Hi Pitt St

[Cosmo]

Hi Pitt St,

I have read your posts with keen interest and am aware that you haven’t purchased an investment property yet. By sitting out on the sidelines you must by now have an incredible IP selection criteria developed. Most peoples first investment property (myself included) was probably not very well informed although their (and my) subsequent purchases have been better. I think your first purchase will be spot on.

Would you care to share with us what your selection criteria is for an IP?

 

[see_change]

I'm sure that Pitt St will answer for his self re his criteria.

I can tell you why he hasnt got around to buying an IP...

He spends too Much time chatting in the Chat room ...

Of interest , in Retire young , Retire rich , Robert Kiyosaki points out that, once he had decided on his investment strategy , it took him five years before he could find properties that fitted in with his criteria.

This is in contrast with the widespread view that the best time to buy is now. Not saying which is best, but as with most things in property there are differing views , both of which can be right.

see change

 

[Cosmo]

Hi see_ change,

Actually, your name is a big reminder to me about the road I should have traveled. My brother has been purchasing IP’s at the northern beaches of Sydney for years. He’s always paid top dollar for his IP’s (which is what has kept me away from them …poor rental return). He’s always had low vacancies and his property portfolio worth today truly makes mine look sick.
AND to further depress me a number of his properties are now being sort after by developers for insane money!

If I had my time again I would have stuck my neck out a bit further and bought down there! Weep, weep…….

 

[brains]

Someone once told me that with investing deciding when not to buy is just as important as when to buy. You dont have to buy all the time, but use your non buying time wisely, as in educating, research..etc.....this appiles to shares as well as property.

Cosmo,

If your portfolio still looks sick after the recent boom, something has gone wrong i think But everything's relative - Your brother could be a billionare and you a mere millionare and thats why yours looks sick....

 

[MarkB]

Cosmo

Thank you for those kind words.

Those that read my post of a few days ago:

http://www.somersoft.com/forums/showthread.php?s=&threadid=12136

will be aware that I had found what was to have been IP No. 1, only to have certain circumstances transpire against me. My lack having an IP is certainly not for want of looking.

For what it is worth (probably not much) - my personal preference for an IP at the moment is:

- houses (I like the land content).

- located in larger (coastal) regional centres or their surrounding areas (on the proviso that prospects for long-term population growth are good).

- median priced or lower, but which do not require immediate repairs of consequence to make them rentable (I simply don't have the time, nor budget at this stage, to get involved in reno's).

- preferably CF positive (I have a preference for houses built post 1985, though this is an 'ideal', rather than an 'essential').

- irrespective of the CF, the property must have good CG prospects.


In relation to the above criteria, the "almost-but-not-quite" IP No. 1 met all of them.


There is also an element of truth in what see_change and brains have said:

1. I probably do spent too much time in the chat, and

2. analysis and research (first time IP jitters?) may have got the better of me at times.


As to whether my first (and subsequent) purchase(s) is/are spot on?

Only time will tell.

MB