All Aboard!!

C

Compleks

This thread will be departing shortly. Stopping at all stations and then terminating at my first Investment Property.
That's the plan anyway...

I'm going to use this thread to keep track of each step I take in buying my first investment property (fingers crossed).
Hopefully you can help keep me on the right course, as this will be my first property and it's all very foreign to me.

Maybe this will come in handy one day to someone else looking to buy their first property. At the very least it should keep me accountable and on the right track.

Sooo, please come along for the ride! I'm going to need all the instruction I can get.

_________
**Edit.
26 years old. Debt free. Earning $63k a year. $60K in savings. Buying in Vic.
 
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First stop, Mortgage Broker!?

Rolf and PT_Bear seem to be the specialists in this area. Both have been more than generous in advising me on this forum.

The only thing separating the two is the fact that PTs office is in Melbourne, which is convenient for me. Though I'm not sure how necessary any face to face time is?

I guess I can't go wrong either way.
Any recommendations from members here??
 
Both Rolf and Peter are very knowledgable and great resources.

The obvious solution is to take them both to Bartertown and lock them in a giant cage... 2 men enter, 1 man leaves.
 
Face time isn't necessary. You just have to make sure the mortgage broker understands the process for the state you want to buy in. Each state has a different buying process. Experienced brokers will handle purchases for multiple states.

I noticed, Compleks, that you did not specify which state you're looking in. This is an important thing to tell the mortgage broker.
 
Compleks - congrats - this sounds like a really good way of working through the process, and ensuring a good outcome.

the only benefit of same city mortgage broker - is when document signing is coming down to the wire - you dont have to add on "a day here/a day there" to sign the documents.
 
Like a couple of the other guys have stated, I also don't think face time is necessary. I live in brissy and my mortgage broker is in Sunny Tasmania :p
 
Ed Barton said:
Got a lawyer picked out?

edit - is this going to be a long trip? If so I want a sleeper cabin.
Click to expand...
Cattle class only. It's going to get awfully snug, and once you're on there is no getting off!

No Lawyer yet. I figured I probably wont need one until I start making offers on properties?

I'll make a few phone calls tomorrow for brokerage!
 
DaveMSydney said:
Both Rolf and Peter are very knowledgable and great resources.

The obvious solution is to take them both to Bartertown and lock them in a giant cage... 2 men enter, 1 man leaves.
Click to expand...

That would be kind of amusing given that Rolf and I (and may of the other brokers here) collaborate all the time. I imagine that if we went at it like that our respective wives would smack both of us around the ears then go out for coffee together...
 
Compleks said:
No Lawyer yet. I figured I probably wont need one until I start making offers on properties?

I'll make a few phone calls tomorrow for brokerage!
Click to expand...

You can make an offer, the agent calls you back, bit of to-ing and fro-ing, and you have an agreement at the end of the day.

It's a good idea to speak to the lawyer first and confirm how much they charge to review contracts, say, and what information they require. Also a good idea to know which building and pest inspector you're going to use and have a backup in case they're busy.

Better to be prepared in advance.
 
I would like to give you some advice to listen to you own instinct when it comes to purchasing property. It's all well and good to consider the advice of others but bear in mind that other people on this forum have not put in the same research that you have.

Last year I was advised against buying a property that I wanted to buy. I listened too hard and the doubt put me off buying the property. This year (unable to forget my idea of the last property) I purchased one almost exactly the same but it cost me an extra $90,000!! My short term rental idea, in a saturated market as people pointed out last year, is doing REALLY well a few months in. Basically if I had followed my gut last year I'd have saved my family the interest on $90,000.

All I'm saying is ask for advice and learn from the experiences of others sure, but try not to base your decisions on it because you could end up regretting it!

May the force be with you :)
 
You should trust your gut more on purchases, but take advice on the buying PROCESS from more experienced people.

e.g. if a more experienced investor says 'stay away from this area', they might not be right and you might be better off trusting your gut. However, if a more experienced investor says 'you need to speak to a mortgage broker, solicitor and get inspectors lined up BEFORE you make an offer', you should listen.

All of the advice to Compleks has been around the mechanics of the buying process, where experience does matter.
 
Thanks guys, I appreciate all the assistance so far.

Meeting with the broker today and will keep this thread updated as I go along.

On the flip side though, I could go with my gut against what the experienced investors advise and fail miserably. That would probably be considerably more painful!
Either way I'll be sure to do all my homework before making any serious decisions!

Cheers ladies and gents.
 
Rightio!

I know you guys said face time isn't necessary, but I thought it would be beneficial for me to actually meet with my broker. Also, being from the same city I thought would have it's advantages in terms of information and other connections down the track.

Anyways... I met with Peter (aka PT_Bear) yesterday and left feeling pretty comfortable with the whole process. He walked me through, step by step, the entire process from borrowing to settlement.
My situation is pretty straight forward. Peter doesn't think there will be any issues when it comes to borrowing. A quick appraisal had some banks willing to lend up to $500k, which is a pretty scary thought.
I was thinking around $300k would be a comfortable loan for my first property. Even without tenants I could make the repayments, though obviously not ideal.

(I'm still tossing up what sort of loan structure to use though. But that's something I need to figure out)

In conclusion. If you're in Melbourne looking for a broker, go and see Peter!


Now it's a matter of researching areas and getting out and seeing what is available!
Next stop... realestate.com.au
Buckle up.
 
Ed Barton said:
How are you going to choose areas?
Click to expand...

I've devised a system which I think will work. It involves a map of melbourne and a dart...

Really though, I'm not sure.
I'm thinking of 2 bedroom units/townhouses at $300k. Something with a bit of land but hopefully not too far from the city.
To be honest, I have no idea yet. Lots of time on real-estate.com and researching/reading around here.
 
2 BR, close to Melbourne around $300k...

It's possible, but very tricky. Perhaps some of the outer Western to Northern suburbs? (Not what I'd call close to Melbourne though).

I'd be looking at some of the regional hubs.
 
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PT_Bear said:
2 BR, close to Melbourne around $300k...

It's possible, but very tricky. Perhaps some of the outer Western to Northern suburbs? (Not what I'd call close to Melbourne though).
Click to expand...

Definitely won't find an apartment in inner city Melbourne with that criteria.

In my opinion, I would have a look at whether you can afford to increase your budget to $400k to expand your options.
 
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