Hi all, Keen to get your thoughts on my investment strategy below. My girlfriend and I are keen to get dip our toes into the property market and looking for investment properties with decent rental returns. We have a goal of buy 2 investment properties, within the next 18 months. Any advice would be welcomed, we are new to property and have not had much exposure to it apart from some research we have done within the last week. Current situation: · 300k savings · Couple (Mid 20s) · Combined income $350k p.a · Currently both living at home, with no dependents Strategy 1: 1. Purchase off the plan property ~$600k · Buy now (2021), settlement in 2022 onwards · Taking advantage of First Home Owners Grant + First Home Buyer Assistance scheme · Living in it for a 6 months and converting it into an investment property · Lose out on 6 months’ rent and CGT will be higher when we sell (since no stamp duty), but offset by savings in stamp duty + first home owners grant 2. Purchase a second investment property $600k - $650k · Buy investment property this year - 2021 · Spend $50k on immediate renovations · Thinking of buying a place in a coastal town / Blue Mountains and putting in on AirBnb (we plan to use it for personal use as well) Strategy 2: 1. Purchase an owner occupied property for $600k in 2021 · Take advantage of First Home Buy Assistance scheme only (as it wouldn’t be brand new) · Spend 6 months as owner occupied · Post 6 months convert to investment property, do $50k on renovations (so the work is tax deductible) · Thinking of buying a place in a coastal town and putting in on AirBnb (we plan to use it for personal use as well) · Lose out on 6 months’ rent and CGT will be higher when we sell (since no stamp duty), but offset by savings in stamp duty 2. Purchase an investment for $600k - $650k in 2022 · Either get tenants or airbnb Thanks
Definitely wouldn't do this strategy personally, just have a search of Off the Plan property on here, so many nightmare stories should be enough to turn you off the idea, hopefully
If I had $300k, and access to $350k income. I wouldn’t do either of these. I’d personally split the $300k into 2x deposits and get pre-approved for a couple of properties at 85% lend (let’s say around $800k each + stamps & LMI) then go and buy the best quality blocks with exisiting house’s I could in A grade suburbs as close to CBD, beach, or lifestyle amenities as possible.
where will you live when you turn these purchases into investment properties? Will you really want to live with your parents for ever?
