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Blonde ambition....

Discussion in 'Investing Strategies' started by Nic_Syd, 29th May, 2009.

  1. Nic_Syd

    Nic_Syd New Member

    Joined:
    29th May, 2009
    Posts:
    2
    Location:
    Sydney, NSW
    Quick rundown..
    - I'm 25.
    - Bought my first property in Canberra when I was 17.
    - Bought another one with the equity in it 2yrs ago, rebuilt it, just had to sell it for around 80k less than it was worth back then :( bummer.. but at least it sold (and looks amazing now mind u) - however, I now have 100k cash and Sydney on my doorstep.

    Apologise in advance for my 'general' and broad post - i just want to hear from the real people out there in the market. Never been on one of these post sites b4!

    Any tips or advice on where on earth I start looking?? I want to buy something as a potential renovator and live in it while doing it up.

    What suburbs are due to boom in the next 5 years here??! no where further than 7-10kms out of city.. looking to spend 400 - 550k...
     
  2. Chris C

    Chris C Well-Known Member

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    2nd Apr, 2008
    Posts:
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    Location:
    Brisbane, QLD
    If unemployment rises to the levels that most are projecting I don't think anywhere is likely to "boom" over the next 5 years though I'm sure there will be some value add opportunities out there.

    I can't offer any advice on specific suburbs, just don't know the Sydney market well enough.
     
  3. JudgeDreadz

    JudgeDreadz Well-Known Member

    Joined:
    25th Mar, 2009
    Posts:
    109
    Location:
    Sydney
    While Redfern and Surry Hills seem overvalued now, I wonder if they might sky rocket after they clean up the train yard and turn it into that shopping centre?
     
  4. AsxBroker

    AsxBroker Well-Known Member

    Joined:
    8th Sep, 2007
    Posts:
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    Location:
    Sydney, NSW
    Hi Nic,

    I am wondering how a minor entered into a contract?

    Cheers,

    Dan
     
  5. Billv

    Billv Getting there

    Joined:
    15th Jul, 2007
    Posts:
    1,796
    Location:
    Sydney, NSW
    Nic

    I wouldn't rush to buy anything atm because it's possible that property prices won't be going up in a hurry.

    THE REASONS ARE:

    1. yields are still quite low.
    Property despite the large interest rate reductions is still not cheap.
    With any new purchase I'll be getting yields of 4 and 5% and the interest alone is 5.5% and scheduled to rise . Therefore property investing isn't as attractive as it should be

    2. It's harder to get finance.
    speculative investors have either lost interest in property or can't get finance. Even finance for first home buyers is not as easy as it was 6 months ago and it could get tighter.

    3. Job security. There is a lot of fear in the workplace these days, Unemployment is on the increase and people are scared to take risks.
     
    Last edited by a moderator: 2nd Jun, 2009
  6. joanmc

    joanmc Well-Known Member

    Joined:
    10th May, 2009
    Posts:
    72
    Location:
    brisbane
    HI Nic, congratulations for your achievements! Sorry I don't know Sydney well enough to comment. But realting to Billv's comment - I personally LOVE investing when everyone else is running scared and doom and glooming. That is when (IMO) the best buys are, once people feel that the market is good again you have already missed half the opportunities.

    Have fun renovating:D(from experience I know it isn't really fun LOL)
     
  7. Jono

    Jono Member

    Joined:
    10th Jul, 2009
    Posts:
    14
    Location:
    Sydney
    Nice work on being in such a good financial situation, I'm about your age and am not in the 3 figure net-worth club yet :)

    I honestly reckon that you shouldn't buy in Sydney yet. In my opinion things are overvalued pretty much everywhere. Wait and see what happens to the economy over the next 12 months, and go to inspections every weekend. Should give you a great feel for the market if/when you are ready to buy.
     
  8. Johny_come_lately

    Johny_come_lately Well-Known Member

    Joined:
    1st Jul, 2009
    Posts:
    703
    Location:
    SE Queensland
    Hey Nic

    Check out the web for prices in Toowoomba. At least they're cheap!

    Johny.
     
  9. GregR

    GregR Reid Consultants

    Joined:
    13th Jul, 2009
    Posts:
    273
    Location:
    Berwick Vic
    Nic Syd,
    There are a number of good research companies available, Terry Ryder does one, Residex is another. I don't know the Sydney market so cannot help much other than suggesting you do your research, analysise the potential where a higher and better use can be made of the property and control your costs. Start at the end sale price, work backwards as to renovating costs to arrive at the purchase price.
    You could try buyers agents as well.

    Good luck
     
  10. Jacque

    Jacque Team InvestEd

    Joined:
    16th Jun, 2005
    Posts:
    1,885
    Location:
    Sydney
    Hi Nic and welcome to InvestEd :)

    Congrats on getting out there at such a young age (though I'm also curious as to how you could purchase as a minor!) and investing- good for you!

    I just want to expand on your last line, as above. Why no further than 7-10kms out of Sydney? It's a well established myth that inner city properties perform better than suburbs in middle and outer ring suburbs. I can provide you with countless examples and statistics that demonstrate this but you do need to broaden your thinking, especially if you want a house for your budget :)
    $550K will get you a very basic home in several suburbs of Sydney, but none of them within the 10km ring. Sydney is a huge place (I should know!) made up of diversely different socio-economic areas, with lots of change occuring in some suburbs and nothing much in others.
    You need to conduct further research, challenge your current way of thinking and read more before taking the plunge here in Sydney. Failing that, seek suggestions from other investors here on the forum or contact an independent buyers agent for clarification on what your money can buy.

    As Bill has pointed out, the FHB market is very strong and possibly pushing up prices artificially. Buy reno and sell properties are thin on the ground but yields are still improving, despite the exodus of tenants into the home buyer market. 2010 may well prove to be a year of contradictions....
     
  11. Nic_Syd

    Nic_Syd New Member

    Joined:
    29th May, 2009
    Posts:
    2
    Location:
    Sydney, NSW
    Finally.. a response.

    OK - firstly I'd like to say sorry for not replying sooner, it's been a VERY hectic rest of the year. Still haven't bought in Syd, now looking at Brisbane as I'm moving there.

    Appreciate all the comments, advice and well wishes to my old old post - much appreciated.

    As for getting in early (buying at 17) I can clear that up. I purchased an 'off plan' unit in Canberra, hence only had to pay an initial deposit to hold it until construction was complete, 2 years later. So technically I was 19 when I actually settled.

    Let's hope 2010 brings some prices down realistically throughout the Country.. Moving to Brisbane now, so I'm starting all over again on the property research front, fun fun. At least it's cheaper up there for me now!

    Best of luck to everyone out there for making lots of money this happy new year. Cheers