help!! which way do we go for for first investment

[emerald]

Hi as a first home buyer I am a bit overwhelmed with all the different ways to go about investing.

My partner and I are first home buyers. We have a pre loan approval to cover a current house loan for around $310,00 is just enough to get a decent new ( smaller ) home in the burbs to live in and then rent out.

My partner has been checking out other ways to increase investment value.

1. Buy a new home in a good location
2. Build a new home on a good bit of land
3. Or a get richer quick scheme ( with no disrespect these sorts of companies) this is just one example of these kinds of schemes

http://www.canterburyservices.com.au/system.html

Is this a higher risk for lower house buyers like ourselves to invest in a scheme like this with a potential economic crash in the next years?
A rental home purchase would not be local to us and how will this serve us if we head for another economic crash which is quite possible.

It was suggested by a number of experienced people in property that I know that for first investors who dont have a lot of room to move financially this is a risky approach. It was suggested that we are better off looking at a neat well priced newly built property in a good location where we have more control over a simpler investment ( including who we rent it to and who our accountants are etc..)

Appreciate any advice
thanks

 

[investor2009]

Ha! Get rich quick..
Sorry, Hi there Emerald!
I see a few things they state there as comments and strategies a wise investor might say, but others don't ring true to me..

If I were you (and I was, most of us here were or are) I'd be reading lots of books on property and also rich Dad, Poor Dad. Thats all these guys have done. Pop in here any chance you get and you'll be on your way to creating an assett base the best possible way you can. You want to know what you're doing and the reasons why you're doing it before you actually play the card. In property, knowledge is power. And if you know what you're doing and have a goal you can stick to, everything will work out in time.

I hope you take some of this advice for yourself

 

[Rolf Latham]

Given recent experience by some of my clients I would pass on that Particular Get rich quick Scheme

You will note the exit strategies for these things are rarely laid out...........you cant keep capping interest for ever


ta
rolf

 

[The Y-man]

1. Buy a new home in a good location
2. Build a new home on a good bit of land
3. Or a get richer quick scheme ( with no disrespect these sorts of companies) this is just one example of these kinds of schemes

4. Buy a pre-loved home in sound condition (structure wise) and good location, give it some TLC

The Y-man

 

[Tony3008]

3. Or a get richer quick scheme ( with no disrespect these sorts of companies) this is just one example of these kinds of schemes

http://www.canterburyservices.com.au/system.html

If they talked fast enough I might have believed it a few years back - I got my education buying two Central Equity flats OTP and found that you won't get rich with a 3.0-3.3% net return and big mortgage.

Their checklist looks very sound ... but where are the suburbs that pass "Only land locked locations i.e. short land supply and nowhere left to expand to. .... Only areas 90% owner occupiers. .... Cheaper than surrounding areas. ... Percentage rental return (compared to other areas) .. Schools. ... Transport. ... Infrastructure." and massive depreciation available.

So a new(ish) property in a mature suburb that delivers enough cashflow to service its own 100% debt and help pay off your PPOR. Perhaps there are such places in Melbourne, but if so I have missed them. Perhaps Sydney is different!