PROPERTY ADVICE FOR THOSE WITHOUT INVESTMENT PROPERTIES
David asks the following 3-part question on Facebook:
1. “What do you do after you have 20 ‘bread and butter’ properties?”
2. “Which state do you look at after Queensland has become too expensive to buy into?”
3. “What is your best advice for someone who wants to buy an investment property but does not own an investment property themselves?”
1. “WHAT DO YOU DO AFTER YOU HAVE 20 ‘BREAD AND BUTTER’ PROPERTIES?”
There are a range of options available depending on what you want to achieve. You could wait for the rent to go up in order to achieve a highly positive cash-flow. You could access equity and buy a block of units. You could use the equity to buy, renovate and sell to make a profit and pay down your debts. Nathan has gone through phases of buying to renovate and sell. He has bought blocks of units, he has developed and he has built. As with any strategy you choose, make sure it is in-line with your goals and situation. It is wise to consult a trusted financial advisor who is both an expert on investment strategy and up-to-date on current market conditions.
2. “WHICH STATE DO YOU LOOK AT AFTER QUEENSLAND HAS BECOME TOO EXPENSIVE TO BUY INTO?”
It is unclear at this point in time. There are still many great opportunities to be had in Queensland. Sydney prices may stay put for now, but rent is predicted to rise. If Sydney rent doubles in price, as it has in the past, Sydney properties will still be very good investments. It is always important to keep your finger on the pulse and follow market cycles as well as wider economic conditions.
3. “WHAT IS YOUR BEST ADVICE FOR SOMEONE WHO WANTS TO BUY AN INVESTMENT PROPERTY BUT DOES NOT OWN AN INVESTMENT PROPERTY THEMSELVES?”
If you want to buy your first investment property, make sure you have a clear understanding of why you want to invest. How will it play a part in your journey towards reaching your goals? Know where you are at financially and where you want to go. Develop your strategy and buy in-line with your goals.
Do you have a question you would like answered? Please post your question on our Facebook page https://web.facebook.com/binvested.com.au or post it in the comments section below.