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!
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?
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.
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
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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