If You has $30k and just starting out...

Discussion in 'Investment Strategy' started by Tony Clark, 30th Apr, 2018.

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  1. radioactive

    radioactive Well-Known Member

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    Do you have something like Keystart program in your state?
    You can borrow with just 2% deposit with them here in WA.
     
  2. NHG

    NHG Well-Known Member

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    Irrelevant.

    Learn to source great deals, and source money partners / flip them to turn a profit.

    Not sure what your situation is like, possibly look at using the money to increase your current income (not by $20/week on a positive geared property), perhaps furthering education to get a better role, or some small side business.

    Also use the next 2 years of investment down-time to further your education so you can come in and kick ass on the other end.

    It's possible to be in the market without actually owning property.
    Uber doesn't own cars, Airbnb doesn't own apartments.

    What are your goals? When do you want to achieve them by? What do you think it would take?
     
    Last edited: 3rd Jul, 2018
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  3. MWI

    MWI Well-Known Member

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    First you need to establish where you wish to live, then investment strategy. If you are happy where you live you could buy PPOR first OR don't wish to move could rent and invest to buy townhouses instead?
    A friend bought Carina Townhouse for $395K in complex of 3, after my recommendation getting $380-$390/wk rent. Possible to add renovation down in time or even to buy the 2nd townhouse hence owning majority. Plan would be to buy all in such complex, renovate, or time permitted then sell on to developer or redevelop yourself many years down the track. Many possibilities exist but it comes again to two questions.....
    1. What do you wish to achieve from property? Not generalised answer but a concrete answer that is measurable, in what timeframe how much worth in asset base, or how much gross income generating? Say you wish to hold $2miliion in asset base generating 4% gross yield in 20 years?
    2. What investment strategy will you use? Will you buy in how many states, or only QLD. Will it be townhouse, within 15kms from CBD, older houses further out to 20Kms from CBD with renovation potential, or......many ways to invest into property!
    Only you can answer those questions and most fail to surpass this as they do not understand what they want from property and how to achieve it!
    Work on the answers above, gain the knowledge, try, walk the talk and then modify if it doesn't suit or duplicate if the strategy worked!
     
  4. radioactive

    radioactive Well-Known Member

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    It would be awesome if you can enlighten a bit on sourcing good deals. The place I come from, unless you are in the circle of professional investors, it would very hard to buy an undervalued property. For retail investors are domain and realestate.com.au the sole options? Thanks in advance.
     
  5. NHG

    NHG Well-Known Member

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    Hey Radioactive,

    Identify what you're after then:
    Letter box drop.
    Find owners contact details and call.
    Walk along the street and door knock.
    Wine and dine agents.

    Mates have picked up a few development sites in the last 12 months this way.

    "The place I come from..."

    You speak as if being a professional investor is in another dimension.

    Just ordinary people doing that 1 extra thing others are not.

    What's 1 extra thing you could do consistently starting this week?
     
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  6. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    For investment purposes, $30k will get you as far as a purchase price of less than $200k. It's more than just a deposit, stamp duty and LMI also need to be paid.

    If that's sufficient for the price point you're thinking about that's fine, but saving some more would probably reveal more options.
     
  7. Carol M

    Carol M Well-Known Member

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    Newcastle NSW
    Do either of your parents have equity that could be used for a deposit via a family guarantee? That is how our daughter got started. We guaranteed her deposit on block of land, then she got an investment loan to build (as a PPOR loan would not service due to low income). Then once the home was built she decided to move in and was able to claim $25k FHG in NSW.
    Our guarantee was lifted once new home was built due to increased value and equity.
    Also saved costs doing final touches ourselves (painting, fencing etc). Am proud to say I tiled floors through the whole house myself (after hubbies knees gave out) and it has lasted well - much better than posh project homes with drummy tiles she bought later on (using equity growth from PPOR)
    She also lived at home initially to improve her serviceability.
     
    Last edited: 19th Aug, 2018
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  8. Aaron Sice

    Aaron Sice Well-Known Member

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    I gotta say, property is a high leverage slow game.

    You'd prob do better buying 50/50 Vangard Income/Growth and leaving it there for a few years.