All Topics / Help Needed! / How far from your base should you start, Newbie

Viewing 13 posts - 1 through 13 (of 13 total)
  • Profile photo of BusterDBusterD
    Participant
    @busterd
    Join Date: 2020
    Post Count: 5

    Hi All

    Having just finished reading the book and head full of idea’s myself and my partner are trying to get going on our journey. We currently live in Sydney and don’t see Sydney / NSW as a good option for our first IP that’s CF+. (Cost of property, rental yields ETC)

    We have found some promising potential properties in QLD, however are concerned that this would not be a good idea as we would not be able to “visit” the area’s on a regular basis and get to know the neighborhood’s as part of our DD.

    Or, are we already looking to far into this! If the numbers stack up we should just pull the trigger.

    Any advice from the more well informed would be great.

     

    Cheers,

    Hugh

     

     

    Profile photo of StevenSteven
    Participant
    @steven1982
    Join Date: 2017
    Post Count: 189

    I have rental property in New Zealand. Bought at sub-bar condition, worked with local NZ builders to do renovation and having a local property manager looking after tenants.

    Build your relationships with local resources. It is difficult initially but it is good once you have contacts and relations.

    Profile photo of BusterDBusterD
    Participant
    @busterd
    Join Date: 2020
    Post Count: 5

    Hi Steven, thanks for the reply! Was this your first IP or did you own others before venturing offshore?

     

     

     

    Profile photo of Summer34Summer34
    Participant
    @summer34
    Join Date: 2020
    Post Count: 1

    Hi Hugh,

    I suppose it will depend on your strategies for this property?

    My partner and i have 2 commercial properties (locally) for cash flow, and have one IP (locally) to which we renovated for manufactured growth

    We are seeing the great potential in the Brisbane area!!!!

    We live on the NSW central coast and have recently put our IP on the market. We are pleased to say of this week it is under offer!!

    With the current unknowns around what the market will do atm #coronavirus, we have made the decision to be out of the market at the moment and observe.

    There is a lot of what IF questions happening for us to make a move atm

    we found that being local it made our renovation strategy easier as we did it all ourselves.

    Have you looked into a buyer’s agent and then have them manage your property?

    Best of luck

    Summer

    Profile photo of StevenSteven
    Participant
    @steven1982
    Join Date: 2017
    Post Count: 189

    My first IP is in Melbourne.

    I went elsewhere for the same reason as you are thinking. Low return of investment, high price, having to pay stamp duty, etc…

    Profile photo of StevenSteven
    Participant
    @steven1982
    Join Date: 2017
    Post Count: 189

    we renovated for manufactured growth

    I second this.

    My first IP was bought when I had very little knowledge of how to invest, and it is negatively geared. It is still negatively geared even today.

    My IP in NZ was like this:

    Standard price on market: 220-240K, with rental income in early 300 per week.

    I bought one at 150K (then rented at 240 per week). Renovated for about 33K, and a few other bits and pieces, so consider that as 190K altogether. My valuation report came back at 220K. Rented at 330 per week. So the yield is almost 2% higher than if I bought at standard market price, not to mention the 30K in between is ready for me to be refinanced, instead of having to “wait for 2-3 years of 10% capital growth before I can move again”.

    Profile photo of PropDirPropDir
    Participant
    @propdir
    Join Date: 2020
    Post Count: 2

    Hi Buster,

    When I first started investing, I did purchase in my home state (NSW), starting with areas around 5km from my location, because I knew those areas well.

    However over time, I started looking at areas in more regional areas of NSW such as Tamworth and other areas based on investment goals such as improved yields/cashflow.  Later on, I started exploring other states such as QLD.

    In hindsight, provided that you do the relevant research, and learn about the locations you are investing in, I would probably have branched out sooner.  I would suggest definitely going and seeing the properties you are interested in purchasing, even if it means interstate travel.  You will get a better ‘feel’ for the area and get to talk to the locals.  Ensure you get a good local property manager (with a solid reputation) to look after the property and tenancies and you won’t have to worry about visiting the property.

    Good luck with your journey.

    PropertyDirector.com.au | Digital Platform for Property Investors
    Easy Digital Book keeping | Forecast Your Portfolio | Market Activity & Research Reports

    Profile photo of JaxonJaxon
    Participant
    @jaxona
    Join Date: 2014
    Post Count: 284

    Personally I bought properties I have never seen.

    -study the area online

    -call local real estate/property managers to learn about area

    -ask questions

    -get reports from everything relevant

    -if everything adds up and you have insured the downside you have the capacity to add more value, open yourself to more areas of growth with greater ROI

    All the best!

    Jaxon | Jaxon Avery – Financial Adviser
    http://www.jpafinancialservices.com.au
    Email Me | Phone Me

    JPA Financial Services Pty Ltd

    Profile photo of BusterDBusterD
    Participant
    @busterd
    Join Date: 2020
    Post Count: 5

    Hi Summer, thank you for your reply.

    Yes, we have considered a buyers agent but unfortunately don’t believe the people we have spoken to so far have not really been on our side as they have all wanted to push us in the direction of new land and build and moreover the info they have given us to validate there offer does not seem to be of much value, for example one chap’s info was in part more than 10 years old and some of the supposed infrastructure drivers (to drive growth) have not happened.

    Cheers,

     

    Profile photo of BusterDBusterD
    Participant
    @busterd
    Join Date: 2020
    Post Count: 5

    Hi All, thank you to all that have provided feedback and comment, all worth while points.

    I have started to communicate far and wide, myself and my partner are putting together a travel plan to visit some of the area’s we think that may hold some potential, at this stage they are all in NSW.

    Once again, Thank you all !

     

     

     

     

    Profile photo of HomeBuyerLouisianaHomeBuyerLouisiana
    Participant
    @homebuyerlouisiana
    Join Date: 2020
    Post Count: 17

    Personally I think you should look all over Australia for the best market. I grew up in the Eastern Suburbs of Sydney and always rented where I lived and bought in the best markets. I have 6 single family houses in 3 different states in Australia (all in different local council areas). I recently wrote an article for hipages about buying and managing properties out of state. You can check it out here if you are interested https://hipages.com.au/article/buying_managing_properties_out_of_state

    HomeBuyerLouisiana | Home Buyer Louisiana
    https://homebuyerlouisiana.com

    Aussie entrepreneur investing in New Orleans houses

    Profile photo of ajayayyarajayayyar
    Participant
    @ajayayyar
    Join Date: 2005
    Post Count: 176

    I have heard of people buying investment properties (site unseen), however I have not done it personally.  I prefer going and taking a look to get a feel for the area and talk to the locals and drive around.

    • This reply was modified 4 months, 1 week ago by Profile photo of ajayayyar ajayayyar.
    Profile photo of BusterDBusterD
    Participant
    @busterd
    Join Date: 2020
    Post Count: 5

    Thanks, good article and the web site has some good info as well.

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