Does a professional service such as this exist?

[Charcy]

Hi all!

First of all, I would like to thank everyone who participates in this forum for providing such valuable information...even though I only joined today, I have been "lurking" for quite a while!

We recently received some money that we are intending on using to purchase our first IP.

After sooooo much research, we have come up with a few potential areas that we would like to invest in.

I am curious as to whether there are legitimate businesses that will invest in property with you? Say 50/50 or whatever.

We don't really like the idea of going in with family or friends "just in case".

Obviously, it would have to be a legitimate business and I will absolutely look into it thoroughly....just a bit of an idea I had today that's all!

Thanking you all kindly in advance

 

[DavidMc]

Some banks offer shared equity loans. Kinda of going a share with you, although it's a bad deal (no surprise).

Why not just invest yourself? Go something cheaper.

 

[Rixter]

I also feel the same as DavidMc, why not do it by yourself?

If for some reason its finance, income, equity or time restrictions you can do whats commonly know as a JV (Joint Venture) with a 2nd party.

 

[Ausprop]

IPs generally run at a loss, businesses like to run at a profit, hence you are unlikely to find a match

 

[Charcy]

Thank you so much for your responses!

We can do it ourselves...the money we have is not a huge amount, however, it is everything we have so the thought of sininking it all into the one property (which is pretty much all we will be able to do) is a bit scary. I thought maybe spreading it out over a couple of properties might reduce the risks a bit more.

Oh well, just an idea!

Thanks again

 

[alexlee]

If you really want to do that, I wouldn't invest in direct property. Maybe a property trust of some sort?
Alex

 

[sparky23]

Hi Charcy

Welcome to the forum!

Getting started can be a bit scary but if you are in a position to go it alone with one property I would do that in a blink rather than spread it around and invest with someone else, nothing wrong with that as a way to get started if you have to but if you don't have to then don't - just research carefully before you take the plunge!

Do you have any ideas on where you would like to invest? What kind of budget are you working with?

 

[Angelo]

Hi Charcy

Welcome aboard

You mentioned that you have researched a few areas and it sounds like you don’t have enough money to get into those areas by yourself. Have you looked at other areas in NSW that you may need less money to get into. I know your based in NSW but from my experience in SA, some of the cheaper areas can perform pretty well when compared to some of the Blue chip areas where yields are quite low.

It would be a shame to have to share the capital growth with a partner if you could keep it all just by buying in an area which would allow the property to be held much easier while your still getting a reasonable yield as well as your capital growth.

 

[The Y-man]

I thought maybe spreading it out over a couple of properties might reduce the risks a bit more.

Oh well, just an idea!

Thanks again

Agree with Alex. A property trust would probably achieve this. However, it comes with its own set of risks and costs - primarily to do with control (as in having a say about whic property gets bought/sold, management fees etc).

Many trusts will allow greater liquidity than buying a property directly.

Cheers,

The Y-man

 

[redsquash]

Thank you so much for your responses!

We can do it ourselves...the money we have is not a huge amount, however, it is everything we have so the thought of sininking it all into the one property (which is pretty much all we will be able to do) is a bit scary. I thought maybe spreading it out over a couple of properties might reduce the risks a bit more.

Oh well, just an idea!

Thanks again

If you sink everything into one property you could make a big mistake ......but that's what I would do.Invest in one property.
Why?
Because I would make damn sure that the property and price were appropriate.
Narrow down your area that you are familiar with.
Somewhere close to you.

Assess the value of houses. after you have seen a 100 houses in your area you will be much more confident . After a 3 months from starting , if you have been serious , then you will find it very hard to make a substantial error , and probably know exactly what you want and don't want.

If you are just stating now , then o f course things might look scary.
Just talk to agents and sellers many times before getting too serious.