Buying an investment property in Sydney (West)

[prad_n]

Yep. No work at all.

Will see if I can dig out the net return - will shoot him an email . He works shifts so might take a couple of days.

At those prices I guess you need a motivated seller or you would have to be a really good negotiator, am I right ?

Struggling to find anything of those prices now on RE

 

[JennD]

At those prices I guess you need a motivated seller or you would have to be a really good negotiator, am I right ?

Struggling to find anything of those prices now on RE

Definitely. He bought using Right Property Group's Victor Kumar as buyer's agent (not sure of fees though...). Don't want to appear "advertising"-y on here, but know several people (including staff members) who have done well through them.

A lot of them you need to be in the real estate offices and letting them know what you're looking for so you get notified before they hit realestate.com etc. So many properties don't even reach the online stage.

 

[JennD]

Also, I think one of the units was bought with others... in the sense that a lot of investors bought units to make up a whole block that was for sale, generating a significant discount.

 

[Cherry Pro]

Hi Prad

Suggest you first educate yourself with going to some property related meetings. Victor Kumar and the Right Group meet up fortnightly at Rosehill and it's a very good forum to start your journey. I've been to a few of those meetings and always come away with something new.

I've sent you a personal mail (pm).

Best,
Amelia

 

[JennD]

Properties in Werrington still around at sub-200k

http://www.realestate.com.au/buy/pr...ngton,+nsw+2747/list-1?source=location-search

 

[prad_n]

thanks for all the replies guys. Next step for me is to educate myself a bit more on different areas and properties and on whether it is worth it for me to go in with a buying agent or not. Will keep you posted as I go along.

Feel free to suggest things though ! Always open to new advice !

 

[jamesparnwell]

I'm a mortgage broker and I've had five clients all buy in Jordan Springs which is kinda NW of St Mary's. It's a brand new suburb next to Cranebrook. They all bought house and land packages, but they are all in a positive cash-flow situation from the day they got tenants and they made about $60k in capital growth whilst the houses were being built.

I wrote about the 5 cases in my blog, if that's helpful? http://investmentproperty-howto.com.au/jordan-springs-case-studies/

The land prices are starting to rise so they might not be as great in the future...

 

[prad_n]

I'm a mortgage broker and I've had five clients all buy in Jordan Springs which is kinda NW of St Mary's. It's a brand new suburb next to Cranebrook. They all bought house and land packages, but they are all in a positive cash-flow situation from the day they got tenants and they made about $60k in capital growth whilst the houses were being built.

I wrote about the 5 cases in my blog, if that's helpful? http://investmentproperty-howto.com.au/jordan-springs-case-studies/

The land prices are starting to rise so they might not be as great in the future...

Thanks for that jamesparnwell. Unfortunately Jordan Springs is slightly outside our budget. Ideally we are looking at sub $200k, and I understand from my research with that kind of budget we need to be looking at older style places where we could possible lift the value with a little cosmetic work.

 

[travelbug]

Thanks JennD.

My overall gameplan is exactly what you say, find a property which is hopefully postively geared which gives me the opportunity to put some equity (cash) in and/or do some reno to lift the value.

Hi, buying a property is not the game plan. That's your first move. By gameplan people mean- what is your long term goal? Why are you buying property? What do you hope to gain from it?

This is exactly the kind of strategy I am looking for, holding for between 12-24 months with a few cosmetic renos while renting for that time and then selling/using equity and hopefully helping me buy my next property.

Why? Buy one, sell one, hold one will not get you ahead in a hurry. You lose a lot of money in buy/sell. Stamp duty, solicitors costs, sell costs etc. Can draion most of the profit.

The buyers agent is $7,000 if you are thinking along those lines (Right Group) so you need to factor those costs in to the price to see if it's worthwhile.

$0 reno means it doesn't need a reno, can rent as is. Not necessarilly had a reno.

 

[prad_n]

Hi, buying a property is not the game plan. That's your first move. By gameplan people mean- what is your long term goal? Why are you buying property? What do you hope to gain from it?

The plan is to build a portfolio over time. And hopefully build equity or cash reserves to help me purchase the next IP and so on.

Why? Buy one, sell one, hold one will not get you ahead in a hurry. You lose a lot of money in buy/sell. Stamp duty, solicitors costs, sell costs etc. Can draion most of the profit.

The buyers agent is $7,000 if you are thinking along those lines (Right Group) so you need to factor those costs in to the price to see if it's worthwhile.

$0 reno means it doesn't need a reno, can rent as is. Not necessarilly had a reno

Well I am not steadfast on the buy/sell straight away. Obviously if the costs outweigh the profit then I will hold.

But the general plan is to slowly build the portoflio, and if there was a profit available after 12, 18, 24, or whatever months I will take it.

But if I still so opportunity to grow, I will hold. There is not set 1 way is the highway option with me because I think I will have to be flexible depending on the situation.

The goal is being able to build some form of equity or cash reserves to fund the next IP.

 

[devank]

I would strongly suggest you read few books and attend all free seminars. Sorry to be negative but I don't think you can make much profit in that short period of time.

 

[prad_n]

Yea thats the plan. Slowly but surely to build up my knowledge.

 

[M.Investigator]

To help you out, I'd suggest these books:
1) Rich Dad Poor Dad from Robert Kiyosaki
2) Jan Somers' books
3) Steve Mcknight's books

That's particularly if you are aiming to go for cashflow properties, which I like and specialize in myself. There are other authors too but I haven't really read them as I preferred the cashflow strategy.

 

[prad_n]

Awesome will do thanks

 

[JennD]

To help you out, I'd suggest these books:
1) Rich Dad Poor Dad from Robert Kiyosaki
2) Jan Somers' books
3) Steve Mcknight's books

That's particularly if you are aiming to go for cashflow properties, which I like and specialize in myself. There are other authors too but I haven't really read them as I preferred the cashflow strategy.

SO many people have said that RDPD is the book that started it for them!

 

[travelbug]

The plan is to build a portfolio over time. And hopefully build equity or cash reserves to help me purchase the next IP and so on.

Well I am not steadfast on the buy/sell straight away. Obviously if the costs outweigh the profit then I will hold.

But the general plan is to slowly build the portoflio, and if there was a profit available after 12, 18, 24, or whatever months I will take it.

But if I still so opportunity to grow, I will hold. There is not set 1 way is the highway option with me because I think I will have to be flexible depending on the situation.

The goal is being able to build some form of equity or cash reserves to fund the next IP.

Yes that's the idea. Use the equity to enable you to purchase the next.
If you sell each time there is an equity gain though you will never get ahead. Sure you'll have a few thousand $ and if your aim is to make small gains go ahead. I prefer to think big and look at the big picture.

Sorry but I interpret being flexible (might hold, might sell, might buy more) as not knowing your goals. What DO you want long term? That is what you need to decide. THEN you will know what you need to do to get there.

Each purchase, sale should bring you closer to your goal.

 

[monalisa]

Yes that's the idea. Use the equity to enable you to purchase the next.
If you sell each time there is an equity gain though you will never get ahead. Sure you'll have a few thousand $ and if your aim is to make small gains go ahead.

Additionally, say if you buy in Western Sydney, and you make small profit, what if the market moves in Western Sydney? You will have to buy else where or pay a higher price for another property in the area.

I agree with others, you need to look at your long term goals.

With a view of having positively geared, I think its important that either you buy well, or buy something which requires renovation - but there appears to be high competition for such properties in Western Sydney.

Another alternative (which has worked for us), is buy a property with some depreciation. In the short term it may help with the property being positive after tax. I suggest you prepare a template to analyse numbers for deals - to determine if it actually is positive.

 

[prad_n]

Yes that's the idea. Use the equity to enable you to purchase the next.
If you sell each time there is an equity gain though you will never get ahead. Sure you'll have a few thousand $ and if your aim is to make small gains go ahead. I prefer to think big and look at the big picture.

Sorry but I interpret being flexible (might hold, might sell, might buy more) as not knowing your goals. What DO you want long term? That is what you need to decide. THEN you will know what you need to do to get there.

Each purchase, sale should bring you closer to your goal.

Yea after doing more research I have decided my long term goal is to hold and build equity. And only sell if I need the cash. So ideally continue to buy and buy properties that I can hold over a long term and those that are postively geared.

 

[nhg]

I know people buying said apartments in St marys, they purchased them for $185k ish this financial year, bargaining down from the $200k mark.

I own a couple of properties in St Marys myself, I really like the area and it's potential, tho my strategy is to purchase land and build granny flats.

 

[DaveM]

I have bought in St Marys this year (border oxley park), 185k rent $300pw.

Lower grade tenant than you would get in, say, Penrith or Jamistown.