Hi All,
After months of research and open for inspections, I’m about 2 months out of being financially ready to make a purchase. The problem im faced with now is whether to buy a 2 brm unit for <$250k or a house around $250k. I’ve selected a couple of suburbs in Brisbane where I think there is longer term capital growth opportunities but I’m more lost than I ever was now…..Bald Hills and surrounding suburbs seem like a good place to start my portfolio…..anyone have any comments?
This is my first investment too……
I’m heading overseas in August – I’ve acceepted a position with my current employer to work in our London office for 6 months but I then expect to find a contract role in my field that will bring me $$$$$ which will help my bank balance alot.
Considering this, would a unit be a more cost effective strategy (lower maintenance) or would it be worthwhile to get a house further out of the city?
Id really like anyone’s help here as Im starting to chase my tail……
BS
Units can be lower maintenance, but it really depends on many factors: age of building, tenant usage, management etc
Also don’t forget to factor in strata fees to your costs for the unit. It may appear a better deal on yield alone, but levvies can soon eat into your cashflow, particularly if you buy into a complex with expensive features such as lifts and pools.Cheers,
Jacque
http://www.housesearchaustralia.com.au
Totally Independent Buyers Agents- Sydneyhttp://www.invested.com.au Australia’s premier Investor Education site
Hi BS
On a separate matter it appears from your post that this will be you first purchase and therefore i assume you will be looking to make an application to receive the FHOG.
Just be careful to ensure you comply with the requirements of occupation for the FHOG if you are going to be away from the Country from August onwards.
If you are purchasing the property as an investment make sure that you structure the property correctly by purchasing the property in the right entity and your loan is set up to suit you and not your lender.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.39%**
Licensed Financial Planner
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Thanks All.
I should shed some light on my situation so everyone has an appreciation of where I’m coming from. I’m not looking for advice, rather commentary and a push in the right direction if possible.
My strategy is to buy something before I leave for overseas in August/September (I will be definitely gone by September 24th ) – I’m after capital growth and if some of the mortgage gets paid off, it’s a bonus.
I live in Sydney but work in two cities (Sydney/Brisbane) and I know which state I’d prefer to be in – where else but Queensland! Studied in Brisbane and on the Gold Coast for 3 ½ years so I have an OK understanding of the area – could be better though.
Does anyone have any thoughts on where in Brisbane will be a longer term hold em strategy? I like the 20km belt out of the city – seems to provide the opportunity to enter the market. After reading my own post, I’ve realised a townhouse is the best of both words so I may have to start looking at this…….oversupply of units me thinks. Does anyone have any areas that they perceive growth over the next 5 years?
My plan is to go overseas for 2+ years (well that’s the intention) of course travel the world and see amazing places but my priority is to work in London for 6-12 months on contract and earn close to 1.8 times what I would earn here. I’ve been to London before and have friends living there so I can save a great deal of money during this time which I intend to do. I just don’t want to return from overseas and have to start again, when I’m 26-27. I want to lock down a 3 year fixed term interest rate so I have certainty of how much I’m paying while I’m overseas……you just don’t know do you!
I don’t want to overcommit myself so I’ve set up a budget of $260k (purchase price). I have the deposit and the income capacity to purchase something around $400k but I’m not ready in my life at the moment to make a 100% commitment to investment just yet. I want to go overseas, have fun, enjoy myself and then come back to start my property empire.
I’d really appreciate you kings to provide this joker with some guidance – once I start I know the next few wont be a problem!
Regards,
Brad
[biggrin]People have made captial gains from units and houses so either can work. Personally I steer clear of units now as have found dealing with body corporates more trouble than anything else. The last body corporate couldn’t even supply a balance sheet, only a profit and loss so if you decide on units, then see who the body corporate is and make sure they can supply the basics at least. If they can’t supply the basics then you’ll have bigger problmes down the track when maintenance is required but not planned for so extra levies would be reuqired etc.
On that note besides asking for P&L and balance sheets, I’d also ask for maintenance plans, the previous years minutes, if the balance sheet shows outstanding levies, find out how long they have been outstanding and what they will be doing to collect them. See ifyou can find out how long htey have been the the managing body corporate, if not long, then have they managed other porperties before etc.
Hope this helps a bit.
PK
Hey mate,
If you are after capital growth, I think a house is the way to go. There’s only a certain amount of land on this earth, more can’t be built. And from what I’ve noticed land grows in capital value quicker than units do. It’s land vs airspace.
Don’t count on expenses for a unit to be less, or for there to be less headaches associated with a unit. I bought a unit in Sydney 4 years ago, and I’ve come to realise that, slowly, strata fees do add up and strata management can charge special fees (on top of strata) for fixing fences, restoring gutters, painting , etc. It’s generally out of your control, especially if you’re overseas!
As well, owning a house, you have control over what you want to repair or renovate. So, if your back fence is not in the best shape, you may want to replace it or you might want to see it out another year if you can because you’re (say) low on cash. Not so with a strata unit. If management deem it necessary to replace the surrounding fence, then you’re forking out, like it or not.
So IMHO, go for land.
Mk
Thanks All.
From a Brisbane belt perspective (20km radius), are there any areas I should be focusing on or keep an eye out for? I’m thinking North of Brisbane but again, my knowledge is fair so any help from people who have invested in these areas would be appreciated
Cheers,
Brad
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