Hi,
Im just after a little pointer to look in the right direction. I am ambitious to get started in the property market and read information and seek others views every chance I can get but now I just seem to be going in circles so after reading many threads I wanted your advice :)

I have been looking at purchasing a unit on the north coast nsw to hold medium/ long term. CG may not be huge although i could positive gear with the strategy to build equity and be able to purchase another ip in a years time and so forth.. Has anyone started with low purchases and worked up or am i kidding myself until I can afford an ip of $200-400K.

Thanks in advance
 
Hi,
Im just after a little pointer to look in the right direction. I am ambitious to get started in the property market and read information and seek others views every chance I can get but now I just seem to be going in circles so after reading many threads I wanted your advice :)

I have been looking at purchasing a unit on the north coast nsw to hold medium/ long term. CG may not be huge although i could positive gear with the strategy to build equity and be able to purchase another ip in a years time and so forth.. Has anyone started with low purchases and worked up or am i kidding myself until I can afford an ip of $200-400K.

Thanks in advance

Hi Michelle

What areas specifically are you referring to? Coffs to tweed?
 
Sorry I should have said mid north coast. Looking more around Taree, although open to areas. This just seems to be somewhere I could afford to puchase
 
I bought two properties in Nambucca Heads last year which isn't too far from Taree. My first purchase was $155k, although the yield is decent looking back wished I had bought closer to a capital city.

For that same kind of money, I would have done better with a villa or townhouse in Logan, Brisbane.

What's your budget and why that specific area?
 
Thanks for sharing mxia. My budget is around $130K due to an estimated borrowing power on my income and two children. Im not set on the area, Im quite open to any area however in the taree region with the rent it would service the loan allowing me to continue saving the next deposit.
The more I ponder over this though I wonder if the little CG id experience would hurt me long term.
 
I was initially attracted to the yield around that area too. The house I purchased for $155k needed a renovation, around $35k but afterwards was rented for $290 per week, so almost 8% yield. In saying that, with maintenance costs and high management fee (8.8%), I actually see very little of that.

11 months on, it's seen very little capital growth, and my other purchases in Newcastle at the same time have done much better.

Who knows, perhaps the increases in Brisbane & Sydney will eventually trickle to this area, crossing my fingers :)
 
There is lots of unemployment around Taree. People looking to move out by necessity as a few manufacturing businesses have shut down. Even highly employable people with great skills and experience are struggling & looking to relocate. I wouldn't go near it.
 
The housing commission homes in Taree ..you know the area around Valerie St and Deakon st/ave were going for around 75 - 85 in 2010/2011

Now I see a few on the market for 150k.....not bad for those who bought a few of them.
 
Taree has one of the biggest bunnings between sydney/brisbane and a huge masters store has just opened up too. A friend works commercial in real estate and says they have been getting a lot of enquiry over the past 6-12 months for larger industrial sites. Unfortunately, enquiry doesnt always lead to occupancy. I know the area well and still cant see good CG happening in the area.
 
I have been looking at purchasing a unit on the north coast nsw to hold medium/ long term.
why? :confused:

CG may not be huge
then reconsider doing it. CG is the only reason we invest in property. Otherwise there are too many transaction costs to be bothered.

although i could positive gear with the strategy to build equity
Positive gearing is not an equity creation strategy. CG is the equity creation strategy (or manufactured CG thru renovation).

and be able to purchase another ip in a years time and so forth
I doubt a few $'s positive cashflow per week will allow you to draw enough equity to buy again in 1 year's time.

Has anyone started with low purchases and worked up or am i kidding myself until I can afford an ip of $200-400K.
You are considering an IP under $200K? I suppose it could be done but with a reno or development strategy not a buy & hold IMO.
 
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