First Steps

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From: Trina Blum


Hi,

I'm new to investing in real estate (apart from own home) and would like any advice you can provide.

We would like to invest in a unit or townhouse next year in Perth (cashflow positive) and I have spoken to our banker about restructuring our home loan to draw back on some of the equity to use as a deposit. We are also seeing an accountant shortly to find out about structuring the purchase i.e. who's name to put it in. I have read quite a few books, subscribe to the API mag, Money mag and Pers Investor mag. I'm still unsure though of the steps I need to take in the process from wanting to be able to buy a property to actually succeeding.

What is the best way to find out the best suburbs to buy in - just get the name of suburbs from the magazines and then keep an eye on them?

Should I be buying some sort of analysis software now so that when I start actually checking on properties I can work out if they are positive or negative?

When I have decided on a couple of suburbs that look like good prospects do I just phone the agents to find out new or nearly new units/townhouses or is there somewhere else I can look?

Any suggestions or tips would be appreciated.

Regards
Trina

 

[WebBoard]

Reply: 1
From: H T


Hi Trina

Ive got some advice.

DO NOT BUY IN THIS MARKET.

cheers
HT

 

[WebBoard]

Reply: 1.1
From: Sergey Golovin


Tina,

Basically what HT sais - yes you are on the right track.
But be careful, simply because the market is overheated. That's all.

And yes you are right - research, research and more research. Read, ask questions, play with software, take walk around suburb or few streets around that suburb and have feel for the area.

You can find more info from organizations like - Local Council (size of block of land, zoning, etc.), RESIDEX (data on sales, and statistics of general nature, etc.), Real Estate of WA, as well as Australian Institute of RE, etc. Yes local agent goes. You can put your name on their list. Internet – web pages for Real Estate sites.

Also if you will have look under Meeting Point on very same forum you probably will find some messages from Perth people (Cash flow games). You can go to their meeting and joint their network (it is free or very symbolic price if any just to pay for tea and coffee).

Put it simply anything goes as long as you buy it and make sense out of it.

Serge.

 

[Anonymous]

Reply: 1.2
From: Anonymous


HT,

Your advice is well intended and correct for a newbie.

Having said that I passed one on to a friend today that was cash flow neutral at rates of 7.19% (5 year option). Located less than 3km from the cbd in the second fastest growing capital city in OZ.

There are still good deals to be had but they are few and far between.

 

[Robert]

Reply: 1.2.1
From: Robert Forward


I agree with that. There are still good deals about. It just takes being in the right spot at the right time to get them.

Cause I found one the other day.... Yipeeeee

Keep looking and never give up, how will you know when you find a good deal if you stop looking....

Cheers
Robert

The Sydney "Freestylers" Group Leader.

 

[WebBoard]

Reply: 1.2.1.1
From: Anonymous


It has all been said. Research, research and in case you didn't get it RESEARCH.

There are always some good deals. Never stop looking, you may be surprised.

regards