All Topics / Help Needed! / Key Things to consider in IP

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  • Profile photo of PtialvPtialv
    Join Date: 2005
    Post Count: 57

    Hi Everyone,

    I am yet to start my IP portifolio. Looking for advise. Been considering PI on/off but never came across doing so looking 4 advise how to start.

    What key factors should be considered when we look for the IP.

    While doing DD what and where to look.

    Any help will be appreciated.


    Profile photo of L.A AussieL.A Aussie
    Join Date: 2006
    Post Count: 1,488

    First, establish your budget, your investment strategy (buy and hold, wrap etc), whether you want cap gain or cashflow, or both.

    Then, start studying investing, read lots of books, read this forum and the Jan Somers one, study real estate markets to get  feel for jargon, prices, trends in an area, values.

    I want to get all the factors maximised in every investment; I want cap gain, cap growth, rental demand and return, depreciation and ability to add value all in one. Therefore, I have a number of criteria to satisfy to make the investment work for me.

    Some people are only concerned with cap growth, and don't care about neg gearing. These people may invest only in areas like inner-city properties for example. Some people can't afford any cashflow drain, so they need to have pos cashflow from day one, so they may look more to regional areas for cashflow. Neither is markedly better than the other in the long run, but it has to be right for your situation now.

    I started a new topic called 'what's your criteria?' on this forum a few months ago and listed all the things I look for. That's a good place to start to help you establish your criteria.

    I wish that more of our more experienced forumites would post on it, but that hasn't happened unfortunately. Go figure.
    Plenty of posts about favourite cars though. 

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