Youngish Property Investor from Adelaide

Hi All,
Thought it was about time to sign up and say hello after spending a lot of time researching posts on property chat.

A bit about me:
I'm a 27 year old Underground Mine Surveyor working Fly-in / Fly-out in outback SA for the last 6 years. Based in the Adelaide Hills when not working. Strong interest in investing & property but mainly been competing in Car Rallying as a driver & team owner for the past 10 years...a very rewarding but expensive sport. Its to the point where taking a step back to use money to invest and get ahead financially is the best option. Maybe return to it once there is some spare money..

Property journey so far:
While boarding with parents managed to purchase 1st IP, a 1 year old 4/2/2 in Seaford Rise at the end of 2013. I was very lucky that parents were willing to go guarantor, hence managed to purchase with 5k deposit. The lending structure was a bit messy with bridging loans and high monthly repayments. Despite this and it being very negatively geared..I got my foot in the door.

End of 2016, refinanced to remove parents from the equation, LVR just under 80% and property is neutrally geared.

Shorter term future plan:
Reducing personal debt, saving and refinancing to release equity by the end of the year to look into purchasing the next IP.

Looking to go down the buy and renovate pathway. I have been to one of Cherie Barbers free seminars, been speaking to Andrew Farnden at Elders Realestate about his Reno strategy. Although initially thinking the Buy, Reno and Rent was the best way, with the slower Adelaide market hope to speed up the process to create short term cashflow by flipping properties. That way can keep releasing the initial equity and not "snooker" myself due to not creating enough post reno equity to use as next deposit.

Looking at older units near to Adelaide CBD, but also houses in the Southern Suburbs along transport routes such as the Reynella through to Noarlunga type area. Most seem to be growing in demand and DSR scores.

Longer Term Plan (Adelaide & Brisbane)
Once in a better cash flow position would look to the Brisbane Market and maybe select Adelaide areas for Buy-(maybe Reno)-Rent, as neutrally geared as possible with long term CG.

Had several friends move from Adelaide to Brisbane so have done a bit of "on foot" research. Have been researching since buying the first IP, watching the rise of Gold Coast areas, just to name one.
Areas of interest around the sub 400k budget:
- Moreton Bay (Strathpine to Deception Bay), with good Brisbane CBD transport , Northlakes / Petrie Uni in the next few years, plus the changing MBRC development regulations if can score a property with development potential to use when the time is right.
-Logan, eg Slacks Creek etc. Although haven't been through them yet looks good value for money if picking the right area, hopefully will lose some of the lower socioeconomic name over time.
- Port Noarlunga / Old Seaford SA properties to reno and hold with development potential when the time is right.

Anywho, enough about my plans.. (sorry if it was long winded)
I'm looking forward to learning as much as possible, hearing everyone's thoughts, but also networking and creating contacts with like minded property people. Would love to attend some of the Adelaide & Brisbane catch ups if you guys & gals still do them!

 

The Southern areas are full of opportunity,cant comment too much on the reno stuff because i don't do them,maybe also look at sub dividing properties within the Onkaparinga Development plan;there are some good sleeper buys around which do not actually ever get to open market.

 

Hi James

Quite a detailed plan you got there, I'm sure you'll do great. Feel free to ask anything about either city in the existing threads in the Where To Buy section

Cheers
Dave

 

Great introduction, love when a new member pops in with some goals and aspirations!

I'm particularly partial to your South East Queensland plans You're more than welcome to get in touch if you have any questions.

Most importantly though, pics of the rally car mate!

 

welcome to PC @James Rodda,

that is a well thought plan you have there. great start.

lots of experienced investors here on PC. ask Qs, most ppl here are happy to help.

 

Thanks James, it is definitely an option I'm looking down. Seems to be plenty of subdivision & townhouse developments happening in the Christies Beach, Port Noarlunga & original Seaford area. Need to start networking with agents in these areas to get notified of these off market deals I guess.

Thanks @D.T. I'm sure the plan might change a bit as I put research & learning into practice. I have read you need to have a decent strategy and end goal in mind first, rather than going at it blind. I have seen on other threads that yourself and @Corey Batt have had some success with the buy - reno - hold pathway in Adelaide? Wondered if you have ever attempted shorter term buy - reno - sell for profit?

Thanks @Tom Rivera. Always have been pretty goal driven. Would be great to get in touch about the South East Queensland plans. Online data analysis and research you can only tell you so much when interstate! Have skimmed the surface driving around getting a feel for some areas of interest but haven't started chatting to agents or anyone based locally yet. Will also need to build up renovation & trade contacts for when the time comes.. a bit more of a challenge trying to manage a renos from Adelaide

Haha as requested, an oldy but a goodie of the SA championship winning Subaru Wrx (now sold), and the current Mitsubishi Evo 9.

 

Stuck with the classics mate! Can't go wrong there!

 

Great journey description Welcome onboard.

 

I know them feels and have pulled back on track days as the damn thing kept breaking.

Miss the adrenaline and risk taking activities though