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We have a great contact here in Sydney who is one of the leaders in setting up SMSF's.
I know this post is old, but there has been a lot of changes in attitudes by Banks towards these and you can set up an SMSF and buy an investment property quite easily now.Hey Pete
What state are you in?
We don't do much in Melbourne ourselves as we don't feel the numbers are there.
When looking for an investment you need to consider 3 main factors.
Infrastructure
Government Spending
Population Growth
Growth on your property will be totally relevant to how much of those 3 factors exist.
If you have a little Infrastructure, a little government spending and a little population growth, then you will get a little capital growth. If you have these 3 in bucket loads, Like Mackay, Gladstone etc, then your opportunity for growth is huge. This is the same for rental growth as long as the demand out weighs supply.
QLD has a $10,000 government grant until the end of April, so there are other benefits in other states also.It would probably be best to put all your money in on your property purchase and then once you have the property loan approved, then apply for the car loan.
Car loan companies like that people have property as extra security, Banks don't really like any extra debt that isn't theirs.
It will come down to your servicability so you will need to check that the numbers work, but this is normally the better order to do it in.
If you can claim the car loan (ie self employed or work car of some sort) then that will help with the cash flow.From the sounds of it, you are not a developer, but are looking to do some sort of developing.
Word of advice, no matter how many numbers we give you to help you figure out your costs, your costs will blow out. I've been in the Real Estate game for almost 20 years, and I would get involved with developing for quids.Just be VERY careful and it would want to be really worth it to do it.
Personally I would not be looking at Perth. Not to say that it isn't a great place. There has been many great stories of growth, but it is a VERY long way from the rest of Australia. This does tend to mean price fluctuations, when they happen, can be extreme.
A forgotten city that would be better to consider would be Adelaide. VERY good value for money buying and VERY low price points. The medium value is very low compared to the rest of Australia and there is plenty going on in and around Adelaide to really push prices up.There is a lot of info out there, just remember, most people who write these books might have done well, but their journey was something that worked at that time, but doesn't mean it will work as well in this environment.
The world is a VERY different place since the GFC and the rubber really hits the road now when it comes to having a solid approach.Fixing your rate gives you a fixed cost, and in business (which is what you are in, the business of Investment properties) this is a good thing. You can budget better and weather any interest rate change.
The down side is your locked in, so if you need to sell or refinance for some reason, it can be costly to get out.I have had some "dealings" with TIC. Basically if you're happy to get advice from mums and dads rather than an expert then that's up to you.
They are known through the industry as the Investors Cult, as most people who are involved with them can get somewhat brainwashed and their one size fits all policy really isn't the right way to go. The fact too that their 'Club" model is in the shape of a Pyramid……!
There are MANY holes in their strategies and I speak from experience that there are MANY "Members" that aren't happy with their results.Fixed rates are normally based on different markets than variable rates and this sometimes means than aren't really effected by any reserve bank changes (not that seem in control of rates anymore anyway)
Terryw is right, the lenders see it more like a commercial transaction and they will restrict the LVR (loan to value ratio) as they consider it higher risk, and rightly so, as they normally are.
Still plenty happening in Australia, just need to know where to look.
2012 I believe could be a great year for property investors as a lot of the locations we are focusing on are only just starting to kick off on their projects this year. That coupled with the $10K QLD government grant being extended to April 31st and the likely hood of interest rate reductions, it really is one of the best times I have seen in over 16 years in the industry.You need to ask yourself what is your end game? What are your trying to achieve by buying an investment property?
These type of rent "guarantees" are for people who are scared and want something positive to hold on to, but JacM is right, capital growth will be awful and you will look back in a few years and be wondering what you were thinking.Nicki73 wrote:Does anyone have any info on the Blacks Beach Cove development whether its got good rental potential? I'm still unsure on whether to invest in Gladstone or Mackay, we are buying as an investment property to rent out.Also been looking at Calliope??
Hi Nicki73
Plenty of info on Blacks Beach and also Calliope, pm me and I can help you out.
Hi Anon
I'm a big believer, especially if your single, in renting where you want to live and buy where you can make money.
Structuring your investment purchase to be as cash flow neutral as you can is a great way to still maintain your quality of life, yet still be in the market and making money.
Another thing to be careful of is not buying something because it's close to home, or that it might become a home one day. You either buy for investment or to live in, if you merge the 2 you will probably compromise your growth opportunity for the investment.
Just buy where you can make money, then when you REALLY have to buy to live in, then sell the investment and you'll be cashed up to buy what you REALLY want to buy, in the meantime, live a good life that is not effected by your investment.
