Chasing my tail aka research - help!

[chalky]

Hey all - first post - go easy on me

I've been researching our next IPs for months - in between running a company and raising small kids. Exhausting. I'm getting a bit lost and would love some thoughts/inspiration/beer

(My previous two IPs were opportunistic so I did nowhere near as much research, one we bought from a relative, the other where I wanted to live, but sold after 7 years. That said love property and have read books, mags, forums, net etc)

So...our current plan is to buy two approx $300K properties, CF+

#1 in QLD in larger town - Emerald, Mackay, Townsville, Gladstone. The usual suspects - but I can't narrow it down. I switch and jump and it doesn't help me get a good sense about an area.

#2 Closer to home (Central Coast) - looking at Newcastle (inner city suburbs). As I believe it has some CG opportunity. Buy something older that we can manufacture some equity in to help boost our lending capacity for future purchases.

I'm at a point where it doesn't have to be the perfect option - or it simply won't ever happen!

Given my budget - it means mostly older homes in both areas. I've come to think it might be better to just buy one, newer house in QLD. I'm not comfortable with too much risk as it might be a setback early on in IP journey.

Long post I know, but I'd really appreciate some thoughts...

 

[matto_]

There certainly is a lot of information and it is very easy to jump back and forth, and get stuck in the analysis phase.

Why dont you start with one (and then move onto the next).

For each - start at the macro level - pick the location and then move in from there.

Obviously with all of the steps - making sure they are consistent with your wider strategy.

 

[hysterical]

Hey all - first post - go easy on me

I've been researching our next IPs for months - in between running a company and raising small kids. Exhausting. I'm getting a bit lost and would love some thoughts/inspiration/beer

How about engaging a buyer's agent ?

Cheers

 

[chalky]

hey matto_ thanks for your response. I think I should just choose one area - and also just focus on the first purchase. I aim to report back with some more productive news in the weeks to come

Hysterical - yes I have considered it. This is definitely a big question on my mind...

We looked into one BA but they have a policy to do all your finance as part of their offering (as we run a company our bank manager & accountant have already taken care of this.. so I don't really want to have to start this process again.) I'm not sure if this is standard?

I've looked into some others but I'm very wary by nature, and some of them seem so patronising, complete with get-rich-quick "vibe". I'm unsure about NRAS and want to exclude BAs that specialise in these. It also seems more common to sell H&L packages in new estates.. and it feels hard to gauge what these estates might end up like in the long run.

Would love to hear yours (and others) thoughts on using buyer's agents, what their experience was like and if they'd recommend anyone.

 

[Spades]

Would love to hear yours (and others) thoughts on using buyer's agents, what their experience was like and if they'd recommend anyone.

Me too....Also what's the negatives/positives of using a BA?

 

[Propertunity]

So...our current plan is to buy two approx $300K properties, CF+

Understood. But any property can be cf+ if you put down a large enough cash deposit.

Do you mean cf+ if you are borrowing all the money, including costs?

#2 Closer to home (Central Coast) - looking at Newcastle (inner city suburbs).

It is unlikely that you will be able to buy cf+ in the inner suburbs (if you are borrowing all the money).

You can get cf+ / cf neutral in the Lower Hunter or on the Central Coast though.

As I believe it has some CG opportunity. Buy something older that we can manufacture some equity in to help boost our lending capacity for future purchases.

This is a good strategy that can & does work in any market.

Given my budget - it means mostly older homes in both areas. I've come to think it might be better to just buy one, newer house in QLD. I'm not comfortable with too much risk as it might be a setback early on in IP journey.

Buying a new home is typically not a good idea if you are going to try to add value, by manufacturing equity through a reno. Buying new in a new estate is often a receipe for being a "set back early on in IP journey".

 

[Propertunity]

We looked into one BA but they have a policy to do all your finance as part of their offering

Most BAs, I would say in general, do not offer finance. Finance is a specialised field best left to full time mortgage brokers, in my opinion.

(as we run a company our bank manager & accountant have already taken care of this.. so I don't really want to have to start this process again.) I'm not sure if this is standard?

It is not "standard", no.

I've looked into some others but I'm very wary by nature, and some of them seem so patronising, complete with get-rich-quick "vibe".

Sounds like you've come across some "spruiker type company" that is acting as a one-stop-shop. I'd respectfully suggest you get separate independent advice from:
1. MB's
2. FP's
3. BA's
4. Accountants etc

I'm unsure about NRAS and want to exclude BAs that specialise in these.

I'm not a personal fan of NRAS, but I accept that it works for some people.

It also seems more common to sell H&L packages in new estates.. and it feels hard to gauge what these estates might end up like in the long run.

Over the long term new houses in new estates can & do work well.

What can & has been a past problem with new houses in new estates, is what can happen in the short term.

 

[Angel]

Please call Propertunity, he will take very good care of you and offer good ideas for the Newcastle region.

 

[chalky]

Propertunity thanks for taking the time to respond to each point.

We won't have large deposits, trying to stretch our equity a bit further by buying two places, although we don't want to borrow costs. I realise that in local region (CC/Newcastle) CF+ with a high LVR won't be too easy, although I'm familiar with the market here which helps.Which is why we want to manufacture equity here (and logistically a cosmetic reno is feasibly).

The new home I referred to is more if we go ahead with QLD property instead (one new property rather than two cheaper properties in QLD/NSW). I've heard that a lot of the mining rental leases go to estates/new homes, so I'm now unsure that buying a cheaper/older house in 300K bracket is a good idea. Was looking at Mackay/Townsville, somewhere more reliant on other industries though. I was also looking at Rockhampton but it appears to have slipped from favour.. or so my research suggests... But I should probably head to the 'where to buy' forum for that discussion

Your point about estates performing better is long run - yes of course - makes sense and it's in fact the short term that is of concern. Appreciate you clarifying that.

Anyway thanks again - I may well be in touch