New to property investment - seeking advice

150k cash, assume 90% finance, thats 1.5m (ignoring stamp duty) 5 props at $300k each,
10-15km, $300k will be apartments only,
but you also mention ballarat, geelong etc.

a bit confusing

 

Have you managed to purchase your first property Sarah?

 

I don't know what you're confused about. If you read the thread thoroughly you would see that I'm just throwing out options.

I never said 5 properties in the 10-15km radius could be bought for 300k each. I've lived in Melbourne all my life and know the market. I'd prefer if you read the thread properly rather than completely misquote me!

What I did say was there are some suburbs in that radius where you can buy for high 3's and early to mid 4's and that would be something that needs a lot of work or a townhouse or villa unit. Never said what you quoted me as saying.

I have decided to avoid apartments completely. Won't waste my time or money!

I don't know what sums you are doing but based on my wage and deposit the figures I provided are realistic for my circumstance.

The reason you might be confused is because I'm throwing a few ideas out there, because there are many to choose from. I was hoping that I might get some further guidance from members on here.

I will either buy a townhouse for around 450-500k in my preferred suburb within that radius (Melbourne) and a property in regional Australia for under 300k.
The reason I would only buy 2 IPs in these locations is because the areas of Melb I'm looking at will soon be unaffordable and I would like to secure something there before that happens.

Property 2 is to diversify the portfolio.

I could also possibly buy 3 IPs in regional Vic for the budget or 4 if I look outside of Vic in other states, but the banks might not feel like this is a secure option for them or me so I will probably be limited to buying 2 first up. Doesn't hurt to want to stretch the budget as far as I can.

I am using figures at the higher end for regional areas for what I'm looking at purchasing to cover myself. I may have to pay more or less depending on what I buy, when I buy and where I buy.

I've used this broker before and he's sent me the servicibility sheet to me as well.

I'm working off an 800k budget with (161k deposit) which is 80% finance not 90%. The figure for what will be financed is also in this thread. I have quoted 150k deposit in this thread because I am working on a lower deposit to cover myself when doing the sums but the realistic figure is just over 160.

Thanks.

 

you have a pretty crappy attitude for someone whos got no experience, and asking for help

 

You are picking apart my strategy and misquoting me.

Easy to be defensive when that is happening.

You haven't offered me any advice, just picked holes in what I was saying?

 

OP, twice in this thread you've had advice offered that had within it at least something worth considering, something that you hadn't thought of. But you haven't seen it because you've been more interested in getting defensive/emotional about it.

I am blown away at the amount of expertise contained here, offered freely by people in the know. Don't alienate those people... it's up to you to take everything you read with a pinch of salt- irregardless of your level of experience. We are all on a journey, best of luck on yours.

 

Hi Birdseed,

Would you consider the quote above yours in this post emotional/alienating or helpful? I certainly didn't read it as helpful. Maybe you see something in it that I don't.

I have not said that I have not received any help in this thread. I am looking for as many opinions as I can be offered. I am a member of two other forums and advice is offered freely, because people are genuinely offering advice on subjects that they are passionate about.

In this thread it was quoted that as long as you are not being a smarty pants people are happy to help. I was told I am not considered a smarty pants but I will react if feel someone commenting here is being rude and unhelpful. I don't believe I'm wrong for defending myself.

So maybe with the context missing from the words written here, I'm misinterpreting what's actually being said.

 

Just read the whole thread with a neutral view, and agree the OP has an attitude, sorry OP.
You won't last long on this forum if you just want to argue and act the victim.
It's pretty clear everyone has only tried to help you, but you don't seem to see it the same way.
One day you'll get it.

As for help, just keep reading as much of this forum as possible every day and you'll learn plenty and have many of your questions answered without even having to ask.

 

Property investing can bring a few hard knocks. You really need to be able to roll with the punches. There'll be enough coming without you need to go out looking for them.

 

That's one of the most useful things about this site. Having people pull apart (or not) what you're saying.

Better to be shot down here for one of your ideas than lose thousands of dollars investing based on said idea.

 

Okay lets work out some numbers;

Property 1 - 400k
Deposit required 80k (80 LVR)
Stamp - 20k
Buying Cost - 2k (Building & Pest, Conveyancer, Etc)
Total initial investment 102k



Property two- 300k
Deposit required 60k
Stamp - 14k
Buying Cost - 2k
Total initial Investment - 76k

Total investment from 2 properties is 178k, even at 160k you are short by 18k.

This would also have the following expenses such as insurance, advertising, letting and you would have nothing left in the bank, this is high risk and I have used 700k total purchase price. Buying at 800k total purchase price would make it even worse.

I think you should settle for one purchase and wait a couple of years for some growth and invest further from there but read more on the forum before jumping in. Property investing isn't a sprint it is a marathon.

If you want to get rich quick go to the casino, you will do it in less time if successful.

 

Thanks Big Will,

Very much appreciated. I've got a few months up my sleeve and will continue reading over that time. I will do as you suggest and purchase 1x IP initially, set that up and wait for 12-18 months before considering IP no 2. The only concern I have is the residual monies sitting there and not doing any work for me. I'll look into other options in terms of investing that money for the period of time before purchasing IP no 2.

I am definitely looking at this as a long term investment, just wanted to look at purchasing 2 IPs in the first year if this was achievable but am prepared to wait if advised to do so.

This could also be achieved by purchasing in areas +25 kms from Melbourne, so I am doing a lot of research around growth/potential growth areas of Melbourne and other states (I am concentrating on houses and not units).

Regardless, I appreciate the advice and will be approaching the whole thing cautiously.