EjKimParticipant@ejkimJoin Date: 2019Post Count: 0
Happy new year to you all. I am a new property investor and have been reading books and listening to a podcast for my first property investment purchase, however, I have not chosen my focus area or type of dwellings yet so I decided to ask your help here in the forum.
I have all my finance sort out and pretty much ready to purchase for my first investment property in Sydney so I am desperate to have all your expertise for guidance.
My goal for my first investment property is to have a positive CF to replace my rent. I want to pay as little deposit as possible and use the rest of my savings to update a kitchen or fresh paint to increase equity of the property and make more CF which hopefully allow me to buy a second property soon.
The problem is that when I try to apply all knowledge or strategy into practice, I rarely can find a free-standing house within my budget of 700k in Sydney but more units or apartment that has limitation of improvement to increase equity and I haven’t found or heard any investors who have successfully invested through this type of properties.
If I look for positive CF and also looking to improve the value of a property with renovation, shall I disregard units but more focus on the house? which means much away from Sydney CBD. but even then… there are lots of brand-new houses even in the west!
I’m looking to loan the property for residential purpose so it has to be in Sydney or where I can drive within 2 hours from sydney cbd.
I would appreciate any thoughts or comments for me.
Thank you all.freedom-in-outParticipant@manojhmaliJoin Date: 2019Post Count: 0
I am in the same boat as you , I have almost booked a apartment in Nor west , but later cancelled on buying unit as my first investment property after doing lot of reading & different successful investors opinions(who owns at least 10 investment properties.) eagerly waiting few answers on this thread.BennyModerator@bennyJoin Date: 2002Post Count: 1,376
Hi to both of you, EjKim and Freedom,
When new to anything, it is normal to want to “get into it” as soon as possible. I’d caution against that…. While you are still unsure what and where to buy to meet your goals, do sit back and keep reading and learning. It is too easy to “Have a go” where you might risk everything on the hope that the one you buy works out for you.
The good thing I read from both of you is that you are wanting to learn, and that is smart. When you eventually buy something, you should know WHY it is that property that you want, and HOW it fits into your plans to meet your goals. You should also have checked out any risks around such a purchase. But you don’t get there without some time and effort.
Give yourself the time to read up on all of the ways you can make a property cashflow positive, and how to add equity. Seems you have heard of some of these ways. Go to seminars, meet other investors, check out opportunities to learn about real estate investing. But beware of those who would “fly you for free to another city and secure your future by having the taxman and the tenant make you rich buying a new (and highly over-priced) property from them”. Such offerings are still out there, and they are NOT in your favour.
Did you get to read some of the offerings in the “Big Picture” link I sent in my welcome PM to you? If you didn’t see it, go here to check it out:-
From that, you can see there are very many ways to learn and grow, and that link will point you to more ideas on how to proceed.
DO check out the various articles in the Training Centre on the Home Page too. There’s lots to learn – go for it,
Bennyfreedom-in-outParticipant@manojhmaliJoin Date: 2019Post Count: 0
Thank you Benny for quick response, It makes sense to get knowledge & then apply that knowledge to take appropriate action. I have just finished reading Steve’s book “From 0 to 130 Properties in 3.5 Years” , It opened my eyes towards property world, there is lot to learn & understand. thank you Steve & team for giving such nice platform for people like us who are looking for directions.