Hey guys, I've been a lurker for quite a while but only recently registered and thought I'd start taking part in community discussions. I must say, I've seen a lot of helpful users on this forum! Can't wait to start learning more and give back to the community once I've got more experience under my belt.
A little about myself:
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Age: 22
Income: ~100k
Savings: $210k
Location: Sydney
Interested locations: Sydney & Queensland (Brisbane)
Brief background info:
So I made my first investment in a blue chip area in Sydney (St Leonards) back in 2010. Long story short I sold it in January 2014 due to personal reasons.
So for the new year I want to start fresh and slowly build up my portfolio.
Goal:
Initially I wanted to work on a few 'chunk deals' where I 'add value' and flip them to get some more cash flow. However I noticed there's a lot to it: buying under market value, timing, break even, hold on cost etc etc etc and it's also quite hard to find these gems in Sydney atm.
So my alternative plan is to invest in areas which may be entering a gentrification phase or simply just growing in value, then do small renos to bump up the rent and try get it cash flow positive (if possible).
Here is where I'm still a little confused:
Do I go P&I or IO and what's the better way of 'building up your portfolio?
P&I:
- Invest in a property.
- Dump as much money as I can into it, pay off the loan and have 100% equity - profit from consistent rent.
- Once I've nearly paid off the loan, I invest into a second property.
- Then repeat this until I have a portfolio of how ever many properties, all paid off and all receiving rent.
- This way I'm also always negatively geared
OR DO I:
IO:
- Invest in a property and only pay interest.
- Use rent to cover repayments and other expenses (tip on a little if it's not enough)
- Repeat this with a few other properties, using rent to cover repayments.
- Find the opportunity to sell within the 10 year contract agreement and profit on CG OR sell off a few and use profits to pay off on entirely.
--
I'm still very new to PI and would love to hear what you guys think of my goal/direction, if there's potential are there any areas in Sydney or Brisbane which is heading into a gentrification phase? worth investing into?
Right now I've got my eye on Western Sydney, St Mary/Mt Druitt area and Newcastle.
Thanks!
A little about myself:
------------------------
Age: 22
Income: ~100k
Savings: $210k
Location: Sydney
Interested locations: Sydney & Queensland (Brisbane)
Brief background info:
So I made my first investment in a blue chip area in Sydney (St Leonards) back in 2010. Long story short I sold it in January 2014 due to personal reasons.
So for the new year I want to start fresh and slowly build up my portfolio.
Goal:
Initially I wanted to work on a few 'chunk deals' where I 'add value' and flip them to get some more cash flow. However I noticed there's a lot to it: buying under market value, timing, break even, hold on cost etc etc etc and it's also quite hard to find these gems in Sydney atm.
So my alternative plan is to invest in areas which may be entering a gentrification phase or simply just growing in value, then do small renos to bump up the rent and try get it cash flow positive (if possible).
Here is where I'm still a little confused:
Do I go P&I or IO and what's the better way of 'building up your portfolio?
P&I:
- Invest in a property.
- Dump as much money as I can into it, pay off the loan and have 100% equity - profit from consistent rent.
- Once I've nearly paid off the loan, I invest into a second property.
- Then repeat this until I have a portfolio of how ever many properties, all paid off and all receiving rent.
- This way I'm also always negatively geared
OR DO I:
IO:
- Invest in a property and only pay interest.
- Use rent to cover repayments and other expenses (tip on a little if it's not enough)
- Repeat this with a few other properties, using rent to cover repayments.
- Find the opportunity to sell within the 10 year contract agreement and profit on CG OR sell off a few and use profits to pay off on entirely.
--
I'm still very new to PI and would love to hear what you guys think of my goal/direction, if there's potential are there any areas in Sydney or Brisbane which is heading into a gentrification phase? worth investing into?
Right now I've got my eye on Western Sydney, St Mary/Mt Druitt area and Newcastle.
Thanks!
