When and where to buy an investment property?

[sailorsbay]

Hi everyone,

I am planning to buy an investment property. Is early next year a good time to buy? I can afford a studio or a one bedroom apartment. Where should I focus? I had one investment property in the west of Sydney for three years and sold it mid this year. I lost some money. I would like to learn more first before I invest again. Any advice is welcome.

Cheers,

April

[The Y-man]

I can afford a studio or a one bedroom apartment. Where should I focus? I had one investment property in the west of Sydney for three years and sold it mid this year. I lost some money. I would like to learn more first before I invest again. Any advice is welcome.

Cheers,

April

You need to focus on why you lost money in your first investment property - so that you do not make the same mistake(s) again.

Tell us a bit about it, and we can probably guide you a bit more.

For example:
1. why did you sell
2. when was it bought for how much
3. why did you buy it.
4. how much did it rent for
5. how often was it vacant

The Y-man

[jacylnong]

Hi everyone,

I am planning to buy an investment property. Is early next year a good time to buy? I can afford a studio or a one bedroom apartment. Where should I focus? I had one investment property in the west of Sydney for three years and sold it mid this year. I lost some money. I would like to learn more first before I invest again. Any advice is welcome.

Cheers,

April

Hey Sailorbay,

hopefully i am not too late in replying this. I used to mix around lots of sales agents for real estate in my country. How they make big bucks is by buying a crappy house and repainting/refurnishing it and putting it back on the market for an extra AUD 50 k more!

Just a tip on how you can make the value of a house go up high ;)

[sailorsbay]

Hi Y-man,

Thanks for the questions. It took me a while to get information for answering your questions. My brother and I brought the property together. He did everything from buying to selling. I know that was one of reasons I lost money because I invested my money to something I didn’t know much and relied on my brother to do everything. I do want to learn more now. Would you recommend some books? Please find my answers below:

1. We sold it in February 2008. The interest was kept rising and the apartment value in the area was going down.
2. We brought for $247500 in July 2003. It was a six-year old two bedroom apartment 10 minutes away from Lidcombe Station. We paid 10% deposit with an interest only loan (with fixed rate for three years and then variable).
3. We thought (precisely my brother thought) it is a good suburb as it is near the Olympic Park. The apartments in the area have gone up a lot since Olympic Game. It is near station and easy to lease out.
4. The rent was $215 initially, up to $220, and then $230, and then $240 when it was sold.
5. It was vacant total 7 weeks in 4.5 years. We had our first tenant moving in at the fourth week. They live there for two years and all the sudden didn’t pay rent for two months. We had to force them to move by warrant. We got a new tenant very within a week. They stayed there till we sold it.

Your advice will be much appreciated. Many thanks.

April

[sailorsbay]

We sold it for $240000.

Cheers,

April

[sailorsbay]

Hi Jacylnong,

Thanks for the tips. I heard about it before. It sounds a good idea. One of my friend's husband works in refurnishing industry. It is handy. I will think about it seriously.

Cheers,

April