Hi, I've been reading this forum for years now and am finally in a position to invest so would like some advice as I have two ideas and am unsure which one I should go with or some other idea.
Goal: To set myself up to purchase a second IP in 12 to 18 months.
(Budget $350-380k)
Idea 1: Buy a slightly run down house in Bacchus Marsh and renovate it whilst maintaining it as my PPOR for 1 year, then convert to IP.
Save approx. 11k in stamp duty as first home, no LMI, plus can rent a few rooms to friends to help cover some costs (Although that may affect GCT ect.)
Possible property - http://www.realestate.com.au/property-house-vic-bacchus+marsh-118506975
(Budget $390-440k)
Idea 2: Buy a slightly run down house in the northern suburbs (Reservoir, Bundoora, Greensborough, ect.) Spend 2 months fixing place up to a good enough standard to rent. Although very few properties can be found in this price range in a lot of those suburbs. Plus don't get stamp duty savings and have to pay LMI.
Any thoughts would be greatly appreciated. Thanks
Goal: To set myself up to purchase a second IP in 12 to 18 months.
(Budget $350-380k)
Idea 1: Buy a slightly run down house in Bacchus Marsh and renovate it whilst maintaining it as my PPOR for 1 year, then convert to IP.
Save approx. 11k in stamp duty as first home, no LMI, plus can rent a few rooms to friends to help cover some costs (Although that may affect GCT ect.)
Possible property - http://www.realestate.com.au/property-house-vic-bacchus+marsh-118506975
(Budget $390-440k)
Idea 2: Buy a slightly run down house in the northern suburbs (Reservoir, Bundoora, Greensborough, ect.) Spend 2 months fixing place up to a good enough standard to rent. Although very few properties can be found in this price range in a lot of those suburbs. Plus don't get stamp duty savings and have to pay LMI.
Any thoughts would be greatly appreciated. Thanks