Property Investment ~ Where to start?

• Eos Property#2 Posted : Tuesday, 15 May 2012 11:11:03 AM

  Hi Josh,
  
  First things first.
  
  Your first priority has to be to get your deposit organised. Typically you will need to save about 12 - 13% (minimum required) of what you can afford. The 12 - 13% will pay your deposit, purchasing costs and lenders mortgage insurance.
  
  It would be advisable for you to have a chat with a mortgage broker who will be able to provide you with some more concrete information and keeping in mind what you can borrow. Mortgage brokers are more suited to your long term wealth creation plans. In selecting a broker make sure they are property investors too - nothing beats working with someone who is on the same pathway as the one you want to follow.
  
  If you have any pesky little debts hanging around try and get rid of these too. Reducing debt levels while actively saving your deposit is to your advantage. While talking about debt reduction it is also in your interests if you can delay any purchases of depreciating items such as cars, TV etc. Delayed gratification will work well for you over the long haul.
  
  Interest loans are often taken out by property investors - with surplus cash being directed into an offset account linked to the loan.
  
  Hope this helps.

  ReplyReport
• millennium#3 Posted : Thursday, 31 May 2012 8:44:49 AM

  If you want to invest your money in property then santa rosa property management system is a better site to invest money to buy properties regarding home,land,commercial buildings. You can easily different properties by visiting this site.
  

  ReplyReport
• william levi#4 Posted : Thursday, 7 June 2012 11:20:29 AM

  One of the most profitable ways to invest in property is to buy from motivated sellers. It is best for you in future.

  ReplyReport

• James -2012#5 Posted : Friday, 15 June 2012 1:32:56 PM

  With a growing population and a thriving economy, Sydney is an ideal place to buy an investment property.
  Whether you are based in Australia or overseas, we can provide you with all the tools you need to make a well- informed decision about investing in Sydney’s property market.

  ReplyReport
• Danny2012#6 Posted : Friday, 22 June 2012 8:34:20 AM

  What an ambitious young man you are! Your mindset most definitely is in the right place!
  
  First of all, you will need to get your deposit into place. Once that is done, you will be able to start to look around for properties. Have you decided what type of properties you are interested in? It is a great time to buy property since the property prices are at an all time low as well as the interest rates. Furthermore, you need to investigate the option of buying a foreclosed property. They usually sell for below market value and only need some minor fixes. I would suggest that you also get a professional opinion and estimate on the fixes needed.
  
  Another aspect you need to keep in mind is the location. When you buy a property in a good location, you will have peace of mind that the property's value will increase over time. You need to do proper research on this as this will either make or break your investment.
  
  You stated that you will be renting the property out, which is good since the renter will be paying for your mortgage. Just be sure to get good renters since you will be in trouble if the renters do not pay the rent ;) I would suggest that you get a back-up plan for incase something like this happens.
  
  I hope this advice will help you

  ReplyReport
• RoxanneM#7 Posted : Sunday, 19 August 2012 5:35:55 AM

  Hi everyone I am a 23 year old F with a salary of $62,000 looking to get in to the property market. I have read a few of the posts that have been put up so cheers and am still in the saving process myself.
  
  The questions I am really wanting answered are .... Is it better to buy an established home or a house and land package? I believe if I buy an established I would have to put down a higher deposit? Are there any loop holes to get in to a house and land package without having to live in it first for 6-12 months so I am able to rent it out straight away?
  
  Thanks
  
  
  

  ReplyReport

• Eos Property#8 Posted : Monday, 20 August 2012 7:38:56 AM

  Hi Roxanne,
  
  Buying a house and land package will reduce the amount of stamp duty you pay when purchasing the property as stamp duty is calculated based on your initial purchase.
  
  So for a house and land package with $200K land price and $200K build price you only pay stamp duty on $200K.
  
  If, on the other hand, you were to buy a completed property worth $400K stamp duty is payable on $400K.
  
  Now, not all states are the same as Victoria, for example, calculates off the plan stamp duty on land value alone.
  
  Off course first home owners may be eligible for some discounting of stamp duty in some (most ?) states and even some form of grant of varying sizes to assist people entering the housing market.
  
  Some people I know have gone down this path claimed the first home owners grant and then complied with the residency requirements to secure their grant and then converted their home into an investment property. If you are considering the FHOG make sure you are in a position to fulfill any obligations you have.

  ReplyReport
• Bennett#9 Posted : Saturday, 25 August 2012 4:26:22 PM

  One of the most profitable ways to invest in property is to buy from motivated sellers, who are more than happy to sell you their property for less than the true market value. This means that you make instant equity profits from day one, as well as monthly positive cash flow and the long-term capital growth.

  ReplyReport
• ben#10 Posted : Thursday, 24 January 2013 11:54:30 AM

  Hi guys, my wife and I are currently renting, saving for a deposit, two small children, working FIFO. we want to purchase a small home, buy or build-which ever cost less/best price etc, and invest at the same time. What is a good approach/strategy for us to use? Eg subdivide, duplex, build small and buy second property? We want to maitain strong borrowing capacity etc

  ReplyReport

• Eos Property#11 Posted : Thursday, 24 January 2013 3:05:21 PM

  Hi Ben,
  
  Generally speaking you should be looking for something that has a 'value adding' component to it. If you can effectively value add (buy under value, sub-divide, develop, land bank or renovate) you gain an increase in equity and rent. Both of these two items are critical when you are being assessed by a potential lender of funds.
  
  When you first start out these two matters are critical as the size of the portfolio means any rent/capital growth is compounding off a relatively small base.
  
  Having said that your current & future family needs are critical to your ongoing journey so you need a healthy discussion between yourself and your wife/partner so you are on the same property page.
  
  It may be that you elect to rent for a while while starting to build a portfolio - many people do this so they can get a kick along from the tax department rather than having to rely entirely on your own savings.
  
  Most importantly - stay affordable. Sometimes there is a temptation, amongst first home owners, to get the latest and greatest and biggest. Stay within budget and you won't over extend yourself.

  ReplyReport
• lyn#12 Posted : Saturday, 2 February 2013 1:32:51 PM

  Hi people, anyone could recommend an accredited course which could provide solid education on property for young investor ?

  ReplyReport
• Eos Property#13 Posted : Sunday, 3 February 2013 12:31:16 PM

  Not aware of accredited courses - I understand some TAFE centres in some states were offering courses.
  
  PIPA & PIA are organisations that conduct courses but these are typically aimed at property advisors.
  
  As a starting point have you considered reading material by Jan Somers, Margaret Lomas, Steve McKnight, Michael Yardney and/or Peter Spann? Some good stuff in their material.

  ReplyReport

• lyn#14 Posted : Tuesday, 5 February 2013 12:03:25 AM

  Hi thanks for your advice. I have read all of them ! Good stuff ! Anybody has invested in nambour which is 30 mind to sunshine coast ? Its a good area for investment ?

  ReplyReport