澳洲Australia property Q from a newbie: Am I hitting 't


在澳大利亚 I need some advice regarding a property purchase. Property - semi-detached house Bedrooms - 2 Condition - average needs internal reno to modernise Street - one of the best in suburb Location - excellent Close to schools - yes Transport - 50m The pool at of an IP needs to be resurfaced (or so the pool doctor says), the cost was estimated to be $10K ($10,000), after recoverying from my impresssion of a cat coughing up a fur ball, it just seems far too much. Its just a standard poo


Hello out there
I have been reading your posts on this forum for a week or so and am finding all of your comments/ perspectives/ experiences very interesting and I am learning heaps - ta for that :)

Was wondering if I could ask for some advice please...

I have spent the last 10 years working really hard to get into a position where finally able to expand property portfolio ie: bank likes income level and will says yes; got the equity; well buffered with cash and LOCs;

But should I be doing it now or waiting a bit re: world economy stuff???

I feel like FINALLY I am ready - got it all in place - was going with the 'buy in Melbourne affluent suburbs +CG strategy'.... hmmmmm.... not so sure now

So then I was thinking.... positively geared property - go regional - longer term strategy.... still not sure now

So.. am I hitting that wall of fear, destined to be the investor that stops at
x2 or x3 IPs?... or am I just being sensibly cautious to sit on my hands and wait for a bit? :confused:

Also, does anyone have any suggestions as to who I could go to get unbiast advice on how to develop a clear property investing strategy plan that will work for me?

I would really appreciate some advice, opinions
Thank you

Eve :)  

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It's hard to say without knowing your income and your goals, and how much 'equity' you have...there's some good quality stuff coming on for sale this season so there's some good buying to be had imo  

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Hi
Thanks for responding
Goal is to create financial freedom in the shortest period of time possible
Financial freedom to me, at this stage, is to have X amount of IPs that will set up for early retirement and that don't create a crazy amount of exposure during the process of waiting..
hmmm - that sounds like a pretty 'passive' plan
I'll be honest - my goals are not quite clear and maybe that's where I need to start
Just want to make the right investments at the right time cos have worked too hard to get what I already have and don't want to muck it up

Got x3 IPs now and $300k cash
or x2 IPs and $300k equity in PPOR - set up with flexibility here as current PPOR is just a stepping stone to something else... but what?

income $150kish pa

Eve  

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I reckon the 'buy and hope' strategy is pretty risky go the current climate! I think you need to be more pro-active!  

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Hi there :)
that's what I am thinking too
But where do I go to get advice on more proactive style investment in property
Or do I just wait for... what? A sign?

Eve  

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only thing i'd look at buying right now is well located property with potential for sub-division/value add. This allows you to ride out a stagnant capital growth period.  

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Ta- that helps as a couple of things I've been looking at do have subdivision potential/ future development prospects. Got house on the land 2 rent out 4 now but maybe 2 much neg gear 4 my liking at the mo?
Do you or anyone else have any suggestions 4 someone who can help me develop an investing plan? Iam in melb area
Thanks
Eve  

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This must be a good time to buy, in the next 3 months but to be sure, get hold of some stats and decide if the market has bottomed out yet or is close to it....  

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HomeBuyAU said: ↑
This must be a good time to buy, in the next 3 months but to be sure, get hold of some stats and decide if the market has bottomed out yet or is close to it....Click to expand...
good properties don't get affected by 'stats'.  

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Hi Eve

Do you have a financial adviser that can look at your total financial situation and advise on property strategy? If not, I would suggest starting there first. If you can't find an adviser who provides property advice (as well as other investments) in Melbourne drop me an email and I'll forward some contact details of advisers I know who provide this level of service.  

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Eve said: ↑
But where do I go to get advice on more proactive style investment in property
Or do I just wait for... what? A sign?

EveClick to expand...
Come to the monthly Melbourne meetup of Somersoftarians (keep an eye on Meeting Point - we meet up in the last week of every month) :D

The Y-man  

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The Y-man said: ↑
Come to the monthly Melbourne meetup of Somersoftarians (keep an eye on Meeting Point - we meet up in the last week of every month) :D

The Y-manClick to expand...
+1 for this suggestion. Great venue for an obligation free chin wag about property investing.

If you bring your notes/figures along I am sure others will bring a friendly opinion.  

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Eve said: ↑
Hi there :)
that's what I am thinking too
But where do I go to get advice on more proactive style investment in property
Or do I just wait for... what? A sign?

EveClick to expand...
Howdy Eve,
I'm very impatient when it comes to making money (not necesarily a good thing). I'm not waiting till things improve. Who knows when the next boom will be? Some say soon, and others are saying it's the beginning of the end of the world. (you know who you are)
My strategy is a minor reno to increase equity, then re-finance for the next place. Works really well, as long as the places are cashflow neutral/positive.

I do hold on to my houses atm, but in a falling market, one would have to reno and sell to stay in front.

There are many other strategies (wraps, lease options etc), but i like what i'm doing, am sucessful, and will continue on this path for the forseeable future.  

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Thanks guys - much appreciate your comments

Ta Y-man and Jonril - yes - I think the Somersoftarian meetings sound like a must for me

Prop Pursuit - I do have one contact that I will pursue but if I can't get the clarity I am after, then I will contact you to get some names - ta

AaronC - yes, I agree re: stats don't affect some properties - I feel that the properties I have now are good ones and that they should [hopefully] weather any storms on the financial horizon well :eek:

Normally I'd be all over the reno thing Locko24 - but due to work commitments atm, would have to employ others to do the work, don't think I want to do that but ta for your post - and I love your enthusiasm! This is usually me - but I am feeling cautious atm

Got another question please:

If you could choose between ...

1/ Offsetting PPOR loan by 70% and sitting on your hands and waiting for the 'sign' for the right/ better time to take next property investment step or...

2/ buying a new PPOR now debt free [albiet inferior in quality and location to current PPOR, but still perfectly fine by more modest standards] and rent out old PPOR - so you are making old PPOR next IP .... plus a nice little bit of assest protection ie: owning new PPOR with no debt, just in case the D&Gs are right?

3/ down pay PPOR a bit and draw on equity to borrow 100% for new IP inc nice chunky LOE loan as buffer and commit to current PPOR as being where you'll reside for a while

4/ Some other fabulous option [of which I am sure there are many] that my lil brain hasn't and/ or couldn't come up with???

ta in advance and eagerly anticipating your ideas...

Eve
:)  

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Answers in red:

Eve said: ↑
Thanks guys - much appreciate your comments

If you could choose between ...

1/ Offsetting PPOR loan by 70% and sitting on your hands and waiting for the 'sign' for the right/ better time to take next property investment step or... This is 'status quo/do nothing/risk free' option. Remember to compare all other options to this when considering.

2/ buying a new PPOR now debt free [albiet inferior in quality and location to current PPOR, but still perfectly fine by more modest standards] and rent out old PPOR - so you are making old PPOR next IP .... plus a nice little bit of assest protection ie: owning new PPOR with no debt, just in case the D&Gs are right? Make sure if you use funds from old PPOR to buy new PPOR, money is coming from an offset account NOT redraw facility. Otherwise this will affect tax-deductability of interest when old PPOR is now an IP.

3/ down pay PPOR a bit and draw on equity to borrow 100% for new IP inc nice chunky LOE loan as buffer and commit to current PPOR as being where you'll reside for a while I like this option. Paying off non-deductible debt is always good. Borrow 100% for new IP means all is deductible.

4/ Some other fabulous option [of which I am sure there are many] that my lil brain hasn't and/ or couldn't come up with???

ta in advance and eagerly anticipating your ideas...

Eve
:)Click to expand...
How realistic is the subdivision/future development prospects of your current IP?

Where are your 3 IPs? Another thing to consider is land tax issues for growing a portfolio.

Finally, if you are planning a property portfolio (although it sounds like you already have a nice one started!), have you looked into structures like trusts/companies etc? Asset protection will be handy, but depends on your occupation and likelihood of being sued.
 

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Hi Ski-Bum
ta 4 yr reply :)
in answer to yr Qs:
Yep - funds are in offset for potential purchase of new PPOR - not redraw - got that one covered

currently X2 house coastal vic 1.5 hrs from Melb and x1 Melb bayside

The property I have been looking at as potential next buy has the subdivision options which are good ones - but I think the pp too high for me atm - 2 much neg gear

I meant asset protection as in 'whoops D&Gs were right' - so at least i would have paid cash for my new PPOR [even if it is a downgrading from my current PPOR] but I'd have the title and 'they can't take that away from me'

Is this just nervous new investor talk??

Eve  

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