Beginner Investor

Hi Daniel

Welcome to the forum.

It's an exciting time. I'd continue to learn – read books and frequent free forums like this one.

Who's providing the professional advice about your first purchase?

Personally, I have a preference towards buying the first property as an owner occupied. That way, you get to take advantage of the Government incentives. Also, if you purchase a property that's in need of basic, cosmetic renovations then you can start working on your new home while living in it. Once completed, have it revalued and hopefully you'll have some new equity to tap into and purchase your first IP.

I also wouldn't wait around saving a 20% deposit to avoid LMI. I write about using LMI to your advantage here

Just my two cents – hope it helps.

Cheers

Jamie

Hi Daniel, welcome.
 Jamie makes a good point for your first purchase being you home (PPOR)  as there are certainly advantages. If you can improve and add value that's a great one as there is no capital gains tax (CGT).
 Financially wise it can also be better to buy an investment and rent.
Depending where you want to live, the rents may be low compared to purchase price. If you buy in a different area (with a high yield) this can reduce your weekly outlay. Every case is of course different and you need to look at your personal situation and preferences.

 What do you mean by "seeking professional advice"? Be careful as there are LOADS of people out to make money on newby investors such as yourself. Keep reading and asking questions here. There is a wealth of knowledge here and people are giving of their time and experience. If you are not sure of something or a company etc just ask.
Best of luck.

Hi Daniel

Be sure that your trusted source is actually walking the walk and not talking the talk.  In other words, you want to be getting advice from people who are already doing what you hope to do…. and are doing so successfully.

I'd also suggest to have your first purchase as an owner occupied home – make it your PPOR for a few months or years, and take advantage of the first home owners incentives. Then go from there to buy more investment properties.

This is what I'm doing for my own strategy. In terms of location, I was originally planning to buy a first home in the eastern suburbs of sydney (for the lifestyle, etc), but recently, due to the affordability of western suburbs and the fact that I can work from home, I am leaned towards buying out west.

Hi Daniel

Hate to say NO not quiet.

Assume you live in the first property so get $7K to add to your savings which makes $52K

$400,000 x 5% = $20,000 (Assume you managed to get the Mortgage Insurance capitalised on the first deal you are still going to have your own Solicitors costs, maybe bank application fee etc, mortgage registration, discharge and Title search. Assume $1500.

So you have spent $21,500.

Second time round depending on the State you are buying you will have Stamp Duty and all of the above. 
Unless you Credit score up unlikely to get LMI capitalised a second time so you will have the same costs as above plus LMI and State Stamp Duty.

I would make sure your mortgage broker is careful in using different lenders so that you split your LMI exposure.

Cheers

Yours in Finance