I have been working fulltime for the last 10 years and always saved/ invested in stocks, I have looked at property many times over the years but always seemed overpriced to me (still think Sydney and Melbourne are) but I think now could be a good time for Brisbane, and want to make use of the borrowing power of property (compared to shares) while I'm still working (thinking of quitting/ travelling soon). Also shares are overpriced now imo. I haven't bought property before and am still renting, I am unsure what strategy to take as I would prefer to live in an apartment in inner city however I have looked at many different strategies and am interested in out of the box ideas also such as subdividing, share houses, airbnb etc. But haven't been able to make up my mind, any advice for my situation?
Hi @Alex123711 Sydney has always been expensive. What is attracting you to property now? What resources do you have to undertake the strategies you are after - in terms of deposits and borrowing capacity? A number of our clients (Sydney and Melbourne) have been purchasing in Brisbane, as it has made sense from a rental return perspective, and also the fact that Brisbane hasn't had the same level of growth as Sydney. They have targeted properties in pockets which are zoned for future development - that is not to say that they will be developing, but rather land bank for the long term.
Thanks for the reply, as mentioned whats's attracting me is I think Brisbane looks ok for now, and also although I have done well with shares,the leverage of property is much more compared with shares.
Thanks for clarifying. My question was not so much on why Brisbane is good, but rather what will property do for you - agreed on the leverage. Property will provide you bigger exposure to the market.
I'd rather not say what I do, but I'm looking for a change of career atm, what will property do for me, ideally cash flow but that might be more long term, I wouldn't mind doing something less passive also such as renovation, I have looked into adding second bedrooms into apartments before but again seemed to not be feasible (in Australia).
Yes cash flow is long term. How would a renovation help you? I am guessing build equity? Will you be flying interstate to arrange for this? You may need to clarify your end goal, it sounds like you are still in the process of doing this. In absence of this, it will make it challenging making a decision.
My end goal is the same as it was with shares, financial freedom, renovation to create more income - adding value - rooms/ subdividing etc would be my ideal, I've always been buy and hold long term.
I suppose what propertytwins were saying is that while that may be the high level goal what does financial freedom mean to you i.e. 100K residual income, 40K residual income and by what time? If you're not clear on the destination any road will get you there
