- GDay all,
I'm new to the IP game and have spent the last 3 mths solid researching and researching and then some. Obviously dont want to fail on my first attempt so I'm putting it out there for some advice.
Thanks to my lovely ex wife, I have to start all over again financially and at 48 it can be a bit daunting. My goal is to start planning for my financial future through property investing.
To start out i am looking at under $200k with a decent return to build some collateral to allow me to buy further properties. I've seen some ppl have a portfolio that is based wholly around properties under $200k and are doing pretty well out of it. I think its called being a "Slum lord" which if it works then why not, I say. In saying that does anyone know of a suitable area to start looking in my price range. I have been researching Elizabeth / Munno Para / Salisbury / Kalgoorlie Boulder / Whyalla but am just struggling a bit to pin piont one to get started. I think my brain is becoming clouded due to research and information overload and would really appreciate any advice I can get.
Cheers SteveHi Steve
I don't know about the areas so can't offer much help there.
What I can recommend, and what's worked for me and quite a few clients, is searching for properties that you can add value to. Preferably something that only requires cost effective, cosmetic renovations. This way, you can manufacture your own equity instead of waiting for capital growth to kick in.
You can then leverage this newly created equity to move forward with the next purchase….and so on.
I'd also look to invest in an area that shows signs of achieving capital growth. There's not much point in having a large portfolio of $200k properties that aren't growing in value – unless of course the rental yield is high (which even then, it would need to be a pretty impressive yield spread over quite a few properties to provide any sort of decent passive income).
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]
Thanks heaps Jamie,
I see exactly where you are coming from and one side of me is saying "wait until you have more deposit and buy up a little to increase the chance of CG".
I'm not in any rush to buy and there's a few issues to consider and your opinion is valued and gives me some more food for thought.
Cheers SteveHi Steve
I would buy a house on a large block of land, minimum quarter acre and possibly subdivide it
there are plenty of them out there you just need to look
Steve,
We are both the same age,but ive been married 4 times(this is not a typo),every failure led to loosing the IP,s,millions down from that.In the last 3 years i have rebuilt to 3 houses and 5 building blocks,so there is proof it can be done,you just need to focus.
A true story,my sister bought in Elizabeth and i laughed at her,within 12 months she sold with a 75k profit(i dont laugh at my sister anymore)
All the areas you mention will return well,look for houses on sub dividable land for future development.Thanks heaps James. Do you know of an honest reliable agent I could speak to over there as I am in Perth.
Will PM you.
Cant PM You.Go to your account and allow PM.
Ok James try now. Cheers
grab what ever you can in and around goolwa /middleton these area are very popular and are growing , shops ect large waterways clean beaches goolwa beach is patrolled and open to 4 wheel driving and horse riding , council for these areas have open arms to all new business and events that will inject money into the town , tourists visiting the area are now looking to buy you can look in and around victor harbor but many a business are closing and council are not big fans on progress
Hi
Thomas19 is correct, Goolwa is a little Gem, I Bought my first ever investment property there and it has gone through the roof
Good luck
Thanks for all the positive feedback. Its greatly appreciated and hopefully I will have my first IP in the very near future. The first thing i need to deal with is ceasing procrastinating. Thank you again.
steveInformation overload.We have all suffered from this,it sometimes holds you back.Did you get the PM ?
I did James. Definetly food for thought. Much appreciated.
Steve, I couldn’t agree more regarding the procrastination. The more I research, the more I feel I need to know, which leads to more procrastination, trying to ensure I make the correct decision. I guess we just need to trust ourselves! Good luck!
If I were you my first step would have been talking to a savvy accountant and setting up a proper trust system while you are single.
Just in case you got married and divorced again, you don't wanna lose everything.I know you are still hot and thinking I will never marry again but there is no harm in protecting your assets.
BTW congrats on coming back to singlehood
Thanks for all your help guys. It is much appreciated.
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