"Heard" is an OPINION.

To be a successful investor you need to LISTEN to opinions, but research and act on FACTS.
As you keep educating yourself and researching the market, you will be able to analyse areas more quickly.

For example; statistics say that both Melb and parts of QLD are the faster growing economies in Aus. So, based on this, both areas are potentially good. Pick one and focus very hard on it until you know an area very well and can identify a good deal when it appears. I know two guys who only ever buy properties in their own suburb. They know it backwards and have done very well.

At the moment you seem unfocused and without a real plan. Try to formulate a plan, select a general area, then narrow down the possibilities.

Your plan may be to buy subdivision prospects. This works well in areas that are going up in value especially, and you will need to have favourable council requirements, bigger blocks etc.
Your plan may be to buy and hold, so you may want better rent returns, tax benefits and long term growth. This will determine you area selection.
Your plan may be to buy, reno and hold, so you need to find run down properties that will appreciate, have good rental returns and long term growth.

And so on. What is your strategy going to be?

In either State, look for areas that are being gentrified, or going through a transport upgrade, or new malls, schools, near parks, employment, beaches, or new families moving into the area. These sorts of factors indicate improvement and probably good cap growth prospects.

This is a basic rule of thumb for virtually any area you choose. People want to live in or near good places and within commute distance to work. It's basic human need. Stick with this starting point and the rest will come.

I'll have a crack at explaining this in plain English. Correct me if I'm wrong.

It means; don't buy two properties – one good one and one dud one.
Instead, buy 2 good ones that both keep going up in value.
Possibly, buy in different suburbs, or different towns or different states to improve the chances of consistent cap growth, and minimising "all the eggs in one basket" so to speak.

Of course; this is far easier to do with property than scares (sorry; shares) anyway.

Generally people sit on their wallets for a little while after an election until they see what the govt is likely to do (mostly nothing except protect their jobs as much as possible), so you may find the market will go flat for a few months, maybe a year I suspect.

Having said that, if Johnny gets back in things may just keep plodding along as before. We can only hope.

They have PPoR deductible debt here in the USA, but they also pay around 1% property tax every year. This will be just another "creative" way to get people into property who really can't afford it, and who have run out of options with finance. The carrot will be dangled; "you get a tax break on your mortgage; get into property!"

I don't know that it is a great incentive to have PPoR deductibles unless we can avoid the property tax that no doubt will go with it. And of course, you can bet the Govt won't take away council rates with the new tax. It'll be a double tax.

If this happens, the nett result will be an initial boom as everyone trades up to take advantage of their new deduction, but when the realisation hits that the overall holding costs will be as high or higher than before after all numbers are considered, there will be property slump I'm tipping as the holding costs of owning a property will outweigh the perceived benefit of the new PPoR deductible.

I think you missed my point there Devo;
I was talking about going out to find the sleepy hollow now; within striking distance of the main towns, that will become the future attraction and future cap growth property for you.
I reckon it would be good to take a couple of weeks or so to travel up and down the coast to seek out that place and have a nice holiday in the process.

Hi Renabelz,

first, can I ask you why you intend to sell in 5 years?
Selling costs and capital gains tax eats into the profits, and you lose out on a lifetime of capital gain that you would get if you
keep the property.

If you are going to sell, the property would be better off in your name as you will be earning very little income compared to your husband, so your capital gains tax bill will be a lot smaller after the sale.

On the other hand, your tax deductions will be a lot less if you buy it in your name – for this purpose it would be better to have the property in your husband's name as he will have a much higher taxable income than you. The tax savings for you doing it this way can be significant over a number of years.

You may be able to buy the house in your name, but have the loan in your husband's name. This way you can have your cake and eat it if you choose to sell in a few years. The only problem will be getting security for the loan if your husband's name is not on the title. The Bank may want to use your PPoR as security for the new loan, but will there be enough equity in it to satisfy the Bank's exposure?

It would be advisable to talk to a property savvy accountant to work out the best strategy with this.

In my opinion, only buy property to never sell. This means the capital gain factor is non-existent and the tax deduction factor is important, making it easier to work out the best strategy to use to buy.

Continually buying and selling property will possibly give you a short term income, but won't build long term wealth.

I would prefer to see you buy an I.P, hold it for a while and when the equity improves use some of it to buy again and so on – keep adding properties and your wealth will grow exponentially.

Is that Barramundi or Barracuda?
I don't think you could really go wrong within an hour – hour and a half from any main living area right now. Eventually the sprawl will catch up to those areas to a degree and send the prices up.Trouble is, it won't be a quiet little hideaway then.
It seems the whole world is moving to QLD; a bit like L.A.
How about spending the next 2 week holiday touring up the coast to find the next undiscovered spot? Get in on the ground floor.

Thanks Ming; here to help and/or annoy people.
Don't know which one I'm better at.

Most people have to work hard, save, sacrifice and do without to get their FIRST property, whether it is a PPoR or an I.P.
You have no kids and two incomes.
If you knuckle down and be patient you will buy your first one soon enough – year or two.
Most lenders will lend up to around 90% with LMI these days, so you won't have to save too much to get a foot in the door if you set your sights on a relatively cheap first property.
It may be a neg geared I.P or a PPoR; either way you are in the game, and if you select well, your property value will go up fairly quickly and then you are on your way to no.2, then no.3 etc.
The process can be exponential.

First of all, can you spell "enough" correctly?
The English language is like, being eroded away at a frightening like, rate as it is, without these Americanised text-style spelling mutations, like.
This is not a cell phone.
AAAAAAAAAAAAAAAAAARRRRRRRRRRRRRRRRRGGGGGGGGGGGGGGGGGGHHHHHHHHHHHHHHHHH!!!!!

I agree F;
if we can advise people of the potential dangers as well as the way to success then we should do it; telling others of the not so good news may save a few financial disasters along the way.

The outlook may  be gloomy, but you can be prepared. It's like looking outside and seeing a gloomy sky; you take an umbrella.