Want to start my IP journey

Hello all,
I live in Sydney. I have never been a property investor and want to start very soon. My objective is to generate a passive income through property investing which could replace my income in the next 10-15 years. I have been lazy all this while not doing anything with the money accumulating in my account and on top of that, paying a lot of income tax. My current financial and employment situation allows me to make a start now.

I am new to this forum and have been following it for a couple of months (the same amount of time I have spent learning about property investing). I attended a couple of seminars which ended in a sales pitch so I ran away. Based on the advice on this forum, I read a couple of books by Margaret Lomas (they are good), started following blogs/podcasts by a few popular property advisers like ML, MY, Ben K. etc. I think I will continue reading more books by different authors and magazines to get different perspectives.

I'm realising that there is so much to learn and a lot of actors involved in the property purchasing process. Still trying to understand the various strategies used by investors and which one suits my situation. I do not have too much time at hand to get into renovations etc. at least not to start with. Also, it appears that structuring the loans and finance is a major and important piece to the puzzle and it is important to get it right the first time.

Is there a structure to the property investment & learning process which I should follow? Who all would I will need to make a start (broker, lawyer, solicitor etc.)?

Also, I'm not sure whether to go for a PPoR or IP to start with. I'm not an emotional purchaser and do not necessarily want to live in my 'own home', at least immediately and want to make a financial decision. Any pointers please.

Hoping to learn from you all and would try my best to contribute to this forum.
Cheers

 

Welcome to the forum!

A broker is the best place to start, so they can identify and quirks in your scenario and help you plan a way forward. You'll need a solicitor when you buy, and possibly sooner if there's a requirement for asset protection or similar. You'll also need a decent accountant when the time comes as well.

Sometimes just running your ideas past someone can help clarify the OO/IP dilemma - Sydney is at it's peak right now so you need to consider that in the equation also. The first home grants may not be worth it in the big scheme of things, especially if you're otherwise looking outside of Sydney to buy.

 

Outside of Sydney also seems expensive to me

I remember when one could buy a decent property under 300K in Western Syd. I know with the time everything is going up but it is just a shock when I see a townhouse with $549K - $579K price range on top of that strata payments.

 

@Newfast - where are you considering?

 

Hi @Property Twins - I was considering Leppington but the way property market is ATM everything is on hold. May look down the track.

 

I'm thinking Melbourne. Based on whatever research I have done till now, Melbourne seems promising due to the huge overseas and internal migration. I know it has had a bull run but there should still be scope till it becomes the second Sydney. Prices in Sydney are just crazy. Some suburbs up north in the Hume region, West in Werribee region & some in South East seem to be affordable and good for investment due to the infrastructure and direct access to CBD by train. I know I should not generalise but I plan to look in these regions.
I'm just a bit concerned buying interstate because I do not have experience as this would be my first IP.

 

Exactly right, I might be able to afford two IPs elsewhere for the price of one OO in Sydney right now. I think in the long term property prices would not go down but I'm thinking that if I get some equity through investment, I might be in a better position to buy one to live in the future. Right now if I put my savings into OO, I will have to wait for long before I can think of investing.