- Aaron_WParticipant@aaron_wJoin Date: 2011Post Count: 2
I'm relatively new to investments and totally green when it comes to property investment. I'm very interested in having something done with what I have accumulated over the last couple of years instead of having it sit in the bank.
As it stands I currently have around $70k in managed funds broken into about $45k in cash and the rest in a few different funds. Also another ~$40k in the bank accounts not doing much.
So all in all around $115k in the accounts. Plus an income that ranges between $70k and $200k (it's contracting, very variable) but has so far been an average of around ~$120k – ~$140k.
I have no debts other than a bit left on my HECS/HELP (~$10k).
I currently rent, have a pretty cool job that I enjoy (most of the time) and it has been very stable in the last 3 years.
I guess what I'm looking for are ideas and inspiration on what to do with it?
I have been looking into buying an investment property in Mackay lately but can't seem to settle on an ideal place at the moment. I have also recently been looking at industrial estates in the local area as well, but I know even less about them than I do residential other than it is higher risk and higher return.
What my ideal goals are is to have a range of investments that offer me a stable income and growth and eventually a high enough passive income so that I can work a little more casually (as opposed to the bashing my social life is getting now) and possibly continue studying and maybe start a small business in the future.
I'd really appreciate any tips or advice anyone can offer.DerekMember@derekJoin Date: 2004Post Count: 3,544
Reading your post it would appear as if all the ducks are pretty much lined up and all you need to do is take some action.
A couple of comments that may be of use to you.
Your employment status MAY create some issues but I am sure a good broker can work within your employment constraints.
Available deposit means your borrowing capacity should be pretty good.
If you haven't already done so you may wish to chat with a broker and see what you can do in your current situation.
As far as the initial property goes it seems as if you are over-analysing things a little. Harden up and make a decision knowing full well it is a long way between the perfect property.
In determining what sort of property – ask yourself whether or not you have time or skills to do any form of renovation? Are you au fait with with development/sub-division processes, is 'set & forget' more your style and so on. All of these factors will help you decide which property suits.
As a word of caution I am not sure industrial is a great place to start – but that is just my opinion.Scott No MatesParticipant@scott-no-matesJoin Date: 2005Post Count: 3,856
I wouldn’t write off things like commercial/industrial esp if you buy something with a few years left on a lease & possibly an option.pinkboyParticipant@pinkboyJoin Date: 2010Post Count: 49
Mackay Regional Council has just released it’s estimates for the region, expecting to double population by 2030. Apparently we need 1200 new homes built per year to keep up with demand. With promising news like this, at least 1 investment in Mackay you won’t go too wrong. 1 minor setback maybe that you can expect some of the most horrendous rates and body corporate prices in Qld.
I think you might be a little short in deposit for industrial property currently, but if you can find someone desperate to get out, now would be a good time to get into the market.
pinkboyJamie MooreParticipant@jamie-mJoin Date: 2010Post Count: 5,069pinkboy wrote:1 minor setback maybe that you can expect some of the most horrendous rates and body corporate prices in Qld.
That was one thing that came as quite a surprise when I was searching for an IP up north – more specifically Logan. I was able to find some decent deals but after taking into account the high rates and body corporate fees for most unit complexes – those numbers that looked good quickly eroded.
JamieWPCMember@wpcJoin Date: 2010Post Count: 6
It would seem to me that your very first step would be to go and see a mortgage broker so you know exactly where you stand financially. Get pre-approved for the maximum loan you can (you of course don't have to use it all if you don't want to) so you know what your limits are and that way if a great opportunity presents itself you can jump on it with full confidence.
Secondly, you should decide if you want to live in the place (if that presents a better return vs renting) whether you want a short term cash return deal or longer term rental income. A small cosmetic renovation project (in my opinion) is always a good place to start to dip a toe in the property investing water without to much pressure and potential problems. Just make sure you always always always get a building inspection done before taking on a renovation project at the beginning just to make sure no unknown nasties crop up halfway through your project that blow out your budget.
AmandaAaron_WParticipant@aaron_wJoin Date: 2011Post Count: 2
Thanks for the advice everyone. I've booked an appointment with my bank to see how much I can be pre-approved for this week. I did have one other question though, I have been gauging some properties value against though median value of there area. Is this a good method to start looking at place or are there generally better ways to see if its going to be a good deal?DafnnyMember@dafnnyJoin Date: 2011Post Count: 18
Industrial properties can be tricky however you need to consider that looking for a tenant may take longer than residential, Yes it is a longer lease term but when it becomes vacant than thats when it becomes difficult.
I have only invested in residential as commercial/Industrial is a high risk.
With residential you look at the rental yield and the amount the property value has gone up in the past years that will give you an idea if it is a good investment or not.