Another Newbie gatecrashes...

Hi
Sounds like you are on track in your property journey.
You did mention using a broker on this site.... Can you tell me who is a broker(s) - I am looking for one. Cheers and all the best
 
Hi
Sounds like you are on track in your property journey.
You did mention using a broker on this site.... Can you tell me who is a broker(s) - I am looking for one. Cheers and all the best

Hi Lucy,

I've just emailed you. Please let me know if you don't receive my email.

Thanks,
A
 
I have another question. Given my age and the Sydney market, do you think it'd be feasible to begin looking for another IP as soon as possible? Within a year of my first IP? Perhaps I'll have a chat to my mortgage broker about this further.

The usual answer: depends, but it's possible. Depends on your serviceability, how much of the existing IP's rent the bank considers to be income, how fast you can save another deposit. These are all either finance related (talk to your mortgage broker) or depend on you (how much you can save).
 
Doesn't an IP have the same costs? An IP may in some circumstances also have land tax.

I was referring to owning your own home vs renting a home. As a renter you are not directly responsible for these costs, and if the landlord decides to pass it onto you, you can always leave or negotiate a better deal.
 
Ok, I see what you're saying.

But if you are renting so that you can invest in property, you will have the same costs of ownership owning the IP or the house you live in.
 
But if you are renting so that you can invest in property, you will have the same costs of ownership owning the IP or the house you live in.

However, the same costs in an IP are tax deductible, and for a PPOR it's not.

If you compared only renting one place and buying one IP, the numbers are probably more even. If you compare renting a series of places (if the flexibility is valuable to you, such as if you moved cities for work), and compare it to buying multiple IPs, then renting and buying IPs wins, in my opinion.
 
I think the owning a PPOR vs renting a place to live in is as much psychological , however I've met many people ( including ourselves) who have made significant profit by owning , renovating and building PPOR's . Maybe we would have made more if we'd bought IP's earlier , but personally I like the security of owning a PPOR . It is CGT free , and the mortgage payments don't go up the way rent does over time .

You are in a good position .

The one question I'd ask is why Sydney ? It has moved significantly , some places more than others .

If you've read every post over the last few months , you would have read people's thoughts on other cities which many on the forum ( as well as property pundits ) believe will do well in the next year .

Cliff
 
I think the owning a PPOR vs renting a place to live in is as much psychological , however I've met many people ( including ourselves) who have made significant profit by owning , renovating and building PPOR's . Maybe we would have made more if we'd bought IP's earlier , but personally I like the security of owning a PPOR . It is CGT free , and the mortgage payments don't go up the way rent does over time .

You are in a good position .

The one question I'd ask is why Sydney ? It has moved significantly , some places more than others .

If you've read every post over the last few months , you would have read people's thoughts on other cities which many on the forum ( as well as property pundits ) believe will do well in the next year .

Cliff

Hi Cliff,

Thanks for your message.

The reason I chose Sydney is because investing is all very new to me. Perhaps it's that fear of the unknown, but right now, I would prefer to buy my first IP in an area that I know reasonably well, that has grown significantly and that I can see physically. Also, just getting used to PMs and solicitors, etc. You're right in that Sydney has moved, but there are a couple of areas that I feel are still reasonably priced compared to surrounding suburbs.

The other reason I like Sydney is that it has always been a consistent and reliable performer with strong growth, which is important, especially for a newbie like myself. A lot people on this forum say that getting it right the first time is important for the long-term.

Although I have an attachment to Melbourne, indeed, I spent over 28 years of my life in Melbourne, the stats (i.e. rental yields, growth) just aren't strong enough for me to buy compared to Sydney.

Once I purchase my first IP, I know I'll become much more confident in what to look out for. Even be happy to fly to out to QLD or SA, or regional areas, to buy a property or two if the numbers added up. I just wanted to start off small and target an area I have done some research (SW Sydney). But I am looking at expanding my portfolio across several cities over the coming years, don't you worry :D

Hope this answers your question :)
 
Hi Cliff,

Thanks for your message.

The reason I chose Sydney is because investing is all very new to me. Perhaps it's that fear of the unknown, but right now, I would prefer to buy my first IP in an area that I know reasonably well, that has grown significantly and that I can see physically. Also, just getting used to PMs and solicitors, etc. You're right in that Sydney has moved, but there are a couple of areas that I feel are still reasonably priced compared to surrounding suburbs.

The other reason I like Sydney is that it has always been a consistent and reliable performer with strong growth, which is important, especially for a newbie like myself. A lot people on this forum say that getting it right the first time is important for the long-term.

Although I have an attachment to Melbourne, indeed, I spent over 28 years of my life in Melbourne, the stats (i.e. rental yields, growth) just aren't strong enough for me to buy compared to Sydney.

Once I purchase my first IP, I know I'll become much more confident in what to look out for. Even be happy to fly to out to QLD or SA, or regional areas, to buy a property or two if the numbers added up. I just wanted to start off small and target an area I have done some research (SW Sydney). But I am looking at expanding my portfolio across several cities over the coming years, don't you worry :D

Hope this answers your question :)

Few questions...

Had growth, do you think it will continue to grow?

If so do you think it will be the best performing place to buy?

What does seeing the property do for you? Once a tenant is in there you can't walk through it everyday? Driving by the same house isn't that interesting.

As for Sydney's growth you say constant growth care to share? My understanding is that it had decent periods of flat growth then sharp increases?
 
I was about 6 months away from buying a PPOR in Melbourne (first property) and this thread has made me question that idea. If I'm enjoying where I'm renting now should I continue living here instead and pour my money into a Brisbane IP for example? Long term goal is a decent amount of passive income (maybe 50k to 100k within 30 years?).

Also can anyone point me to a trusty source (book?) for someone that wants to scrub up on property investing very quickly. Have only read one Lomas book so far which I did find helpful.

Sorry for the hijack.
 
Few questions...

Had growth, do you think it will continue to grow?

If so do you think it will be the best performing place to buy?

What does seeing the property do for you? Once a tenant is in there you can't walk through it everyday? Driving by the same house isn't that interesting.

As for Sydney's growth you say constant growth care to share? My understanding is that it had decent periods of flat growth then sharp increases?

Hi Brady,

Had growth, do you think it will continue to grow?
If so do you think it will be the best performing place to buy?

I'm just starting out, so I can only go by what I've read here and elsewhere over the years. Of course I couldn't say with 100% certainty, but my feeling is that Sydney will continue to grow. I know there will be flat periods but I think as a long-term investment (10+ years) Sydney is a good choice for me right now.

I don't know if it's the best performing place to buy - not sure any one city would be the best performing place to buy in the long-term. My short to long-term approach would be to invest in multiple cities (in different areas).

What does seeing the property do for you? Once a tenant is in there you can't walk through it everyday? Driving by the same house isn't that interesting.

Property is something I've been interested in for a number of years, but only really started taking it seriously last year. Owning a property - even though I don't live in it, would still give me a sense that I've begun actioning my investment plan. There's a sense of achievement in finally accomplishing a lifelong goal, too. Perhaps it's also a step closer to financial security, but I also feel like it's a challenge. There is a lot that needs to be taken into account and I know I'll make mistakes along the way, but I'm wanting to learn as much as I can.


As for Sydney's growth you say constant growth care to share? My understanding is that it had decent periods of flat growth then sharp increases?

When I say constant growth, I mean decent periods of flat growth/sharp increases, as you say. Still learning the terminology. ;) Despite the flat periods, in the long-term, Sydney has grown; some areas more than others. I think the figure last year was up to 14% growth for some areas? For example, Mt Druitt and some of the cheaper suburbs have just been insane.

My plan at this stage is to buy in one of the cheaper suburbs of Sydney (Fairfield, Liverpool, Warwick Farm, etc), but I'm very happy for you to let me know your thoughts and discuss.

I'm still learning and welcome as much feedback as I can get...:D
 
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I was about 6 months away from buying a PPOR in Melbourne (first property) and this thread has made me question that idea. If I'm enjoying where I'm renting now should I continue living here instead and pour my money into a Brisbane IP for example? Long term goal is a decent amount of passive income (maybe 50k to 100k within 30 years?).

Also can anyone point me to a trusty source (book?) for someone that wants to scrub up on property investing very quickly. Have only read one Lomas book so far which I did find helpful.

Sorry for the hijack.

Hi Rizzle,

I'm happy to hear this thread has helped you. I've found so many threads at SS helpful. There's a couple of threads here on Brisbane and QLD, perhaps have a look over them to help you decide about your IP decision? If you are interested in a particular suburb, I would type the suburb name in the search function and then you can read what other people have said about it.

To answer your question, I recently just bought 'Property Investing for Dummies', so I'd recommend that but I hear that the Jan Somers book is really good, too. I'll get around to reading that one too.

All the best and keep us updated...

A
 
I was about 6 months away from buying a PPOR in Melbourne (first property) and this thread has made me question that idea. If I'm enjoying where I'm renting now should I continue living here instead and pour my money into a Brisbane IP for example? Long term goal is a decent amount of passive income (maybe 50k to 100k within 30 years?).

Also can anyone point me to a trusty source (book?) for someone that wants to scrub up on property investing very quickly. Have only read one Lomas book so far which I did find helpful.

Sorry for the hijack.

---
Hi Rizzle,

Rather than buy a book try the "Blogs" section of the forum first and also try reading the interviews. It is an invaluable resource of peoples experiences and methodology. It takes some reading though.
 
Yes consider renting and investing at the same time as long as you rent for a cheap price.

Yeah this is right. I have a few properties but it wouldn't actually make sense for me to live in them, because I'm renting a great townhouse for $390 a week (worth about $500p/w).

Sometimes I wish the market would collapse so it makes it economically feasible for me to live in my own house:) But right now the renting+IP has been the most optimal strategy for me. Glad to hear it's actually a valid strategy that others employ too...I thought I was the only one!
 
Sometimes I wish the market would collapse...

No need to wish... Somewhere the property market is at its bottom. Towns that relied on mining -- or at least enjoyed the mining boom -- now have vacant properties and significantly reduced prices. Not all these places are in the middle of nowhere, some are close to capital cities, others like Broken Hill are major regional cities in themselves.

Whilst you might not want these as PPoR, it's feasible to buy well, hold for a few years for things to pick up then sell to generate more cash for yourself. They always pick up, unless the town specialised on a technology that's become obsolete like asbestos, or the town relied on industry infrastructure that has moved -- think BHP at Newcastle, which has spend the last 20-odd years re-inventing itself and is now as desirable (and priced) similar to Sydney.

I've been looking at a few places that enjoyed the mining boom. Lots of houses in new estates out of town that previously rented for $600 a week are empty, and their investor owners that over-paid are all now bleeding cash. All the other reasonably priced, existing properties closer to or in town that rent for $300 a week are in demand and prices are holding up well or increasing.

It pays to buy at or near the bottom, and to have patience.
 
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