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Discussion in 'General Investing Discussion' started by Bruiser, 18th Nov, 2007.

  1. Bruiser

    Bruiser New Member

    Joined:
    18th Nov, 2007
    Posts:
    2
    Location:
    Tamworth
    Hello Fellow investers, I'm a new subscriber to InvestEd and a new invester, having just purchased my first residential property investment on advice from my sister who has an extensive portfolio.

    My situation is this, My wife and I own our home value $350k, and we are currently building our first investment property, value $320k.
    We have spoken to different people and everyone has there own opinions about building new as opposed to buying established.

    I guess I'm looking to build a bit more knowledge in regard to building wealth, and I look forward to any and all comments/advice forthcoming.

    But back to my query, is it better to build new or buy established, in regard to IP's

    Regards to all

    Bruiser
     
  2. Glebe

    Glebe Well-Known Member

    Joined:
    15th Aug, 2005
    Posts:
    932
    Location:
    Sydney, NSW
    I don't think one is necessarily better than the other.

    It comes down to your own skills, your time available, your risk profile, the particular deal that's on the table etc etc.

    Welcome to the forum, hope you have a successful investing journey :)
     
  3. Bantam Roosta

    Bantam Roosta Well-Known Member

    Joined:
    7th Feb, 2007
    Posts:
    115
    Location:
    Canberra, ACT
    I've got a piece of string and it's this long :D

    Personally, for ease I only go established (I only have one so far). In the future I may well go for building my own. As Glebe said, it's pretty much up to personal preference.

    BR
     
  4. Billv

    Billv Getting there

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

    Welcome to the forum.
    IMO you can make money either way.
    Where are you building?
    Do you intend to hold this IP long term?

    Cheers
     
  5. Bruiser

    Bruiser New Member

    Joined:
    18th Nov, 2007
    Posts:
    2
    Location:
    Tamworth
    BV,

    I am building in Tamworth, but my sister suggested a metro IP for my next one.

    I think Tamworth is on the move, do you have any comments on Tamworth as an investment area?

    Bruiser
     
  6. Billv

    Billv Getting there

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

    Prices could be on the move I don't know, I did a search and median price after 2002 has dropped and then had a few small ups and downs.

    It's hard for me to tell how the market is going but you should be able to see
    selling activity. I would look at housing affortability, population movement and employment in the area. Those 3 factors should tell you if the demand for housing will continue.

    Land from what I can tell is plenty and cheap so I am guessing that if the demand for new housing is there it wouldn't be hard to make money from a development.
    However, I don't know if prices will hold, so I would probably build and sell.

    Cheers