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  • Profile photo of sunnythakkar_2005sunnythakkar_2005
    Member
    @sunnythakkar_2005
    Join Date: 2012
    Post Count: 12

    Hello,

    I am a new memeber. I have been following posts from everyone for quite long time. I am looking to buy a first Investment Property. Below are the suburbs i am looking for:

    • Gladstone
    • Mckay
    • Moranbah
    • Whyalla
    • Dysart

    Any help is apreciated. I am looking to invest 400K House. My yearly income is 62K.

    Thanks in advance,

    Sunny

    Profile photo of Jacqui MiddletonJacqui Middleton
    Participant
    @jacm
    Join Date: 2009
    Post Count: 2,539

    Hi Sunny

    Welcome!

    What is your question?

    JacM

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
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    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of sunnythakkar_2005sunnythakkar_2005
    Member
    @sunnythakkar_2005
    Join Date: 2012
    Post Count: 12

    Hi JackM,

    Thanks for prompt reply and sorry i was unclear about my question. I would like to ask that which town should i consider to invest as my first IP? I am looking in mining towns. There are mixed reviews in all towns so I am not sure which one to go. 

    Regards,

    Sunny

    Profile photo of Jacqui MiddletonJacqui Middleton
    Participant
    @jacm
    Join Date: 2009
    Post Count: 2,539

    Hi Sunny

    I think maybe it is unwise to start your investment plan by saying "I will buy in a mining town".  Maybe it would be a good idea to first determine:

    1. What are you trying to achieve?  Starting to assemble investments to live off in retirement, or to leave your job early?

    2. How much spare money do you have each month that you could put towards a mortgage if necessary?

    3. How much do you have in savings that could be used for deposits and stamp duties?

    JacM

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
    Email Me | Phone Me

    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of BabchaBabcha
    Participant
    @babcha
    Join Date: 2012
    Post Count: 2

    Hi Sunny,

      What state are you in?

    If you want to I can recommend someone to give you a lot more details on how to go about it and show you a lot more detail

    Someone who is a  developer & builder. this way you can purchase with maximum benefits for the  capital growth potential.

    There are certain mining towns that are up & coming and have good growth potential and are better than others.

    You can email me on: [email protected]     and I will pass on the details to appropriate person/s.

    Cheers

    Babcha

    Profile photo of FreckleFreckle
    Blocked
    @freckle
    Join Date: 2012
    Post Count: 1,681

    The last person I would advise a first time investor to talk to would be a property developer/builder. I have a fair idea how that conversation will go.

    Profile photo of BabchaBabcha
    Participant
    @babcha
    Join Date: 2012
    Post Count: 2

    Hi Freckle,

    It is a reputable company and specializes in property investing with good returns.

    I was thinking talk to  a finance person first, before making any commitments but also

    Get some facts and go see what they do have to offer. No harm done getting all the information first hand. 

    Babcha

    Profile photo of TheFinanceShopTheFinanceShop
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    @thefinanceshop
    Join Date: 2012
    Post Count: 1,271

    Please please please ensure that you have an exit strategy, i.e. what happens when the mining stops and people start to move out? You need to factor this. 

    TheFinanceShop | Elite Property Finance
    http://www.elitepropertyfinance.com
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    Residential and Commercial Brokerage

    Profile photo of sunnythakkar_2005sunnythakkar_2005
    Member
    @sunnythakkar_2005
    Join Date: 2012
    Post Count: 12

    great JacM. I will sure keep in mind all theses points. Thanks again.

    Profile photo of sunnythakkar_2005sunnythakkar_2005
    Member
    @sunnythakkar_2005
    Join Date: 2012
    Post Count: 12

    hi babcha,

    Thank you for the reply. I am in NSW, Sydney. Mining town attracted because it has high yield. I will send you email shortly.

    Profile photo of sunnythakkar_2005sunnythakkar_2005
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    @sunnythakkar_2005
    Join Date: 2012
    Post Count: 12

    thanks for the reply. I will surely consider this point when planning for my first IP. Would you be able to tell me if  it is good idea to buy first IP or first Home to start with?

    Profile photo of sunnythakkar_2005sunnythakkar_2005
    Member
    @sunnythakkar_2005
    Join Date: 2012
    Post Count: 12

    Hi Freckle,

    What would you suggest if not property developer/builder? 

    Thanks,

    Sunny

    Profile photo of TheFinanceShopTheFinanceShop
    Participant
    @thefinanceshop
    Join Date: 2012
    Post Count: 1,271

    The benefit of purchasing a PPOR is that you stop paying someone else's mortgage and it gives you chance to renovate the property which in turn will create equity for you to purchase subsequent IP's.

    The benefit of an IP over PPOR first is the negative gearing benefits.  There are a lot of unknowns with your situation but one common scenario is that you purchase a PPOR and fix it up, get the CG and live in it for say 6 months and then fund your IP. Best to sit down and map a few scenarios out. What area of Sydney are you from?

    TheFinanceShop | Elite Property Finance
    http://www.elitepropertyfinance.com
    Email Me | Phone Me

    Residential and Commercial Brokerage

    Profile photo of DerekDerek
    Member
    @derek
    Join Date: 2004
    Post Count: 3,544

    Use the search button to find out what others have written over the years about each of your five listed towns. The search button is at the top right corner of the page.

    If you are seriously looking at mining towns make sure you are extra careful – a few mining projects are 'staggering at the moment'

    Profile photo of sunnythakkar_2005sunnythakkar_2005
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    @sunnythakkar_2005
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    Post Count: 12

    thanks for great points to look at. I live in Sydney, Homebush

    Profile photo of Jacqui MiddletonJacqui Middleton
    Participant
    @jacm
    Join Date: 2009
    Post Count: 2,539

    Hi Sunny

    I mean no disrespect at all in saying this, but you have very little knowledge about investing and this is very obvious.  The issue with this is it will be very obvious to a salesman and you will get ripped off big time.

    Promise us you will spend lots of time reading these forums and some books before you do anything at all?  It would be terrible if your first investment burned you.

    JacM

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
    Email Me | Phone Me

    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of sunnythakkar_2005sunnythakkar_2005
    Member
    @sunnythakkar_2005
    Join Date: 2012
    Post Count: 12

    well i completely agree with you.  I am currently just doing research and I will be spending significant amount of time before i take my first step. 

    Thanks,

    JacM

    Profile photo of xdrewxdrew
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    @xdrew
    Join Date: 2010
    Post Count: 479

    I love those Warner Brother cartoons where the father bear who is wrong turns into a first class heel as he gets embarassed.

    Unfortunately in the real world .. when your investing turns you into a first class heel .. its because you didnt do your homework as to the risks involved and the trends that allow your property to either retain or increase its value.

    Mining is a trend investment. Not only is it temporary .. its the type of investment that once the mine goes dead or broke you have a DUD. No-one will rent it .. no one will buy your property and the locals cant afford the rents.

    Ask around. Dont take my opinion .. its a singular opinion. I do know people who have made reasonable fortunes from the mining industry. However that was then .. a lot of them actually got out in the past year.

    Ask other people .. and do your homework. Its high return .. but extremely high risk.

    Profile photo of moxi10moxi10
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    @moxi10
    Join Date: 2010
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    Hi Sunny

    I would suggest that first you should scratch Moranbah and Dysart from your list. Both have had huge increases in entry price recently, and both are dependent on coal. Coal prices are currently low and  some mines are reducing staff and cutting back on expansion plans. As towns dependent on single industries, they are both at the upper levels of risk. You might consider looking at areas with the potential to benefit from the investment into LNG gas. Huge projects are underway involving 1000s of employees, but real estate prices in many affected areas have already gone up substantially, so careful research and thought are required.

      With your first IP it is very important to get off to a good start. As pointed out by other members here, mining towns are riskier areas to invest, but the returns can compensate, but you must be aware of the risks and attempt to balance them. Be careful.

    Good Luck

     

    Profile photo of sunnythakkar_2005sunnythakkar_2005
    Member
    @sunnythakkar_2005
    Join Date: 2012
    Post Count: 12

    thanks moxi10. I am really grateful to you and all the people who responded me on my first post. I am now thinking more broader and not only concentrating on mining towns. I have just attended a seminar for positive real estate last night. I also learnt a lot from there. any ideas how those guys are? their website is

    http://www.positiverealestate.com.au/

    one more thing I am hearing a lot about Olympic Dam project. what you guys think about that? I know Whyalla is only dependent in that project so it is very risky. any thoughts?

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