Discussion in 'Introductions' started by Cherry Pro, 19th Jul, 2007.
First time to visit here - am sure it will be interesting.
Welcome to the forums Cherry Pro.
Welcome to the forum, good to have you on board.
Hi Cherry Pro,
Good to see you here! Not everyone on this forum frequents SS (but a lot do!).
Do you mind giving us a brief snapshot of your investments? I know you managed to pick up an IP in Adelaide at a pretty handy time...
Thank you for your welcome.
Currently have 1 IP (2 bedroom unit) in Hornsby, NSW.
Settling end July, IP No. 2 (4 bedroom house on a quarter acre block with DA approval for unit) in Melton, VIC.
Settling mid August, IP No 3 (3 bedroom semi) in Elizabeth Downs, SA.
Cant afford anything more till equity builds up for now
Also paying off our PPOR in Sydney (hefty chunk still to go).
Moved to Australia almost 8 years ago and hubby and me work full time.
SS has proved to be a tremendous help and I'm looking to learn more about managed funds as well - have done a bit this year with helping our 15 year
old invest in Australian Unity Property funds which have returned 43% -
he's happy as....
Want to be able to live (!!! yeah - holiday next year to see our family in India) but pay down PPOR asap and have financial freedom by 2016.
Thanks for listening to my story ....
Yep, tick from me!
Yep, and another big tick from me!!
Looks like you've got your eye on the ball as to where to be buying. I'm equity poor right now with my MUH development in Mona Vale tying it all up, but if I had some spare leverage it would definately be in Melton VIC already and then rolling down to Elizabeth SA as the next on my list.
Why these places?
I won't answer for Cherry Pro, but for myself its just a simple assessment of growth potential. Why? A bit of gut feel and a bit of analysis, but the following is about right:
Melton: Cheap ($240K) buys a 2 year-old house with good depreciation benefits that you can rent for $270pw. They're about to finish the freeway next year which will link Melton to Mebourne and make for a 45 minute trip. Melbourne has turned the corner and is on the rise and I reckon Melton will do well from the ripple effect and see house prices rise strongly. This is a neutral CF growth play.
Elizabeth: Haven't done as much research but its a similar deal from price and yield perspective. I like SA due to all the mineral exploration work going on and I think Elizabeth has legs. Again a neutral CF growth play. There was a post on SS last week on SA suburbs and their recent growth. There's a few different areas within Elizabeth but one I remember showed 44% over the last 12 months. Not sure if it was statistically valid (quantity sold) but its an indication. I like SA from a macro perspective and Elizabeth is one of those suburbs I like from a CF perspective.
Both of these are "cheapies" so the affordability hurdle doesn't come into play. I've felt for a while that the bottom end of the market if bought at the right time is the end which has the most upside potential from a % growth perspective. i.e. I can see these things doubling or even trippling in the right context, but I can't see my $1M units in Mona Vale trippling anytime soon.
Couldn't agree more with you ... growth potential whilst relatively cheap.
I was not willing to outlay big dollars on a single project. In saying
that, the return in Melton is 5.5% and in Eliz Downs it is 6.4% and I am
quietly confident of capital growth as well.
Thanks guys. I hadn't even heard of Melton before.
I think it gets a mention in today's AFR too...
Hi Cherry and welcome to InvestEd
Good to see you diversifying with property as well- did you spend much time in Vic and SA analysing and researching at all?
Yes, did a bit of research in Sydney but largely bought sight unseen, had
a few property managers go through both the properties etc before I bought. With SA did not have too much time to deliberate but think it will be good.
Missed saying hello to you last evening at Roxbury but left shortly after
9 pm before Peter concluded.
Separate names with a comma.