Hi guys, been a lurker in the forum, am thinking it's good to get some opinions from gurus here. Been thinking about getting an IP, not sure where/what to buy (however I dislike buying apartment due to strata fees). I am very new to property investment, for the past few years have been investing in stock market, with modest return ~15% last year. I like the North West area but it is ridiculously very expensive there now, Box Hill H&L will cost about $900k for about 480m2 making it around $1800 per sqm. I like South Coast area too (Wollongong, etc) but it's a bit too far from Sydney making possibly low ROI. Another X-Factor is, I'm afraid that I'll put a strain to our finance (with newborn baby) if I decide to go with property investment route. Ideas?
If it's Sydney, you mightn't see much growth and we maybe at a peak. If Sydney was an absolute must, I'd only do a house in Blacktown, it still feels undervalued compared to the Hills and it has good transport. The demographics must improve, it's got too many other factors going for it to remain such a poor cousin to the Hills. But as I said; Sydney can be considered at peak, prices are possibly not going to rise and they are more likely to fall. If you really want to buy, I'd look interstate. Ps. Your shares have really performed..... what was it that you bought?
Welcome aboard Give it a miss for now then - no point adding additional strain to an already challenging time. Property won't go anywhere. Cheers Jamie
There are still places in my opinion that still have potential to grow. Postcode 2770 or 2760 I've been saying this for a while now and every month this postcode keeps increasing averages. Mount Druitt Colyton St Marys Willmot Shalvey Letheridge Park Tregear Pretty much everything in these suburbs are now minimum $500k or around that. Only 6 months ago they were still around $450k. (Postcode 2770) Postcode 2760 is already quite expensive. St Mary's/Colyton/Mount Druitt already over $600k pretty much as a minimum. Plus since this is within the FHB range for stamp duty exemption I can see these areas hotting up even more. Been speaking to a few FHB alot of them have a mentality to get into the market ASAP now whilst they still can and rent it out whilst rentvesting closer to work or living at home. Wait until all the infra projects complete and the business park is complete. You'll make a few hundred grand easily.
Thanks Gockie, I didn't quite like Blacktown not sure why. Yeah it has almost everything and the infra is there, it just didn't have that 'feel'...no offense to people who live there. I'm sure it's a good area, couple of my work colleague actually live there. Re: stocks, I rode on the rise of baby formula companies (I had two that time, pretty sure you know what it is), clean energy companies (had two) and several food stocks too with the likes of CGC, CKF, etc. As a principle though, I don't ever buy the casino/gambling stocks. Thanks for this. I'll have a look. Very interesting, I was with a friend looking at St. Marys just couple months back, but didn't bother to check the price.. This probably a stupid question too.. how much do you guys normally set aside capital wise to invest in property? If I'd like to just set 100k for this, would I be better off investing somewhere else due to not enough capital?
Thats plenty for an investment. In fact if you were buying in the above cheaper areas I'd buy 2 houses instead of 1 if at all possible and you can stretch a bit.
Deposit is one thing, ability to service the loan, retain an emergency buffer and sleep at night is another. Have a chat with a broker who can help you plan out your investments - no point buying 2 IP''s because you 'can' only to find you're eating baked beans and toast each night. Sounds like a budget would be helpful also.
Hey sometimes you gotta sacrifice to make money. Then after you make money you can enjoy your lobsters. LOL But in all seriousness obviously your cash flow needs to work. I had to skimp when I first started out as well being still in university and working at the same time when I got my first investment - was making craphouse money and being 21-22 had no clue what I was doing. I used to live on 2min noodles 10 years ago. Now, well lets just say my lobsters taste very nice.
Are new land considered a no no when it comes to investing? Apparently it's not easy to invest in property (not that I expect otherwise) but I don't really know what's what. lol.
There is nothing wrong with land banking, however I have never been able to achieve this as it doesn't have an income. If it works for you and is affordable why not.
