I’m looking into purchasing my first investment property and have been looking at the different investment methods out there.
– buy hold
– buying a fixer-upper and reselling
– Good rental investment high return
– property development/land subdivision
and the list goes on…
I have been thinking that buying an established home where i can apply my skills as a carpenter to fix or renovate the property is a good place to begin. After consideration of purchase price, purchase fees, potential renovations costs and holding fees during repairs, It puts me into the $250,000 mark for my first investment property since anything higher can be too risky for me to manage.
My question is where can I possibly start looking around that price range? is a fixer-upper my best option? What helps determine if an area will appreciate in value? what determines a place that can easily be rented? and last of all since that wasn’t enough questions =p. What areas would you recommend I look at?
Your help, suggestions and guidance will be greatly appreciated.
Jamie MooreParticipant@jamie-mJoin Date: 2010Post Count: 5,069
- This topic was modified 5 years, 3 months ago by Sammy88.
My question is where can I possibly start looking around that price range?
I guess the obvious response is to look around where you live since you’d like to reno the property yourself – you don’t want to travel too far.
Which city/town are you in?
For what it’s worth – I think it would be quite tough renovating and selling cheap properties for a profit. I think you’d be better off renovating, holding and releasing equity to fund further property purchases.
Thank you for the prompt reply.
I live in Thomastown Vic, 3074, living with parents.
Most properties around the area are in the $450,000 price range. Too risky for my first investment i think. I would like to take into account the scenario where I cant rent it out and need to cover repayments myself.
So renovating, holding and releasing equity to fund further property purchases is best?
I have been looking at areas such as Melton Vic, only because of my price range.
SamSolomon10Participant@solomon10Join Date: 2010Post Count: 135
Something like this would be perfect for you,if you look long enough and hard enough the bargains are still there.tigermigerParticipant@tigermigerJoin Date: 2010Post Count: 44
I aim to do the same, buy/ renovate/ rent out and move onto the next one. This would be my first investment property also and a little nervous taking the plunge.
I have been browsing Geelong, Werribee, Hoppers Crossing and I like the idea of Melton due to prices, but I don’t know the good and bad areas.
I also noticed a unit in Preston earlier this week, that could do with a bathroom and laundry makeover – but again, I have no idea if it is in a good part of Preston or not….. I actually don’t know how I would find out?
KateJason StaggersParticipant@jason_staggersJoin Date: 2006Post Count: 61
Sam, did you read this article: https://www.propertyinvesting.com/how-a-young-property-developer-is-making-hundreds-of-thousands-in-profits? You may find it inspiring.
Wow guys, thank you for the replies and assistance, didn’t know this forum would be this helpful!
I’m very new to all this and getting my first investment does feel chilling. But i don’t want to be diagnosed with Analysis Paralysis.
Since i’m new, I’m not very comfortable with giving advice about Preston units.
Here’s a link you can find interesting, unless you use it already =p : http://www.realestate.com.au/invest/2-bed-unit-in-preston,+vic+3072?zoom=10&tab=sold
All I have gathered is a good investment is one bought under market value, that has good rental yield (maybe over 8%?) So that its self sustaining.
Haha its funny you show me that, i have it in my phones calendar to attend.
Here’s what I have learned so far since posting this topic:
It may be helpful to save cash doin the reno’s myself. But an extensive one may not be best.
Its good to keep the investment property clean and basic.
I highly renovated place isn’t going to increase the rent significantly enough to cover the costs of an extreme makeover.
If i was going to do a really nice reno, I would save it up to the time right before I sell. So that its selling while its sparkling =)
So thats my progress on the topic so far guys, hope you gained something like I have, and further suggestions and discussion is very much welcome!