First IP

Hi all,

I'm a long term reader of the forum and looking to buy first IP. Just a little background, I was keen to buy an IP last year but my fiance wasn't. It caused a few problems so decided to shelve the plan. Unfortunately missed a great year for CG but thats life, my PPOR had some good gain so not a disaster. Anyway she's now changed her mind so the hunts back on.

I've done the usual things such as read a few books, magazines, driven around the desired areas, inspected a load of properties and read a lot of this forum. Lots of great advice on offer so thank you all that share.

After reviewing my finances not looking to go much higher than $300,000. This should provide enough breathing space should things go wrong. Looking more for CG rather than CF at this point but at the same time not overstepping according to my risk profile.

I'd decided on Blacktown. Seemed to be a lot going for it. You can get 500m2 blocks with older house for around the 300k bracket, 35 mins on the train to the Sydney CBD, yields pretty good, Parramatta very close so potentially some good capital gain to be had over the next 20 years. Anyway the problem and I know I'm breaking one of the great rules of investing. I mentioned this to a colleague at work who owns 7 properties and he looked at me as if I was crazy. His idea is to buy properties around 5kms from the cbd and look for areas that are gentrifying. These give the best CG in his opinion. He suggested inner Brisbane (Woolloongabba, St Lucia, Kedron to name a few). This has kind of confused me a little hence my coming out of the shadows. Prices in these areas are stretching the budget but I understand where he's coming from, I think Yardney does a similar sort of thing though I was a sceptic when reading his book. Interested in hearing people's views about this.

If I did buy in Brisbane well this provides more food for thought which is whether to use a BA. I'm a pretty busy guy and the thought of outsourcing this to a specialist does have its appeal. Always been impressed by Propertunity and Jacque's analysis and I admit I'm no expert in this field so perhaps someone with intimate knowledge of the local markets could end up saving me money. My original idea was to follow Jan Somers blueprint and keep things simple. I'm useless as DIY so renos are out of the question but would like to build a good portfolio as others have done here over the next 20 years or so, accumulating run of the mill properties around the 200-300k mark.

Thanks for listening and welcome your opinions.

Carra
 
Do what's comfortable

Since this is your 1st IP purchase I would do whatever you are comfortable with to get your foot in the door.

I like Blacktown as an option I think it will do well in the future (and it has featured in API mag for what that's worth).

Congratulations and welcome aboard.
 
Since this is your 1st IP purchase I would do whatever you are comfortable with to get your foot in the door.
I like Blacktown as an option I think it will do well in the future (and it has featured in API mag for what that's worth).

Lurker is right IMO. Buy your first 1, 2 or 3 where you know and can easily know what are the good & bad areas etc.

Once you 'get the hang of it', go outsource to your heart's content - but you can manage your BA from a distance (just like a PM).

Also I think Brisbane is still a bit flat yet. Probably 9 - 12 months + away from doing much. Just my 2c - ask Allen RE - he's a BA on the forum here.
 
You could argue that Blacktown has also been undergoing gentrification for quite some time now. The reputation certainly doesn't reflect the reality. I think the area has a lot going for it. There's Wet N Wild being built in nearby Prospect.
 
Our pleasure carra - I also suggest you start getting resources such as API mag for $10 it's very handy and the data at the back is useful.

Keep us posted mate.
 
I agree with the others. Buy your first ip in a suburb that you are familiar with. I bought my first ip in an area that I had lived in for over 1/2 of my life so was comfortable to buy there. When you are more experienced buy in other areas.

:) have fun
 
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