city or country for first IP

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redleaves
Member
@redleaves
Join Date: 2006
Post Count: 54
November 19, 2006 - 11:36 am
I’m hoping to buy my first IP within the next three months.
I’ve been looking at both country towns and also Brisbane city.
I’d be looking at either a unit or cottage in the country or an older style 2 bedroom unit within 7kms of the CBD.
I realise that these are very different investments with pros and cons to both, and would appreciate experienced investors opinions on what they would do, first time round.
The advantages I see for the country one is that they are generally cheaper in price, allowing me to get a foot in the door, but slower in capital growth.
The city one would have greater capital growth, allowing me to buy my second property sooner, but cashflow + is getting harder and harder to find.
Thanks for your thoughts.
RL
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
November 19, 2006 - 2:35 pm
Capital growth is what will make you rich. Don’t sacrifice this for a few extra dollars in rent.
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swiftos
Member
@swiftos
Join Date: 2006
Post Count: 22
November 19, 2006 - 2:35 pm
Hi RL
I act as a buyers agent in South Australia and would love to respond to your questions. Please post them here.
Firstly you can choose to pursue either cash flow opportunity in relation to Brisbane or country. What you need to assess is whether you are looking at cash flow and income in the short term or whether you have the ability to fund a potential loss each week and then gain capital gain in say 3-5 yrs.
I myself deal specifically in positive cash flow deals and would encourage you to have a look at both options.
In relation to your other questions about full documentation properties it refers to postcodes and the risks associated with certain areas.
In most metropolitan and large regional areas banks will loan greater amounts in these areas. In some smaller regional areas or areas that are supported by one key industry then clients may not be able to get a lo-doc loan as they are unable to get the same lend.
Regards
Simon