Hey all,

Been taking a keen interest in this area recently……..Not a local to the area(lived in Toowoomba for a few years),

Why is Wandoan seen as the better investment location?
Miles, Chinchilla and Dalby seem to ping up on my radar a little more prominently due to the planned infrastructure. Granted the 'boom' if such would come is a little way off. I just wanted to get your thoughts on the other locales in the surat basin area and why one would be preferable rather than the next?

Cheers,

Mick

Can  i ask where the land is located?

Perhaps A kit home or a rentable transportable home could be a cheaper option? I know that there are business hurting in these markets and there are some good deals going.

Cheers,

Mick

Hey,

There are a few more variables to add to your analysis….
Management fees, rates, insurance, nil occupancy periods, maintenance and with the finance LMI and stamp duties etc etc.

I admire your enthusiasm, however going into(by my calculations) over a million dollars debt within 18months puts you and your partner at massive exposure to any potential downfall in the market – of which Perth may be a fantastic candidate.

I would exercise caution. Learn a bit more and reduce your exposure by taking smaller steps.

If you do however choose to take on this, id want to go in fully prepared. Talk to your Mortgage broker about the best way to finance these deals…. starting with Interest Only for a fixed term(if you havent considered that already). Talk to your accountant or a depreciation specialist about any potential taxation gains that each property would represent. Going in prepared may reduce any fallout but i still think that either of the mentioned scenarios are a recipe for disaster. Forgive my pessimistic outlook though.

If it was me, and i wasnt that different to you by the sounds of things. I would encourage your partner to take advantage of the increased first home buyers grant and purchase soon, you can rent out your property and make up any difference with repayments. Then I would wait a little bit and possibly purchase your 'do-up' apartment and have a crack at that to build some equity. Sit on that for a bit and see where the market lies.

Just my 2 cents.

Hope this helps

Mick

Perhaps a vendor finance option would suit, as the property is open to tenders?

If, the property is worth what you say it is and the value of your assets is reasonable(i dont know enough about either).

maybe you could offer the vendor 50k at settlement, 40k 3 months after settlement and the rest after 12 months?

I have only read about these deals, never done one. But given that the location is remote, perhaps the vendor will go for something like this!?! Maybe offer a bit more as a sweetener for them

This will secure the property for you, you can sell your vehicles and pay that second installment in good time and then for the final amount you could then possibly get finance from the bank as you would be re-drawing from the equity in the property?

This is a 'Hail-mary' play and may not get accepted…. depends on the vendor.

Maybe others have done a similar deal?

Spudway,
i understand your concern with not disclosing the property location, but if you have already placed a deposit and have a contract you wont lose the property.
The only reason i suggested disclosing the location is so that people can look into the whole situation in its entirety so that they can make any offers/suggestions based on that. There is a wealth of information available through these forums.
 
You could either provide more detail about the property, whilst you still have a contract and increase your chances of pulling off such a deal with finance or you could keep that information to yourself and potentially lose the property as the contract period expires. Either way personally i gain/lose nothing.
Your call.

Good luck
 Mick

Hey Sanjay,

IMHO Capital value is worthless, unless you can use the equity to re-draw or resell the property for that capital value…..

Im pretty sure(depending on the local council) you pay more in rates for an increased capital value. Not 100% on that though.

Capital value is probably only valuable to a real estate agent trying to sell a property…..

Good luck

Hey Shanes388,

welcome to the forums. Just to confirm, you achieve returns of 30% per month? Forgive me but you may have done more damage than good with claims like that. I am very keen to be proven wrong though.

Cheers

Mick

Hey Mark,

Im afraid my help is only limited, im not sure how you would go about finance for such deals in a trio(1 with a bad credit rating?) with regards to best structure for tax and business reasons….

Sub-division and improvements to a lesser extent come down to local council zoning. This varies for all locations. Basically as a general rule of thumb, older established areas closer to the city areas will be re-zoned in accordance with town planning over time. General zoning terms are Rural, residential, commercial and mixed housing(multi-unit dwellings). To find out about a specific area log onto the council website(if its a larger council) and hopefully they will have details or call the zoning or town planning department for resources in your location.

Something to look for are council or other easements on a property, which despite zoning will restrict what you can do with the property, and also council regulations if you were considering buying an existing property, subdividing the land and keeping the dwelling as to how much room is required for access to the newly subdivided property.

Keep your mind open with strategies as no two properties are the same, if you could find an older house thats still in decent condition that could be renovated on a larger sub-dividable block, that could be a fantastic way to start. I also heard a few years ago of a gentlemen in toowoomba buying duplex blocks and adding a third unit onto the back of the block and strata-titling the block…. possibly lucrative if you can find the right property.

Which state are you looking at starting out in?

Cheers

Mick

Cheers,

i agree, I was trying to work off the assumption that it would get completely dropped(the FHOG) as has been suggested previously in this thread.

The way i see it,
2 Scenarios
Scenario 1. Reduced FHOG, lower property prices and lower interest rates will see more FHB return to the market….. either propping up prices or at the very least softening any further drop in values.
OR
Scenario 2. Elimination of FHOG and more renters out there increasing rental returns.

I still stand by my original synopsis

I guess my opinion was that even though prices may soften, as long as you buy correctly and with caution ….it isnt such a bad time to buy now.

Cheers again

Had a WRX 3 years ago, insurance as a 21yo was over $3k/yr
Sold it to help with deposit on first home. Downgraded to a an 89 Mitsubishi Galant. $2500
Up graded more recently a 95 Mitsubishi FTO(import rice cooker) for 10k.

Personally, Id prefer finance on property rather than finance on a vehicle…. For oh so many reasons.

Sure I dont drive the fastest, newest car and I dont have all the designer funiture. But I do own several properties and i guess thats the sacrifice you make, although its getting easier with lower interest rates.

Its really interesting the feedback about cars. It makes you wonder who is driving those cars on the street?
Regardless of how successful I am, i dont ever see myself splurging on a car.