New to property investment, need some feedbacks and opinions from everyone.

Discussion in 'Investment Strategy' started by Wood, 16th Jan, 2022.

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  1. Wood

    Wood New Member

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    Hi all, I've owned my first PPOR in Melbourne Eastern for three years, now planning to look for an investment. I don't know much about property investment, nor much about other suburb in Melbourne. Any suggestion how or where I should start some study / research.

    Assuming my PPOR is worth 800k, and my mortgage balance is 520k. If I refinance is it correct to say I would have 800*0.8-520=120k for the deposit of the potential investment (based on 20% deposit for the PPOR)? So... if paying 20% deposit of investment it would be 600k property price I'm looking at. I know there would be some other fees but just wanna confirm if this is the simple case.

    Personally I'm thinking of diversity, or other suburb / state that's undervalued but do remote inspection and lease management really work? I'm worried the time cost is overwheling. Also do you think house and higher pricing has better leverage? There are many facebook ads saying dual keys investment plan blah blah... is it a safe option?

    Another option is I'm considering my current suburb too. As my mother will be coming from oversea in a few years and she wants to stay close to me. I probably can't afford a house so a townhouse / unit. Not sure if it should be brand new, it will be my investment for at least few years. After that I will be a place for my mum, can I take the benefit of negative gearing? As I receive no or low rental income from it. And not sure if it's something I could do with agent or myself.

    Sorry if there are many questions. Any feedback is welcome, just want to make sure I'm on the right track. Thanks everyone.
     
    Wood, 16th Jan, 2022
    #1
  2. The Y-man

    The Y-man Moderator Staff Member

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    The additional costs are not small in Vic - allow 7% of the purchase price for stamps and legals.

    The Y-man
     
    The Y-man, 16th Jan, 2022
    #2
  3. The Y-man

    The Y-man Moderator Staff Member

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    The problem you have at present is.... there's too many tracks leading to different places :)

    Someone is bound to ask you where you are going - i.e. the destination.

    The Y-man
     
    The Y-man, 16th Jan, 2022
    #3
  4. The Y-man

    The Y-man Moderator Staff Member

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    I'd say first stop would be a good mortgage broker - and discuss what you can actually afford (based on income etc).

    Figure out the rest from there, otherwise it is just pure speculation.

    The Y-man
     
    The Y-man, 16th Jan, 2022
    #4
  5. Wood

    Wood New Member

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    A good mortgage broker is the one that can offer the best rate isn't it? I don't have much experience but I just feel the number actually matters.
     
    Wood, 17th Jan, 2022
    #5
  6. Trainee

    Trainee Well-Known Member

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    From someone who does have experience, the answer to your question is no.

    Things that are more important than rate include loan amount, loan features (especially offset), response / processing times, how the lender fits into future plans to buy more property.
     
    Trainee, 17th Jan, 2022
    #6
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  7. The Y-man

    The Y-man Moderator Staff Member

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    Many here who have learnt the hard way would tell you the rate is one of the least important things.

    Have a look at threads like
    Do you always use a broker?

    The Y-man
     
    The Y-man, 17th Jan, 2022
    #7
  8. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    A good broker will use the right lender and structure keeping in mind future goals

    Looking at rate only is like buying a car on price alone without consideration for current and planned future use.

    Sure a Yaris is cheap, but one already has 3 kids and another on the way

    The difference is the car examples is a one off sunk cost, the wrong loan structure is a gift that keeps on giving

    ta
    rolf
     
    Rolf Latham, 17th Jan, 2022
    #8
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