Hey everyone,
I've been reading for a while and researching for months and talked to many investors and am looking to get my first IP. I've got a bit of a dilemma. I'm looking to buy my first investment property but am also looking for somewhere I can live one day.
I've been looking in the Mount Druitt area, and there are still affordable properties.
My financial situation:
I can borrow up to 600k to live in and 830k to invest but I don't want to start with anything above 370k because I have to add a 100k for a granny flat + stamp duty etc. I also don't think the houses in the Druitt are worth much over 350k. I was also attracted by tregear and emerton both being in your investment property mag's top 20 investment places in 2015. What do you think of this?
I'm self employed and on average am on about $1400/week. I know that's a lot of money left over weekly but I don't want my first investment to be a huge risk as I need to expand my business, as well as get married in the next year.
I'm looking to get married in the next year and my partner is at uni for the next 3 years so I want to make sure I get something cheap so if we do live in it I still have more than enough to provide for her in the next few years and if there is a correction or God forbid, a crash, I can easily still pay off my house.
My strategy. Buy old house and build a granny flat on it. Rent ithe granny out for the next year and maybe move into the granny flat next year when we get married and keep renting out main house.
My other option is to buy interstate and rent here.
I've looked at areas I think have a good upside for growth.
Areas I've looked at:
Redcliffe area
Everton hills
Ipswich
Springfield- I see a lot of Northwest Sydney in Springfield
Chermside
Logan
Redbank plains
Coorparoo
And many others within 10km of CBD
In Melbourne i've looked at:
Scumshine (Sunshine)
Scumshine west
West Footscray.
Reason I like Sunshine is because it's cheap, will be cleaned up and is a big part of Melbourne 2030 report in developing and creating jobs on that western side of Melbourne.
I don't like negative gearing so anything I do must be neutral or positively geared, due to the fact that I need as much cash as possible to get married and develop my business more etc.
I'm stuck on what to do. Should I buy in an area that YIP magazine is expecting to go up a fair bit and is cheap and close to me now, or do I buy interstate and rent and pay someone elses mortgage off when getting married..the wave of growth has swept through each individual suburb from Blacktown to Mt Druitt slowly. Blacktown went up, then Lalor Park and Eastern Creek, then Colyton, then plumpton and Hassall Grove. Last few months its been Hebersham hitting close to 500k a house. Is it time for Tregear and Emerton and those suburbs to go up? The demand is absolutely nuts at the moment and if I can get a decent deal would it be worth it or should I stay away and buy interstate?
Tough situation. What would you do? Do areas like Mt Druitt lose more value than others when/if there's a correction?
P.s sorry for the essay. Bit stuck and I know i'm the type who's susceptible to analysis paralysis because I overthink everything and also read way too much into our economy and feel like there's a recession coming, which is why i'd be comfy with a cheap purchase cos I at least don't miss out if theres no crash
I've been reading for a while and researching for months and talked to many investors and am looking to get my first IP. I've got a bit of a dilemma. I'm looking to buy my first investment property but am also looking for somewhere I can live one day.
I've been looking in the Mount Druitt area, and there are still affordable properties.
My financial situation:
I can borrow up to 600k to live in and 830k to invest but I don't want to start with anything above 370k because I have to add a 100k for a granny flat + stamp duty etc. I also don't think the houses in the Druitt are worth much over 350k. I was also attracted by tregear and emerton both being in your investment property mag's top 20 investment places in 2015. What do you think of this?
I'm self employed and on average am on about $1400/week. I know that's a lot of money left over weekly but I don't want my first investment to be a huge risk as I need to expand my business, as well as get married in the next year.
I'm looking to get married in the next year and my partner is at uni for the next 3 years so I want to make sure I get something cheap so if we do live in it I still have more than enough to provide for her in the next few years and if there is a correction or God forbid, a crash, I can easily still pay off my house.
My strategy. Buy old house and build a granny flat on it. Rent ithe granny out for the next year and maybe move into the granny flat next year when we get married and keep renting out main house.
My other option is to buy interstate and rent here.
I've looked at areas I think have a good upside for growth.
Areas I've looked at:
Redcliffe area
Everton hills
Ipswich
Springfield- I see a lot of Northwest Sydney in Springfield
Chermside
Logan
Redbank plains
Coorparoo
And many others within 10km of CBD
In Melbourne i've looked at:
Scumshine (Sunshine)
Scumshine west
West Footscray.
Reason I like Sunshine is because it's cheap, will be cleaned up and is a big part of Melbourne 2030 report in developing and creating jobs on that western side of Melbourne.
I don't like negative gearing so anything I do must be neutral or positively geared, due to the fact that I need as much cash as possible to get married and develop my business more etc.
I'm stuck on what to do. Should I buy in an area that YIP magazine is expecting to go up a fair bit and is cheap and close to me now, or do I buy interstate and rent and pay someone elses mortgage off when getting married..the wave of growth has swept through each individual suburb from Blacktown to Mt Druitt slowly. Blacktown went up, then Lalor Park and Eastern Creek, then Colyton, then plumpton and Hassall Grove. Last few months its been Hebersham hitting close to 500k a house. Is it time for Tregear and Emerton and those suburbs to go up? The demand is absolutely nuts at the moment and if I can get a decent deal would it be worth it or should I stay away and buy interstate?
Tough situation. What would you do? Do areas like Mt Druitt lose more value than others when/if there's a correction?
P.s sorry for the essay. Bit stuck and I know i'm the type who's susceptible to analysis paralysis because I overthink everything and also read way too much into our economy and feel like there's a recession coming, which is why i'd be comfy with a cheap purchase cos I at least don't miss out if theres no crash