IP Newbie - planning to buy this year!

[Ainslie99]

This is my first post and first step in my new years resolution of acquiring my first IP this year! I have read many of the threads and confess to being quite daunted by it all. Still, I have to start somewhere and the information on this forum has been a great first step.

So, any advice would be useful, especially on the following:
1. Are there any magazines you recommen that I buy to get up to date information?
2. Any websites that I should be going to?
3. I currently live in Canberra but don't believe this is the best place for IP, my reading has suggested other places. Any recommendations of where to start looking?
4. What sort of price range I should be looking at, above or below the median?

 

[Rob Williams]

Welcome to the forum!
1. Australian Property Investor (API) and Your Investment Property (YIP).
2. Yeah, this one and Realestate.com
3. Only you can answer that one. If I were to be looking outside my own state at the moment, I think I'd be looking at some of the inner suburbs in Melbourne. However. I've been a frequent visitor there for many years, so there is a familiarity factor there.
4. My strategy calls for median to left of median as that's where the largest pool of buyers and renters will be found, in my experience.

 

[Propertunity]

2. Any websites that I should be going to?

Heaps: http://www.somersoft.com/forums/showthread.php?t=43972
and mine, www.propertunity.com.au

3. I currently live in Canberra but don't believe this is the best place for IP, my reading has suggested other places. Any recommendations of where to start looking?

Well if you're not keen on Canbra, then Sydney looks pretty set to go (out of the national cap. cities). Syd generally drives the property market and it was first in decline.

4. What sort of price range I should be looking at, above or below the median?

At or below.

 

[Gatoblanco]

I am no expert but I have read that it is better to buy a property that is below the median price for that suburb because then its price has room to grow when you renovate it. And that renovation may only be cosmetic. That is what a lot of people do.
If you look at lots of IPs before you buy (and I would suggest there is no huge hurry at the moment, then you will start to learn what things can easily be changed to add value. Ugly carpets, paint and curtains can make a property look really bad but are all relatively inexpensive to replace.


The yield may be more likely to be better on a lower priced property too. If that is important to you.

 

[Ainslie99]

Thanks for replying and making me feel welcome. I will get recommended magazine and come back with my city/ suburb picks as I work it out. I read elsewhere that I will then be able to get opinion on good streets and ones to avoid.

One final question, with using a buyers agent, what sort of costs are involved?

 

[MarkB]

Below median properties can lead to below median tenants.

Just something to be aware of. It is not an issue in some locations. It certainly is an issue in others.

 

[Propertunity]

One final question, with using a buyers agent, what sort of costs are involved?

Hi Ainslie99,

I have sent you a PM.

Cheers,

 

[Jacque]

Thanks for replying and making me feel welcome. I will get recommended magazine and come back with my city/ suburb picks as I work it out. I read elsewhere that I will then be able to get opinion on good streets and ones to avoid.

One final question, with using a buyers agent, what sort of costs are involved?

Hi Ainslie

Unlike most BA's I actually advertise my fees on my site (see sig below) so feel free to pop on and have a look to provide you with a guide. Naturally, every search is different in regards to type of property and search area, so costs can vary.

Some BA's charge a flat fee (like us) or a commission (% of the purchase price). At the end of the day, however, you need to look and find someone you feel comfortable with, can trust, and preferably a BA who's an investor themselves. Local knowledge of the suburbs you're interested in is also vital, as is ensuring the BA is appropriately licensed and insured (both PI and PL)

The fee is considered a capital cost and is treated as such upon resale, like other property acquisition costs.

Hope this helps.