NSW (noob alert) First time home buyer/investor in 2021

Hi All,

I joined the forum few days ago and have been learning a lot since then. I thought I have a fairly concrete plan but after reading some discussions realised that I better ask for advice first.

Here is my situation. I am on a ~$250k / year income, mid-late 20's and currently renting in Sydney. I have around $100k put aside in savings and another ~$150k in shares I can sell. I don't need cash flow right now and would rather optimise for net worth, therefore looking for a place to maximise capital gains.

If you were in my shoes, what would you do? I am not at all opinionated about whether it's a house or apartment, location or debt structure, as long as property is growing in value long term (I am buy once, hold forever kind of person), has reasonable cash flow and is relatively hands-off from the management perspective.

 

All depends on your goals and level of aggression/timeframe to meet them.

 

Thanks Sackie. My goals: In the next 5-10 years I'd like to optimise for my net worth. 10+ years I'd like to optimise for cash-flow. Level of aggression / risk tolerance: above average, but will probably pass on moonshots.

 

There's probably a few ways to proceed. I think one possible way is to buy a couple of good OO homes in Brisbane in middle ring, with some potential to add value via reno in the future.

Buy and hold. Add the value later on. Assess equity in say 12 to 18 months and then accumulate more if it suits your risk tolerances .

It's a simple enough plan without the high risk of subsiding/developing etc which doesn't suit most tbh.

As always, DYOR.

 

This is along the lines of what I was thinking. I am potentially interested in getting more hands-on with subsiding/developing in the future, but not as a my first/second and probably fifth purchase.

In terms of picking a place and area, would you recommend me going with BAs? E.g. I understand what you are suggesting, but have no idea what "good" means. I am coming from a country with very low percentage of home ownership, so my intuition on the topic is not great and there is so much noise on the market it's hard to distill bs from useful information. DYOR is a must, but I'd be ok to pay someone to help and educate me if it compresses hundreds hours of research into tens.

 

Get a map and put circle around Brisbane's 10 to 13km rings. Look at the suburbs. Research them on here and google. Try to get a sense for value after you do some research.

Re BA, if you don't have an idea of what's 'value,' then your totally at their whim. Imho it's best to learn this stuff for yourself, especially if you intend to build a large portfolio.

Spend 1 month. Go hardcore with research, asking questions etx. You will start to get an idea.

There's no super easy way I'm afraid. The learning curve at the beginning is steepest and then it gets much easier.