Forum Replies Created
Hey QM,
I would go back to renting on the Northern Beaches (its heaven!) and re-rent out your Central Coast Property – plus I’m sure the commute it a killer from the Coast?. You could then invest your 150K in higher growth areas i.e North QLD and the Hunter Region of NSW.
I live in Warriewood but had IP’s in Townsville and Newcastle.
DC
Hi DG,
Have a read through this post (it goes on and one but is very good) – it has some great advice on the Surat Basin towns – my preference is Mackay and Townsville over Gladstone but its a town with huge growth due to the CSG projects.
https://www.propertyinvesting.com/forums/property-investing/help-needed/4337447?highlight=gladstone
Hi Mick,
Derek has made some very good points, look at the wider picture rather than just say ‘we won’t a IP’.
If you come full circle, I’d suggest investing in QLD – I live in Sydney but love investing in QLD – my two favourite right now are Mackay and Townsville. Both these areas are continue to grow (rather than a flat outlook for Melb), they both have multiple industries, increase population growth, government and industry investments plus if you invest in a new (house or unit) you get 10K from the QLD Gov (http://boost.treasury.qld.gov.au/buying-or-building/index.php), plus set it all up correctly and there are tax benefits.
I’ve mentioned it on a few of my other posts but I also like investing in shares as you can make both wealth creating assets work together!!
Good luck
Hi Chazz,
You can borrow a lot more to invest in property which we’ve done but we’ve also got a margin loan for shares, our asset allocation is:
Property: 60%, Shares: 40% – and our shares are all paying solid/growing dividends (yes they have gone up and down but via dollar cost averaging we are well up) which all go into our offset account (on my IP). I like to use both assets together to grow our wealth.I’m not a fan of Roger Montgomery – if he is so good and follows Buffett’s way of investing, why isn’t he Australia’s riches person! Best thing you can do is (like for property investing) learn for yourself – books, seminars, search the web and asx.com.au, mentors, financial planners etc. Another share tip I can give you is research http://www.argoinvestments.com.au/ – they are a listed investment company, learn what they do, what companies they are buying and then buy them and follow their lead – they’ve been around for 100 years and continue to grow and pay a dividend – I’m a massive fan plus I follow their lead in investing in quality companies.
Give these guys a call http://www.mccarthygroup.com.au – I’ve used them for a number of IP’s up in Townsville and have found their service and advice excellent.
G’day ChazzWazza, sounds like you’re travelling pretty well. Now all depends on your risk appetite and longer term goals but if I were you I’d be investing more in property (go for a new house build in QLD and get 10K from the State Gov.) and more shares (one’s with solid growing dividends). Thats what we’ve doing – just signed another new H&L in Townsville last night and have been buying as many shares as the wife will let me (dollar cost averaging).
Hey Tropper, I personally think its over priced and the builder/investor is the only one doing well out of the deal…I don't know the area well but a quick search and a few phone calls to local agents I think you can get houses for under 300K with better rental return.
Hi Johann,
You're right about passive income but ideally its an amount over and above any holding costs.
What is the value of your PPOR? A 100K loan seems low so if you have a large amount of equity you could buy several IP's.
DC
Use these guys – http://www.propertypursuit.com.au/manage/manage/ they are very good and they can also assist you with purchasing your next IP!!
Give Jason a call and he will provide you with costs and details:
Jason Hetherington, General Manager & Licensee P: 07 3118 8565 | F: 07 3118 8568 | M: 0421 085 086Easy option – UBank online savings account 6.51% if you add $200 a month
My choice – buy the best Listed Investment Company (LIC) on the ASX – Argo Investments (ARG). It's $5 today, but has net tangible asset backing (NTA) of $5.57 per share. Reinvest your dividends (26cents per year currenlty) for 3-4 years then either pull it all out and use it as a deposit or set up a margin loan.
Sorry didn’t read your DY comments, yeah as I said it has a high proportion of renters but its still a good suburb, I lived there for 5 yrs and loved it.
Well the Northern Beaches is know as God’s country and Warriewood (beach side of Pittwater road again) is just that – magical. Mona Vale/Newport/Avalon have village feels to them and are also great suburbs. My pick out of all of them is Mona Vale but only just.
The new estates at the back of Warriewood have grown steadily over the years and have high rental yields but the estates have a few issues – lack of parking and sewage.
I live in Warriewood – hence the forum name DCwwood!
If you’re looking for an investment property (Units that is) on the Northern Beaches best bet is Dee Why – good bus transport to the CBD/North Sydney, plenty of cafes, restaurants on the beach front, 2 Coles, 1 Woolies and heaps of other shops. I’ve owned a few units over the years and recently sold a 2br unit (beach side of Pittwater rd – make sure you go beach side) and made a very healthy profit – there are plenty of 2 bdr units available and they rent very quickly if well presented. I don’t know the exact figures renters to owner occupiers but it would be close to 70% renters.
If you’re looking for houses, I’d say Mona Vale/Newport are better value compared to Freshwater – Freshie is over priced due to its proximity to Manly.
Good local contacts:
Mortgage Broker – Richard at Aussie Home Loans, Mona Vale is good – 02 9997 3377
Doyle and Spillane for leasing – they are the best on the beaches and hold regular seminars for investers – 02 9981 9401
Solicitor: David Marinic 02 9971 0144 (very reasonable and very helpful)
haha Rusty, if you want me to send you a diagram PM me and I’ll send you an attachment – its really not that hard but it takes a bit of organising!!
Cheers mate.
Richard, I did suggest for Daniel to place all his 30K into a 100% offset account, but the way I structure my investment finances is to also have a buffer account. Ubank is simply a high interest online saver account – yes you pay tax on it but its there as a ‘buffer’ so if I ever want it I can get it quickly and not take money out of my off set account.
For my wealth strategy I like to have on each IP an interest only loan, 100% off set account, LOC, credit card and buffer account – but I also have a margin loan – its a bit of effort to set up, but worth it!!
Rusty,
I like your thinking but think if your a high income earner you’d be better focusing on a capital growth strategy…how about this alternative:Buy land in the Surat Basin region,QLD (high growth expected over the next 5-10 years), get a construction loan (interest only), get your 10K free new builders grant (apply for it yourself and you get it within 10 business days – straight into your off set account), employ a good reliable builder (I can suggest a few), set up a 100% off set account, set up a buffer account in UBank earning 6.51% interest, do a tax variation through the ATO. As soon as the property is finished, sort out your depreciation of new fixtures, have the property revalued, then set up a LOC to pay all property out goings and interest (you need to apply for ATO private ruling to do this), also use the LOC to purchase high yielding shares (Telstra yielding 10% or any of the backs 6-8%), add a Margin Loan (allow interest to capitalize), all three loans (Margin Loan, LOC and Construction Loan) are tax deductible. Then use your rent and dividends to either pay off your PPOR loan allowing you to use your equity to buy another IP or put all the income back into your off set, increase your LOC + rent + dividends for a deposit on a new IP…then set it up all again.
Hi Daniel,
I would use the equity in your parents IP (its in your name so assume they trust you…) to purchase your own IP. Set up an interest only loan, with a 100% off set and place your 30K in it (good to also have a buffer account – maybe in UBank earning 6.51%), do a tax variation through the ATO and buy a new build in QLD – get 10K new builders grant (apply for it your set and you get it with 10 business days – straight into the off set), then sort out your depreciation of new fixtures. Once you have equity built up, set up a LOC account to pay property out goings as well as purchase high yielding share, additionally set up a Margin Loan – 60% geared is a good balance and just let the interest capitalize, then have your dividends go into your off set until you are ready to go around again.
Good luck, good buys in SA also!!These guys are very good:
Tax Effective Accountants Ph 1300 399 829 | Fax 02 9230 0044 | http://www.taxeffective.com.au Address | Level 12, 25 Bligh Street, Sydney NSW 2000
Go for it Adam – well, once you've done the numbers, researched like a champion and done several visits and spoken to a least 15 different agents/suppliers/builders/locals. There is plenty of good opportunities out there, you’ve just gotta get out there and look at all the options!!
Thanks pinkboy, will PM you now!!
Agree Land purchase, then secure the builder is the way to go.
