All Topics / General Property / Melbourne Suburbs

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  • Profile photo of LC888LC888
    Member
    @lc888
    Join Date: 2013
    Post Count: 25

    I think for my next IP, I should focus on Melbourne suburbs, not further than 15KM from the CBD. I'm looking at a budget of $450K for landed property of around 600sqm. Which suburbs should I focus on?

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

    Hi LC888

    Just wondering what are your objectives?  (eg build a retirement portfolio / get a property or two as a backup income for retirement / fasttrack yourself out of the workforce)  I ask this because you might consider changing your thinking to first predefine the end goal and then only look at properties and suburbs that will get you there.  An example of the line of thinking goes like this:

    1. LC888 wishes to retire on $x per year

    2. In order to achieve this, LC888 needs a property portfolio with a $??? per year rental roll

    3. The time between now and retirement is x years

    4. Which suburbs and property types will fit into this plan?

    Hope this helps

    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 LC888LC888
    Member
    @lc888
    Join Date: 2013
    Post Count: 25

    Hi Jacqui,

    Thanks for your response.

    In all honesty, I didn't get into IP until I was smacked with a fat tax bill last financial year due to my IP being fully owned in SA. (I was working in the Middle East for 5.5 yrs prior to that). Then, I started looking at how to offset my tax and it appears that the only way to do this is to use my fully owned IP as an equity for a line of credit. I have since purchased another IP since. I have since used up 15% of the line of credit and therefore, can afford to buy another IP without having to have any cash at all.

    Ideally I would like to retire now but it's financially not viable, hence, I think I will work for another 10 yrs. When I retire in 10 years' time, I would probably sell one of my IPs to pay off the mortgage or buy outright a property I would like to live in (PPOR). Hopefully, I can keep one or two positively geared IPs; or if not, sell an IP with good capital growth over the next 10 years.

    My first property was a townhouse and it didn't make any CG over the last 5 yrs; hence, I'm not keen on townhouse and units anymore. 

    – LC

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

    Noooooooo

    That is not the only way.  We will sort this out.  I will have the guru of finance get in touch with you and fix it.  Whoever is in charge of your mortgages is sacked, effective immediately.  There is a better way. 

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

    Stay tuned.  I've messaged him and demanded he respond to you wink

    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 Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    LC I have to agree with JacM your current Financial Adviser should not only be sacked but hung drawn and quartered at the same time.

    Without appearing crude it sounds like a bit of ass about face solution although without knowing exactly your own personal numbers it is difficult to give you exact information.

    What you need to decide is not only what do i want to do know but where do i want to be in 3 years, 5 years and even 10 years out. Some of these questions you may have already asked yourself.

    When you know where you want to be you can start to design a strategy to get there.

    Certainly Capital Growth is important but many investors fail to understand the importance of yield.

    Regretfully you cannot retire on Capital growth alone.

    Solid rental income thru good and bad times will prove more important.

    What happens if when you want to retire the property market is flat or has fallen do you want to sell the property at a loss just so you can curl your feet up.

    If the property was producing a decent annual return there is no pressure to sell as you can live off the rental income.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

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

    LC888 just ring Richard and have him rejig things for you.  Don't rush into your line of credit, talk to him first.

    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 LC888LC888
    Member
    @lc888
    Join Date: 2013
    Post Count: 25

    Thanks Jacqui & Richard.

    I already took the line of credit & used 15% of the available funds. Is it too late now? I didn't have a financial planner. All the financial planners I spoke to told me that I have to consult a broker as mortgage etc is not their specialty. Probably too late in the evening now to call Richard.

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

    Hi LC888.  Richard is a financial planner and broker all rolled into one.  Shoot him an email to kick off discussions.  No such thing as too late.

    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 chaztchazt
    Participant
    @chazt
    Join Date: 2010
    Post Count: 3

    Hi everyone

    I am also new to property investing and would like to buy my first investment property in Melbourne or Victoria

    Would appreciate if you could please offer some advice as to which areas in Melbourne worth considering (with a buy and hold strategy over 10 years)

    many thanks

    Chaz

    Profile photo of LC888LC888
    Member
    @lc888
    Join Date: 2013
    Post Count: 25

    What's your budget? I'm currently monitoring Altona, Altona Meadows and Cranbourne.

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

    Hi LC,

    Cranbourne was heavily marketed to investors. I am sure you could do better.

    Profile photo of LC888LC888
    Member
    @lc888
    Join Date: 2013
    Post Count: 25

    Ok thanks for the advice. Will strike it off the list then. Might just concentrate on regional areas like Mildura, Ballarat and Bendigo.

    Profile photo of pagmelbpagmelb
    Member
    @pagmelb
    Join Date: 2013
    Post Count: 1

    I know it’s the age old question. Sea IP with potential views or close to CBD. This is my first IP I have a budget around $450K and am torn between buying unit / apart near Melbourne CBD or to go along the coast 1 to 2 hour away and get property with land and sea views or potential sea views if renovated. This is a long term investment with Tennant assisting payment. I’m thinking more capital growth over a 5 year period to use any equity made in purchase IP number 2. Thoughts from those who’ve done it would be greatly appreciated.

    Profile photo of LC888LC888
    Member
    @lc888
    Join Date: 2013
    Post Count: 25

    $450K – Altona

    Otherwise, I'm banking on Hastings for something half the price!

    Profile photo of opinderopinder
    Participant
    @opinder
    Join Date: 2012
    Post Count: 61

    Hi there…

    Stay away from cranbourne too many vacant properties and rental properties..

    I am from Melbourne thats why I am saying that.

    Try if you can buy something in south eastern suburbs of Melbourne example

    Camberwell box hill blackburn mitcham nunawading etc..

    good luck

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