Hey im 18 and im interested in investing in property and always hav been cause my dad does it but hes awhile away and i wanna kinda do this without him.
Iv got a full time job that iv had for over a year so i was thinking bout as a first investment getting a loan for 140K and buying a 160K appartment which apparently gets $265 a week in rent. Was just wondering if thats too good to be true? (its in the cbd) And am i rushing into things?
Thanks
Hi KLZT
Welcome to the forum.
Those numbers ($265 p.w on a $160k purchase) sound pretty good and are not unreasonable. Where are you looking to purchase?
In terms of rushing into things, only you can determine that. Have you carried out research on the property that you’re interested in?
Start with macro factors:
What are similar properties within the area selling for?
What growth has the area achieved in recent times?
What are the rental vacancy rates within the area?
Are any infrastructure improvements/developments on the cards?
What is it’s proximity to local amenities?and then micro factors:
How many units are in the complex?
What are the body corporate fees?
Can you get access to and have read of the body corporate minutes?
Carry out a building/pest inspection on the unit
What are the vendors motivations for selling?
How long has it been on the market?
Is it currently tenanted? If so, how long’s the lease?Have a close look at the numbers. Work out how much the property will cost you to hold each week after the rent has come in and the expenses have gone out. To mitigate risks, based these calculations on:
An interest rate that’s a couple of percent higher
The apartment being vacant for a period of time
A maintenance budget of $xxxThis is not an exhaustive list but they are some of the questions you should ask in order to ascertain whether or not a) it’s too good to be true and b) whether you’re rushing into things
Best of luck and I hope you do well.
Cheers
Jamie
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]
Great info above.
Also it sounds like it may be a serviced appt. Check that and if so check management fees and how they are leased etc.Hi KLZT
Welcome to the forums. Its great to see a young go getter on the forums. A good place to start is education, books from Margaret Lomas, Steve Mcknight and these forums are a great place to start. You may want to consider some type of mentoring program to increase your knowledge ( your Dad might be an awesome mentor to have, most of us havent got that option!). Have you done much research ?
What strategy are you interested in?
I think its fantastic that at a young age your thinking about your future ! As to whether your rushing it, Im unsure- have you done much research, got a plan/goal, what do want to get out of your investing – capital growthor cash flow?
Cheers
Good Luck
You must be logged in to reply to this topic. If you don't have an account, you can register here.
