澳洲Australia property Beginner property Investor | Sydney


在澳大利亚 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 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


Hi

So I am an electrical engineer graduating this year. I have a job and starting on 60+ per year. I'm 21. I am interested in property investing cause lets face some reality the market is not doing so well anyway and I would prefer to see an investment rather than shares.

Anyway I have been interested in property and reading up on a few forums. I know there are a few ways to invest with property. Some strategies such as DHA. Or more new groups like the Property wealth forum http://propertywealthforum.com.au/

PWF I am not so sure about. I know that these guys have no real feedback but I am looking at their seminar next week.

I have also read that a good start is to just go looking at houses around the place and get a feel for what I would be looking at.

The initial plan will be to save for 6-12 months and then get a loan for investment. I want to be able to invest probably 30% of my income on repayments and use negative gearing techniques for tax reduction.

I would just like feedback on what I want to do and any experience that people may have had.  

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I'm not even sure what the last two options on your poll even mean ...

What's wrong with just going out and buying a house/unit and renting it out to someone?  

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Probably ignore the poll than I am new to these forumns  

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I think the question being asked is what's the best way to manage a rental property?

Generally my vote is to use a professional property manager.

Some people have a knack for self managing, realistically though, most aren't that good at it (or as good as they think they are).

Defence force housing fills a niche, but the returns aren't as good as you might otherwise get. They do work though if you're after a property that you just leave it alone for the next 10 years and don't think about it at all.

Various wealth seminars - stay well clear of them. They rarely make good investments.  

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wealth seminars don't work because if they were such good investments, why would they tell you it?  

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PT_Bear said: ↑
I think the question being asked is what's the best way to manage a rental property?

Defence force housing fills a niche, but the returns aren't as good as you might otherwise get. They do work though if you're after a property that you just leave it alone for the next 10 years and don't think about it at all.

stay.Click to expand...


I have heard that dha is overpriced and returns are low. Is the strategy with dha to purchase a house. Put it with dha and use the rent to pay interest? What would he the most productive way to invest with them?  

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plantie105 said: ↑
I have heard that dha is overpriced and returns are low. Is the strategy with dha to purchase a house. Put it with dha and use the rent to pay interest? What would he the most productive way to invest with them?Click to expand...
You have to understand the entire logic/purpose of DHA. It is to attract investment in properties for defence force staff that are located in remote areas of Australia. So there's nothing going for those properties apart from the DHA guarantee....it's not a very smart thing imo because what happens if DHA doesn't want to renew the lease? or the defence force shifts location?  

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if you wont have another source of income then do whatever you can to save up a deposit from your salary .... you cant get on the property investing wagon without it .....  

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Thanks I probably won't use dha just using a realtor sounds promising.

With purchasing an investment property how does depreciateion work and can you use it to work for you in a significant way?  

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I wouldn't bother with all this, just spend the next 3 months researching, reading forums, magazines, books, go to seminars etc then decided what path to take....  

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You can't go past The Investment Club properties. They really are top notch investments.

They are meticulously researched, provide wonderful yields around 4% and generate fantastic depreciation figures because they are all new, which saves you heaps on maintenance, cos the new stuff they use is really top quality Chinese plastic which lasts ages.

For a very small upfront 6% loading, you get access to all their club finance and club PMs, which are better than any mortgage broker or PM you'll find anywhere.

It really is the only way to go. Do nothing, know nothing. Choice !! :)  

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Dazz said: ↑
You can't go past The Investment Club properties. They really are top notch investments.

They are meticulously researched, provide wonderful yields around 4% and generate fantastic depreciation figures because they are all new, which saves you heaps on maintenance, cos the new stuff they use is really top quality Chinese plastic which lasts ages.

For a very small upfront 6% loading, you get access to all their club finance and club PMs, which are better than any mortgage broker or PM you'll find anywhere.

It really is the only way to go. Do nothing, know nothing. Choice !! :)Click to expand...
for the record, i do believe this was sarcasm.  

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Dazz said: ↑
You can't go past The Investment Club properties. They really are top notch investments.

They are meticulously researched, provide wonderful yields around 4% and generate fantastic depreciation figures because they are all new, which saves you heaps on maintenance, cos the new stuff they use is really top quality Chinese plastic which lasts ages.

For a very small upfront 6% loading, you get access to all their club finance and club PMs, which are better than any mortgage broker or PM you'll find anywhere.

It really is the only way to go. Do nothing, know nothing. Choice !! :)Click to expand...
I love The Investment Club.

My fantastic 4% yielding properties with 5% fees allows me to negatively gear so I can reduce my taxes. Every dollar I negative gear means less ALP-voting people on Centrelink get to be couch potatoes.

Remember, the ultimate art in property investing is to negatively gear because every dollar you negative gear you save half of it!  

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Dazz said: ↑
You can't go past The Investment Club properties. They really are top notch investments.

They are meticulously researched, provide wonderful yields around 4% and generate fantastic depreciation figures because they are all new, which saves you heaps on maintenance, cos the new stuff they use is really top quality Chinese plastic which lasts ages.

For a very small upfront 6% loading, you get access to all their club finance and club PMs, which are better than any mortgage broker or PM you'll find anywhere.

It really is the only way to go. Do nothing, know nothing. Choice !! :)Click to expand...
Dazz! Behave will you? He's a newbie and I'm sure he doesn't need you making fun of his choices. Tell your missus I said to smack your bum for you.

Oh, wait, you might enjoy that.:eek:

Hmm.....forget I said anything in that case. :D  

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Aaron_C said: ↑
wealth seminars don't work because if they were such good investments, why would they tell you it?Click to expand...
those who can, do.

those who can't teach.

those who can't teach, teach real estate.  

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Dazz said: ↑
You can't go past The Investment Club properties. They really are top notch investments.

They are meticulously researched, provide wonderful yields around 4% and generate fantastic depreciation figures because they are all new, which saves you heaps on maintenance, cos the new stuff they use is really top quality Chinese plastic which lasts ages.

For a very small upfront 6% loading, you get access to all their club finance and club PMs, which are better than any mortgage broker or PM you'll find anywhere.

It really is the only way to go. Do nothing, know nothing. Choice !! :)Click to expand...
if only i could have dealt with the hazings when i was 21, i would have retired a billionaire by the age of 27.

alas i was soft and now have mere millions in property.  

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plantie105 said: ↑
Hi

So I am an electrical engineer graduating this year. I have a job and starting on 60+ per year. I'm 21. I am interested in property investing cause lets face some reality the market is not doing so well anyway and I would prefer to see an investment rather than shares.Click to expand...
ignore the **** take, including mine. stick around here if you want property investing tips.

don't be frightened of shares.  

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DHA Option

Hey mate,

Like you I am fairly new to property investing myself. I am just 20 and have just signed a contract on my PPOR with the help of my parents. I plan to pay off a fair bit of this for a few years before purchasing some IPs.

But anyways,

I am not saying that DHA is the best option and it might not suit you at all but it pays to look at your options a bit. I have been looking through DHA and these are some of the benefits:

- there are plenty of options of where to buy, not just rural like someone previously posted. For example you can buy properties on the outskirts of the CBD in canberra achieving a 5% yield (minus management rates) on a 15 year lease - (there will always be demand in canberra for civilians and defence force personel)

- knowing you have a 15 year lease is peace of mind + you could expect capital growth over such a long period (possibly 2 property cycles)
- rents adjust each year to market value and never fall behind first years rent
- you are payed the whole months rent at the start of the month
- once lease term is up they renovate the property with fresh painting, flooring, etc. before handing it back to you
- for those people wishing to invest in property but do not enjoy it us much as we do - DHA may be a fairly good option

I will probably not use the DHA path but its worth knowing some of the benefits and there is a quite a few more, just go read the website

Any thoughts?

Cheers
YPG  

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The initial plan will be to save for 6-12 months and then get a loan for investment. I want to be able to invest probably 30% of my income on repayments and use negative gearing techniques for tax reduction.Click to expand...
Investing to get a tax deduction is not a good plan. Not saying it isn't great to have them, but the cashflow from investments is what helps you to carry them. You might want to think of the order of importance being cashflow (yield) first, cap growth second, tax deductions third. Or, possibly reverse two and three, but never one and three.

I would have thought that the whole idea of investing (maybe not for everyone?) is to make enough money from the investments to replace the normal income and have passive income. If this is your aim, then cashflow is the most important factor.

Aaron_C said: ↑
wealth seminars don't work because if they were such good investments, why would they tell you it?Click to expand...
LOL!
The key word there is WEALTH - theirs. ;)

- there are plenty of options of where to buy, not just rural like someone previously posted. For example you can buy properties on the outskirts of the CBD in canberra achieving a 5% yield (minus management rates)Click to expand...
Wash your mouth out with soap, young man. never let me catch you intimating that 5% is even remotely a good yield again. :D

don't be frightened of shares.Click to expand...
After a crash :D
But seriously; I am not a shares guru (or anything else for that matter :D) but I do own a small parcel of shares I get through my industry. I buy more every quarter. They are fully franked 8% divs, and I have no idea what the value of them is - never look. My choice is a cashflow one, others go for stellar cap growth. If you are a cap growth share investor, buy yer straw hats in the winter as much as possible.  

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BayView said: ↑
Wash your mouth out with soap, young man. never let me catch you intimating that 5% is even remotely a good yield again. :DClick to expand...
I completely agree with Bayview, however this is the quote that caught my eye. Like he said, 5% yield isn't a good yield. Top it off with the DHA management fee of (I believe) 15% and your 5% yield is looking even worse.

I'm not saying don't do DHA, but if you do wish to pursue this path, know exactly what you are getting into. Personally I wouldn't touch it.  

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