Hello everyone,
I am just writing to ask for a bit of advice or gather some opinions from people for what my fiance` and I should do.
We are both 24 year old, First Home Buyers and we would also like to get into property investing a soon as possible. We are currently in the market to buy a PPOR for around $300K. However, after thinking through a lot of things, I’m thinking that instead of getting ourselves into a fairly large debt with an owner occupied home, we should instead spend less (around $200K) and buy a unit to live in and also straight after spend roughly the same amount on an investment house or unit, therefore we can have a PPOR and an IP fairly soon instead of just one house. We don’t mind sacrificing for a few years and living in a small place or something less desirable, as we are young with no kids. We have roughly around $50K for deposit and costs so we probably need a little more to buy 2 properties at this stage. I was just interested in getting poeple’s opinions on doing this as I think it would be a good way to start my property investment journey. Advice or opinions would be much appreciated!
ThanksDavid P
Hey David,
We were in a similar position about 3 years ago, we built our PPOR in Adelaide and then realised that it maybe wasn’t such a great idea. So we sold up and started renting a 2bd unit. Benefits of doing this is that our rent at this stage is less than what a mortgage repayment would be, is partially tax deductible (because we have a home office set up for our business) and we can use all of our money investing in real estate, what we view as ‘good debt’.
Owning our own home is still a goal however, we decided that being financially free was our number 1 priority so living in our own home can wait.
I guess best thing to do is sit down and work out a plan for yourselves. We do have an real estate group with forumites from here that meet once a month, always a good and fun thing for networking and speaking to other like minded people of all levels.
Good luck and let us know how you get along.
Kim
Kim Anand
[email protected]“Money Can’t Buy you Happiness but it Does Bring you a More Pleasant Form of Misery”
Hi Kim,
Thans for your reply, it’s much appreciated. I’m currently working out a plan to see what is going to be best for us and at the same time talk to a lot of people to gather their advice.
I would be interested to hear more about your real estate group that meets every month and I would love to be involved, if you don’t mind newcomers coming along.
Thanks
Dave P
Hi David, do you live in Adelaide? I just bought a small old house fairly good condition & should rent easily. It costs less than $250K and there’s enough land to extend or sub-divide. This property settles on 1 May.
If you’re interested, I saw another one, asking price around $250K in the same suburb on roughly the same size block. I don’t know if it’s sub-dividable but it’s definitely possible to extend for rental potential.
Let me know if you’re interested. I bought my 1st house in Adealaide in 1998 & the next 3 in 1999, then in 2002/2003, I got into commercial property. If nothing else, I can tell you some things to beware of.
Good luck,
Kum YinHi Kum,
Thank you for your post. To answer your question, yes I live in Adelaide. I’m interested in hearing about this property you mentioned on your post and also would like to hear about things to look for and what to be aware of. You can email me at [email protected] or just reply in this forum.
Thanks!David P
Hi David,
My wife and I sound similar to yourselves, we built a house in Sheidow Park in 2004 when we were both 24. Lucky for us we’d bought the land 2 years earlier and it had increased in value nicely by the time we moved in. We also now own an IP in Elizabeth, not the best area but we’ve got good tenants and are in the process of sub dividing the land which should enable us to purchase another property later this year.
Which ever way you decide to go, my advice would be not to rush into anything but definitely do something. The longer you wait the higher prices will be and/or affordablility will go down making it harder for you to enter the market IMHO.
My wife and I have just enrolled in the next RESULTs program and can’t wait to learn from our mentor and everyone else who participates. These forums and talking to anyone and everyone you can are a fantastic way to learn and get feedback on your ideas.
Good luck on your journey.
MikeGood old SA…
I think you are the only person that can answer your question.
But let me ask you this. What are your goals? And secondly, what is your time frame to achieve?
When you answer my questions above, you should be able to your your question!![biggrin]
Regards
Investor1313
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