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I'm definitely no property expert Grantos, maybe Terry or Richard would be better to clarify this, but rather than go 100% with SVR or fixed would it be better to split your loan 50/50 between the two?
Thanks Grimnar. After the initial walk through the property the floorbaorads were not entirely secure in most places and the skirting boards had come away in some rooms where there was almost like a wave. But it is sounding more and more like my $20k estimate was excessive, which is now turning out to be a good thing.
I want to replace the floorboards anyway with the timber look vinyl, so having a fibre board floor put in looks like the quote to pursue.
I was going to delete this thread after only getting the one reply but there seems to have been quite a few views so I might keep it going. I am going for a second viewing of the property this week, taking a builder with me to get some more accurate costing on the work. I’ll post it in case someone else is interested.
Thanks Maree. I have been trying to track down the oompa loompas to no avail. I was budgeting for $20k, so if it comes in under $10 it may help me make my decision.
Demand is still very strong all throughout the Bowen basin with new mines and the missing link progressing. So I would think that there will continue to be growth in rental yields and property prices. Keep doing your research on all the FIFO propaganda, there is a lot of local opposition in the mining towns themselves but as far as I know it is still awaiting a court decision.
In my opinion, and has others have also said, investing in mining towns has a high risk/high reward, just make sure you know when to call it a day. One day (in 10years perhaps) there are going to be a lot of property owners who have payed in excess of $400k for a property they can’t give away, one can only hope the banks are lenient lol. As with any strategy, diversify and spread your risk.
Research, research, research.
If you’re not currently in a position to invest, do whatever it is you need to do to get yourself into that position, get a second job, sell your body, ok only kidding on the last one. Maybe talk to a broker to get a rough idea of how much you might need and set yourself a goal, you’ll be surprised how much more direction you have when you have something to achieve.
While you are waiting for all this to happen, read as much as you can from a variety of sources and try and get your own feel for the market. At the end of the day you are in control of you own destiny.
Hi Emma,
not sure if you would prefer a local broker if you live in Sydney, but Richard Taylor is a valuable contributor to this site and is a broker in Brisbane. His handle on this site is Qlds007, you will find him in any of the finance forums.
Hope this helps.
Two new Natural Gas mines just approved by the Government late this week in the Surat Basin, might be worth a better look with the coal expansion going on down there as well.
Elissa,
from the looks of the posts above you have some initial concerns to investigate before continuing.
One of the issues that I thought of was getting the tax benefit? I was under the impression that there is not tax benefit for property investors in the UK, can you redirect your funds somehow so that you can claim the interest through the ATO? Sorry if that is a stupidly obvious question with an equally obvious answer, I have never delved too deeply into OS investing.
Alex,
as previously mentioned your local Newspaper is always a good place to start. In Central Qld we have small classfied journals (Pocket ads/Pocket Trader) which are sold weekly and are quite popular, not sure where you are or whether you have this option.
Earlier this year I started my own PM business, one of the services I chose to offer clients is a set fee to advertise, shortlist, screen and select a suitable tennant for a property. If you want to manage your property on an ongoing basis maybe see if there is a local agent who you might be able to come to similar arrangement with.Best of Luck.
Hi Kalkat,
not sure how much of your own research you have done thus far, but Tony Melvin and Ed Chan have a book called How To Invest in Property Using Your Super Money. Its a great start to give you an idea of what you are looking at.
I’m not sure what services Capital 360 provide or what they charge, once you know this I would have a chat with your accountant and a good broker and compare the costs.
Hopefully this gives a little more direction.
Was working in Moranbah in Qld as an apprentice, had an IP in Mackay and had an employer subsidised property which we were renting pretty cheaply. I did a fair bit of travelling throughout the day and one day was in Dysart for lunch and had a look at some properties for sale in the RE Agent’s window. Must have been about 15-20 properties for sale, all the same configuration, low set 3 br, 1 bath, carport. Average price was about $50k.
These days you can’t find much under $350k and median rent is up around $650/wk.
DOH!!!!!!!!!!!!!!
Couldn’t convince the Mrs that debt is a good thing. So there was only one thing I could do…………………..
I got a new Mrs, lol
If you are still looking for an IP for around the $200k mark, it might be worth checking out last months edition of API if you haven’t already. Seaford in SA was flagged by multiple experts and has a lot of properties around that price range.
Hi boogs,
I’m not a WA resident but I would suggest that as we have in QLD, the mining areas of Karatha, Port Headland and Kalgoorlie might be a place to start. Read the topic on here about Moura, Blackwater and Moranbah, although they are completely different states and cities I personally believe there are some parallels about them
As far as any city goes for being a foolish place to invest. Its only foolish if you fail to perform your due diligence, do the work and you may find you will answer some of your own questions.
Looks like you have plenty of options to consider for the top layer Mud. The primary concern though will be that chipboard underneath, I would get a professional opinion on the condition of that. If it is not level and starting to deteriorate you might as well rip it all up now and replace it with ply.
Let us know what you decide to do!
The strength of the dollar has certainly raised my eyebrows Andrew. Personally I have started investigating investing in US Property through a SMSF, so hopefully in about 6 months time when I am close to being ready and educated enough the strength in the dollar will still be there.
Great Article in this months API on USA investing, quite a comprehensive read as far as first information goes. Definitely gives you enough to entice you to consider the US as an investment option should you choose to do all the proper research.
Worth a read!!
Thanks James, I see your point. That is what I am trying to weigh up at the moment, trying to figure out how much is too little and how much is too expensive. A rough figure was $100 per person for a 4 hour seminar delivered by 4 elite speakers.
Thanks Charles, I have spent a fair bit of time on Michael Yardney’s website lately and have found its a great resource. There are alot of experts who work with Michael so I would expect great things from the seminar. Hope it goes well.
Been hanging out for that article Richard!!! Let the scrutiny begin, lol.
API is always a fantastic resource guys, might take a little hunting for the applicable articles but well worth the effort. Last months issue has a great article on Negative gearing v Positive Cash flow.
" How to Legally Reduce Your Tax " Chan/Melvin is a good read, just skip the chapter on their PIT.
