Hi Joe, great article. I live in Perth, early 30s and haven't purchased my Primary Place of Residence. My lending capacity is around $1mill but I feel so stuck with the Perth Market - the prices don't make sense at the moment, so I'm thinking of purchasing an investment property in Melbourne but then...I'm scared since I know absolutely nothing about the area! Would you recommend I use a buyers agent? That way I can at least get started? I'm also wondering if purchasing an investment property is a waste - this renders the first home owners grant useless. Feeling a bit stuck.
Yes it is an interesting market over there in Perth, you may have seen we did a live session on Perth in mid 2022 as it was about to really heat up!
We're both pro BAs and pro DIY, both pros and cons, if you're going to use one you absolutely need to vet the professional, understand your strategy i.e. What You Want Your Passive Income to Be By When & How comfortable you are with value add strategies such as Renos, Subdivision etc or if you're purely more comfortable with "Foundational" Buy and Hold Properties [in which case area selection becomes more important]..
We unpack this here to a degree and will be doing more content on this ⬇️
Re the FHOG [first home owner's grant], personally & seek advice from accountant re ways you may be able to retain based on WA as well, I focus purely [or mostly] on what is going to give me the "best" return to meet where I want to go.. If that means I miss out out $20K in a grant to move closer towards my financial freedom by buying a Property in an area that will see more growth, enable me to keep borrowing because I don't have the PPOR debt than that's my focus.. Having said this everyone is different and my way or the way I think regarding this isn't the "only" way 😃..
I hope that helps, I'll do my best to come back here occasionally to review any comments etc, jump in Aus Property Investors [if you're not already] Facebook group and all the best
We run Aus Property Investors & yes derive a decent chunk of business income, both bought our 1st properties [for our personal portfolios] ~10 years ago.. A person on $100K - $200K salary income won't be buying $2 mill worth of property in 30 days [took us 3ish years to work on deposits for that].. The principles remain the same though and having an investment savvy broker + accountant re structuring in your corner can and will enable a person to grow quicker even on a standard PAYG income!
Hi Joe, great article. I live in Perth, early 30s and haven't purchased my Primary Place of Residence. My lending capacity is around $1mill but I feel so stuck with the Perth Market - the prices don't make sense at the moment, so I'm thinking of purchasing an investment property in Melbourne but then...I'm scared since I know absolutely nothing about the area! Would you recommend I use a buyers agent? That way I can at least get started? I'm also wondering if purchasing an investment property is a waste - this renders the first home owners grant useless. Feeling a bit stuck.
Heya Sue, Jef here!
Yes it is an interesting market over there in Perth, you may have seen we did a live session on Perth in mid 2022 as it was about to really heat up!
We're both pro BAs and pro DIY, both pros and cons, if you're going to use one you absolutely need to vet the professional, understand your strategy i.e. What You Want Your Passive Income to Be By When & How comfortable you are with value add strategies such as Renos, Subdivision etc or if you're purely more comfortable with "Foundational" Buy and Hold Properties [in which case area selection becomes more important]..
We unpack this here to a degree and will be doing more content on this ⬇️
https://www.youtube.com/live/QxeOwRUCCHk?si=pv3yvM2RMbyox8Rz
Re the FHOG [first home owner's grant], personally & seek advice from accountant re ways you may be able to retain based on WA as well, I focus purely [or mostly] on what is going to give me the "best" return to meet where I want to go.. If that means I miss out out $20K in a grant to move closer towards my financial freedom by buying a Property in an area that will see more growth, enable me to keep borrowing because I don't have the PPOR debt than that's my focus.. Having said this everyone is different and my way or the way I think regarding this isn't the "only" way 😃..
I hope that helps, I'll do my best to come back here occasionally to review any comments etc, jump in Aus Property Investors [if you're not already] Facebook group and all the best
Cheers; Jef!
what is missing here is your income levels and what you needed at the start to service the affordability of these loans from the lenders...
100% good comment and question, we [or I; Jef] address this in the YouTube we did couple months ago on this
https://www.youtube.com/live/XWOX-_g_Lsc?si=1L1iPmbniOZyGLBr
We run Aus Property Investors & yes derive a decent chunk of business income, both bought our 1st properties [for our personal portfolios] ~10 years ago.. A person on $100K - $200K salary income won't be buying $2 mill worth of property in 30 days [took us 3ish years to work on deposits for that].. The principles remain the same though and having an investment savvy broker + accountant re structuring in your corner can and will enable a person to grow quicker even on a standard PAYG income!
Hope that helps and thanks for stopping by :D