Advice for buying first IP

[Genal]

Hi All,

I'm in my early 30s and in a decent paying 6 figure job and currently house sharing in Sydney.

I've about 30K in savings so far, and will be able to increase that to 50K in the next half a year or so.

I'm thinking of buying IPs to invest my money, but don't know where to start. I hope you guys can share some of your wisdom

1) Assuming I have 50K, am I better off to buy TWO cheaper properties around the 200K mark, or buy ONE more expensive property?
2) As a first time IP buyer, is it better to buy in Sydney where it's more expensive but I can physically visit regularly, or would it make more sense to buy interstate that has the higher potential
3) Does anyone have any good resources on how or where I can start researching into property prices and yields etc?

Many thanks!

 

[albanga]

Hi Genal,
Welcome to SS.

1 - Have you got any kind of strategy? Why are you investing in property? What are your goals? Timeline? You first need to answer this question because this will guide you on what and how many properties you will buy. Given your high salary then you have options. You can likely afford to be a passive investor and buy blue chip for growth as you will be able to afford the negative cashflow.

2 - Refer to point1. Your goals will also dictate where you can and should buy. If you want cashflow properties then you are not going to be finding them anywhere close to where you can visit. But to further answer your questions then absolutely not, you buy for a reason and pay for someone else to manage it. yeah you might be handy and can fix a fence to save a few hundred but buying because of this is now necessarily wise.

3 - very cliche but right here is education central!

 

[Jamie M]

Hi Genal

Welcome aboard

1. It's really up to you. Work out what your goals and strategy first.

2. Not neccesary. Some people take comfort in purchasing close to home - some have no issues with purchasing interstate, sight unseen. Personally - I usually purchase closer to home. I know the market quite well - I know what a good deal looks like. Importantly - I've got a good network of tradespeople.

3. There's a sticky thread on recommended reading. I'd get a hold of a few books to learn the fundamentals. Continue visiting this site too - it's full of up-to-date information from a range of investors/professionals.

Cheers

Jamie

 

[DoAndroidsDream]

Hi Genal,

Some good advice here. I understand you may want to get started as soon as possible but take the next 3-6 months to read as much as you can here. I recently bought Achieving Property Success by Margaret Lomas and highly recommend it.

Regarding where to buy, think about what you'd like to achieve first, then do your research. For example if you buy a negative cash flow property it may impact on how quickly you buy your second property but you'll obviously want growth too.

Don't be limited to Sydney just because you live there. You may need to look interstate for great deals.

 

[Redom]

Hi All,

I'm in my early 30s and in a decent paying 6 figure job and currently house sharing in Sydney.

I've about 30K in savings so far, and will be able to increase that to 50K in the next half a year or so.

I'm thinking of buying IPs to invest my money, but don't know where to start. I hope you guys can share some of your wisdom

1) Assuming I have 50K, am I better off to buy TWO cheaper properties around the 200K mark, or buy ONE more expensive property?
2) As a first time IP buyer, is it better to buy in Sydney where it's more expensive but I can physically visit regularly, or would it make more sense to buy interstate that has the higher potential
3) Does anyone have any good resources on how or where I can start researching into property prices and yields etc?

Many thanks!

Heya,

Good position to be in. Your education begins here - very current and useful information.

I like the idea of building a plan - this starts with setting goals and then mapping out a path to achieve them.

With your healthy income, your in a very good position to get started.

In terms of buying; two cheapies allows you to diversify in two different locations - but one more expensive property may get you something more attractive in terms of CG potential. So there may be a bit of a trade-off. If you're swaying to two cheapies, perhaps take a look at Adelaide. Reasonable guestimating of the market cycle suggests its ripe for some solid returns over the medium term, whereas Sydney may have already had its run. Also <300k there will get you something half decent with a great yield.

Good luck!
Redom

 

[knightm]

Hi All,

I'm in my early 30s and in a decent paying 6 figure job and currently house sharing in Sydney.

I've about 30K in savings so far, and will be able to increase that to 50K in the next half a year or so.

I'm thinking of buying IPs to invest my money, but don't know where to start. I hope you guys can share some of your wisdom

1) Assuming I have 50K, am I better off to buy TWO cheaper properties around the 200K mark, or buy ONE more expensive property?
2) As a first time IP buyer, is it better to buy in Sydney where it's more expensive but I can physically visit regularly, or would it make more sense to buy interstate that has the higher potential
3) Does anyone have any good resources on how or where I can start researching into property prices and yields etc?

Many thanks!

1) Short answer - it depends. Buying 2 spreads risk but you don't want to buy rubbish out the back of nowhere either - thankfully there are plenty of decent options in serious regional locations with good growth prospects
2) Visiting regularly is not a big deal in my book. You should buy based on the numbers. This may or may not mean interstate.
3) SS is the best tool there is but If you want a toolkit with 5 free web tools (with an explanation of how to use them) designed to measure the various aspects of supply and demand, have a look at the website linked in my signature below and while you are looking around click the green button. Its free.

The above post by Albanga was true you need to do some thinking about your goals. Everything should fit those.

 

[zimmer]

Hi Genal



3. There's a sticky thread on recommended reading. I'd get a hold of a few books to learn the fundamentals. Continue visiting this site too - it's full of up-to-date information from a range of investors/professionals.

Cheers

Jamie

Jamie would you mind sharing the link to this sticky if you happen to know where it is? I have had a search around and can't seem to find it :/

Unless your referring to this thread from 4 years ago ?

http://somersoft.com/forums/showthread.php?t=59155&highlight=recommended+reading