Where to buy 500k and still be able to make Some

iprock

iprock

Hi guys,

Starting new thread as looks like Bank is willing to lend us more. I had a meeting with bank guys today and it looks like we have a preapproval of 500K, so now search criteria has changed, any suggestions on where to. I was looking at Campbelltown/ Minto/ Rooty Hill area, what do you guys say. any chance we would be able to make some money?

Thanks for great suggestions so far.
 
maybe


you need to give us more information. Also, you need to do some due diligence.
Why do you say Campbelltown?

Will you be able to service a 500k loan?
WIll it be a PPOR?IP?Are you a FHOG buyer?
 
Apologies guys, this was probably my second thread on this forum.. as a newbie, such mistakes are expected.

Here is our query. We currently own as PPOR in Sydney West (Mount Druitt) and have managed to save some for IP

We first thought of buying in regional areas for capital growth without involving banks etc. hence we were looking for property range 50-150K range with intention of buying, reno and selling. On the second thought, we went to bank and they gave us a preapproval of 500K (which is ofcourse loan and we pay interest on it).

This has opened more oppertunities for us, and we are now thinking of buying IP in Sydney doing some work and rentin/selling it.

We have no previous experience and absolutely novice in this feild. Is there any chance for us or we are tapping the wrong door.

// extending message by 10 characters//
 
iprock said:
Apologies guys, this was probably my second thread on this forum.. as a newbie, such mistakes are expected.

iprock,don't take it personally,just a light hearted dig...We all need a laugh right?

Here is our query. We currently own as PPOR in Sydney West (Mount Druitt) and have managed to save some for IP

We first thought of buying in regional areas for capital growth without involving banks etc. hence we were looking for property range 50-150K range with intention of buying, reno and selling. On the second thought, we went to bank and they gave us a preapproval of 500K (which is ofcourse loan and we pay interest on it).

This has opened more oppertunities for us, and we are now thinking of buying IP in Sydney doing some work and rentin/selling it.

We have no previous experience and absolutely novice in this feild. Is there any chance for us or we are tapping the wrong door.

// extending message by 10 characters//
Click to expand...

Research more and ask more questions...Focus more on the upcoming markets not that has been tanked to date.

Btw are you focusing on NSW for comfort factor?
 
I think you need to do some thought on what type of investment is going to suit you. Many people on this forum are successful, but no one strategy fits all. Most have chopped and changed to suit them. I personally started off with aim of CF+ but have now moved to CG through development to continue investing.

Work out what sort of debt level you're comfortable with. I can easily sleep at night with ~$1M of debt because I know the properties are tenanted, I have backup of funds available if they weren't tenanted along with appropriate insurances in place. Along with buying in area's I know will do alright due to my research.

I would also suggest that you ensure that you have someone assisting with your finance who knows what they're doing, not all banker and brokers are equal. Ensure that finances are set up to best maximise you going forward not the bank. Without knowing your exact situation it sounds like you have some funds saved to use for an IP, please ensure you don't use the cash as the deposit... as cash isn't tax deductable. You should be looking to use OPM (other peoples money / bank) this can be done by using the equity in your existing property (also ensure that you don't x-col your borrowings)

You could do worse things then come on SS read lots and ask the right people the right questions. Tip people are usually more willing to share ideas once you have given your ideas, that way they can discuss your ideas and maybe give you some tips on what they would do.

Best of luck, enjoy it.
 
Welcome to funland iprock. All you need in here is a sense of humour, thick skin and be prepared to read and learn and you will do well. A few months of trawling will put you yrs ahead of the average joe first time investor.

If you are considering areas where the data indicates upside potential it might be worth considering W'gong/Illawarra. Ripple out from Sydney has begun, low vacancies, good mix of stock options in the 4-500k price bracket with either units in blue chip areas or decent houses in the cheaper areas. Take your time, the deals are out there!
 
Brady said:
...... please ensure you don't use the cash as the deposit... as cash isn't tax deductable. You should be looking to use OPM (other peoples money / bank) this can be done by using the equity in your existing property (also ensure that you don't x-col your borrowings)
......
Click to expand...

Curious to know some of the common ways to do this.
Will redraw from PPOR loan count or is it more complicated than this?
 
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