Hi all,
This is my first post!
My partner and I have been keeping our eye on Bowen for a while and have found a few H&L packages now below the $450k mark. (The prices have come back over the last 12months). We have seen a few positive announcements in the media recently and are now taking a more serious look into it.
Would love to have some feedback and advice on the area and what others thoughts are on investing here.
The issue I have with house and land packages is that you'll pay a premium unless the market is rising sharply.
I'd be looking at how much land is available for release……
At the end of the day it's demand verses supply.
I know there is a lot of talk about extending the ports' facilities but I'd want to examine workers needed during construction phase against what's required during operation of the ports facilities.
At the present time the vacancy rates a little high according to your research when do you expect this to begin reducing?
What has your research told you so far?
Jack
Issy welcome to the forum and i hope you enjoy your time with us.
As to whether the area is a good area to invest probably needs a lot more research but i am with Jack if the prices have come back over the last 12 months or so then you have to ask yourself why.
Also new property whilst it might give you an initial increase in the amount you can claim by way of upfront deductions (remember you indirectly pay back the capital allowances when you sell the property) you have to ask yourself what has been hidden in the price by way of marketing or development fees.
The other consideration is the Qld market generally.
Whilst i live in Brisbane and own all of my properties in the Sunshine State i think there are many better areas to put your money depending on what your goals are.
Are you looking for possible capital growth or cash flow. Remember you cannot retire on Capital growth alone unless you sell the property.
This is something we teach our investment property students when we work with them in turbo charging their portfolios.
Many of us seem to have forgotten about yield over the last few years with all of the excitement in capital growth and prices heading northwards.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Issy,
Richard brings up a very pertinent issue in relation to cashflows….
There is a raft of strategies you can adopt to achieve your goals.
What you might want to consider, and this is just an example, but instead of paying a premium on a land and package why not look at purchasing an established property in an area that has all the growth drivers that are going to ensure continued growth.
Research research research and know the area like the back of your hand. Look for something under market value then perhaps a small cosmetic renovation to increase the rent.
There are plenty of areas Australia wide where you can achieve this type of result sub $250k easily. Generate some value.
IMHO I think that's where the opportunities lie in being able to generate good CF and value…..
You might do okay out of a land and package, I'm not disputing that, but I just think there are better ways to achieve your goals. I feel I can make that statement because I've purchased a similar product in the past and even though I've done well it was on a rising market.
My end goal is the same but my strategies have now shifted (Thanks Richard!).
Stay on the forum Issy. Search through the threads and get an idea of what other people are doing. Some of them are sophisticated and very experienced investors and you will learn a lot.
Hope this helps,
Jack
An Area Profile with ratings for Bowen is available from http://www.realequate.com.au/bowen-area-profile.html
The unemployment rate may be an item for concern.
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