My Property Investment Journey - Week by Week

@Bill Aim High Thanks a lot for your kind words! Really glad to see my posts have been helpful. It's amazing how much can be learned in this community.

 

Well articulated Rolf!

 

Good stuff. Go where the money is buddy!

 

Glad to hear the property is chugging along as planned Jose. I dipped my toe in Crypto late last year when all the hype was going on but on all counts it looks like I failed miserably haha. Maybe you can teach me a thing or 2 .

I think I'll stick to finding IP's for people. Lets catch up again soon for a coffee

 

@Simon L Yeah, making money in the crypto world is quite hard if you're "bare naked" (i.e. without some good source of information on what to buy and when), and that's why I got burned when I started, just like a lot of people did. Happy to give you a few tips now that I've "found the way up", just send me a message.

And yeah, it will definitely take you a while to be as good in crypto as you are finding properties...

 

Hi Jose, thanks for posting your journey, it was a really good read! I am almost in the same situation as you, new to property investment, looking for my first IP in Brisbane, being interstate (mel) and similar budget, and also consider using a BA. So reading your post is very helpful! Just wondering, through out your journey of buying the first IP, did you make any trips to Brisbane at all, or did you rely on your BA 100%? Also will you still consider using your BA/or a BA for your next purchase? Thanks!

 

Hi @Kone,

I'm glad you liked the thread!

I didn't do any trips, relied exclusively on my BA. And yeah, I'll definitely consider him for my next purchase! Just not sure when that will be, as things are great in Crypto at the moment.

 

Hi Jose,

Great thread. How's the property going? Any steps made towards a second purchase?

 

Hey mate, glad you liked it! Nothing active yet, just saving for the second property and following the news. Will probably buy this year, let's see.

 

Hi Jose,

Just got back on pc.
I'm using Simon as my BA too. He's great. so in the last 3 months we managed to find 4 ip in Brisbane thanks to Simon.
Also new to this investment journey I'm still learning..I would definitely recommend Simon @House finder to everyone.

Good luck.

 

Hey Troy, where did you buy may you share suburb or area of Brisbane?

 

All around Logan so far.
How's your IP coming along and when is the 2nd IP starting would love to read on your next journey.

 

Absolutely, Simon is awesome, worth every penny!

 

I have never heard of these, but reading from the Qld worksafe website, seems like household worker insurance is only if you live in the property, such as a PPOR.
For IP's, tenants would need to take out policies directly if they employ their own workers, otherwise the equivalent for landlords is 'accident insurance' - but I'm not sure how much of this would be included in a standard landlord insurance? Maybe not too much relating to 'workers' the idea of this would be if the worker (gardener, cleaner etc) that is employed suffers and injury due to owners negligence, correct?

 

Exactly, that's my thinking too!

 

Hey @Jose Eduardo Slompo how is your first IP tracking? It's been 3 years now - were you able to extract equity from it as you originally wished? What's the current value of the property, has it gone up?

Cheers.

 

Hi everyone!

As it's clear to see, I haven't been posting my journey week by week - far from it, actually, considering my last post about my actual journey was on 20th May 2018 -, so maybe it's about time I do a quick recap of what's been happening over the last few years and about what's ahead in my journey.

(@Blaz1ingGooch, in answer to your question: first property has been tracking well with no hassles, just the usual maintenance here and there, tks for asking. Managed to extract some equity with a valuation of $335k).

Over the past few years I've added a second property to my portfolio whilst spending some time (and money!) "investing" in crypto. Unfortunately the returns were worse than expected (to put it mildly) and I'm glad I got out at the right time to get back to investing in residential property, which is something I truly believe in and, to some extent, understand - at least the basics.

Big shout out to @Michael_X, my awesome mortgage broker, whose work and advices throughout the last few years have substantially changed my strategy for the better and helped me extract some generous equity from both properties. If you're unhappy with you broker (or even if you're happy), I strongly suggest you give this guy a call and discuss your loan structure and investment strategy with him. He's a gun.

Now, to the next step in my journey: my 2 properties in Brisbane are definitely not what one would call "blue-chip": one in Crestmead and one in Bald Hills. Whilst they've been slowly growing in value and providing me a slightly positive cashflow, I'm confident that now is the right time for a blue-chip move in Brisbane.

My initial plan was to go for the 700k-800k mark in inner ring areas such as Auchenflower, Bardon, Wilston, Ashgrove etc, but after talking to a few people I'm now unsure whether I'd better off buying something a tiny bit farther away, in areas such as Keperra, Arana Hills, Ferny Grove, Salisbury, Moorooka, Holland Park, Morningside, Cannon Hill, Seven Hills etc, as the potential for capital growth might be a bit stronger in these suburbs than in the closer ones.

Keeping in mind the following criteria:
- detached house
- focus on capital growth
- cashflow not a concern

I'd love to hear what the smart people in this forum would choose. Hopefully I can get as many views as possible and be challenged on my assumptions!

Looking forward for some interesting insights!

Stay safe everyone.

 

@Jose Eduardo Slompo,

Magnificent post! Learning a lot from it. Keep us posted!

 

Well done.
I played Monopoly game when starting out like you. First I bought though in middle rings then eventually I would buy one in inner ring, like buying houses say on red streets in Monopoly and then buying a hotel. Cashflow may leave you some money in the pockets after tax but mainly CG+ will permit you to invest further, equity is required if its not generated in other ways such as renovations or redevelopments or your increased earnings etc....
I am sure a lot will jump on me here so I do not wish to discuss CF or CG which is better, I think you need both you still need cashflow to hold your IPs and to grow your asset base, as that is hardest to do at first but a key.
I like all the suburbs you mentioned, the idea is not just a suburb BUT also about the deal to be found!
Let's say in Wilston you buy 3 Bed 1 Bath, 1 Car, can you convert is into 4 Bed and/or 2 Bath. What to look for there is wider disparity in price let's say 3 Beds are $100K less then it maybe worthwhile to look out for things like that to generate extra equity or even cashflow via increased rent for 4 Bed house (but only if it is the main demographic for the suburb).
Can you buy a bigger corner block that in the future maybe subdivided say in middle ring suburbs etc...
There are many ways to invest into property. You need to try and continue to learn but also be very specific on your strategy and each year you should monitor if your IP delivered what you expected?
Keep posting, learning and doing, as I think the next 10 years may see many properties double in price (just my guess I guess?).