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  • Profile photo of SatvikSatvik
    Participant
    @satvik
    Join Date: 2016
    Post Count: 5

    Hi,
    Please advice should I buy a shop or a house for investment purpose.

    My current situation –
    My annual Income – $160 K including Supperannuation and befoer tax . I am a Software Engineer
    My existing debt – Bought first home 1.5 years back with 85% loan, house cost was $400K.

    Current situation – I have a saving of $100 K. and I am considering buying another investment property of around $500-$600K.
    I am confused between a
    i) 3 BHK of approximately $550K
    ii) Shop in a developing shopping centre off the plan which I can lease later or use for my own business.
    iii) Shop in established Shopping centre of $450 K
    iv) Shop in small shopping centre of suburb around $280K.
    iv) Buy a block of land for around $200K and build it a 4BHK 2 storey house in next one year and sell.

    Please advise which is the best option for a good profit in short term or long term.
    Thanks everyone in advance for your valuable suggestions

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,173

    that is like asking “what should I eat for dinner”

    It depends is the best answer.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of Ethan TimorEthan Timor
    Participant
    @ethantimor
    Join Date: 2016
    Post Count: 282

    that is like asking “what should I eat for dinner”
    It depends is the best answer.

    👆👆👆👆👆👆👆

    So many figures are missing to even begin considering the options. And then we’ll need to look at your specific situation.

    Long term or short term are two very different things. Many times the best long term option is the worst short term option so I suggest that you first decide strategy, then review, understand and hopefully strengthen your financial position, then the answer which of the options you mentioned would serve you best should be much clearer 😎

    Perhaps engage a broker or a financial planner?

    Hope this helps?

    Cheers,
    Ethan

    Ethan Timor | Aligned Finance Pty Ltd
    http://www.alignedfinance.com.au/
    Email Me | Phone Me

    Active Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)

    Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010

    Too many variables – particular ones which are subjective. Terry has hit the nail on the head. :)

    One is easy to knock out though – you’re not likely going to have sufficient deposit for a commercial shop purchase for 450k out of those scenarios if you only have 100k available.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of SatvikSatvik
    Participant
    @satvik
    Join Date: 2016
    Post Count: 5

    Hi,

    I needed help not sarcasm. You could let me know what other information you needed to help me out in this particular scenario.

    Can you please tell me what could be the best option for short term.

    thanks

    Profile photo of SatvikSatvik
    Participant
    @satvik
    Join Date: 2016
    Post Count: 5

    Thanks

    Ethans. I am a beginner invester. Which figures do you need to even begin considering the options.
    I am looking something for short term preferably.

    Thanks

    Profile photo of Ethan TimorEthan Timor
    Participant
    @ethantimor
    Join Date: 2016
    Post Count: 282

    i) 3 BHK of approximately $550K
    ii) Shop in a developing shopping centre off the plan which I can lease later or use for my own business.
    iii) Shop in established Shopping centre of $450 K
    iv) Shop in small shopping centre of suburb around $280K.
    iv) Buy a block of land for around $200K and build it a 4BHK 2 storey house in next one year and sell.

    Hey mate,

    Happy to help.

    Ok, let’s talk short term.

    Option iv is clear (buy land, build house, sell). What’s the plan regarding each of the other options? How do you plan to make a profit quickly with those ones?

    We’ll then be able to zoom into figures 👍😎

    Ethan Timor | Aligned Finance Pty Ltd
    http://www.alignedfinance.com.au/
    Email Me | Phone Me

    Active Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,173

    Impossible to advise on such a general question. Best course of action may be to start reading as much as you can.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

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