Being a regional centre you need to be careful. Vacancies can rise and the market can become oversupplied when developers go in and build a product based on predicted growth. Remember mining is unstable at the moment. You need to consider your strategy and use regional centres more for cash flow than growth, particularly in the short to medium term. I think duplexes are really good to build in regional areas if you have the capacity. Cash flow is good and many options with them.

Already Taken wrote:

Any particular reason you don’t like North Lakes Richard?

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I’m not answering for Richard but for my money North Lakes in a long way from the city and there are a lot of new housing developments going in there. Being so far from the city and with a lot of land releases is an indicator that there may not be the growth that you would like. We are not advising people to buy in North Lakes. You might want to look closer to the city. 10 or 15kms from the city is usually a good benchmark though it does all depend on your strategy. Where do you want to go? What are your goals? Do you want to buy new or existing? What is your borrowing capacity? These need to be sorted out prior to deciding on any purchase or any area. Cheers

Hi Knox, well done on your first IP. You do need to check on why you were advised to put down 20% dep. If you only put down 10% then you could have used the other 10% for another purchase. While you do need to pay LMI (Lenders Mortgage Insurance) on a 90% loan it can be a good move and help investors. You could even look at a 95% LVR. These are ways investors can get ahead quicker. The idea is to put down less of your own money into the deal.

Don’t get caught up in the hype of the Brisbane market without doing adequate research and seeking good advice. North Lakes in a long way from the city and there are a lot of new housing developments going in there. Being so far from the city and with a lot of land releases is an indicator that there may not be the chances of the growth that you would like. We are not advising people to buy in North Lakes. You might want to look closer to the city. 10 or 15kms from the city. If you buy an existing dwelling then looking for something in an infill area in or around Acacia Ridge or Sunnybank could be options. A less desirable, cheaper area is Inala but if you have a tighter budget, there should be some growth in that area in the coming years and if you play your cards correctly you can buy property cheaper than what new land releases are selling for. A buyers agent can negotiate on the purchase price for you and you should get a good deal out of it.

But that is just a quick general thought. You would be best sitting down with an adviser or buyers agent who can map out a strategy for you. You need to know where you want to go financially and a buyer’s agent/mentor can advise you on the types of properties that will get you there, where and when to buy them, taking into account your financial situation.

Hope that helps.

Regards,