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Strategy

Discussion in 'General Property Chat' started by joel, 8th Jul, 2015.

  1. joel

    joel Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    783
    Location:
    Adelaide
    I love drawing inspiration from you guys. So tell me, what is your strategy?

    I'm 24 and saving for my first place. I live in Adelaide and plan on buying here. But I'm not sure which path I should take. So many options:

    House or Unit?
    Subdivide? Battle axe block or demolish?
    Renovate?
    Build?
    Nice suburb or average suburb?

    I was thinking of a house on >600sqm around Ingle Farm for the most flexibility, including cashflow. Target price 250k. I don't earn heaps so I'd probably get family (tilers and landscapers ;)) to help do the place up while I live in it. Then rent it out and use the equity to buy again (finance permitting).

    I'm not sure if I'd have the $$ to value add too much. I earn about $65k and am casual.

    So I guess my question is, what is your strategy, and what would you do if you were me?
     
  2. Jingo

    Jingo Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    94
    Location:
    Melbourne
    Congratulations on starting your foray into property at a young age. I think your plan to start with the property you outlined in your post is a sound idea.

    I'd then set up an offset account and stash cash into it. Once you have equity in the property I'd draw it up and buy an investment property, possibly in a high growth area to generate equity more quickly.
     
  3. joel

    joel Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    783
    Location:
    Adelaide
    Yep that's pretty much the plan! Except high growth usually means low yield, and with my low(ish) income that'd bring my investing train to a halt. I guess it also depends on lending policies at the time..
     
  4. Hodor

    Hodor Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    742
    Location:
    Homeless
    Hey, sounds like you're in a great position - young and motivated. I believe keeping things simple and not overextending on a single property are great ways to go.

    FYI I got my first property when I.was.earning less than you. Never got my act together so young.

    I wrote out my thoughts and strategy at the link below if you're interested
    https://propertychat.com.au/community/threads/my-simple-story.909/

    Good luck,lots of experienced people here to help get you off to a flying start.
     
    joel likes this.