WA Where to build/invest

Discussion in 'Where to Buy' started by Kris Di Re, 5th Jun, 2020.

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  1. Kris Di Re

    Kris Di Re Member

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    Hey guys,

    was Just hoping to pick some gurus brains here. I’m a first time investor looking to build and take advantage of this new 25k scheme the gov has just passed.

    Was hoping someone could tell me a good suburb SOR to invest and build? I’m looking to have a budget of up to 450k but the lower the better. If I’ve missed any info you need let me know

    Also I have a place in renting now for 150pw (sisters house) so would it be best to buy and build and then rent it out or build and move into this new place.
    Cheers
    Kris
     
  2. thatbum

    thatbum Well-Known Member

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    If you had to go a new build (which I don't generally recommend for a first IP), then try and get a good infill block rather than land in one of those far flung estates with lots of competing supply.
     
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  3. Kris Di Re

    Kris Di Re Member

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    Yeah ok if that’s the case and it’s not recommended to build as a first investment would it makes sense that I invest and live where I am for 150pw rather then build and move in.

    also if I was to build where would be a good Suburb to buy some land?
     
  4. thatbum

    thatbum Well-Known Member

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    Huh? I don't see why the decision between new build versus established has anything to do with where you live yourself?

    The piece of string could be however long! Do you have any other criteria? What have you looked into so far?
     
  5. Kris Di Re

    Kris Di Re Member

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    Well Then i guess I don’t know weather the better decision/question is to stay where I am and pay low rent (150pw) and invest somewhere else or to put those funds (150pw) towards a ppor and treat it as if it’s an investment. Sorry I’m new to all this and may not be asking the right questions. Trying to learn as much as I can.


    I have looked into building which is about it. And as far as criteria goes I’m not after an appartment but that’s all I really know. I’m a bit in educated
     
  6. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    It depends if you want to use the grant or not. If you use the grant then you're supposed to live in it - though details are sketchy as to how that will be proven/governed. You could chose to rent out the other rooms to reduce your share of the cost though

    Is your total budget $450k including construction?
     
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  7. Trainee

    Trainee Well-Known Member

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    Forget the grant and figure out a plan first.
     
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  8. Flynn Investor

    Flynn Investor Member

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    Welcome! Firstly, are you hoping for a land/house package with $450,000? That’s a small amount which could leave you with limited options (out the back of nowhere on a postage sized stamp, tiny house) agree with one poster - don’t build first IP.
    You ask what’s a good suburb...? How long is a piece of string? Are you thinking house? Townhouse? Unit/apartment? What’s your borrowing capacity...? Have you spoken with a mortgage broker to see what you can do?
    Where do you live? My suggestion is to get a. Coffee/cup of tea/beer and read the threads on here. They are a fabulous source of info/help to help you understand the investing game! Maybe the first step is also figuring out what is your plan? Is it long term or short term?
    Good luck!
     
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  9. Kris Di Re

    Kris Di Re Member

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    so the more I look into it. It seems as far as investing I’m better off buying an investment property and aiming for CG and just living where I am. Rather then Building new just to take advantage of these new fhog?

    Renting out the other rooms isn’t something I’m interested in.
     
  10. Kris Di Re

    Kris Di Re Member

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    Yeah thanks for that. I think my plan is the invest in property for CG rather then build just to take advantage of this grant
     
  11. Kris Di Re

    Kris Di Re Member

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    Thanks heaps for that. That was a massively helpful reply. I guess for some reason I’ve always been lead to believe that more land is a better investment rather then less land and a newer house. I got a bit sucked into this new grant..
    I’ve alreSy started reading and I feel like I’ve learnt huge amounts already just from one thread. So I’ll keep going later tonight.
    In terms of what I want to invest in. I guess I’m more after a house with land rather then appartments or town houses
     
  12. gach2

    gach2 Well-Known Member

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    Forget the grant (it should be only considered as a bonus not a catalyst and maybe a something to tip you over the fence if your sitting on an idea)

    Were you at all interested in purchasing a property remotely prior to grants - if not consider why you are purchasing

    I don't think anywhere with a new land release will really benefit considering the increase in demand
     
  13. Kris Di Re

    Kris Di Re Member

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    yeah I was looking into investing this year regardless and the idea of this grant seemed interesting that’s all. Seems I’ll leave that idea in the past haha
     
  14. gach2

    gach2 Well-Known Member

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    Well if you were looking at investing - what were you looking at investing in? you could tweak what you were looking at investing in before but remember its for a PPOR not IP so you would need to prove that you were living there (maybe 6 months like fhog so would expect no rent for 6 months etc)
     
  15. Kris Di Re

    Kris Di Re Member

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    Basically before I was looking at staying where I am (renting) and buying an investment property worth around 400ish. my income is roughly 150k and I have 30k in the bank.
    Obviously it’s clear I need to do alot more research and go see a mortgage broker.
    Any advice would be appreciated
     
  16. Trainee

    Trainee Well-Known Member

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    Your rent is cheap and you make 8k a month. Why do you only have 30k in savings?
     
  17. Kris Di Re

    Kris Di Re Member

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    ive only just in this Last couple years decided to start putting money away. Previous to that I was spending it on cars and stupid things. Where as now I’m driven to invest and build a portfolio and cars ect are no longer a priority.
     
  18. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Go buy the latest book by the Barefoot Investor - by no means is it a bible but it will help you onto the path and with your income and low rent you should be able to save at least half your income to beef up your savings quite quickly and still have some fun money so that it's not all deprivation

    Your low deposit may hamper you from even being able to borrow $400k but you have awesome income that should help and if you can save another $15k quite quickly it will put you in a better space.
     
  19. Kris Di Re

    Kris Di Re Member

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    Funny you say that. That book is actually the book that changed my mindset with money. Was a great read. I wish I read it when I was 21 not 29.

    About 6 months ago I started and new build which I pulled out it worth 500k in treeby. I was eligible to borrow 500 max I was told by my broker. So I know my borrowing power to some extent I just would need to go see them now my position has changed as I’m currently earning slightly more now then 6 months ago.

    If I’m able to spend 400k is my best bet to invest in a property that’s good for long term CG and something I can build equity on short term?