Keen 21yo Property Investor (Currently 2 IP's - 3rd Very Soon!)

Discussion in 'Introductions' started by MaddyG, 6th Apr, 2017.

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  1. MaddyG

    MaddyG Well-Known Member

    Joined:
    6th Apr, 2017
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    Location:
    Melbourne
    Hi Everyone,

    Just joined this forum & I am LOVING the amount of information on here! :)

    I am seeking some advice on where to purchase next..

    Currently have 2 IP - One in Launching Place VIC & The other in Pakenham VIC both of which are doing quiet well..

    I am currently looking at a few areas.. The Yarra Valley (I live here), Drouin (my preference at the moment, great value for money, good steady growth and good yield), Melton, Bendigo.

    Budget of $350k.. Strategy is to buy & hold.. We have plenty of time :)

    If you were to buy a house within the next 6 months where would you buy & why?

    Thanks all :)
     
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  2. wylie

    wylie Moderator Staff Member

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    No idea about Victoria, but I reckon there would be plenty of people here wanting to know how you have done so well at 21 years old.

    And welcome to the forum of course... :)
     
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  3. MaddyG

    MaddyG Well-Known Member

    Joined:
    6th Apr, 2017
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    Location:
    Melbourne
    Hi All :)

    Ive just joined this forum and I am so amazed at the amount of information available. Wish I found it sooner.

    I'm 21 and live in the Yarra Valley VIC. I currently own two investment properties. I purchased one on my own when I was 19 & purchased a second with my partner when I was 20..

    We are just waiting until after June 30 to purchase our third (Partner has just become a subcontractor and we have to show a tax return to get the next loan.. erghhh)

    Im currently in a government role and have a great income for my age.

    Looking forward to reading others stories & advice on here!

    Thanks :)
    Maddy
     
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  4. Property Twins

    Property Twins Mortgage Brokers & Buyers Agents Business Member

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    Hi @MaddyG

    Welcome to PC.

    Well done on your success so far!!
     
  5. Brady

    Brady Well-Known Member

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    Welcome!

    Great start - interested to see how you continue to progress.

    Once you settle in feel free to share the some details on the existing IPs and your strategy.
     
  6. Big Will

    Big Will Well-Known Member

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    Have you thought about diversification and buying in another state?
     
  7. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    Welcome Maddy and well done with the early start!

    From what I understand Geelong is also worth adding to your list of suburbs to research. There's a bit of talk about Melton on the forums too.
     
  8. MaddyG

    MaddyG Well-Known Member

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    Hi Big Will,

    Definately happy to look at other suburbs.. Not confident enough for interstate as of yet :)
     
  9. bob shovel

    bob shovel Well-Known Member

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    with 2 under your belt you have more than enough experience and probably da skillz to book a plane ticket! ;)
     
  10. MaddyG

    MaddyG Well-Known Member

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    Melbourne
    HAHA! Yes I can definately book a plane ticket ;) But I just don't know enough about any interstate... I think there is still plenty of opportunities here in VIC.. Maybe after the third ill start looking interstate.. :)
     
    Last edited by a moderator: 6th Apr, 2017
  11. MaddyG

    MaddyG Well-Known Member

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    Melbourne
    Thanks! I had heard a bit about Melton.. Ill look into that :)
     
  12. bob shovel

    bob shovel Well-Known Member

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    yeah that's probably a victorian thing! be brave and google interstate :D if your search engines allow it
     
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  13. JL1

    JL1 Well-Known Member

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    FYI - Melton has the highest mortgage default rate in Melbourne, 3.99% up 1% in the last 12 months. Not sure if that will change things for you but definitely worth keeping in mind.
     
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  14. Stoffo

    Stoffo Well-Known Member

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    Understand your apprehension.
    Still, it is like buying in a suburb you have never lived in/or near.
    You need to pick a few places for consideration, follow and research them, ask questions here on PC if you think you may have found "the suburb" as there will surely be someone here to advise.
    Then pursue just one or two areas, follow every listing, contact various agents in the area, something will pop up.
    Or, get a buyers agent ;) Their fee in the total cost of purchase is fairly minor, and could save you paying too much or worse, buying the wrong property :eek:


    Welcome and congrats for advancing so far already:cool:
     
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  15. Otie

    Otie Well-Known Member

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    Does this mean it's a good place to pick up a bargain?
     
  16. Air_Bender

    Air_Bender Well-Known Member

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    I definitely picked up a bargain here recently. :D

    Judging by what I've seen at a few auctions demand is definitely there and people are drawn to anything on a decent block and near the train station.
     
  17. Otie

    Otie Well-Known Member

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    Overall I don't like Melton for the long term, (only because historically it's lagged well behind everywhere for growth) but I would consider buying in here cheap and get out 12-24 months later or as soon as I saw 100k-150k growth
     
  18. Air_Bender

    Air_Bender Well-Known Member

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    I respectfully have to disagree with you here. I believe Melton will do well in the long term.

    Please note my interest lies mainly in the South where the train station is located and it's only a 40 minute ride into the CBD (not bad if you ask me). Infrastructure spending is already happening here with the duplication and electrification of the rail lines and the local shopping precinct recently had an upgrade with plans to add more stores in the future.

    My recent purchase is for long term hold (probably won't ever sell) and it's in an ideal position that is walking distance to the train station, schools and shops. If and when the time comes I can comfortably build 4 townhouses on the block, obviously dependent on council approval but the space is there.

    However, if anyone is hoping to make a quick buck here and get out in 12-24 months' time then I think they'll be sadly disappointed. There's plenty of land surrounding Melton and until most of these areas dry up I don't believe we'll see substantial growth occurring anytime soon. Apart from some minor cosmetic renovations that I'm planning on doing later this year I have no intention of doing anything else to the property for the next 10 to 15 years.

    I strongly believe Melton will do well in the long term but that's just my personal opinion.

    OP- apologies for hijacking your thread! :D
     
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  19. JL1

    JL1 Well-Known Member

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    Higher mortgage defaults can be a sign of coming increased listings/market flooding - people who live there cannot afford it, so either the area needs to appeal to more cashed up buyers or existing residents will default to renting. If they cant meet mortgage repayments, investors then run the risk of missing rent.

    The fact that defaults are only just rising to these concerning levels makes me think that Melton is early in its struggles. This is also happening while Victoria is at an economic high, so if things take a turn, it puts Melton right out front of areas exposed to economic hardship.

    All speculation though, would love to hear others' takes on the stat.
     
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  20. Otie

    Otie Well-Known Member

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    The other issue I see is oversupply
    Melton seems to already have low rental demand. I don't think I would buy there tbh
     

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