Looking for Advice - Sydney NSW

Hey guys i'm new to investing but i believe i have a little amount of knowledge about investing and what to avoid. I've just turned 21 and am able to roughly borrow 500K give or take. My long term strategy is to have sustainable IP's with the hopes of 3 properties before the age of 25 by borrowing against my other properties. With the small budget I have, i've been looking around the Parramatta and Chatswood areas for 1-2 Bedroom apartments. Does anyone else have any ideas on where I should look/if the boat has already passed on both those locations? any advice or help would be greatly appreciated!

 

What would you avoid and why?

 

You said you can borrow 500k so how much can you spend?

Im not too big on parramatta for units - lot of new units coming up and while I like the infra for the area there just a high supply (again depending on price but im assuming 5-600k). As a PPOR thats a different storey. Land with a house i the region I think is a good investment but you'd be looking 1mil+

Chatwood units - I like the idea but don't think you will achieve an average 2 bedder for your budget anywhere near Chatswood - maybe push it to 650 and that might get you in the region in an older 2 bedder

Note: Id personally never invest either but thats me, but I support the idea of what I have provided above

 

If you dont mind be picking your brain where would you invest? into a spot thats starting to develop or already developed?

 

Unfortunately I do not have that answer at the moment I cant tell - though for apartments think crappy apartments around lane cove etc are still good value around 600-700k. I personally avoid apartments thats all

 

It isn't about "how much you can borrow" !
It is more about your earning capacity and ability to service any loan.
Please continue to ask LOTS of questions, this is how you learn, ultimately any action/decision made and the liability/rewatds rest with you, move slowly and act wisely

 

Very good advice!!! thanks!

 

fair enough! good advice, ill keep digging

 

Parramatta & Chatswood are worlds apart, likewise you'd be hard pushed for a crappy one in Lane Cove.

There may be better value in the Innerwest say Ashfield (around Ashfield Park), older parts of Dulwich Hill/Canterbury/Lakemba/Punchbowl - these will fit the budget comfortably.

 

Have you run numbers to see how much growth, and how fast, you need to do this? Talked to a mortgage broker to check borrowing capacity?

 

I haven't ran the numbers on growth yet as if i'm honest i dont really know the numbers or where to start on that

 

in terms of growth do you think those are going to grow into the future? i dont see much potential for growth there

 

How did you arrive at those two areas, and that specific strategy (buy 3 in 4 years, the later ones by using equity)? But you dont know the finance strategy required?

 

Why do you think chatswood and parramatta will have growth, and how does future supply figure in your prediction?

it might be worth questioning all of your assumptions.

 

Chatswood and parramatta is based more off buying off the area as its in a good area with boardering the city etc and parramatta being considered the second CBD

 

I have a 100k deposit so i plan on using that equity and so on. I guess it shows how little i know?

 

Suggestion. Read this forum for a few months. Then redo your plan.

The problem isnt how little you know. Its that the things you think you know may not be right.

 

They will always be closer to the city than many other alternatives, rail is being converted to Metro, some of these suburbs have fewer new units.

 

Great advice. thank you!

 

I would advise checking the yield, and the new proposed high rises in those areas ? seems like councils are approving high rise / 8 level apartments like no tomorrow over there, 1 highrise = 1 suburb of houses (in terms of household).

there will be plenty of supply of apartments there, capping CG of apartments in those areas.