I had trouble interpreting, too!
If you ignore craigb's erratic punctuation - which actually conflicts with the words in places
- I think he's recommending that a unit is easier as a first investment. 
First IP - just can't make a decision :(
- Thread starter Mel22
- Start date
If you ignore craigb's erratic punctuation - which actually conflicts with the words in places
- I think he's recommending that a unit is easier as a first investment. 
Hi Mel,
Good luck with your first.
I actually read Craig's comment the other way, knowing that he renovates and builds houses I would assume that he thinks houses are easier.
Personally, I feel houses are much easier to renovate when you take into account adjoining walls, body corps and gardening, not to mention living areas etc. Merely my opinion though and I don't mean to confuse Mel.
In regards to auction, have you been attending auctions and keeping an eye on how much competition you may have? Many an auction has been passed in because either the agent or Vendor as high expections.
Regards JO
Good luck with your first.
I actually read Craig's comment the other way, knowing that he renovates and builds houses I would assume that he thinks houses are easier.
Personally, I feel houses are much easier to renovate when you take into account adjoining walls, body corps and gardening, not to mention living areas etc. Merely my opinion though and I don't mean to confuse Mel.
In regards to auction, have you been attending auctions and keeping an eye on how much competition you may have? Many an auction has been passed in because either the agent or Vendor as high expections.
Regards JO
Given that range, vendor expectations would be well over the 500k mark...
Cheers,
The Y-man
There are 2 uncertainties involved:
1. Whether a modern property has a relative higher CG than an older property. Besides age, CG also depends on many other factors such as location and land size.
2. Whether the higher rent achieved by a more modern property will eclipse the higher priced paid for it such that overall you can achieve your plan of buying a second IP earlier.
You should determine whether your assumptions are valid or not.
I find that with nice looking new(ish) properties people get emotionally attached to the "look and feel" - great for the owner if that's the renter (hence higher rent), *but* the owner too can get very attached - i.e. when the tenant from hell just happens to be the first one you get, and the ytotal the place, it can be very stressful.
On the other hand, when they trash an older joint, one tends to see it as a "renovation brought forward" (and expensed as a repair!)
Cheers,
The Y-man
Sorry Mel, but Y-Man is right....I would be very doubtful it will sell under 500k. Possibly another "quote 'em low and see them go!" campaign. I would still go to the auction if are keen, you never know what will happen on the day! You might just get lucky.
I went to an auction in Essendon just before xmas, advertised price was $430-$470, property was passed in at $525k -reserve was $535k.
Cheers
AV
But underquoting is no longer allowed!
Does the 'emotional' clause hold up, if it's the vendor that's emotional? LOL
Mel22 my perspective as a local resident (I have grown up and lived in Coburg for 26 years) would be that the Munro Street location is more appealing. It's more central i.e walking distance to Coburg Centre, Sydney Road shops, cafes, No.19 Tram, and Coburg Train station. Although the townhouse is still in a great spot with lots of amenities, you will find in Coburg that anything closer to the Brunswick end is most appealing.
Either way, best of luck!
P.S. I would definitley go to the auction and try your luck if you are interested, but as many of the others have said houses and units in these areas have been selling above and beyond reserve or quoted prices, so try not to get your hopes up. There have been a few occasions though where I have read the property results and cursed myself because I could have bought it - but didnt bother looking into it because I thought it would go beyond my range - so certainly give it a go!
would be that the Munro Street location is more appealing. It's more central i.e walking distance to Coburg Centre, Sydney Road shops, cafes, No.19 Tram, and Coburg Train station. Although the townhouse is still in a great spot with lots of amenities, you will find in Coburg that anything closer to the Brunswick end is most appealing.Either way, best of luck!
P.S. I would definitley go to the auction and try your luck if you are interested, but as many of the others have said houses and units in these areas have been selling above and beyond reserve or quoted prices, so try not to get your hopes up. There have been a few occasions though where I have read the property results and cursed myself because I could have bought it - but didnt bother looking into it because I thought it would go beyond my range - so certainly give it a go!
Still struggling...a LOT! Ha.
Really having difficulty deciding on whether I should purchase an older house in a poor location, or a townhouse in a much better spot.
I am quite keen on purchasing an older property and renovating when the time comes to build equity. However, having a tough time finding one in a good spot.
Anyone feel like sharing an opinion on: http://www.domain.com.au/Property/For-Sale/Townhouse/VIC/Brunswick-West/?adid=2008191212 ?? Need my hand held a little here...ha ha.
The lack of size and land is a bit of a down side, but location is a bonus. Not too much room for improvement either - a little, but not much really. Have had a look into our financial situation, and am willing to go higher than originally stated in order to land the right property.
There are a few older houses in Coburg (further north than I prefer), and as I said, I am just really struggling to make a decision here.
I guess my question is: go for size and land (house) sacrificing location, or sacrifice size and land for location?
Sorry for all the questions - this whole property investment business is a lot more daunting and frustrating than I imagined!
Really having difficulty deciding on whether I should purchase an older house in a poor location, or a townhouse in a much better spot.
I am quite keen on purchasing an older property and renovating when the time comes to build equity. However, having a tough time finding one in a good spot.
Anyone feel like sharing an opinion on: http://www.domain.com.au/Property/For-Sale/Townhouse/VIC/Brunswick-West/?adid=2008191212 ?? Need my hand held a little here...ha ha.
The lack of size and land is a bit of a down side, but location is a bonus. Not too much room for improvement either - a little, but not much really. Have had a look into our financial situation, and am willing to go higher than originally stated in order to land the right property.
There are a few older houses in Coburg (further north than I prefer), and as I said, I am just really struggling to make a decision here.
I guess my question is: go for size and land (house) sacrificing location, or sacrifice size and land for location?
Sorry for all the questions - this whole property investment business is a lot more daunting and frustrating than I imagined!
What's that old catchcry - location, location, location?
Rixter has great advice for this situation. Have a look here...
http://www.somersoft.com/forums/showpost.php?p=634029&postcount=5
Rixter has great advice for this situation. Have a look here...
http://www.somersoft.com/forums/showpost.php?p=634029&postcount=5
Hi Mel
I'm wondering if the problem of what to buy isn't rather problem of 'getting it right' buying ?
What about seeking out one of the buying agents on here and using there services, I know for a fact I would be you without the help I have had, and for 5k or what ever there fee's maybe, it will save your piece of mind and get you started.
Once you have had some experience of IP's I'm sure you will be able to hand out some of your own advice to others in your situation.
Good luck
onwards and upwards
stuart
I'm wondering if the problem of what to buy isn't rather problem of 'getting it right' buying ?
What about seeking out one of the buying agents on here and using there services, I know for a fact I would be you without the help I have had, and for 5k or what ever there fee's maybe, it will save your piece of mind and get you started.
Once you have had some experience of IP's I'm sure you will be able to hand out some of your own advice to others in your situation.
Good luck
onwards and upwards
stuart
This is exactly the problem.
Spoke with a BA who came highly recommended, but we were looking at 18k - would love to have used the service, but as a 21 year-old student, I just don't have that sort of cash to spare.
Guess I'll just have to keep fumbling through this on my own..ha.
I think I'm just being too hesitant and looking for the PERFECT property. I may just have to settle on something and just focus on making it work as best as I can.
Hi Mel,
Buying your first IP is a difficult decision but try to stick to the basics. Look for a property that you can afford to hold for the long term (hint, not too negatively geared) and one that is well located for a tenant within the area you are looking. (Eg near transport, recreation, hospitals, workplaces etc).
I tend to think of controlling as many properties as possible rather than owning one or two perfect properties. Some that I have purchased may perform better in terms of capital growth, others, however, may provide better cashflow.
I used to be a die hard only buy in the inner ring type of investor. However, while the IP's I have in these types of areas have grown very nicely in value, they have a very high turn over of tenants, (usually annually) meaning that the cashflow takes a bit of a hit.
In contrast, my humble Brick Veneers in woop woop land chug along, achieving steady capital growth with much more reliable cashflow as the tenants tend to stay for years instead of months....
Regards Jason.
personlly i just bought in st kilda, but what i've learnt is avoid ground floor if poss(more breakins then anything else) 1st or 2nd floor best. no lifts (expensive body corps fees etc), avoid blocks of 10 or more,defin offstreet parking, rear units are fine, quieter(usually) so long as the carparks arnt there? north facing preferably and with balcony is the most sort after and will in the right location and block get the most c.g... but if you have the contacts get in and reno, straight away, make sure you speak to bmt tax dep, 1st to get a scrapping schedule done and final once finished, $1 of paint will generally get you $3 back...... hope this helps. good luck.
keep looking and don't feel pressured into buying in this hot market...... i think it may calm down 6 months???? but i don't have chrsytal ball..... you'll figure it out, just keep looking and asking, its the best way to learn......
keep looking and don't feel pressured into buying in this hot market...... i think it may calm down 6 months???? but i don't have chrsytal ball..... you'll figure it out, just keep looking and asking, its the best way to learn......
Shop Around. For a property around 450k, 18k is a joke
If not just take some advice from the regular posters, you have already done research and go for it.
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really ?
yeah I would say that's a little bit high ( like way over the top high )
I think 5k would be enough to see someone help you with this , so maybe more research into melbourne BA's than property might help you over the next week or 2
on a side note
If your a 21 yr old student and looking for an IP I would suggest that regardless of what you do or don't do or what you get right or what you get wrong, if you keep going on the IP path I think you are going to end up very wealthy , so don't panic to much right now .
so good luck you will do well
stuart
yeah I would say that's a little bit high ( like way over the top high )
I think 5k would be enough to see someone help you with this , so maybe more research into melbourne BA's than property might help you over the next week or 2
on a side note
If your a 21 yr old student and looking for an IP I would suggest that regardless of what you do or don't do or what you get right or what you get wrong, if you keep going on the IP path I think you are going to end up very wealthy , so don't panic to much right now .
so good luck you will do well
stuart
Typical BA fees for a $450k purchase might be around $7k - $10k - but I would be definitely looking at under $10k!
You're doing well to be looking for a property when you are 21, well done I bought my PPOR when I was 23 and it's great to see young people getting their feet wet in the depths of property investing!
Wish I could offer more advice but I don't know Melbourne that well!
You're doing well to be looking for a property when you are 21, well done
I bought my PPOR when I was 23 and it's great to see young people getting their feet wet in the depths of property investing!Wish I could offer more advice but I don't know Melbourne that well!
