Hi everyone, I am about to start my journey of investing in my first property and would really appreciate advice. For some context, three years ago, I received an inheritance and have been trying to learn more about how I can be wise about growing it. I have been told about a deal in Victoria, specifically in Lara, for a house and land package. Overall, it would cost $579,850 and would be rented out per room (3 bedrooms) for around $250 (approx $750 per week) as of the market right now.
I’ve been trying to learn more about positive cash flow, and I have been told that it is, but doing Steve’s 1 per cent rule, I’m now not sure. I live in Sydney, and recently I’ve been hearing more about Victoria’s taxing system and how right now, it isn’t that great for people trying to buy investment properties, but I am not sure about this, as I don’t know much about it. I have been hearing 2 sides of a coin, and I would really appreciate more advice and whether I should consider this deal or not. I’m 24 and I feel like I have a huge responsibility on my shoulders. I just want to make the right choice and the wisest one too.Thank you!
Hi Natni,
In my Welcome PM to you, I posted the link to the “Big Picture for New Investors” topic. Spending some time trawling through that may well yield some good answers for you. In particular, page 3 of that link has several subjects that seem appropriate for you at this time. Here’s that page 3:-
One early post in there talks of “Off the Plan” purchases – I’d recommend a read of that one for your current situation. Further on, on Jun 8, 2021 a topic of “For anyone just starting out, and unsure where to start”. That is well worth a read too. A few others on page 3 may pique your interest. After that, there are still pages 1 and 2 to be explored.
Start there, then see if it leads to other questions, but with better knowledge now of “what to ask”. i.e. you may be further along, and can pinpoint specific “need-to-know” areas.
Let’s see what other members might offer too.
Regards,
Benny
I’m sure you’ll succeed! Don’t forget to share your successes with us.
Hi Natni
I’m just starting my property investment journey too, so I totally get how you feel! The deal in Lara sounds interesting, but at around $750 per week on a $579k property, it’s just under the 1% rule — so it might not be true positive cash flow after taxes and fees.
You’re right about Victoria’s tax changes; a lot of investors have been cautious lately because of the higher land tax and stricter rental rules. It’s smart to compare options in other areas or even overseas.
If you ever want to explore international markets, check out UAE Off Plan — they feature Dubai projects with flexible payment plans and good rental yields.
You’re asking the right questions — take your time, run the numbers, and make sure it fits your long-term goals. Good luck!
lisalahn293 | UAE Off Plan
https://uae-offplan.com/
Email Me | Phone MeOff Plan Properties & Projects For Sale in Dubai - UAE
Thank you so much for your reply! I thought that too, with the $750 per week but my agent (who is also a friend) said next year when the property would be built, there is potential for the rent to be raised to $300 each room so that would make it $900 per week. It’s not set in stone, and it feels like if it were $900 per week then that could work out but at the same time it might not be $300 by next year. So I feel a little bit stuck in the sense of do I take this risk and if it’s $300 per room could it work or am I just relying on hope, timing and luck.
I’ve been doing more research in the area since I made the post and so many investors are being scared out of the market in Vic because of the land taxes etc, but at the same time there is a lot of businesses being opened up and that will create a lot of jobs in that area too. I feel like it’s one of those things where it might be the case of going against the crowd and reaping the benefits in the future when others might be scared off OR it could be that i’m completely wrong and I shouldve been scared off with the others. If it were $900 per week do you think it could work? :))
If rent does hit $900 per week, that would definitely make the numbers more attractive — but since it’s not guaranteed, I’d still run the figures at $750 just to be safe.You’re right about Victoria; the taxes are tough, but long-term growth and new businesses could balance it out. Sometimes going against the crowd pays off if you believe in the area’s future.
lisalahn293 | UAE Off Plan
https://uae-offplan.com/
Email Me | Phone MeOff Plan Properties & Projects For Sale in Dubai - UAE
Have you already bought real estate?
No I havent
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