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I think it depends on your target market. A family with young children would mean keep them as singles with a BIR. Marketing to young professionals or students I would probably make them all doubles with a small wardrobe.
It's good to hear that the flooding in Ipswich and Brisbane wasn't too bad. Unfortunately Bundaberg and my home town (Laidley) didn't fair so good.
Not much flooding in Mackay. I think the worst that happened was some roads were cut. The worst hit areas were the North Burnett region (Bundaberg, Monto, etc) and the Lockyer Valley (Laidley).
Jotham wrote:I am entitled to FHOG but its only around 7k
Jotham,
There is no 7k anymore. But as a first home buyer, if you buy a new home you are eligible for 15k, if you buy an established home you don't get anything.
Regards,
Cubez
$2900 does seem high. Bowen, Qld. 3 bed house is about $1800 per year.
Maybe there should be a 'News' forum topic. Whereas members can paste or link news articles they have read that they would like put up for discussion.
Interesting program. Are you planning to borrow funds for the initial deposit? If so do you foresee any problems with getting approval from lenders?
Rick sta wrote:The only way someone could be doing quite well from buying H&L packages there is if instant equity is realised on completion which I'm pretty sure is not happening out there at the moment.Yeah I was told he was getting 30K appreciation from signing of contract to full completion. Only word of mouth though so not sure if it's completely factual.
I would like to know this also. I've been told of someone doing quite well by purchasing H&L packages in North Shore. Also my friend has an IP in Bohle Plains and PPOR in Burdell that he says he is quite happy with.
I think I saw those ones in Cairns your referring to. Small studio apartments on the outskirts of a small, tourism based city. Wouldn't like to spend my money there.
Kent Cliffe wrote:,A common strategy especially in this market is to list then crunch the vendor on price. However, this will hurt you in the long run as most of the interest on your property will be the first couple of weekHow true. Nothing worse than listing too high and seeing potential buyers dry up.
Sorry Shahin, I might be reading it wrong, but it doesn't sound like Paul is calculating equity correctly. Its sounds like he is subtracting the loan amount from the value, and then using 80% of this figure.
Bowen,
I own an IP in Bowen. It has been performing okay. Originally bought in 2009 as PPOR, turned into an IP early last year. Median prices in Bowen tripled from 2002 to 2007 but have been pretty flat since (median house price has dropped 2.5%). Although my place has risen in value by $45000 since purchase.
With the large expansion planned for Abbott Point as well as a new railway line or 2 being built, I'm expecting some more growth possibly in 2014. The railway has been the largest employer in the area for some time, and with another rail operator rapidly expanding their workforce this should see some new highly paid residents in the town.
Bowen is also only 1 hour drive from the mining town of Collinsville. Which has seen some large growth over the last few years with a new mine opening and another 2 planned (along with the 3 mines already in the area). Being on the coast and having more amenities than Collinsville, Bowen is a more attractive town for miners to live while wanting to DIDO. Although Airlie Beach and Cannonvale are also proving popular.
While many believe the vacancy rate is quite high in Bowen, looking at the data, in reality it is around the 2% mark. It did take me a couple months to secure tenants, however after a phone call to the PM I had tenants within a week who have been there ever since.
Would love to hear others opinions on Bowen also.
Reference:
Redcliffe, QLD
Peter Koulizos and Cameron Kusher of RP Data both picked Redcliffe as an area poised for strong growth over the next years due to its affordability and attractive lifestyle.
Located approximately 30km north of Brisbane City and sits on a waterfront peninsula, it is relatively affordable compared to suburbs situated an equivalent distance from the CBD but located away from the ocean.
Redcliffe features lots of restaurants and shops situated both within the suburb and in neighbouring suburbs.
“Many houses in Redcliffe have substantial renovation potential which is a great way to add to the capital value of the property,” says Kusher.
Koulizos says Redcliffe remains one of the cheapest waterside suburbs in Queensland that’s why it’s currently targeted by developers.
“There’s a lot of construction near the waterfront. The Queensland state government has also designated Redcliffe as a major activity centre which will see facilities and infrastructures upgraded. The construction of another bridge means that it’s now easier to get to Redcliffe and will dramatically reduce travelling time to and from Brisbane,” he says.
Where to buy
As close to the beach as possible around the southern end because it’s been rejuvenated by the council
Average annual growth over past 5 years:
Forecast over the next 3-5 years: 50% growth* because it’s coming from a very low base.
Freckle, I agree about the Qld govt, however I believe they have already shed most of the public sector jobs that they had planned to. And I totally disagree with no big infrastructure spends (although most will come from the private sector). ie. Gold coast light rail, Rail line from mines in Alpha to Abbott Point. And I'm not worried too much about coal. I work in the industry despite media hype I can see it still growing over the coming years.
Event,
I've read that Redcliffe is tipped as a strong growth area over the coming years. Especially if your home is close to the water. I believe it is seen as an undervalued suburb at present. If you can afford to hold it for a couple more years then hopefully these predictions are correct. If it's performing badly look at your options, can you add value and increase rent by renovating?
Regards,
Cubez
Hagget,
With all that equity you don't have to necessarily start small with your first IP. Take out a sub loan on your PPOR to release the equity then use that as a deposit on your IP. Then both the sub loan and the mortgage on your new IP will be tax deductible.
No pets allowed. EVER
In Mackay. I'm going to look elsewhere as I already have a negatively geared property and I'm looking to boost my cashflow.
I had an initial meeting with NPA also. They think that negative gearing is the only way to go due to tax savings, and because of the cost of the builds I would be interested to see if they could find you anything positively geared. My guess is that they will probably try harder to sell you on negative gearing.
CMS,
The newest mine being built near Moranbah (Caval Ridge) will have a 100% FIFO workforce. Vacancy rates are over 7% for the town. Rental prices have lowered dramatically to secure tenants, while purchase prices are still high. Unless you already have property there then I would be looking elsewhere.
Regards,
Cubez
