Hello everyone,
I’ve just found this site tonight and it looks great. I have been reading various books and web-sites and am trying to figure out when the best time would be to purchase a second IP.
I purchased my first IP about 12 months ago. It is a 2 br Unit, cost $110k and rented for $155pw. Tennants are great and on a long term lease. I have around $25k equity in this property (based on loan, not current valuation)
For the when….is $25k enough equity in the first property to borrow again for Number 2? (no other cash saved…due to recent car purchase). Ive read that some people are buying one property each year. Is that realistic?
For the where…first property is in Darwin. I have been researching Brisbane. At the moment I prefer Units in the 5-10km from CBD zone. Price range?? $150-$200k? Not sure yet what is realistic.
I’ve never lived in Brisbane so I’m not familiar with the region. I’m hoping some locals could help me out with the ‘where’.
I’ve probably left out heaps of info here that you will need [
]Thanks for any comments.
Hi Darwin, my own personal thought is to try and find IPs in the same area initially before expanding to other areas(states). This makes it a little easier when negotiating with the banks for a second loan. You may find with the right manager your equity might not need to be very much. I have a few IPs in Darwin and think the prices are still going to climb a little longer. My next shopping trip is there in July.
C
CWCCWC,
Where about in Darwin are your current IP’s. I am watching with interest what the local market is doing, what is your view on the outlook?
Cheers, Julia
Hi,
Thanks for your post and comments about the site. I’m sure I speak for all by welcoming you!
I think that the advice I gave Greg in (https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=1676) is also applicable here.
As for the amount of money you need, that all depends on the nature of the property you buy and the terms you negotiate.
You can get creative and potentially buy something no money down… for more info see:
https://www.propertyinvesting.com/strategies/creativefinancingBye,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi Julia,
I’ll assume your familiar with the Darwin. Some are in the golden triangle NTU, Casuarina Shops and the Hospital others are N/C shops area, but away from Aralia st area. The others are within a few minutes walk of Palmerston Shops. I think Darwin will hit another mini boom within about 18 months. Federal and Territory Govts are pushing ahead with quite a few enterprises/schemes that will continue to see the infrastructure of Darwin improve. I’m not in the big league like some of the people on this site with IPs but hope that my next shopping trip will take me to double figures. Darwins downfall is its high departure rate of short term residents. If you don’t do your own property management get on side with a good property manager. You often hear bad comments about real estate agents, but I’ve found them quite above board in Darwin, probably due to the fact that its one of those places where the long term residents know each other and once they stuff up everybody knows. Are you a local investor or an interstater.
In regards to Steves comments about no money down, thats not so difficult in Darwin if your local and a long termer 10Y up.
C
Thanks for your info CWCCWC,
I lived in Darwin for a few years, that’s when we brought up there. We have a rental house in Nightcliff near foreshore R2 land. I am really interested in growth over the long term and have found Darwin to be alittle slow in that area.(Have other IP’s interstate that have boomed) However, with the gas plant and railroad etc things are starting to heat up. We too have had alot of short term tenants but have always managed to rent the house quickly.
I watch the local papers via: NEWS.com.au, NT News link. Often has stories of interest re housing and gas deal etc.
Cheers, Julia
Gas deal was signed off yesterday.
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