How long did you wait before you bought your 2nd property?

[Median]

Hi all,

I just want to hear your story/experience of how long did you wait before you bought your 2nd property and How did you know that you are ready to get the second one? and where did you get it?

I understand that everyone is different, some would be a lot faster than others but I just want to encourage myself and aim for my 2nd property if I can. I don't know when though

I live with my sister in my first and only property at the moment. It's a 2 bedroom small villa in Wentworthville, NSW and it has been about 6months so far. The value of my property would be around 320K (I hope). I still have $198K in debt so it will take me a while to pay off my mortgage as it's just me who pay all the bills and I only earn everage salary around 50K. My sister is still high school and she only works casually in KFC. I didn't ask her to pay anything though.

I don't know how long do I have to wait untill I can buy something small like 1 bedroom unit as an investment property may be in Liverpool, Wiley park as I probably can't look any more than 180K.

Any suggestion is very welcome. But I really want to hear more about your story of success too. It's very inspiring for someone like me who normally only like to read the forum but never post

Cheers
G.

 

[goonandtell]

there was about an hour between my first and second IP ... but it was 4 years after i had purchased (and sold) my first PPOR.

There is no magical number it will depend on what you are trying to achieve and what you are buying. For me buying my IPs i wanted 10% purchase fund + closing cost + LMI + 3 months holding + renovation estimate with 50% buffer. But i dont have that in cash its in loans from other IPs/shares/projected cash flow over the 3 month period hell even space on a credit card (some people will cringe at that thought).

Figure out what you are buying, what 'funds' you will need, how it will impact your cash flow when you have the required 'funds' that is probably the time you for you.

 

[The Y-man]

As soon as I felt we could afford it.... (which was about a year - but the 3rd and fourth followed within a few months)

The Y-man

 

[bene313]

Really depends on what the market is like.

Rising property market coupled with easy credit makes additional purchases easier.

Flat market with tight credit makes additional purchases more difficult.

 

[ashalim]

I bought my first in August 2010 and put in a deposit for 2nd in November 2010...but it's an OTP so probably settle sometime mid this year.

I guess I will start looking when I can afford it. DSR would be maxed for the next year or so after that 2nd one because it's negatively geared so I'll be looking for CF+ from now on.

 

[shim]

My first property and second property was approximately 1 year apart (the time it took me to save up 20% deposit to avoid mortgage insurance and also reducing the risk)
It really depends on everyone's situation between purchases and the market.
Depending on how much your first property was worth and how much you borrowed on that property will determine whether you can afford another purchase.

 

[SupaRex]

Less than a day .

Couldn't decide between two properties, so decided to stretch myself (slightly) and buy both . That was in 2006.

Bought my third in about 2008 and my fourth in November 2010.

I'll buy my fifth as soon as I can and when I find a bargain.

 

[Lou300]

5 years...

I bought just before the peak of the boom in late 2001 - saw an immediate increase in value, then a drop.... It took me several years to see some equity in it to cover the deposit of my second one. It was my first property and my 'analysis paralysis' prevented me from buying 12 months earlier where I would have made a motza on the boom and be lightyears ahead of where I am now.

We've had a slow start, but now things are speeding up. Just exchanged on IP5 - less than a year since purchasing IP4. Hopefully things will now speed up again... Now we purchase when we're financial able to - no more fear of jumping into the property market stopping us from missing out.