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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
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.
Doesn't an IP have the same costs? An IP may in some circumstances also have land tax.
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.
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
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.
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.
Yes consider renting and investing at the same time as long as you rent for a cheap price.
Sometimes I wish the market would collapse...