Hi All
I’m having trouble finding a suitable first IP.
I have been looking at areas all around Adelaide for the last 2 months but have not found anything that will not be fairly cash flow negative.
I have $150K LOC approved against my PPOR and pre-approval for another $230K and looking to buy something around the $300K mark. I’m happy to do some “light” reno initially to add value or am I better off doing something OTP?
I’d rather stick with something close to home as I’m not yet confident enough to buy interstate. My long term aim is to buy and hold multiple properties.
Any gurus have some suggestions?
Cheers
Hi
I have attached the link to our website that can help to educate you further. It may not answer your question completely but it can give you some further knowledge on the industry and correct structuring.
http://propertyinabox.com.au/Gain-Financial-Solutions/
Shayne Betreen
Mortgage Broker
Gain Financial Solutions
[email protected]keep looking mate, and keep reading the forums!
cash flow negative? there are plenty here in adelaide. in lots of areas. did you mean positive?
I think one of the big things I have learned recently on this forum is that is is “hard to find cashflow positive properties in many areas” what you need to do however is to “choose the right property that can be made cashflow positive” whether it be through renovation, subdivision or other creative ways of thinking.
In summary perhaps cashflow positive properties are often made and not bought
Cheers
Ruth
Thanks all for the replies.
What are the key drivers people use when choosing to invest in new OTP properties versus older property and renos?
I mean at the end of the day we’re all out to make some money doing this, what personal circumstances suit each of these options?
cheers Darren
Dazz28 wrote:Thanks all for the replies. What are the key drivers people use when choosing to invest in new OTP properties versus older property and renos?Hi Darren
Personally, when purchasing OTP I look for an area that's rising in price and has a relatively long construction date (around 2 years). By the time construction is complete, I'm hoping that the OTP purchase is worth more than I originally exchanged on. There's obviously a bit of risk (what happens if prices drop) but that's part of investing.
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
also otp allows for greater depreciation and some places have better stamp duty for otp.
depends if you plan on selling or holding it, selling obviously the long construction time allowing the market to increase before you buy at the old prices. and holding is the depreciation etc.
Dazz,
One way to fast track your search and maximise your time is to use a dedicated property search engine. With a good search engine you can look specifically for OTP, renovatable opportunities or positive cashflow.
Check out this link
http://www.realestateinvestar.com.au/odau/?a=SP30
If you have any questions about this I would be happy to answer them for you
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