Forum Replies Created
I like your thoughts about Deception Bay but its seems to be getting difficult to find properties under $300,000.
Under $200,000 within 1 hour of a city. I shook my head but its was still there on the screen, goodness me.
There are $1 Billion reasons to stay away from the bottom of the market.
Affordability issues ($1 in $3 for housing) and share market volatility (down 4%+) all in an election year.
Uncertainty.
Wont have an impact on the volume of sales. Sales will remain solid and another rates rise will be on the cards before November.
First home buyers will still buy they will just have to move further from the city to do it.
Most first home buyers will be well advised to get into to the market now while they still can, another .25% rise will impact on the serviceability of all.
Owning a property is no longer affordable that's a given. Its all about serviceability as lending tightens massively in the wake of the USA market being slashed about at the bottom and top end of the market.
If the upcoming federal election result is bad (either way) then the doom and gloom will set in.
Taking a step back from the question. What's right for the market you're building in?
Are you building the same as all the other properties in the street/estate?
Location/location. Need I say more.
The more decisions we have to make the more temptation there is to put our own stamp on things.
Not sure as with many questions on this forum that all of the critical information is available to make an informed assessment.
Essentially speaking though if you're looking purely from a valuation point of view bathrooms are more expensive to build then the same blank floor space of a bedroom for example. It's a building cost thing really isn't' it.
Opportunity In Everything wrote:http://www.aibs.com.au they are very efficient.Yes its http://www.abis.com.au, sorry.
Milly wrote:wanna bet opportunity?
Watch this space.
http://www.aibs.com.au they are very efficient.
I would always be careful not to use a company that also carries out pest treatments.
1. Will allow you to go onsite with them at the end of the inspection to point out any specifics
2. Will phone you with a report shortly after the inspection is conducted
3. Gives you a written report, not hand written though
4. Member of relevant industry association with appropriate insurances
5. Reputable company not a local part time pest treater part time inspectorbirddog01 wrote:What is happening with that train line? Even if it is put in i believe the station is to be at Rothwell which isn't great for the ppl living in Redcliffe anyway.
Latest talk is that it will be a light rail line and recently the solution was that the current line/resumed land could be extended all the way to Redcliffe. Not so sure there ever was a station at Rothwell on the cards, mango hill and kippa-ring.
My prediction is that there will be light rail in Redcliffe within 5 years possibly through a greater funding arrangement.
Redcliffe
Median house price Jan 2006 $251,000
Median house price June 2007 $328,750
There are no surf/open beaches in Moreton Bay. It's a bay!
These figuers obviously should not be relied upon, they are based on historical sales data record by the poster.
Good debt and bad debt, that's the way to go.
Yes I've had my partner physically restrain me at an auction to stop me from bidding. We got the property for $143,000.
It costs us around $3,000 PA or $60 a week to own. 2 years latter its worth around $265,000. $60 a week for $1,100 a week growth. Case closed.Positively geared properties….o my not that again.
seank wrote:To answer the question without providing any advise or bias.
250k based on price, closest to brisbane cbd -maybe look at the following areas:HOUSES-
NORTH – Redcliffe, Burpengary, StrathpineHouses will be older style maybe needing work
Hopefully I can post this without stepping on anyone's toes – I don't have anything to gain from this forum, just a brisy local with some knowledge of the area
The Test. http://www.realestate.com.au. Zero houses under $250,000 in each of the named areas.
It's simply by chance you can buy anything (houses) under $300,000 in the named areas.
I attended an auction in Redcliffe recently of a run down two bedroom fibro house on 400m2 of land kitchen was 2.5 x 4m, hot water system inside in cupboard, original everything paint and lino $278,000 deceased estate. Now that's a bargain for the area and the competitive bidding by 7 bidders was proof of that.
Qualification min specs, three bedroom brick house on 600m2 land with an immediate return of $250.00 per week at best (that's a pretty ordinary return).
Lets represent the market for what it is. $250,000 buys very little if anything (houses) within 30kms of the CBD.
Last time I checked Ipswich was a very very very long way from Brisbane 45kms approx
Seller staying in the property, what about the condition of the property at the end of the rent back.
What provisions are in the contract for how the sellers will leave the property or if there is any damage to the property.
Get a bond. Draft a lease. Have an entry condition report done and an exit report done. Treat it as a normal tenancy, always.
In Qld you would want to have in place a written tenancy agreement, you would want to be taking out landlord protection insurance and so on.
If the seller stops paying the rent you would have nothing in writing about how the rent should be paid and when and to who. You'd be thrown out of court before you even sat down.
You'd want provisions about who is responsible for repairs.
Retain possession, no they are going to be a tenant residing in the property if they adhere to certain terms and conditions. What if they don't there are no provisions for terminating this agreement early.
Make it a normal tenancy. The seller will enter into a tenancy arrangement with the buyer, pay a bond and sign a lease. The amount of 4 X weekly rental will be withheld at settlement in the way of payment of a bond by the seller will be lodge as a bond with the RTA. The tenancy will be subject to the conditions of the attached lease. Provide the seller/tenant with a RTA form 17a.
Speak to the RTA they are there for landlords too, ask them about this condition in the contract.
Solicitors act on instructions from their clients.
Units vs land content. Within 6kms of Brisbane. Well the simple economics forget the rest . Supply and demand.
Is there any capital city that has not been impacted by an oversupply of units?
Land, is there any capital city that hasn't had price growth in houses due to a national shortage of land within 30kms of capital cities.
I agree take a step back from what you read on the site and consider everything in the context of the market and your own strategy.
In my area alone there will be over 300 units/town houses built in the next 12 months. Thats just the ones that will be built, not taking into account all the DAs that are already out there sitting in someones bottom draw. They are selling and off the plan. Not many local buyers though.
There are around 6500 established homes and virtually no residential (house) blocks available.
Supply and demand. I'm within 30kms of the city.
Land capitalises, so a very fundamental approach to investing is to obtain the highest land content that you can for your $.
Depreciation is great isn't? That's the value of your investment devaluing, becoming more worthless. Again very fundamental. Might be a great tax break say in the first 5 years but if you've got an oversupply issue to contend with too well back to basics isn't it.
I think the most important point take out of all of this is to develop your own investment strategy. You can only do that by having regard for the current conditions in the market.
That would be the Mayor who is now out of a job?
Watch this space on Redcliffe and anything within the Redcliffe City, Pine Rivers and Caboolture Shires. Council amalgamation is happening. Anyone who has had to deal with these councils will know change has been long overdue.
From now until March 2008 this one of the fastest growing areas in the country will undergo some of the biggest changes in over 100 years.
There will be both good and bad in the wash-up.
Smiling???
Redcliffes slogan previously "Redcliffe smiles better" now its "Redcliffe ready for anything". So that smile has been replaced by a nervous smirk you could say.
wow that was a close one, another forum save.
Providing a tenant with a car, you might want to save your biggest cardboard box, thats where you'd end up living.
Nothing worth buying under $300,000, units included within 30 kms of the city. You can always find units or townhouses in any capital with unfortunate returns and little growth prospects.
If you could find a 3 bedroom brick and tiled property on 600m2 of land within 30 kms of the city under $300,000 that you could get an immediate return of $250+ a week on you would be doing very well.
Finding areas of SEQ with promising growth isn't that difficult its getting a foot in those markets thats becoming impossible for investors.
If I had $250,000 to spend I wouldn't waste my time with the South East market those days are gone.
REIWA site is great you wont find the same thing at http://www.reiq.com.au best bet is to hit http://www.realestate.com.au best coverage in QLD.
You can claim interest on the portion of the loan that is in relation to the income producing property.
So if you borrow $500,000 spend $450,000 on the IP and $50,000 on a new boat for example claim the interest on the $500,000 . I think not.
You would want to consider if you look good in stripes or not. You know prison stripes black and white.
Hope this really helps mate.
1. The property becomes an "investment property" (just a name) from the moment you use it to produce an income.
Maybe for example you let a part of it to someone else say a room or downstairs or whatever and you produce an income from that. They pay you money.
When you move out of a property and tenant it and receive rent then you are producing an income from the property.
The answer is more related to when you first use the property to produce an income and not so much about now its an "investment property" cause it is scenario.
I guess this is really relevant when you are looking at doing your returns for a given period. At that time you would focus on the first used to produce income as a key date for determining the deductibility items you mention.
2. I'm just providing a very broad answer here, each individual circumstances vary and so on and on……the deductibility of interest payments on an IP isn't as straight forward as it seems. Essentially if funds are borrowed principally to finance the purchase of a property used to produce income there maybe some deductible aspects of the interest payments. (very cautious).
At the end of the day your best bet is to find an accountant who owns an investment property themselves.
Have a look at some of the mortgage responses for previous answers relating to deductibility.
Interest only loans the same thing there has been plenty of comments given in relation to this also. I would not consider interest only on your principal place of residence as a good starting point for building a portfolio. One reason being you would probably like to start building some equity and demonstrating your ability to meet the loan. But that's my view of what I would not do.
Ok so the structure is probably a patio?
Redcliffe that is the weird part.
How did this come to the attention of council, some local councils come onto the property as part of their search fee. Others rely on satellite pictures amongst other things and when properties are transferring they pay particular attention to any irregularities. Maybe that's what happened in this situation.
Ordinarily a notice (21 days) is sent to the property owner advising that there is an illegal structure on the property and to show cause or provide reasonable grounds for why the structure exists without approval.
Solution and the most utilised remove the roof of the structure and replace with a non-water-catching shad cloth or similar. If it doesn't catch water it may not need approval.
Solution have a drafts-person draw a plan and submit the appropriate application.
Its your property and your problem.
Was there a council clause in the contract stating that this contract is subject to and conditional upon the buyers satisfaction with search results that all structures on the property are council approved prior to settlement and if any searches reveal any unapproved structures on the property the seller shall obtain all necessary approvals from the local authority prior to settlement. If seller fails to obtain the approvals prior to settelment the contract will be at an end and all deposit monies refunded to the buyer without deduction (or similar).
Don't purchase a property in south east Qld without having this clause in the contract?
I would call the agent who sold you the property and ask them why they didn't tell you the structure was unapproved. Any agent in the industry for 5mins or more would be able to immediately recognise unapproved structures, one would think, maybe?
L.A Aussie wrote:My criteria is:
1. Must be built after 1987 (preferrably 5-15 years old), to maximise Tax Returns and cashflow from "on-paper" deductions.
Of no interest to me.
2. Must be able to "add value" through a reno, or subdivision to increase equity and rent return for rapid wealth building and cashflow. (new properties don't work for this strategy as a rule).
Never spent more then $5,000 on a reno wont touch anything structural
3. Can be a unit or house; whatever is in demand for that area for high occupancy. (units cannot be subdivided, but can be "value added").
Never would buy a unit, no land content, not interested in depreciation so units are out, land capitalises
4. Strong rental demand for the area to ensure steady occupancy and less vacancies.
Metro buyer only max 30kms from CBDs
5. Rent return at least 1% higher than current interest rates for better cashflow.
Negatively gearing need to with the capital gains
6. Must have strong prospects for employment in the local area for capital growth and larger pool of renters and/or buyers.
Same as 30km radius
7. Must be in good streets with good street-scapes for buyer/renter appeal, cap growth and high occupancy.
Have purchase the worst house in the worst street and still had double digit growth and a tenant
8. Must be in close proximity to all amenities such as shopping malls, public transport, schools, commuter roads, parks, hospitals etc for cap growth and rental demand.
proximity again
9. House price must be in the lower half of price range for the neighborhood. There is a much larger pool of buyers and renters are in the lower half, so this ensures ease of sell/rent in the future. The rent return percentages are usually higher in this price range as well.
10. Good local network of Property Management companies; I don't want to do it, and a good manager can improve your success with tenants.
Buy and hold for a year and sell property managers are the tenants worry
The combination of all these factors provides, for me; a safe and usually successful investment – basically set and forget with minimum hassles.Don't mean to be negative but, i guess for me buying property is all of these things but i've never caught myself thinking or overthinking.
I never forget the bread and butter issues though and I understand them.
I must achieve a min $100,000 capital growth within 2 years and have often sold properties (investors sin). Greatest growth $70,000 1 month after purchasing and i will never spend more then $5,000.
Biggest regret not being able to purchase more properties due to a lack of cash flow. The pain soon receeds when you sell though and get rid of the banks all together.
At the end of my first year investing (starting from 0 only FHBG as deposit on $119,000 in 2002) I had a portfolio of $900,000 and 40% equity including my PPOR.
