Some Tips for New Investors

Discussion in 'Where to Buy' started by jpcashflow, 10th Mar, 2015.

  1. jpcashflow

    jpcashflow Member

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    Hi All,

    I have noticed that in the last few weeks allot of new members have joined the somersoft family - so welcome aboard!!

    The first question new member's usually ask is this: Where should I buy if i had 300K "eg" as a budget in XYZ state.

    Here are some tips: If any one can contribute that would be great too :)
    1) Before deciding a budget and location, determine what is your goal with this property eg: Are you looking at getting a development site, a property to renovate and sell, A property to simply hold over a certain period or a property that provides a high rental yield to develop cash flow.

    2) What are your risk levels? Are you the conservative type or are you comfortable with risk?

    3) What is your investment experience and how much effort are you going to put in?

    These are my three tips looking forward to others to respond :)
     
  2. oc1

    oc1 Developer

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    I didn't realise new members come in parcels :p
     
  3. Biz

    Biz $17 DOLLAS YO!

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    4: Stop asking about Brisbane.
     
  4. Coota9

    Coota9 Member

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    OC1,

    I believe they normally come in bite sized parcels...for brokers that is!!
     
  5. sash

    sash Member

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    Okay..I'll will be nice...

    Here are my 2 tips:

    1. Don't put money into Sydney..now...if you do...pick-up from fellow SS newbies who bought in the top of the market and have had it reposessed..around 2017-2018 when interest rates hit about 7-8%!

    2. If you are newby...try buying 2 brms units within 3-8 klms of Brissie for less than 350k...if it is unit with the works - i.e. laundry, lock-up garage, balcony...it will definitely out perform.

    Best of luck...
     
  6. datto

    datto Member

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    OK, here's my tip (deep breath):

    Consider the Mt Druitt area.

    We are arguably the cheapest in Sydney.

    Bigger blocks than average. Yields are OK.

    Big shopping centre.

    2 x swimming pools.

    Many local shopping centres.

    Big Police station, which is located some 6 km from some the outer suburbs!

    Extra long ring road (Luxford Ave) which is concreted in parts for extra tyre wear.

    Many schools, TAFE

    Hospital (no intensive care, so don't get too sick)

    A pistol range (handy, also see above point )

    Plenty of houso (though number is reducing)

    Get 'em while they're cheap!
     
  7. Cassandra

    Cassandra Member

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    The Macroeconomist speaketh.
     
  8. albanga

    albanga Member

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    I believe the biggest thing is an expansion on your first point but why are you even investing in property??
    Eveytime someone I know purchses an IP I ask them why they are investing in property and honestly 90% stare at me blankly! After a while they respond with something like "because property doubles every 7 years" or "I needed to grow up".

    It honestly blows my mind that people literally spend 400k and don't even know why they are doing it or understand a strategy or goal. Sure some do well but it's pure luck whilst others (I have a few friends in this scenario now) buy without understanding anything about property, have a negative cashflow and see no gains and make comments like "Investment properties are junk".
     
  9. JameZ

    JameZ Member

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    Great list Datto.. on Housos... whenever someone describes a low social eco suburb gentrifying, reduction in housos always comes up.

    my question is, for each houso that is sold, is another establish elsewhere? Like far out into the western of west?

    Or do they just magically disappear? What happens to those houso tenants... do the govt just send them onto the streets to fend for themselves?
     
  10. Corey Batt

    Corey Batt Finance Broker

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    Good question. In SA, for every 10 housing trust properties sold off, they are replaced by one new property. They are taken out of the cycle by attrition.

    NRAS helps to fill the gap to a degree, but in the end of a lot of public housing tenants will need to enter the private market.
     
  11. BayView

    BayView Member

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    Is this what you mean? :D
     

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  12. cadence

    cadence Member

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    Sounds like Frankston in vic if you replace the big shopping centre with some caf?s And a bunnings

    :D
     
  13. see_change

    see_change Apprentice Timing Lord

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    Also sounds like Logan

    So datto , are you wanting to offload yours now :D


    Cliff
     
  14. hugh72

    hugh72 Member

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    In Qld as the old stock is sold off in suburbs with a high concentration of HC new houses replace the old In different suburbs and they move in next to you if your unlucky and sometimes in NRAS houses it seems
     
  15. jacbmw

    jacbmw Member

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    I am seeing a lot of investor interest in this Unit stock in Brisbane Sash.

    Of particular note (in that price and distance range) are two bedders in Ascot (make sure not in public housing areas to the east and nice and close to the tenancy demand near Kingsford Smith Drive).

    Also around the rail line in Nundah - nice CG fundamentals in the market here currently and lots of unit stock around the Rail. There are some areas of very high public housing to the north in this suburb however.
     
  16. Pixie

    Pixie Member

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    Having a big police station is a turn off! Hahaha only busy police station gets to have a big place.. Must be busy down that end ;)
     
  17. datto

    datto Member

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    Dunno, to be honest James. I could only guess. Maybe jail, any of the number of cemeteries around Sydney, urn jar, condiments jar, scattered ashes ? I don't want to sound too insensitive. Thanks for the questions James and good luck!


    Yeah forget, we got a Bunnings and a Masters but no beach. Cheers


    I think I'm sitting on a five bagger here Cliff. I'm gonna wait till the prices hit 500k that's a 6.2 bagger. I might even just milk it, any half decent brokers out there? lol.


    Remember this is Mt Druitt....big cop shop needed. Also great for the fast food outlets around there.
     
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  18. JameZ

    JameZ Member

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    Bayview, how did you get all my tenants together in one shot? ;)