Just Starting out in Sydney



From: Sally Watts

Hi All,

I have just been introduced to this fantastic forum and spent hours reading the wisdom!

I am a first time property investor, but have been reading, attending seminars and researching for just under a year. I have looked into how much I can borrow, assembled my mortgage broker, accountant and solicitor in waiting. Now I have to start.

Ideally, I need to find cashflow positive property and would like a fairly decent capital growth position. Am I asking too much in Sydney? It has seemed so from my time out in the market.

Who else has invested, or rather is investing, in Sydney and have you managed to achieve capital gain and positive cashflow.

I have been thinking that my strategy should be to follow Geoff1's advice of buying wholesale, renovating(cosmetically) and holding.

I am in a unique position because I have 160k in capital to invest, but have a low income as I am starting a business and only working part time. So negative gearing is not an option (and is not something I am in favour of any way).

Any advice from those who are conquering Sydney would be greatly appreciated.

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Reply: 1
From: Rolf Latham

Hi Sally

Lots of fun.

Why restrict your search to Sydney. There are excellent deals to be had in other cities and some of our semi regional areas like the Central Coast


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Reply: 2
From: Paul Zagoridis

Welcome Sally

Positive cash flow with capital gain deals must be possible in Sydney. But they take time to find and put together. That's good if you have the time. I've had a few but none in the last 12 months.

Otherwise you grow old schlepping around the open-for-inspections on Saturday.

You are limiting yourself by sticking to Sydney.

Tell us about the courses you've done. Surely they've got a system you could follow?

Would you settle for mostly neutral gearing? Why? Why not? These are the self understanding questions you could explore.

I'm rather unexcited about a deal offering 10% at the moment and I couldn't work out why (not in Sydney). Then I realised it would take too much capital for too long at this point in time.

Good luck and keep posting

Paul Zag
The Oz Film Biz site is archived at...
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Reply: 2.1
From: Gail H

I don't invest in Sydney, but I couldn't imagine cash flow positive properties there now in this climate. Its certainly not possible in Melbourne (ok, I know someone will put up their hand and tell me that they have done one, but I have looked at thousands of properties over the last year, and I haven't seen one).

Sydney and Melbourne are both on the crest of a wave at the moment (not a great time to buy anyway). So, why not look elsewhere and come back to Sydney in a couple of years for your next one.

I have just bought a property interstate. Its quite doable.

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Reply: 2.1.1
From: J Parker

Hi Sally! Like Rolf suggests, I would start looking in large regional towns (eg Newcastle and surrounding areas) to get some cash in your pocket from the very beginning.
Don't forget, though, that negatively geared properties won't stay that way forever. If you're using IO loans and the rent increases (as it should usually do!) over time the property will become positive. It all depends on where it is, what the vacancy factor is, how desirable it is to the largest pool of possible tenants and what features it has that are sought after.

Good luck with your investing!
Cheers, Jacque :)
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