First IP > small budget. Advice please.

[slave]

Hi all,

Longtime lurker, first-time poster. Any chance you guys and girls could help me out?

Mt wife and I are looking to get into the investment game after a couple years wondering if we can make it happen.
Our own home in Perth has a mortgage of 120k left to go, with about 380k equity. We earn about 160k gross income between us, most of which comes from me.
We're looking at buying an IP to hold for quite some time, to finish off our mortage and then perhaps use the equity to add other IP's after that.
Money wise, we're looking at $350-500k homes (not apartments), either building, or the less than 2 years old variety for full depreciation tax reductions at the moment.
The tax reduction c/o negative gearing looks attractive, however positive gearing looks attractive too. I'm not sure which is better?!?!

But we also want no risk > a low vacancy rate is the most important thing, as money wise we don't have a whole lot of wriggle room, so selling a house in an area with poor resale, and taking a much reduced price due to urgency, would hurt us if the **** hit the fan.

So what do you think is the wise move to make?
Is aiming for a positive or negative geared property the better move?
I've read that positive geared properties can be more risky than negative geared, is this true?

One area we're looking at is Mackay > we have people over there we know, but unfortunately they're not looking to be a long-term tenant for us. But all the same, is the area a good one to look at?

Thank you all.

 

[pinkboy]

But we also want no risk > a low vacancy rate is the most important thing, as money wise we don't have a whole lot of wriggle room, so selling a house in an area with poor resale, and taking a much reduced price due to urgency, would hurt us if the **** hit the fan.


One area we're looking at is Mackay > we have people over there we know, but unfortunately they're not looking to be a long-term tenant for us. But all the same, is the area a good one to look at?

Nothing is no risk, so you're going to have to be a little bit more flexible on this.

Mackay is in a tough time at the moment, but many industries here make it reasonably resilient. If you can see past all the doom and gloom headlines, and can see the forest past the trees, you could do pretty well here. A few good opportunities I have seen in the past few months. Even my father is in the midst of a purchase at the moment, and I think he did well for location/price/quality here.

I think you should take some time and expose yourself to a lot of learning material, before diving in. Hang around here a while, catch the lingo, work out who to turn to for some specific advice, then look to pull the trigger when you know what your end goals and timeframes are.


pinkboy

 

[nhg]

As above,

Also take a look at where your comfort zone lies, and really think about the reasons for it.

$160k and no wriggle room? Either you have very very high expenses or very very low risk tolerance.

Just a thought.

As you take your time learning, also consider, what are your end goals, retire by when with how much, and then work backwards. Otherwise it can be like throwing a dart at the ocean, you don't know what you're aiming for.

 

[slave]

Thanks for the help.

As above,

Also take a look at where your comfort zone lies, and really think about the reasons for it.

$160k and no wriggle room? Either you have very very high expenses or very very low risk tolerance.

This is fair > we have children in the middle phase, so think braces, expensive tuition etc. Life is getting very expensive, so it's more of a case of being flexible.

An investment property is where we've decided to persue our investment goals, as it seems the most unlikely to go sour, from an outsiders' point of view. Shares (c/o GFC etc. )d on't seem very good due to volatility to us.

 

[Rolf Latham]

Metro Brisbane can fit that need I would have thought ?


Ta
Rolf

 

[slave]

Thanks.

Are there some area's (or suburbs in particular) I should be having a close look at?
(I don't know Brissie)

 

[R377]

Brisbane market is moving quickly. For under 500k you could get something not too far from the CBD. (see bris thread)

Adelaide market is next to move, you can buy alot for 500k in Adelaide. Eastern subs you could get something that would be low risk and solid but prob only get 4% yields.

Google southern expressway, low entry point, low vacancies with good yields. 5163, 5164, 5165, 5166