Getting Started

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From: Mike .


1st PROPERTY.....
From: BRETT
Date: 1/29/00
Time: 8:00:44 AM

Comments
I AM CURRENTLY LOOKING AROUND FOR OUR FIRST IP AND AM WONDERING IF ANYBODY HAS ANY SUGGESTIONS!!.HAVE THOUGHT ABOUT MELBOURNE BUT AM READING PLENTY OF DOOM AND GLOOM EVERYWHERE I LOOK.IF ANYONE HAS ANY IDEAS,APARTMENTS OR HOUSES IT WOULD BE WELCOMED. ALSO HAS ANYONE BEEN INVOLVED OR KNOW HOW SUCCESSFUL THE DEFENCE FORCE HOUSING LEASE BACK SCHEME IS? THE HOMES IN THE CATALOUGES SEEM TO ME TO BE OVER VALUED IN MY OPINION... THANKS.

 

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Bill

Reply: 1
From: Mike .


Re: 1st PROPERTY.....
From: Bill
Date: 1/30/00
Time: 9:58:00 AM

Hi Brett

We bought our first in Melb, a serviced apartment through Quest. It is leased back to Quest and is an 'easy' first step. Worth checking out, however be sure to check out the GST implication with an accountant as serviced apartments are considered commercial property, which means that if you sell it in the future GST will be added to the selling price. Adds value to the theory that you should never sell! The other good thing is that in our experience the investment has been cash positive.

The main thing to remember is that you are in this for the long term. Be aware but not totally influenced by the media hype about market fluctuations, as this is exactly what they are - fluctuations! Assume you have read Jan Somer's books? They are absolutely brilliant and should give you peace of mind when you realise that if you buy long term, market / price fluctuations have little long term effect. I'm not suggesting that you pay any price for a property, however just keep in mind the 'bigger picture'. As you build a portfolio there will be swings and roundabouts however in the long term you will be wealthy if you use property (median, well located) to get you there.

FYI we are looking for a second (and hopefully a third this year as well) and am looking at townhouses most likely in Melb but maybe Brissy. Reason being is that land is the main appreciable value in a property investment and a house gives you land value more so than an apartment on strata title. Again , 'bigger picture' comes into play. One or two apartments can build your equity if they are good ones, especially if they are cash positive! Hope this helps - good luck

Cheers, Bill