I am a keen property investor with 1IP and my PPOR. I have accessed equity in both properties and have approx 30k in usable cash for a deposit. I have one loan as interest only and my PPOR as P&I. My question is where to from here. I have adopted a startegy whereby I would like to target properties in regional areas for the higher rental returns but am open to all opportunities. I have a few places I would like to invest but am unsure of what my next step should be. I don't consider myself an overly cautious person but seem to feel like I am stalling and unable to progress further. Any help is appreciated
PS: I need to give a big shout out to Richard at Taylored Financial in Brisbane for helping me tidy up the cross collateralising mess my previous lender had left me in. Thanks for your help and look forward to future dealings with you.Jacqui MiddletonParticipant@jacmJoin Date: 2009Post Count: 2,539DerekMember@derekJoin Date: 2004Post Count: 3,544
If you have $30K sitting around I would suggest you plonk it in an offset account linked to your home loan while you work out the next phase of your journey.
The key issue you'll need to address is your apparent limited equity – sometimes there is a time to wait while growth occurs and equity is released. You may be at that stage.
I suggest you chat with Richard to see whether or not you are in a position to look for IP No 2.Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024
Absolute pleasure Ben.
Great to have really nice clients like you and Jac on board.
Makes the whole job really worthwhile.
In regards to IP 2 Ben some good regional buys around. Nothing to stop you thinking about interstate which certainly could be a wee bit cheaper than Qld at the moment.
Yours in Finance
I wouldn't say patience is mys trongest asset, but I am learning.
I have my eye on a couple of places in regional NSW but as a newbie to this am skeptical not knowing the market like I know where I live. I understand that I need to broaden my horizons to lower risk, guess I just need to jump in.EngeloRumoraParticipant@engelorumoraJoin Date: 2010Post Count: 618
I like Gunnedah, Muswellbrook or WellingtonEngeloRumoraParticipant@engelorumoraJoin Date: 2010Post Count: 618
I would go for Wellington, I posted more on Wellington in a few recent posts. Im liking the yields there and low entry housing. It also gets influx from Dubbo and Orange.
EngeloBMWParticipant@bmwJoin Date: 2012Post Count: 25
We just bought in Dubbo. getting about 6.5% gross return without doing any work. hopefully we can lift it with a bit of TLC if the tenant ever moves out.
The prospects look good with 1% rental vacancy and the prospect of 1000 new jobs in 2 new mines plus any indirect jobs over the next few years.
Long term Wellington to me doesn't seem to be a sustainable town. lots of boarded up shops and social problems, although the new jail was a windfall.
That being said, property generally sits on the market for longer. So if you fancy yourself as a bit of a negotiator their may be some good deals to be found with good cash flow.Aviator77Participant@aviator77Join Date: 2012Post Count: 11
Where was your first IP? If you arent in around the mining region in QLD then I think you should right now. If you can afford it get into somewhere like Emerald QLD where the yields are 7-9% and the demand is only set to continue.
# large mines opening up in the next few years in Alpha and the FIFO workers will all have revised rental support from the mining companies up to $2000 a week to rent. They will all do this in emerald as its only 100km East of Alpha so I would suggest if you want both CG and high yield for cash flow, look no further. I can recommend who you can buy through as I have done this and it has been great.
who would u recommend up in emerald?PISTOREMember@pistoreJoin Date: 2012Post Count: 75
Sorry Wake, would have to say steer away from Emerald. Great on face value, but Suncorp recently announced the will not insure there due to the flooding risk bein too high. This will have repercussions with the banks also as they reassess their risk, so just a bit too ugly up there now.
There are a lot of strong places to look at, but he elephant in the room here is your mortgage. You need to buy in an area where you’ll get stronger growth over the shorter term so you can sell up in a few years and pay a big chunk of your mortgage down. This will make it easier and easier to get your investment portfolio moving along.
There are some strong areas that can achieve this, with great rental returns also, so consider this option too.
I need to come clean. I live in emerald and my ppor and ip are in emerald. I just wanted to hear peoples options on emerald.DerekMember@derekJoin Date: 2004Post Count: 3,544
in my opinion you are over-exposed in a 'smaller. mining town'
Places like Emerald may be OK for one property as a complement to the remainder of your portfolio but, for me, not a place to have your whole portfolio. That is not necessarily a knock on Emerald rather a knock on an aspect of your strategy to date.
Thanks Derek and Anthony, I will keep looking and just need to get over my case of the yips and dive into my next purchase.boybramleyParticipant@boybramleyJoin Date: 2012Post Count: 5
Hi fellow investors.
New to the website and this blog. PPOR is Sydney and I’m looking at Muswellbrook, Singleton as an investment. Strategy really is to buy well, undertake some quick TLC such as polished floor broads, new kitchen, and/or maybe new bathroom. Rent out asap as a +ve cash flow, or almost +ve.
I’ve taken note of the varying contributors who suggest furnishing is a good idea, as many mine employees are new to area and may not have furniture.
Looking at 3 bed houses, in good areas. I guess I am after the perfect investment, good potential for capital growth and as near to +ve cash flow as possible.
Be keen to hear of anyone’s views on this strategy and my proposed areas.
DavidPISTOREMember@pistoreJoin Date: 2012Post Count: 75boybramley wrote:Hi fellow investors. New to the website and this blog. PPOR is Sydney and I'm looking at Muswellbrook, Singleton as an investment. Strategy really is to buy well, undertake some quick TLC such as polished floor broads, new kitchen, and/or maybe new bathroom. Rent out asap as a +ve cash flow, or almost +ve. I've taken note of the varying contributors who suggest furnishing is a good idea, as many mine employees are new to area and may not have furniture. Looking at 3 bed houses, in good areas. I guess I am after the perfect investment, good potential for capital growth and as near to +ve cash flow as possible. Be keen to hear of anyone's views on this strategy and my proposed areas. Best David
Welcome to the world of Property opinions…..!
Muswellbrook is a great place to invest, but buying and renovating can be hard, especially at a distance.
It's a very risky strategy and can cost you twice as much in time and $$$ as originally planned. There are plenty of experts out there preaching the positives of such ideas, but I have seen the process when it doesn't work so well, and it's not nice.
Call me conservative, but buying new and knowing what you get is a very solid strategy and one that can reap as good if not better results.