Need Advice

[LeoT]

OK so my friend has asked me to help her buy her first ip.

She can borrow 440k and has 80k in savings. I don't usually buy in this price range so I am not sure where is value for money in that range.

She is looking to buy a house with the outlook of medium term CG.

She is open to buying anywhere in Australia. Any recommendations?

Thanks guys

 

[spludgey]

Best investment in my books would be to split it and buy two or three cheaper IPs.

It's a myth that you don't get capital gains on those.

 

[stumpie]

OK so my friend has asked me to help her buy her first ip.

She can borrow 440k and has 80k in savings. I don't usually buy in this price range so I am not sure where is value for money in that range.

She is looking to buy a house with the outlook of medium term CG.

She is open to buying anywhere in Australia. Any recommendations?

Thanks guys

As far as macros goes the state to buy in now IMHO is Adelaide and Brisbane plus the benefit of a lower buy in price point. The cycle is in favour of these 2 states ATM then do the micro level DD on suburb and street.

 

[The Y-man]

She is open to buying anywhere in Australia. Any recommendations?

At the risk of much derision from many forumites, I will stick my neck out and say "somewhere close to where she lives that fits the price criteria"

My theory - most people "know their hood" - as to what constitutes a good property or bad, the demographics, the needs and desires of the locals. They may claim to "know nothing", but the human brain is a wonderful instrument that can take in a huge amount of information at the sub-conscious level, filter them and sett pattern recognition - resulting in what many term "gut feel" or "intuition" (some people's filters and pattern recognition "software" is better than others).

The Y-man

 

[Propertunity]

If you are not sure how to honestly answer your friend's question may I suggest that you "fess up" and suggest to your friend that you have no experience and she might be better off with another "advisor"?

There is no shame in saying you don't know, especially if she is putting misplaced faith in you.

 

[PHP]

Hey Leot,

So what is the price range that you normally buy in? If the properties you are buying are lower than her price range, why not suggest that to her as you have more experience and more researched data under your price range.
Alternatively, if you are really close friends, you can also show her how you select your own properties. This will greatly help her by educating her to look for properties herself than just recommending her places. You can never be blamed later on if you just say, "look, this is how I do this. however, this may not work for you as each person's circumstances is different."

 

[LeoT]

At the risk of much derision from many forumites, I will stick my neck out and say "somewhere close to where she lives that fits the price criteria"

My theory - most people "know their hood" - as to what constitutes a good property or bad, the demographics, the needs and desires of the locals. They may claim to "know nothing", but the human brain is a wonderful instrument that can take in a huge amount of information at the sub-conscious level, filter them and sett pattern recognition - resulting in what many term "gut feel" or "intuition" (some people's filters and pattern recognition "software" is better than others).

The Y-man

Hi Yman,

I actually know what your saying and I think contrary to what many believe there is some merit in it. Problem is, she lives in an area that I see taking a very, very long time for CG.. so I wouldn't necessarily be looking in her neighbourhood first.

 

[LeoT]

If you are not sure how to honestly answer your friend's question may I suggest that you "fess up" and suggest to your friend that you have no experience and she might be better off with another "advisor"?

There is no shame in saying you don't know, especially if she is putting misplaced faith in you.

Propertunity this isn't my first rodeo, I understand the property game. I just normally look for development sites and develop, not for properties in the 450k range. I explained this to her but she still is adamant she wants me to help her. Im only asking for some feedback as to that price bracket for areas that ppl think are decent then I will investigate it. Just some heads up, rather than starting from scratch.

 

[LeoT]

Hey Leot,

So what is the price range that you normally buy in? If the properties you are buying are lower than her price range, why not suggest that to her as you have more experience and more researched data under your price range.
Alternatively, if you are really close friends, you can also show her how you select your own properties. This will greatly help her by educating her to look for properties herself than just recommending her places. You can never be blamed later on if you just say, "look, this is how I do this. however, this may not work for you as each person's circumstances is different."

PHP I usually just buy development sites, 800k and above.

 

[LeoT]

As far as macros goes the state to buy in now IMHO is Adelaide and Brisbane plus the benefit of a lower buy in price point. The cycle is in favour of these 2 states ATM then do the micro level DD on suburb and street.

Thanks Stumpie.