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  • Profile photo of FirstTimeInvestorFirstTimeInvestor
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    May 17, 2012 - 2:05 am

    Ok Thanks Richard,

    I think for now I will probably stay away from high rise apartments and try and focus on houses and possibly town houses.

    I have a few general question regarding investment that maybe you guys could help me with.
    – What are your opinions in investing in a house close to Brisbane? Say roughly within a 6-7km radius of Brisbane?
    – What are your opinions on Western Sydney vs Brisbane homes in terms of capital growth? I have been pondering whether to purchase a cheap home in Western Sydney or Brisbane but based on the stats below, Brisbane seem to be a better area:
    1) density / sqm and growth (RPData)
    2) income, (RPData)
    3) historical house capital growth (RPData)
    – Other than the 3 indicators above, plus infrastructure spending, are there others I should be on the lookout for? And where would be able to obtain that data?

    Thanks

    Profile photo of FirstTimeInvestorFirstTimeInvestor
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    May 16, 2012 - 12:40 am

    Thanks for the replies Jamie & Terry.

    I guess I should try and steer away from OTP and apartment investments. I know that no matter what strategy you follow there will be people telling you it can’t be done, which was why I wanted to hear from and mimic those who have been successful with OTP apartments. But the sheer number of reputable people on the forums giving that same advice seems to completely outweigh those in favour of OTP and/or apartments.

    Also was recommended the OTP apartment by a Property Marketing Company called Blue Wealth. There doesn’t seem to be too much history on Bluewealth that I can find on this forum or on Somersoft’s, but the general consensus seems to be to steer away from PMC altogether.

    Anyway I really appreciate your responses Jamie + Terry!

    Profile photo of FirstTimeInvestorFirstTimeInvestor
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    April 16, 2012 - 3:37 am

    Thanks guys.

    I’m glad point 4 was clarified. I had thought that you could grow your property portfolio within a SMSF.

    Regarding point 2 – If we keep our savings in the offset account and decide to purchase a second IP, what would be the best strategy to purchase the second IP?

    Thanks,
    Dru

    Profile photo of FirstTimeInvestorFirstTimeInvestor
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    April 16, 2012 - 12:48 am

    Thanks for your reply Terryw!

    1 – We’re first home buyers so we’re planning to live in our property for the first 6 months and then rent it out after that. Would 6 months be enough time period to be eligible for the “s118-145 ITAA 1997”?

    3 – I probably didn’t make myself clear on this one – I would pay off the principal on the first IP and then borrow against this increased equity for deposit on the second IP. I think I read somewhere in the forums that if you do this that you can claim certain tax benefits? As opposed to this if you were to pay the deposit on your second IP with cash savings you can’t claim any tax benefits. I need to do more research for this but is this correct? And what kind of tax benefits can you claim?

    4 – Oh ok I didn’t know you couldn’t borrow against your first property for your second. Good thing I asked!

    So could I say that in general my strategy is on the right track?

    Thanks :)

    Profile photo of FirstTimeInvestorFirstTimeInvestor
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    April 10, 2012 - 5:45 am

    Hi Aaron,

    I guess I’m still optimistic that if navigated properly, in 2 years of purchasing this unit its resale value would be potentially 50% or higher. It’s also in an extremely convenient location close to Sydney CBD and I wouldn’t mind living there for several years.

    Essentially I see it as a high risk but extremely high reward potential. I understand its high risk but that is why I am trying to see whether it meets all the green lights. If there is a red light and a road block to seeing this investment being converted to a residential property I’m happy to walk away from it, but right now my mindset is that this is being overlooked and has great potential.

    Does anyone have experience in purchasing a Serviced Apartment (SA), converting it into a residential property and then seeing its capital growth grow at rates similar to the market rate?

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