hi just wondering if anyone to give me advise my partner owns his home 400000 and i am 50000 away from owning mine 300000 got advise to sell both our propertys then take out another loan 400000 and buy a property within 10k from cbd i thought it seemed a bit risky thought it would have been better to keep both propertys and and start investing in other propertys ?propertys that close to the city are so expensive would it be better to go further out and we both live in our own propertys
sounds to me like someone advised you to put all your eggs in one basket. that's never a good idea. better to spread your property cash amount a couple of properties i'd say. if anything went wrong with your ONE property 10km from the cbd, your whole portfolio would be shot. some examples:
– suburb suddenly becomes undesirable. hard to rent out. or cannot sell for more than purchased for
– suburb simply stays flat, and property doesn't go up in value in line with inflation
– some sort of issue that the insurance will not pay out on (eg natural disaster)
– if it is an I.P. : troublesome tenants not paying rent and trashing the place… or perhaps the place remains untenanted and not earning an income for a while..Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Would probably need some more info from the person giving you that advice, but personally I don't see the need to seel the property when you guys could easily access the equity by borrowing against it.
Shane
Someone advised you to sell only to buy another? What about the CGT, legals, commission on the sale and stamp duty, legals, bank fees on the new purchase. This could amount to a fortune
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Get over the notion that you have to have property within 10km of the CBD. It is not the only place property values go up… and in fact isn't necessarily the area that will provide the best rental yield. Perhaps consider that you want a balance between capital growth, rental yield, manageable pricepoint, low risk, and rentability (ie low vacancy rate). Look to the suburbs
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
thanks heaps for everyone input would still like more feed back now have to start reseaching what other areas to invest in but i might have to do it alone now so with my situation with only 50k owning on my property worth 300k what should i be spending on new investment
It depends on your income – whether you can service loan repayments on an additional property.
Where are you located?
A really great resource is the back pages of the "Australian Property Investor" magazine… where you can see the capital growth, rental yield, median price and vacancy rates by suburb.
Be careful of towns that have only one industry or employer servicing the area (some examples include mining towns, or perhaps where a car manufacturer is the only business in town providing employment). If anything happens to that company, or if they decide to move to another town… well, death to the suburb.
Follow the infrastructure. If you know a new freeway, train line or train station, or Westfield Shopping Centre is going in, well… it's going to mean council KNOWS there will be growth. Even Mister Coles and Mister Woolworths are good to keep an eye on. They wouldn't open a new store unless they'd done their homework to ensure a sufficient customer base.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
thanks so much for your advise
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