Property Investment Strategy

Hi All, does anyone know a good property strategist that can help with goals, that’s a non buyers agent but can suggest what suburbs one should target the aligns with their goal and finances. Currently have 2 investment properties and 1 PPR. I’m using a mortgage broker at present and pre approved for 489k loans with 100 k deposit. I’d like to buy 2 if possible at once then move onto number 5 with my other capital put aside.

 

There is no such thing as a property strategist.. A buyer’s agent is closest to what you are looking for.. else use these forums, build your knowledge and do your own research (recommended option)!

 

We do pay more of our PPOR each month. But really want some help on what properties we should to get in order to further our plan to buy more and and financial freedom.

 

OK then mate, I am sure there is someone out there that can help me (I Hope) as I know areas that are suitable for what I am looking to spend, but it's more the strategy. For example making sure the next purchase will enable me to then get another and another and not ruin my serviceability.

 

Hi Brett,

If you go buy thought of ruining your servicing, you have to buy high cashflow and that might ignore growth. I think you can simply focus on buying in growth areas and target 5% or above yields. With a couple of purchases, you cannot go wrong.
It does depends on your yearly cashflow, goals, income, personal situation, etc.

As has been suggested, first talk to a broker to see what suits your requirements and how would the next few purchases look like at 5% yields. Then start buying in the areas you like.

Regards
Ashish

 

Hi Ashish thanks fir the feedback, If 5% yields is satisfactory for servicing, what postcodes may you suggest please. I am open to anywhere with growth potential. Many thanks

 

Unfortunately, ALL properties will ruin your borrowing capacity. I've yet to see a single property that had a positive effect on a servicing calculator. In reality, you need a yield of 10% + on your properties in conjunction with a lender who won't then deem you rental reliant.

Fact is, as an investor your pool of available funds to borrow is limited, which means asset selection is paramount so you don't have non-performers in your portfolio taking up valuable borrowing capacity.

Exit strategy is also super important, because if you want to keep growing you're going to need to systematically reduce debt as you go - over and above paying down loans from your income. This is where property strategy comes in - you might need to buy small dev blocks to partially sell off, for eg.

A good broker will be able to help you expand using certain lenders, but this is not for everyone as there is additional risk which many are not comfortable with.

 

Thanks for the insight Jessica, yes all properties will but some more than otters I guess. I’m just hoping to make the right moves on the chess board for my circumstances. My broker is reasonable but also has a buyers agent attached so they won’t me to go down that path. Trouble is it’s 13k for the service which will eat a lot into my capital. Think I’m capable of looking around on realestate.com and chatting to agents but probably need my hand held slightly during the process. We got lucky with out PPOR and bought April last year in Bronte Sydney, a Semi detached house during the 1st COVID lockdown at a discount. But that was then and now it’s a lot harder.

 

The right moves are incredibly important. If a broker is rate focussed, or just focused on the immediate transaction it can really stuff things up down the track and cost you a fortune in lost tax deductions, high fees, and lost time. If you're current broker won't help you with this unless you use their BA, you're probably best off finding a different broker.

 

Thanks for that appreciated, would you happen to know a particular State I should be focussing on or any areas. Ideally I'd like to invest in Western Sydney, but not sure If there would be opportunities in my price range. Then there is SE QLD or even WA but as you said the next move is incredibly important & I'd like to get it right at all costs. I bought in Broadmeadows Melbourne in 2017 and have seen some nice growth there but my Waterford West (Logan) probably set me back some what & I'd like to avoid that again.

 

If you need location advice that's a BA's role We focus more on using your resources in the best possible way to grow your portfolio as quickly, easily and cost effectively as possible.

However we do give our clients a step-by-step template to help them with their DD so they can short-cut the research process as much as possible. Actually, we give them a full investor 101 program.

 

Yes it paid off now, took a bit of a gamble but it was too good of an opportunity to pass up. Now to find the next opportunity.