The Y-man

    The Y-man Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    8,896
    Location:
    Melbourne
    You're welcome to come along to the CBD lunch meet next Thursday
    Melbourne CBD lunch meetup - Thu 30 January [VIC]

    We also do a meeting in the eastern sub (Usually Mitcham) on the second Tuesday of every month (+/- a few days either side).

    The Y-man
     
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  6. ellejay

    ellejay Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    2,192
    Location:
    Kimberley and NZ
    Just in terms of blue chip properties, I've never owned one but made millions on 'middle of the road' properties. I've posted a few examples but most recent one is in Hawkes Bay NZ. Bought about 4 years ago for $210k. Had it rented throughout for $480ow. The house next door (same layout but completely renovated) has just sold for $520k!! Ours would need about $30k reno. My plan with this one is to move the existing house to the back of the block (approx $20k), build a new one on the front and subdivide to make 2 x 350sqm blocks and sell the back one for say $450k and probably hold the front one (should value around $500k).
     
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  7. KateAshmor

    KateAshmor Victorian Conveyancing Lawyer Business Member

    Joined:
    25th Jun, 2015
    Posts:
    485
    Location:
    Melbourne
    Quanty likes this.