Forum Replies Created
I can vouch for Leonie Dixon. I used her to settle a property in Brisbane earlier this year. Trouble free and very good value. Will no doubt use again within the next 6 months.
7.5% + GST for me.
I only have 1 IP. The were going to charge 8.5% up front but she reduced to 7.5% without me even prompting.
Another important thing to consider in respect of the QLD stamp duty concessions for first home buyers (especially if you plan to go the IP route) is that in order to claim the concession you must live in the property for at least 12 months.
Its not like the FHOG where one can conceivably rent the property out for up to but not exceeding 12 months then move in for 6 months minimum then back out again ….. its an ironclad you must stay for 12 months.
I just bought my first property with every intention of going down the FHOG path as outlined above however the stamp duty concession limited this pretty quickly – my purchase price was $445k so it meant a difference in stamp duty of just over $10,000 to me ….
So i am enjoying the life of owning and living in my PPOR for 12 months now ….. and the associated extra expense – renting is so much cheaper.
Cheers
MeatI think this might be the next question for me too – what is the rationale behind Noel's seemingly arbitrary cut off point ??
I mean what happens if you pay more – is it some sort of diminishing return ???
I am intrigued.
Assuming the bank will lend on 80% you should theoretically have $171,000 available to you… seems a bit strange that your total loan available is only $250,000 but they are an unpredictable bunch….
That said, $250,000 should be able to pick up a house in the western suburbs and a townhouse/unit a bit closer in. The problem with Sydney is that yields are not fantastic at the moment (its looking more positive though with the rental shortages)
Have you considered looking further afield. There are more affordable captial cities than Sydney where your investment dollar may go a bit further.!!!
That is of course entirely dependant on what your investment goals are. Cashflow ? Captial Growth? Both? Neither
The first question should be an introspective look – What are you trying to achieve?
Hi Dicko1980,
As a speculative investment I believe the growth will be there in the long term. Having livved in Townsville for the last 12 months I have watched the prices of land just south of where you are referring to in the Bushland Beach, Balgal Beach areas skyrocket to over $300,000 for the good blocks not far from the water.
The only problem with these two areas is low tide – where you get a lovely kilometre or so of mud to look at. At Forrest Beach the sand is white and the water does not disappear due to tide.
The Hinchinbrook Council is mooting the development of a town centre in Forrest Beach and the local community support for this development will see it go ahead in the fullness of time. Check out their website for details. There is a new small shopping centre going in in Forrest Beach (an IGA I believe) so things are on the up and up IMHO.
I will declare my interest as I do own land in the area – 150m from the waters edge.
Hinchinbrook island is only a 10min boat trip from Luncinda – its world heritage listed and is one of the truly untouched regions still left on the east coast. Orpheus Island is only 10km offshore from Forrest Beach and if the local talk of a jetty being constructed to allow tourist operators to the Palm Island group to operate more efficiently then I think the outlook is positive.
Now the downside – it is still a sleepy little area. It will take time for it to be properley discovered. In my opinion there is a glut of land being sold at the moment which is constraining values. It is actually being developed by an old Broncos player – his name escapes me.
My 2 cents anyway …. the choice obviously is yours.
Cheers
RyanLOL … and I thought we never would either. The numbers just kkept on creeping up. I am a firm believer (especially when we are doing this one as a buy-reno-sell) that you make your profit when you buy – not when you sell. There are so many people in this pretty fast moving market in Brisbane who are throwing the asking price down on the table instantly – it amazes me. Stuff is selling so quickly.
We have put offers on 3 other places before this one only to miss out (sometimes out of sheer vendor obstinance) and that has been the hardest – no light at the end of the tunnel so to speak.
But I have a good feeling about this one!!!
Well – as a first time buyer annd looking under 8km from the CBD the Brisbane market is certainlty moving very nicely (for the sellers that is). I am one of those buyers looking at the 350k – 500k property market and I am struggling.
I have been looking in Coorparoo, Camp Hill, Greenslopes, Holland Park and Tarragindi – made 4 offers under the asking price and have missed all 4. I am not lowballing by any stretch of the imagination – maybe 15% under asking price at worst but its just not hitting the mark.
I am frustrated about it too. I have started to get phone calls about property before it is advertised but often its me and another 5 -10 potential buyers along for the look-see while they take the photos for the ads.
If this is a depressed property market then I would hate to see what happens come boom time.
Can someone please hand me the perfect deal on a silver platter …. LOL[cigar]
No – the vendor has not signed the contract yet. Is there a formal way of “ripping it up and putting it in the bin”
I will be going out on a limb here but I would think, from a long term investment perspective that the corridor between the gold coast and brisbane would make a sound investment.
its growing rapidly and instead of the relative (to big cities) emptiness between brisneyland and the gold coast in 5-10yrs time that gap will not exist if current growth is anything to go by.
I have only lived on the coast for 23 yrs but in brisvegas for a short time so i am not quite the consumate expert on the subject.
this suggestion is only based on the price point you are aiming at …. it would differ significantly if this was increased or decreased by a measurable amount.
Best of luck with it all anyway ….
Ryan
Thanks for all the advice people. I have an appointment with a financial advisor tomorrow and will chat to my broker shortly after. It is patently obvious that I have a lot to learn and this is one excellent place to find information.
I actually inspected 13 properties this weekend just gone. Man, this is going to be a long a tedious process. Some people certainly do live in a dreamland with their perceptions of value sometimes.
But I am motivated an will stick at it till the right one pops up.
Cheers
Ryan[suave2]Thanks v8ghia … I did not know that LMI was calculated using a sliding scale…. I thought it worked along the lines of if you do not have the full 20% deposit then you are going to be slogged the full LMI….
I will take it up with the bank now…
Cheers
RyanI think realistically I am going to pay LMI regardless…..
We are looking to purchase within 8km of Brisbane CBD and I will not be able to get anything (house on decent land) for less than $380-$400k. Lets go with a worst case scenario and deal with a $400k property.
a 20% deposit (what I think i need to pay to avoid LMI) will be $80,000…. the bets I can come up with is $45,000 …. a large shortfall.
My FHOG will be $7000 but the LMI will eat that all up at approx $6400
So here is my maths …..
Prperty Cost = $400,000
Deposit (5%) = $20,000
FHOG = $7000LMI = $6400
Stamp Duty = $240 (given the new concessions here in QLD I will only pay stamp duty on the difference between $380,000 and $320,000 = $60,000)
Other Costs = approx $4000-$5000This will take care of the $25,000 i currently have avaialble….. and leave me with a mortgage of $380,000 to service. Unless there is a bank who will drop LMI on a 10% deposit…… ???
So I still have $20,000 from grandma !!
The block is located in a little enclave north of Townsville called Forrest Beach. It is not a “beach front” block but one about 100m from the water.
I bought here because Townsville is now, in my opinion, overpriced. Land in prime positions there is a big price. Just north of Townsville in Bushland Beach land is now priced around $300k for a piece of earth with a view. Further north of here is a place called Balgal Beach – it too is now priced around $300K for beach side blocks. This is why Forrest Beach appealed – the pricing trend is stretching north through beachfront villages. It also appeals because up in that part of the world low tide can mean your nice white beachfront turns into about one kilmetre of mud as the tide recedes. This is not the case at Forest – it has a deeper beachfront and remains a normal white beach regardless of tide. It is not cut off from Ingham in time of flood and tide like smaller villages to the north….
For these reasons I thought it would be a sound purchase.
Cashflow isn’t really an issue yet but given that our PPOR will likely cost about $360-$400K I just dont want to be caught short. Income is $120K …..
Just a question in respect of if I sell the property. It is in both mine and my wife’s name… Can I structure it in such a way as to have the CGT deducted at my wife’s tax rate or is it a 50/50 split ?? My wife earns significantly less that I do and enjoys a much lower tax rate.
Thanks for all your help people – I have a million questions !!!
Interesting point youn have there LA Aussie…. please forgive my ignorance in respect of depreciation if I am off the mark but while depreciation is a handy deduction to have, isn’t capital gains tax still charged on the entire profit when selling an IP – effectively voiding any real benefits of claiming the depreciation in the first place.
Would it then be unwise for me to factor depreciation into my calculations because I end up paying all of it back in CGT when I sell?? (or do I just relish the fact that the capital gains, tax considered, are so great it doesn’t matter ??)
I am not sure I am even near the mark with a statement like this [confused2]
Thanks Mortgage Hunter. Ideally I would like to buy investement property that are at worst nuetral and preferably +ve but I am really struggling to locate anything that comes close.
I figure that I am going to work for another 15years before I would like to slow down so the CG on these properties may well justify a negative cf investment in the meantime. Its the classic conundrum.
Thanks for the advice all the same …..
