DECISIONS, DECISIONS, DECISIONS!

Been thinking a lot... as usual...

We have decided to scrap the idea of spending $410k on any place for now. We have agreed that one of our main concerns is the loan and we want it to be as little as possible.

We have also concluded that this property we buy is going to be an investment property, meaning we should be able to purchase another home to live in later and rent out this property. The rent should be sufficient to service the 1st loan for a couple of years and eventually, provide us with some passive income.

In order for the property to yield good rental returns, it must meet the following requirements:

• Must be safe
• Must be near transport
• Must require little work to upkeep
• Must be near amenities such as supermarket etc.
• Must be in a suburb that has high demand for rental properties

In case selling it in the future becomes a better option, we also need to study the resale potential of the property. If property boom had already hit the suburb in which we purchase our property, not only will we be buying at a higher price but we also may not be able to make much money by selling the property seven years later since prices may not rise much.

Thank god for the following websites that provide invaluable advice and information about suburbs, growth and crime statistics for free:

http://www.investsmart.com.au/property/search.asp
http://www.homepriceguide.com.au/snapshot/
http://money.ninemsn.com.au/property/
http://myboot.com.au/

Since the property we are looking for is a short term home, a stepping stone to another property & we are looking to make money out of it, we don't have to worry too much about whether the design of the house is ideal or perfect for us. A property that is in good condition which we can move into without spending a cent on renovation will be perfect.

The search continues.....