Terry,
The intent of the ebook is to prompt the reader to identify what they dont know and ask questions from their accountant, FA or solicitor. I would be interested for you to identify the points which are factually incorrect always willing to learn. I do accept that trusts are complex and my experience with some accountants and FAs have been to recommend them for their own self interest. The ebook is general in nature and as indicated sometime people don’t know what they don’t know and as such blindly adopt trusts to their own detriment. The key point in the book is to get good advice, do a cost benefit analysis and make sure that a trust suits your needs and always ask lots of questions and ask why would that be best for me.
Please email me with the points which you thing are incorrect.

• This reply was modified 6 years, 9 months ago by  Steve.

Hi Kristy,

I believe there is potential within DBay, Personally if you are looking in that area I would look at the southern part of the suburb closer to Anzac Highway that is the newer areas but also closer to the new Petrie to redcliffe rail line which will be operational next year.

You also need to be aware of the local reputation of the area, be careful of buying at the lower end of the market the area has a bit of a bad rep, check out the Qld police crime stats web site: https://www.police.qld.gov.au/forms/CrimeStatsDesktop.asp

As a comparison: DBay has had 700 criminal offences compared to North Lakes next door which has had 168 in the last 3 months, off which D bay has had 191 drug offences Nth Lakes 16,

I would look at new higher end areas with Dbay if that’s where you wish to go on the southern end of the suburb close to North Lakes and Mango Hill.

If you have any specific questions please PM me as I have purchased in the general area and know it well
Regards

Hello SM,

Just a point on “fastest growing suburbs”, I see on the link that it identifies Park Ridge having 30% growth in the last quarter, once again the devil is in the detail.

Reviewing the suburb data in your link and going to Park Ridge detail:
http://www.whichinvestmentproperty.com.au/best-suburbs/qld/4125/park-ridge

The detail does not support the 30% growth when looking at median sales and growth, I believe part of this is that there are a few sales in the area which seem to be sales to developers for very large blocks (5000m2 to 19000m2), these sales push the growth rate up but aren’t necessarily reflective of what is actually happening in that area.

Growth rates can be an indicator but then you need to look at the next level down and answer the question “why”.

My final point is always be a litle cautious in comparing suburbs in different markets, in particular Syd to Bris. Buyer expectations in the two areas are totally different from my experience.

Steve

Hi Dan,

First up, as you have done , its all about learning and education. I spent 2 yrs while saving for my deposit learning as much as I could.

You may have already done this, but first up look at what your investment goals are, short , med and long term for example my goals originally where to:
Short – 1 – 3 yrs. Buy my first property in an area where I would have the best chance of max growth so I could leverage off the increase equity to borrow again. As long as I had a health yield, didn’t matter if min neg cash flow, as I was single, good money and no pers debt, I wanted the ability to get more property.

Medium 3 – 7 Purchase in good locations with solid growth, but good yields, I met my wife we had planned to start a family and I wanted the passive income to supplement her income so that she could spend time with the kids and her not work or only work PT.

Long 7+ Was to continue the purchase and with increases in growth utilise that equity for things such as kids education, a new car and of course more properties. With a keen eye on retirement but more so financial freedom (the ability to do what I reasonably wish to do without worrying to much about money)

I was lucky I bought my first IP when I was 20yrs old (23 yrs ago) so time has defiantly been on my side.

From my goals I have worked out which strategy I was going to employ, for me it was 80% buy and hold and the rest in flips. but I took the slow and steady less risk approach. But there are many others which can get you great results. The other key factor and most important resource is time, I was in the ADF then and away alot so I didn’t have the time to utilize other strategies such as developments etc

There are some great advise you can get in this and other forums, and you can learn as much from other peoples success as you can from their mistakes.

So noting your current position work out what your goals are, how much time you can give to this at the moment and the level of risk you are happy to take on. I am a firm believer that your first few IPs should be solid pillars to your portfolio, within 30-35km of a CBD, in an area you should expect good sustained capital growth and they at least break even from a cash flow perspective. But as I have said my experience is only really through the buy and hold strategy.
Learn, learn, learn.

Regards

Steve

Corey highlights some good points in his response.

I suppose the key issue is what is your plan and strategy, for me , manly due to time, I am a buy and hold investor. My views of the area are a little bias as I grew up in Elizabeth West (now re branded to Daveron Park due to the very poor reputation, crime and social houseing levels in the suburb) and my mum still lives in the Elizabeth area.

Having said that, I have tended not to invest there as due to my buy and hold strategy med to long term growth has not been good, average family income is only around $700 to $750 per week, high levels of social housing or assisted housing, additionally some talk of reducing the Army footprint at the local RAAF base will have a direct affect on demand and the ongoing economic/job issues in the area.

Yes yields are good, but for me, Im after a health yield to hold and potential for growth in my equity on the property over time, especially the 2 to 4 yr period.

With a med house price properly closer to about $190K noting the good growth in the last 12 months prices are today about on par with what they were in 2008 before the 2010 boom as indicated by Corey in his response. So about even after great growth in the last 12 months its still 9.5% lower then it was 5 yrs ago.

So it really is dependent on your strategy, for me doing buy and hold, its a no. But for reno, dev I can not comment because that’s not what I personally do.
Cheers
Steve