Hi All,
Long time lurker, first time poster. Firstly, thanks to all the posters sharing their knowledge and experience. It's helped enourmously in us getting to this point!
My wife and I have been trying to put the wheels in motion to start investing in property. We've been reading as much as we can and spend plenty of time on the REA site. We know we are still very green and feel like fish out of water, but feel like every month that goes by is another month lost. After all, it is "time in the market". We're hoping that we're now ready to actually jump in and purchase our first IP.
Current situation:
PPoR: 3 bedroom house in Greensborough, Owe $270,000, Last valued Dec 2009 at $485,000
We've been to the bank and established that they will lend us $300,000. (We're happy to start with keeping our LVR at around 80%)
Our plan at this stage:
We aim to buy and hold. We'd like to purchase in the next month or so and then hopefully be able to purchase a second IP in another year or two? and so on. So really the main reason to try to get "the best" first IP deal is just to make our ability to get IP2 quicker. Longer term it will sort itself out right.
We really want to have minimal input from our pocket, therefore a higher yeild is preferable, we'd be happy if we end up paying around $100 per week, but of course we'd like it all and are keen for at least some capital growth
So a bit from both camps is the ideal.
We have tended to look at houses, generally they are 3br weather board types, but are open to other.
Based on the $300,000 cap and a reasonble yeild, we've narrowed down our search at this stage to a few Geelong suburbs: Lower $ – Newcomb then Belmont. Higher $ – Manifold Heights, Newtown, Geelong West (Need to be units in the later suburbs) or Albury (Close to the center of Albury)
We're leaning towards Belmont area over Albury as the yeild seems to be better. Roughly, $300k 3br houses are fetching around $260 per week rent in Albury compared with $320 in Belmont as far as I can tell. The 10 year median price chart is a little healthier for Belmont also (via REA Suburb Profile).
Aside from these areas fitting our requirements, we also like these areas because: We have family and friends in Geelong and I used to live in Albury so we are comfortable with these locations and there more often. We're basically never in the east which is why Frankston and Dandenong etc have been off the radar. We're also wondering if we should have Melton, Hoppers and Werribee in the mix? Not that I want to start another thread/debate on these. That said we'd like to decide on a fairly narrow suburb range to keep the property hunting time managable. Melton does seem to fit the profile though.
Basically I would be interested on general thoughts / sense check on this plan and whether we're on the right track or if it's full of holes?
Thanks!
Shannon.
Long time lurker, first time poster. Firstly, thanks to all the posters sharing their knowledge and experience. It's helped enourmously in us getting to this point!
My wife and I have been trying to put the wheels in motion to start investing in property. We've been reading as much as we can and spend plenty of time on the REA site. We know we are still very green and feel like fish out of water, but feel like every month that goes by is another month lost. After all, it is "time in the market". We're hoping that we're now ready to actually jump in and purchase our first IP.
Current situation:
PPoR: 3 bedroom house in Greensborough, Owe $270,000, Last valued Dec 2009 at $485,000
We've been to the bank and established that they will lend us $300,000. (We're happy to start with keeping our LVR at around 80%)
Our plan at this stage:
We aim to buy and hold. We'd like to purchase in the next month or so and then hopefully be able to purchase a second IP in another year or two? and so on. So really the main reason to try to get "the best" first IP deal is just to make our ability to get IP2 quicker. Longer term it will sort itself out right.
We really want to have minimal input from our pocket, therefore a higher yeild is preferable, we'd be happy if we end up paying around $100 per week, but of course we'd like it all and are keen for at least some capital growth
So a bit from both camps is the ideal.We have tended to look at houses, generally they are 3br weather board types, but are open to other.
Based on the $300,000 cap and a reasonble yeild, we've narrowed down our search at this stage to a few Geelong suburbs: Lower $ – Newcomb then Belmont. Higher $ – Manifold Heights, Newtown, Geelong West (Need to be units in the later suburbs) or Albury (Close to the center of Albury)
We're leaning towards Belmont area over Albury as the yeild seems to be better. Roughly, $300k 3br houses are fetching around $260 per week rent in Albury compared with $320 in Belmont as far as I can tell. The 10 year median price chart is a little healthier for Belmont also (via REA Suburb Profile).
Aside from these areas fitting our requirements, we also like these areas because: We have family and friends in Geelong and I used to live in Albury so we are comfortable with these locations and there more often. We're basically never in the east which is why Frankston and Dandenong etc have been off the radar. We're also wondering if we should have Melton, Hoppers and Werribee in the mix? Not that I want to start another thread/debate on these. That said we'd like to decide on a fairly narrow suburb range to keep the property hunting time managable. Melton does seem to fit the profile though.
Basically I would be interested on general thoughts / sense check on this plan and whether we're on the right track or if it's full of holes?
Thanks!
Shannon.
