Hi!,
I’ve just signed up to Property Investing to gain knowledge and purchase my first IP.
I live in Port Macquarie and at this stage not thinking about investing to far from home….at least not for my first couple of properties.
I own my home and have a steady income from my job, but the Port Mac market is booming and with a new University being built, the prices are huge, and in my research overpriced.
Have I missed my chance to invest around my area, and starting looking elsewhere?
Or do all things things settle down over time, and i need to be patient?Thanks for any comments and feedback…..
Yani congratulation on realising you need to do something and buying your first IP is a good start.
I think you have answered your own question.
Basic Keynesian economics tells us in the short term output which includes construction is strongly influenced by aggregate demand (events like a new university) but once demand is met prices start to fall.
Whilst buying somewhere close to you might feel like the right decision if the market is not right don’t force the issue and look elsewhere.
Owning your home is a great launch pad to financial success and done properly you could certainly look at rental income replacing your PAYG income over time. Make sure you structure your lending correctly as it is so hard to earn in the first place and the last thing you want to do is lose it with some poor advice.
Have a read of my API interview and you might get some ideas on how to retire on rent.
Cheers
Yours in Finance
0-40 Properties in a decade. Email me for a copy of my API interview.Richard Taylor | Australia's leading private lender
Yani,
you really need to think about things more openly.
Why are you so insistant on buying in your own neighborhood ? Is it the best place to invest ?
A lot of people think they’ll invest in their own backyard because they know the area, but do they really know it? If you do then you’ll be able to answer all of these questions.
What is the median price ? What is the median rent ? What is the vacancy rate ? What is the annual appreciation rate over 10yrs, 5yrs, 1 yr? What is the medain income of tenants ? Is it increasing or decreasing ?It’s a big wide world out there full of opportunites and pitfalls. Don’t limit yourself to one tiny pocket, instead pick the best based on whatever strategy you decide will work best for you to achieve your goals.
Cheers
Laurie
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