Ajay
I would also like to caution you on this investment. From the photo it looks like a double storey duplex in a group titled community.
Remember that from day 1 of your purchase you will have negative equity 9Once you factor in purchase costs) The market will have to rise around 5% for you to break even. Then you have compounding losses every week as well.
Other factors to consider are things like saleability of the property. By the looks of the estate you will have a high proportion of investors. This can be off putting to any future owner occupier…remember owner occupiers represent 70% of the market therefore your property needs to appeal to this market.
Regards
Sailesh
http://www.developersedge.com.au
130073 5934
Sounds like you are keen to purchase this proprty. It looks great, and you are happy to pay $90 per week now, but have you considered long term? Do you plan to continue purchasing property? $90 per property is a big chunk. Just a couple of properties requiring this much weekly outlay can really affect your quality of living. My husband and I looked into defence housing several years ago and found there was a markup on many of the properties and while rent is guaranteed, a comparable house in the subburbs had higher rental returns. Please be careful.
Kayleen
If there is a mark up in prices then it is evem more worrying. I have witnessed marketing companies mark up properties by around $40 000. Defence housing does spend a lot of money in marketing. They even attended a little known property expo in Hong Kong last year to promote properties.
So Ajay if you are paying more than it is worth it could take you 3 years of normal market growth just to break even let alone make a profit.
Therefore the next step is to research what similar properties are selling for within a 1km radius.
Good luck
Regards
Sailesh
http://www.developersedge.com.au
130073 5934
Damn kiddo! thats a big outlay for a 1st investment. I agree with the others. I think you’re starting big with the risk of getting small very quickly.
slow down take your time, there will always be another special deal around!
start small if its your first investment and use it as an education tool. If you start big and get burnt bad the lesson will be learnt the hard way and it may hurt you in the future as well.
I speak from experience. Take head of what these wonderful and VERY experience investors have to say to you. To me their information and kmowledge is gold and we can use that as a support!
whatever you decide kiddo… good luck with it!
No Such thing as CAN’T!
Ajayayyar
Have you had the property independently valued to ensure that it meet the market?
Regards
Becksoma
“It’s about the Journey not the Destinationâ€
Hi there
my opinion,take it for what its worth, is that you are buying at a high end of the market for your first property. Regardless of the fact that you will only be putting in @240k, you are still responsible for a property which cost more than $450K. I would be looking for something a little less costly. No matter how much you have read about investing, your first purchase always teaches you lessons. I would prefer to be “learning” in a less costly situation. It is not just the purchase price you will be paying half of. There are ongoing annual expenses plus hefty interest payments (altho considered low in the current climate) that you will be up for.I say look for something cheaper without the DHA strings attached.
cheers & good luck
Juls [biggrin]
JULES1
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