Looking for first IP, don't want to go higher than $170,000
- Thread starter kristy77
- Start date
Looking for localities to get a boom within the next 12 mths is highly speculative.
I would look for areas that have potential for growth in the next 3-5 years and then if they happen to get good cap growth within 12 mths, that would be a bonus.
What about your own backyard (Blackwater)... there still seems to be good cap growth happening with solid rental yields.
Harris
I would look for areas that have potential for growth in the next 3-5 years and then if they happen to get good cap growth within 12 mths, that would be a bonus.
What about your own backyard (Blackwater)... there still seems to be good cap growth happening with solid rental yields.
Harris
Blackwater is not only very expensive, but as it''s a mining town where people can rent through the mines for $55/ wk (as we are), having an IP is not an option here. My friend's neighbour has been waiting for a tenant since Easter, our Pastor has been waiting for tenants for his two IP's here for almost 4 months now. He's looked at selling, but noone is buying. There is a nice house here with a pool and great location which has been on the market since we moved here last December (it now has five 'for sale' signs out the front). Needless to say, Blackwater is no good for IP's.
I'm happy waiting for 2-3 years for 'boom' (any increase in price is fine with me). Where do you suggest for under $170,000 (not interested in units)?
I'm happy waiting for 2-3 years for 'boom' (any increase in price is fine with me). Where do you suggest for under $170,000 (not interested in units)?
The company pick's up the rest of the gazillion dollar per week tab.
Shame you did'nt jag some when they could'nt give them away after the mines closed last time.
What about Clermont with the new "super mine" coming on line.
Havent looked at the prices but.......................
Dave
Any reason?
Cheers,
The Y-man
Prefer owning land with the package.
Kristy
Research ... research and research more ... arm yourself with the latest copies of the Australian Property Investors mag, the property sections of the newspapers, domain.com, go to seminars ... keep reading the posts on this forum and you will find yourself suitably equipped to take a step in the right direction. Else, you might like to obtain the services of a buyer's agent who will not only point you in the 'right' direction but will also provide some hand holding along the way.
Good luck with it all !
Research ... research and research more ... arm yourself with the latest copies of the Australian Property Investors mag, the property sections of the newspapers, domain.com, go to seminars ... keep reading the posts on this forum and you will find yourself suitably equipped to take a step in the right direction. Else, you might like to obtain the services of a buyer's agent who will not only point you in the 'right' direction but will also provide some hand holding along the way.
Good luck with it all !
Golden Rule: Make at least one offer a week
I don't know about Qld, but in Victoria that price range will get you a house in a cheap outer suburb or regional centre or a small unit in a cheaper middle-distance suburb.
Don't rush in - allow 3 - 6 months of serious looking, travelling, research and talking to agents each weekend.
Identify areas where there are lots of properties advertised around or slighly above your budget.
After you've identified these areas, set the target of putting in at least one offer per week*. Any place vaguely suitable is fair game - especially ones you think are worth $20k more than your offer!
It doesn't matter much if offers are rejected - what is most important is getting into the pattern of researching, talking to agents, making offers with an end in mind.
Making many offers also removes the emotions of buying and develops your mind to see the bigger picture.
Even when they're buying investment property, many think emotionally about a particular property 'that you must have' and being utterly disappointed when the offer is refused. That's good if you're buying a home but not so good if an investment.
Setting an offer target of one per week teaches several things:
- Like petrol, investment properties are a commodity that you will seek to buy for the best price.
- At any one time there are dozens if not hundreds of properties potentially purchasable for around $170k. A large number would reasonably meet your requirement to provide a decent house for a tenant.
- It doesn't matter if an offer on one property is refused since you know you're going to be making offer(s) on others the following week.
Proving to yourself that the above three points are correct by finding properties and making offers makes you much more relaxed about individual properties, and, I think, a better negotiator.
Count me as a skeptic on this one, especially when purchasing cheaper properties. The high-profile buyers agents are most numerous in the posher suburbs and their knowledge of the cheaper markets may be poor.
It takes about as much work to serve a client after a $200k private sale house as it does an $800k auction-belt house, so why would a BA seek custom for the former (since the fee would be a large proportion of the house value)? Also most of the houses in the $200k suburbs are pretty much the same so no one needs a BA to spot value.
Some BAs presume also to be property investment advisers, with particular attitudes on matters such as location or type of property that do not align with individual circumstances or budgets. If such people have spent their spruiking lives claiming that $170k houses are no good for investment purposes, they're hardly going to be the best people for buyers of same.
Peter
(*) This is a reasonable and achieveable target for a working person. You can make the offer expire before the following weekend, so that weekend is free for other inspections and offers.
I don't know about Qld, but in Victoria that price range will get you a house in a cheap outer suburb or regional centre or a small unit in a cheaper middle-distance suburb.
Don't rush in - allow 3 - 6 months of serious looking, travelling, research and talking to agents each weekend.
Identify areas where there are lots of properties advertised around or slighly above your budget.
After you've identified these areas, set the target of putting in at least one offer per week*. Any place vaguely suitable is fair game - especially ones you think are worth $20k more than your offer!
It doesn't matter much if offers are rejected - what is most important is getting into the pattern of researching, talking to agents, making offers with an end in mind.
Making many offers also removes the emotions of buying and develops your mind to see the bigger picture.
Even when they're buying investment property, many think emotionally about a particular property 'that you must have' and being utterly disappointed when the offer is refused. That's good if you're buying a home but not so good if an investment.
Setting an offer target of one per week teaches several things:
- Like petrol, investment properties are a commodity that you will seek to buy for the best price.
- At any one time there are dozens if not hundreds of properties potentially purchasable for around $170k. A large number would reasonably meet your requirement to provide a decent house for a tenant.
- It doesn't matter if an offer on one property is refused since you know you're going to be making offer(s) on others the following week.
Proving to yourself that the above three points are correct by finding properties and making offers makes you much more relaxed about individual properties, and, I think, a better negotiator.
Count me as a skeptic on this one, especially when purchasing cheaper properties. The high-profile buyers agents are most numerous in the posher suburbs and their knowledge of the cheaper markets may be poor.
It takes about as much work to serve a client after a $200k private sale house as it does an $800k auction-belt house, so why would a BA seek custom for the former (since the fee would be a large proportion of the house value)? Also most of the houses in the $200k suburbs are pretty much the same so no one needs a BA to spot value.
Some BAs presume also to be property investment advisers, with particular attitudes on matters such as location or type of property that do not align with individual circumstances or budgets. If such people have spent their spruiking lives claiming that $170k houses are no good for investment purposes, they're hardly going to be the best people for buyers of same.
Peter
(*) This is a reasonable and achieveable target for a working person. You can make the offer expire before the following weekend, so that weekend is free for other inspections and offers.
