Looking at first IP

Been lurking for a while now, decided to sign up and get more serious :)

There's a ton of information around - to the point it's just overload! I'm looking for a few specific bits of info so I can bark up the right tree.

Long story short, my current situation:
- Located in Hervey Bay, QLD
- Looking to purchase within 3-4 hrs drive (HB is 3hrs north of Brisbane)
- Self employed, making around $100-140k a year
- Own a block of land in town, paid $120k. Loan has $25k owing (so I have around $95k in equity/cash/whatever - of course assuming it would sell for $120k today). Own a car outright worth $25k. Block is 900m2 battle axe, has views of water over roof tops, trees, powerlines etc. Google maps pic: http://s.wpdev.com.au/a-20120103-194540.jpg It's on a bit of a diagonal slope.

I need to do something with it, given holding it will go nowhere. I was going to buy it, someone I knew was going to do a great deal building it, blah blah. Shockingly it didn't work out, and now I've got house plans etc already done. Around $5-10k additional outlay on a fence, plans, and maybe some other fees on top of the purchase price.

My options at the moment are:
- Sell land, invest in a different PPOR + IP.
- Build 2 storey PPOR, will be around $350k total inc land. + IP
- Build cheap as possible for PPOR, maybe $260k total inc land. + IP
- Sell land, invest in 2 x IP's. Rent PPOR.

FHO and Building boost is $14k + $10k I believe at the moment.

I'm looking to purchase neutral/positive cashflow properties, ideally closer to me so I can inspect, organise things easier etc, given my inexperience (just turned 22).

My questions:
- Any opinion on what option would be best?
- In regards to finding property, is it a matter of looking online at rental vs selling prices to calculate a rough yield and investigate areas that look like they might have potential; then waiting until a good buy comes up?
- How should I handle real estate agents; just tell them I have a bunch of cash, want to buy properties undervalue (ie, someone who wants to offload quick; someone who has owned since < 2002 anyway, so they're not making a loss)? Are they going to be my friend or my foe? Not sure if contacting them all saying "I'm looking at grabbing the right property quickly, anything that comes up that's very good value let me know" is the right approach.
- There are a few mortgage repossession auctions coming up - worth going to?
- Any particular books or websites worth reading in order to become more self sufficient? Worth paying someone in the business for specific advice and direction? (Always skeptical about taking advice from people who 'know the answers', but don't have the results).

Thanks in advance!
 
Before you do anything it's probably best to work out what strategy would suit you, with respect to the amount of time you have available, and also how much you can actually afford to borrow etc. These are but a few questions to ask..
 
Well, that's exactly it - and that's the first step - whether to build, sell, or both. I was leaning towards a cheap PPOR and then investing money in shares; then I stumbled across property forums a while ago, saw about Nathan (Birch?) and what some others were doing, and it seemed pretty interesting and achievable.

No dramas on borrowing, I'm not jumping in until I know a lot more about what I'm doing and the area I'm in is centrelink city, so loan size isn't an issue.
 
I'm not too sure about building. Building adds an additional layer of complexity which is not good if you are just starting out.
 
Thankfully my granddad is a builder so I'm right there. However, it does seem to be the expensive way to go at present - there are houses selling for less than replacement costs. If I do sell the land however, then the interest paid & overheads etc, will become a realised loss. Which is why I was thinking doing a cheap PPOR might be the best option - after all, need somewhere to live anyway.
 
.... - there are houses selling for less than replacement costs.

There are time in the cycle where it is cheaper to buy established and other time where it is cheaper to buy land & build. Don't try to fight the cycle - just move with it and take advantage of it.
 
There are time in the cycle where it is cheaper to buy established and other time where it is cheaper to buy land & build. Don't try to fight the cycle - just move with it and take advantage of it.

So you'd think sell the land? The losses made there would be 'covered' by buying someone else's place at their loss.
 
So you'd think sell the land? The losses made there would be 'covered' by buying someone else's place at their loss.

If the plans are done an appoved, and you have on other things such as the fence, surely it will add value?

Do the "for sale with approved plans - all the hard work done, you just need to build!" thing.

The Y-man
 
The main cost would be the interest paid on the loan. The fence was only $700 (halved with neighbors). Could try and sell it like that, a point of difference vs empty land.
 
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