Forum Replies Created
Hi tmillery,
Just make sure that you do abit of research as suburbs on the west and north closer to the airport noise levels will never do as well as the properties on the east and south east!
Just take a look at what happened in sydney and everything will be much clearer.
It is not only proximity to the CBD that is important, but location, type of people living in the area, type of dwellings etc…
I'm not saying that the place won't go up in the long term but there are definately better locations in melbourne then the one on the river side.
cheers,
michael
H hamoracci,
Don't even go there. I had a friend that was in the same trouble as Terry mentoned! Stay clear!!!
cheers,
Michael
hi there,
I agree with Masih when it comes to the IP strategy.
I don't advise anyone to buy studio units in sydney as they are old crappy and will get you least amount of appreciation and most amount of headaches when it comes to maintenance and all the strata you have to pay.
I suggest for you to look at houses that are old but with a sizeable land 650sqm+ at least as you will be able to mayble later subdivide, renovate and claim more deductions etc. Land appreciates in value where house, unit etc depreciates in value!
cheers,
michael
Hi gloveski,
I would advise you to purchase a IP elswhere so you can build more appreciation. 1bdr units won't get you far in terms of appreciation especially when you talk about city like cairns where are thosands of them!
Buy your IP somwhere else so it does better job for you and when you are ready to retire you would make more money investing elsewhere so you can have more options to choose from.
cheers,
michael
Hi investor newbie,
I live in north parramatta and i can tell you that you can buy a decent townhouse or a unit in the north parramatta which is a better side or buy a unit in the centre that is older.
I rather buy in parramatta then spend 350k+ to buy a unit in kellyville ridge!
i will almost always recommend to buy a crap house on a big block in those areas so you will attrack the tanants quicker, you can renovate and make more appreciation in the long term and subdivide in the near future!
cheers,
michael
Hi Jbendall,
There is more information at hand that will lead you to make a right choice when buying an IP.
The website below give you different indicators of how the economy, housing, industry etc are performing.
They are:
http://www.hia.com.au
http://www.rpdata.net.au
http://www.abs.gov.au
http://www.htw.com.au
http://www.homepriceguide.com.au
http://www.residex.com.au
http://www.domain.com.au – free property and sales repports!
http://www.reia.com.au
http://www.bis.com.authis will definately help you in the future when you are ready to start investing! But make sure you get familiar with reading reports, data, stats and compare it to the current market.
I wish i was thinking the same when i was 15. I chased girls and played sports!
Good luck
Michael
Hi Beck,
I do not believe that your townhouse is worth $270k unless is one of those units that are amazing!
You need to affer it below 240k mark in order to ask for the fair price as most prices now are inflated in melbourne.
cheers,
Michael
hi to all,
It's good to know that +CF ar still out there! I bought one 3 years ago in SA! And yes unlike hgwells i wil say from what town i bougth by IP's. It is the fastest growing regional town of Port Augusta! You can still find 8%+ as there are still opportunities!
Rents are increasing all the time as a result of high demand for rental vs low supply!
Even though you find an area, if you share it others can benefit and learn! As a result you will get even more in return!Cheers,
Michael
Hi ao,
The beast is to speak to your accountant on the implications of selling the property of that type and your solicitor for any legal matters that may arrise.
cheers,
Michael
Hi Chris,
Send me an email with the details and as i might make an offer too!
michael
sorry if i confused you. you can only get FHOG for PPOR but just becuase you bay an IP first it does not mean later when you want to buy PPOR that you can't get FHOG.
in order to get FHOG you have to by the property as PPOR, then move out of the PPOR and rent it out.
i suggest you use the FHOG later as the government will most likely increase the grant in the near future because of the afordability crisis especially in NSW.
that is a good bet at the moment. Victoria's regional areas.
You don't lose FHOG if you buy an ip but if you decide to move in the property after few years or later then yes you won't be able to get it.
However you can use the appreciation of the 1st ip to buy the house that you want to live in that is in your state and you can get FHOG.
areas like minto, mt druitt, blacktown, doonside are to keep away short and long term becuase you can have better gains elsewhere!
you should think differently when you are looking for ip vs buying a home to live in.
i suggest you buy an ip first in the right area and price, wait 2 years, re-valuate, and if there is some equity buy in the area that you want to live in.
coastal areas will always go up unless they are mining towns, population is rapidly declining, etc…
ok i understand. Do you want to invest in sydney only or anywhere will do if you get appreciation and ok rent?
Hi longroad,
that is true but if you are looking at the long term hold 5-10 years land is almost always better!
what is your strategy? buy and hold?
tysonboss,
i agree with you one all of your points. i was saying that generally that is the better option than units or townhouses.
Ofcourse if there is a resoning that could take place in the near future even though you pruchased units you will make even more money than if you just bought a old house, renovated it, and sold it few years later.
keep in mind that your strategy needs to be clear longroad. whether is buy and hold, wraps, houses or units, mixed etc.
if you know what your strategy is you will have clearer road ahead as you will have better concentration and reallistic goal.
for e.g. buy and hold negatively geared.
purchase a house with land worth $300k, put 10% deposit, owing $270k with weekly rent $250
Simple renovation such as kitchen, new shed, paint the outside/inside. After 1 year evaluate and if now worth $330k-$350k purchase another IP $150k 2 bdrm unit with 10% deposit from the equity or cash etc etc.
cheers,
michael
Hi longroad,
If you want something to positive chasflow the you cannot look in this area as most yield are in 3-6% range which is not even close to being positvely geared. You need to look at regional areas of NSW preferably up the coast.
i wouldn't recommend you ever to buy a townhouse vs old house on a large block. here are the reasons:
1. Land appreciates = Buildings depreciate
2. You can buy a old house for cheaper and renovate and therefore imporve the value and rental you can get.
3. In area where land is now becoming more scarce the best thing is to capitalise on the opportunity short and long term.
4. Future resoning may be possible with the large blocks of land.
5. You have your own privacy and 1 title; there is no strata, joint land etcTerrigal especailly has too many townhouse and especially units that are for sale and some more are getting built.
the only reason i will tell you to buy townhouse or a unit is if you found a good buy or there is a great location/price/demand for the type of dwellings.
Hope this helps.
cheers,
michael
Hi Pud,
Thank you for the information. From my research i have to agree that the perth market is definately slowing down as i got some friends that live in perth and invest.
i rather invest in areas that will be booming in the next 6-12 or so then in an area that is coming off the boom period.
Thanks once again for the info!
cheers,
michael
Hi,
You won't be able to claim any expenses from my experience if they are not related to IP expenses. if you are trying to claim personal expenses from the property you live in you won't have a chance!
IP, business is the only way to claim most if not all the expenses!
The best thing to do is ask an accountant for explanation
cheers,michael
Hi Luckyinvestor,
Don't believe everything you read or hear from media!
I beleive that there are areas around Perth that will still continue to grow that have bright future in terms of infrastructure and development happening in those area that will make the values of the properties go up in the present and near future.
Look at council plans for the area you choose to invest it. If there is a decent amount of developments or important infrastructure being set in place or approved then it is a good chance that the value will increase.
Do your homework of the areas you interested in and believe less in newspapers and media but ofcourse don't be ablivious to all the information you read!
if you need more help let me know.
cheers,
michael
Hi Eve,
While the drought is an important issue and worthwhile to bear in mind when investing in some of the areas you mentioned it will not stop an investor to buy the ip in that area especially if it is a booming town, close to beaches, shops etc.
The point is that no matter how affected the areas might be don't be scared or worried if you find a good ip property in the area.
in my experience so far it didn't stop people from getting good retal yields and good appreciating when they purcased in drought affected areas.
Definately be careful as some of the smaller towns can have residents really worried about the drought soo much to the point that the town will experience population decline!
good luck..
