Where to start?!

[yokome]

Hi there, I am a first time investor in australia and am looking to start a portfolio. I have saved $50,000 and am in a resonably high paying job (around $90,000). I really want to take my first step in the best possible way so I can build up enough wealth (maybe one house a year for the next 5 years) to have have the choice of winding down my work career in 10 years time.

Problem is, I have no idea where to start! I am toying with the idea of going with someone like Rocket Property investors (who get commission from developers I know but seem to offer a high quality product in well researched areas) for my first house. They seem to have lots of properties in Queensland - ie Gladstone, Townsville...

Does anyone have any advice? I would love to know what price range you think I should be looking at initially and if there are any areas I can start to look at and research that you think are great areas and wheter going with someone like Rocket is a mistake (will they overcharge me? is it worth it if they offer high quality places in good growth areas - I plan to hold onto the properties long term).
I am probably asking alot in terms of advice but I don’t know where to go and who to trust in this very complex area!

thanks so much

 

[alexlee]

1) Go to a few mortgage brokers and ask them to assess how much you can borrow, WITHOUT actually making an application so nothing turns up on your credit file.

2) Read a few books on property investment so that you have an idea about how good the 'advice' you get is.

 

[Tex]

Hi there, I am a first time investor in australia and am looking to start a portfolio. I have saved $50,000 and am in a resonably high paying job (around $90,000). I really want to take my first step in the best possible way so I can build up enough wealth (maybe one house a year for the next 5 years) to have have the choice of winding down my work career in 10 years time.

Problem is, I have no idea where to start! I am toying with the idea of going with someone like Rocket Property investors (who get commission from developers I know but seem to offer a high quality product in well researched areas) for my first house. They seem to have lots of properties in Queensland - ie Gladstone, Townsville...

Does anyone have any advice? I would love to know what price range you think I should be looking at initially and if there are any areas I can start to look at and research that you think are great areas and wheter going with someone like Rocket is a mistake (will they overcharge me? is it worth it if they offer high quality places in good growth areas - I plan to hold onto the properties long term).
I am probably asking alot in terms of advice but I don’t know where to go and who to trust in this very complex area!

thanks so much

Hi Yokome

Continually keep reading property mags and investment books - a good way to build your knowledge and confidence over time. There are certainly many ways to start, it all comes down to what your comfort level is ie negative or positive cashflow, high risk areas or blue chip, new versus old etc.

We have just gone through the same issue where I knew a lot but didn't know where to start. We engaged a buyers agent, I set our parameters in regards to price and return and have gone from there. We have settled on a unit a month ago and just exchanged contracts on another. For us we look at places around the $300k mark - this is just to get us comfortable with the first couple of properties. These will probably change in the future.

Hope this helps

Tex

 

[Steve Roberts]

Hi Yokome,
I strongly agree with alexlee, A reputable mortgage broker should be able to provide you with Independent advice and information on;

How much you can borrow now
Development of scenarios on how much you will be able to borrow as your portfolio grows.
Structuring your lending to maximize your flexibility as you move forward.
Structuring your loans for tax purposes.

I also think Tex makes some good points, particularly about a buyers agent. Remember the fee you are paying is for the agent to work for you, not a developer, and you should make sure that this is the case...

Educating your self is also a great idea, however at some stage you must take action to reap the rewards from your education.

Meeting with a mortgage broker will help you establish when you will be ready, from a financial perspective, to make your first purchase.

As a footnote and a general guide, $50000.00 will get you into a property of around $200000.00 with out the need for mortgage insurance. You may be able to buy up to $250000.00, however your would need to pay mortgage insurance.

At the moment your income is not the limiting factor, your deposit is.

Hope this helps.

Regards,
Steve Roberts,

 

[Shaneelastic]

really? only 250K

Hi Yokome,

As a footnote and a general guide, $50000.00 will get you into a property of around $200000.00 with out the need for mortgage insurance. You may be able to buy up to $250000.00, however your would need to pay mortgage insurance.

At the moment your income is not the limiting factor, your deposit is.

Hope this helps.

Regards,
Steve Roberts,

Only 250K wow, i reckon he could borrow 500K plus, more if it was a rental property