Hi,
I just spent ten days in QLD, having travelled from Canberra to scope some towns I was interested in. I identifed a number of interesting properties but missed out on all of them (by negociated sale and auction).I got straight back on the horse so to speak and have identified further towns that need investing. Now here is my dilemma:
I can’t take leave to get up there until August to check them out so is it better to use a buyer agent in the areas I am interested in or should I use my time and focus to investigate my backyard of NSW/ACT instead?
(Btw I will continue to monitor the towns I managed to check out on my first tour).
On the subject of QLD
What do people think about holiday appartment investments managed by on site managers, there.
From my limited reading and dealings in FNQ, seems 20% – 25%returns are spruked regularly but the managers get about half of that, so effectively you end up with approx 10% – 12% anyhow. This they say this takes into account 90% occupancy in high season & 35% in low.
Has anyone dabbled in holiday investments “off the plan” or otherwise in high tourism or growth areas or heard of experiences of others ?
My strategy is to be an expert in my area and buy properties that are well priced.
I would hate to be the “Rich Guy” from Canberra who buys something the locals have left.
But any strategy can work and using a good buyers agent will reduce the risk considerably – for a price.
All the best
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
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0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by Mortgage Hunter:I would hate to be the “Rich Guy” from Canberra who buys something the locals have left.
hi Simon,
I am curious about the above statement. Do you consider it a bad thing to be an out-of-town property investor? Is there any reason for this? I mean, is this just something that you are uncomfortable with or is there a more general reason (which could affect anyone)?
I am in WA and have wondered about buying property sight-unseen in another state, and also in country towns in this state.
I don’t think such a tag would bother me, but I would be interested to know if there is something more to it, as I have never heard of this before.Thanks,
AdamHi Stevie
I think there are a number of points to consider for you –
- looking for growth V yield
- value for money
- time
- amount of patience
- level of research already done
- etc
Have never used buyer agent but have travelled out of my local area(Brisbane) to look at opportunities (Cairns) and spent most of yesterday travelling around the Darling Downs looking at possibilities.
In my personal opinion if you have done your research (due diligence), the numbers add up and you have had a look around on a visit to get a feel on the situation – you can eliminate unsuitable deals so that when opportunities present you can act.
You can always put in a special condition on the contract about a visual inspection within the time you are having inspections etc (this is what I do).
I always feel that the cost of flight and overnight accom. (could be up to $1000) is usually less than 1% of the deal so it’s not a bad price for peace of mind – just like when you have the inspections and searches done.
You can also look around while you are there for the day, at what else might be on the market – chat to some agents – increase your knowledge of the area, build up contacts – most likely if you have found a bargain area for you, you are likely to make repeat purchases. This can be done on a weekend as most agents are happy to help out to get a deal.
But also consider the old saying of “it’s the deal of a lifetime” I have come to see that these deals come around about once every couple of weeks, if not weekly.
There is also merit in working in “your own backyard” as you do know what is a deal and what is not but it depends on what you are looking for. If you are after yield and your area does not have these opportunities then you have to go further a field, same goes for growth.
Hope this helped
D.B
P.S. Kevjosh
Have property in the Cairns area (high tourism area) all have been long term lease situations. Have looked into these holiday letting but has not really suited my strategy of portfolio development.
D.B.
Thanks for the replies so far.
Am still kinda interested in QLD and starting to check out NSW and down to VIC. Will see how my energy levels hold up!
Does anyone know of good buyers agents in the Mackay/Townsville area? *raised eyebrow*
Does anyone know of good buyers agents in the Mackay/Townsville area? *raised eyebrow*
Hi Stevie
I deal with Lyn Anthony Real Estate in Townsville for my I.P up there. Have had no troubles with them and they’re on the net too.Hi kevjosh
We have a dual keyed apartment in Cairns and am very happy with its capital growth and return. $10,000 +net before depreciation really helps support the dark side of my portifilio
rudolphThnx Rudolph, your response is a little cryptic but I take it you are happy with it’s growth and rental return ?
Are you able to put a % figure on the return and the dark side, is that in reference to the tax benefits ??
Thnkx for posting a reply regardless.
Hi Kevjosh
We have held the property for 20 months in that time the value of the property has increased by 23% (12+% pa) and a net income return of 5.7% (after tax) The dark side of my investments are my -ve geared properties,
rudolph
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