I don't know how to settle on a strategy... First time buyer in Sydney

Hi guys

I suspect many of you will consider me basically a brat, because I'm in an incredibly fortunate situation.
But I just don't know how to decide on a strategy and get started.
My goal is to generate passive income through multiple investment properties, then live up the coast somewhere down the track.

I'm 33, living at my parents, with my partner and paying minimal rent. We make good money (200k between us), have a good inheritance and savings (140k), have no debt (other than HECS), don't want kids, am in a very secure government role, am happy to buy or live almost anywhere in Sydney for the next couple years, and can work anywhere in NSW later on. I even have access to CoreLogic for crying out loud! I also have experience with renovations and repairs. I know I'm in a good starting position.

However, there's a lot of strategies and I feel like every kind of "advice" service is just out to get my money short term.

We've been to a financial advisor/planner, who has helped tremendously with insurances, super, and getting my partner debt free.
Unfortunately I just can't agree with his advice on first home purchase. He suggests a new house/land package 50km from Sydney CBD in a new development area, with a big focus on depreciation in order to break even each year.
I was on board at first, but of course did my research (mainly here, thanks!). Now it seems like a dumb move long term.
I don't want an investment property when there's 50 others identical on the same street. I don't trust developers, and I suspect the immediate valuation after it's built will be crappy. I don't see how it will help me buy a second property if all I'm doing is breaking even each year with sluggish growth.

So how on earth do I settle on a strategy? The last thing I want to do is pay another advisor/strategist/seminar to spruik something else at me that they may just benefit from.

 

House and land packages can be a mixed bag. Many of them don't perform well because there's an abundance of land constantly being developed and the developers control the demand & prices in the area for years to come.

You may also want to see if the financial planner is getting some sort of incentive to promote these properties. The incentives can be quite significant. As a result they can often be over priced. As a mortgage broker there's only a handful of types of properties that have issues with valuations, but house and land packages is one of these categories.

Also investing just for the tax benefits is a terrible strategy. It's the capital growth that makes the real money.

 

Thanks. It's all of those reasons exactly why I don't want a house and land package.

I asked him outright if he receives any incentive. He told me no he doesn't directly, but the accountant he works with (who recommended me the specific properties), does indeed benefit. This was the big red flag to me that made me decide I need a different strategy.

 

We're talking about your first home purchase, is that right?

if that's the case, why are you paralysed?

A first home purchase has many different considerations than an investment purchase.

Purchase in an area you can afford, an area you like, an area you can see yourself settling down in for a good number of years.

If it were an investment property, that's a different kettle of fish.

Remember the old saying.....time in the market.....makes perfect sense when talking about your own home

 

Your strategy has to be formed based on the goals you're trying to achieve...otherwise you literally have no way knowing where the property is going to take you or if you're on track or not.

Problem is most people who are willing to help with this are trying to sell you a property at the end!

Is this going to be a home for you? Or is the priority that it's a good investment?

PS - we do offer property strategy coaching - it's fee for service, so not free but we don't sell property or refer to any property sales people or buyers agents.

 

Thanks guys

The priority is a good investment. I'm happy to live in it somewhat short term (6 months - 2 years) in order to satisfy FHB stamp duty exemption, but I don't want to live in an inner-west Sydney apartment or outer-Sydney house forever (as this would be my budget, around 700k max I believe)

 

If the priority is a good investment, do you think Sydney is the right place to be buying right now? Have you considered what can be achieved by buying interstate?

 

I'm open to all options, but I don't really know how to "consider" interstate as I have no experience doing any of this research. I'm trying to learn, but keep coming up against paywalls. There's an overwhelming amount of variables and conflicting information.

I am leaning toward Sydney because of the stamp duty exemption, and I would be happy living here for another couple years, and can do much of my own renovation. I really wouldn't know how to research properties and pull the trigger in another state, without of course hitting that paywall and having someone do it for me

 

At this risk of pushing our stuff, if you want to learn those skills we can help with the research side of things - check the link in my signature and see if you think it might help.

Also - what do you mean by paywalls? Having to pay for information?

There's loads of free info online but the issue is forming it into something useful with zero feedback.

 

thanks. While your product seems good, and I really don’t mean to be rude, I’m certain it doesn’t just cost $37.
I’m interested, but I hate having to give up payment information and my contact info (resulting in mile long upsell emails) before finding out the true cost of something.

as you can probably tell, I’m very skeptical. I’ve been burnt before, and I only have this first chance to do it right once.
I don’t think buying interstate is for me at this point, but certainly something I’d be open to for IPs in the future.

 

Would you consider renting in your preferred location in Sydney, and buying an IP that is "near enough" within driving distance, like Illawarra region or Newcastle. The significantly lower buy-in price would compensate for loss of FHB grant or stamp duty concession.

 

Other FHBs would not mind to be in your financial position right now to get that first home and convert into an IP after. A lot depend on your discipline of minimise spending and maximise savings along the way

Suggest to get an IO HL to start your journey maybe a MB can help you out but since you are skeptical so not sure if that would work out

I think I do have many good strategies but not qualified to provide advice so ... good luck

 

It's literally $37. There is one up-sell to one of our full courses for $97 which you can take or leave - but that's it.

Interesting that you are willing to spend literally $100's of thousands on your investment, but you're worried about a $37 purchase that has a money back guarantee!

 

Guess I’m just trying to find the balance between blindly rushing into something (such as the new house and land package) with due diligence. Definitely not procrastination or over optimisation

Thanks. I’ll look into it. I did assume there was a bigger upsell or ongoing subscription component, forgive me but there’s no way to tell. I’ll consider your product.

thanks! Nice to read an actual suggestion. I would consider investing within a couple hours of Sydney. I can even potentially get a work transfer to those areas, particularly Newcastle.

 

just an amount suggested to me by my mortgage broker. Preapproved for 750 although he seemed to think that was done quite easily.
Why, what do you suggest?

 

People don't work for free. What you might want to consider is doing as much research you can on the forum and then bounce a few ideas around and the pay to get proper advice, but make sure the fee is reasonable cost.