My First IP! with Navra assistance

Thanks Guys,

It was a tough decision to make and I'm still not "certain" it was the right one. Its just that on the weight of information available I "believe" it was the right thing to do.

Steve, I think you're property in the same subdivision is great. Mine was about $50K more expensive and would have returned roughly the same rent. So, my "instant equity" equation wasn't as good as yours. I went to Brisbane after hearing about properties in that subdivision selling for $350K and renting for $350/week. Didn't quite work out that way. And the weight of all the other reasons around lack of proximity to the CBD and an overheated market made me decide to take a step back for now with only $1K wasted in a trip up there and associated expenses. I look on that expenditure as "education" though so not really wasted per se.

Not really sure what to do now. I'm sort of sitting on my hands and wondering whether now is the time to buy. I've always been a long term buy-and-hold guy, but I still think you can time that buy decision to optimise your short term growth. I'll keep reading everything I can about macro market movements and hopefully I'll have a Eureka moment and be able to get that first IP that I'll be really happy with for a host of reasons. One thing is for sure, it's hard work! And don't let anybody tell you otherwise!!

Thanks again,
Michael.

 

Hi Michael

A real estate agent told me about 20% of sales fall through

Rgds

Kevinb

 

Mike,

Keep looking!! I look at HEAPS before I buy (now), mostly on the web though. Yep, your deal was not as fantastic as mine is... I believe I got a pearl there.

The "go" resons for me were the figures, if they don't work, then don't "go"! Always look at the potitives of the experience though, you would have learned heaps just by going through the process as far as you did.

One thing, that I know that I suffer from, is perfection paralysis: don't look for the "best" deal going... there is always something better out there, just make sure that the deal you do is one that YOU can live with (afford to hold, sleep at night, feel good about)... if you buy enough that fit your criteria, you will find the pearls. The biggest factor there is the sleep at night factor, if your investments are costing you sleep, they are not worth it, mind you some "kid before xmas" excitement sleep-loss is OK (for a night or 2!!), just not the "gut-wrentching gnawing doubts" sleep-loss.

Heheh! I had one thast cost me sleep, it was a donut factory that lost the delivery driver.. (and most of the other staff, but thats annother story) and I had to get up and deliver the donuts at 4am in the morning!!

Keep looking Mike! I use API ( Australian Property Investor) magazine and Realestate.com.au as primary references for median prices and similar sales (well advertised prices anyways). API is a bit out of date (3 to 6 months old data) but has great info on median prices/rents, and RE.com has the asking prices of comparable properties (both sales and rents).

Happy hunting!

 

Sometimes the best investments are the ones you say no to.

Cheers
N.