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I fixed my loans for a mix of 2 and 3 years,….. maybe thats not long enough,
Sorry mate,… you must have caught me on a rough day.
I shouldn't have been so quick to mouth off,…
hajda wrote:I have now spent a bit of time looking at Kallangur. Tysonboss1, having grown up there, I would love to hear you describe what you think Kallangur has going for it over the 10 years…There is definitely a few there in my price range – I will probably organise to view a few later this month when work calms down.
thanks in advance
Main factors that I believe Kallangur has going for it are
1. Population growth and employment growth in that region of brisbane will continue,2. Large Comericial strip running the length of anzac ave is improving all the time, combined with the north lakes westfield which is growing so the town has a real modern feel now and everything is on hand.
3. Transport is very good,… Kallangur has a great bus network and petrie train station is very close and with the bruce highway at the eastern side has had upgrade which means you have the city 30mins south and the sunshine coast 30mins north.
4. Kallangur has a very balanced mix of low, medium and High income areas, no matter what sort of investment your looking for I think you will find a good investment there, there is also very strong rental demand especially in the lower to medium income range of properties,
I know a couple of really good investment minded real estate agents send me a private message and I will pass on their contact details on to you. the good properties are not staying on the market very long at the moment so it helps if you have an a good relationship with some switched on RE's
I don't think that the northern brisbane area growth is a bubble that may burst I believe it is a constant surge that my slow and speed from time to time, but the fundamentals pushing the surge are better than anywhere I have seen in australia,… ever.
Dream3r wrote:there could be a reason for the early settlement if you are planning to fix the current interest rate. I know with some non-bank lenders they won't lock in your interest rates until settlement . If settlement is like 3 months away, the fix rate is probably higher with more increases expected.I agree in the current climate this could be a valid reason for early settlement,
mmmmmmmm,…… Jennifer
I am so sick of these threads,….. It seems every week some one reads that book and posts this same post, wanting us to unlock the secret of positve income for them,
I definatly recomend north brisbane suburbs such as Kallangur, Mango Hill, Petrie and even a bit further up the bruce highway such as caboolture,
I have bought alot of property in these areas, I live and work in sydney now but I actually grew up in Kallangur so I know this area of brisbane well.
I agree with the comments above,… unless the property is positve geared why would you want to settle early so you can start losing $50/ week earlier.
I would want to delay settlement
You would have to form an opinion on the likly hood of future growth,…. to break even you will probally need the property to go up in value by $6500 per year to cover the interest and the rates and other holding costs such as slashing the grass,
If you believe that this property will grow in value by more than $6500 then you could keep it as an investment,…..unless you can find another investment that you believe will achieve a better return on your funds invested,
Hi Longroad,
I have done a fair bit of research on the central coast,…. I think that its future is really good so rents will be increasing year to year,
If your budget is a bit small maybe look a bit firther up in the hunter valley,
Personally I feel that the northern parts of the central coast in wyong shire are still quite cheap and will perform well,…
If you decide to search other parts of Australia,…. Take a look at Northern suburbs of brisbane,… Talk about a boom town.
longroad wrote:My budget isn't really showing me many houses though, only really rundown places which I dont have the budget and know how to fix up. Also dont want to be doing that on the first house I buy, it just doesnt interest me yet.How about townhouses where there are only 2 on the block? Compared to a block of units it has to be a better choice?
You will always have some people saying houses are better than units, and others saying units are better than houses,…. this is not really true as all land is not equal,….. land does go up in value but so does air space so zoning is also very important to look at,… for example a unit it an older three story aprtment block that has been rezoned to allow a 15 story development to go ahead wilbe more sort after than a large hertitage listed house on a back street some where.
the answer really lies in your investment stratergy,….. Don't look at a property and say "Can this property make money", Look at it and say "How can this property make money". you have to have a plan for how you are going to profit from the investment before you buy it,
you have to have a plan,…. whether it be buy and renovate,… buy and subdivide,… buy and hold,… etc etc,…. you then choose the property that will best suit your desired plan,…. for example I think you are looking to buy and hold more than anything, so you should be looking in areas that will have the best chance for growth and low vacancy,… so look for properties that would suit a range of demographics, close to jobs,transport and education facilities, and if you can look for one where you are going to be able to add value and increase the rent, this will move you closer to the positve income every one is after.
One thing I caught from your post was that it seems you are paying priciple and interest repayments on your investments while you still have a debt on your Own home,…
I recomend you put you investments on interest only repayments and put the extra money of your home loan because that loan is not tax deductable so you should want to pay that one off the quickest,
I would not pay a single $ off any of my tax deductable investments while I still had non tax deductable personal debt outstanding,
I think wyong shire on the central coast has alot of great suburbs for investing,…
each suburb or town on the central coast has its own strenghs and weakness you really have to research each suburb separetly,…
as a whole though I think the future growth of the central coast is assured.
tess85 wrote:Thanks all for the advice. I'm a little nervous about dipping my feet into the property market as I have only been involved in share trading. I'd have to sell most of my shares/managed funds to invest in property. Ideally I'd like to own a PPoR and IP but I don't want all my eggs in one basket, I still want to maintain an exposure to shares (since the returns seem to be higher these days). I'll probably buy the PPoR first, then a small IP 3-4 years later depending on how my fiance and I go with our incomes…Your right a well balanced portfoilio of shares and property will always out perform a pure share or a pure property portfoilo,
If I was in your situation I would sell all my investments and use the money for a deposit to buy a modest home, probally the cheapest one that would suit my needs, your loan to valuation ratio will be quite low.
then I would take out an investment loan using the property as security bringing your loan to valuation ratio up to 80% and use this money to invest in the stock market, you may even be able to use some of the blue chip shares you are purchasing as security to lend even more.Borrowing to invest will multiple your returns.
you will have quite a bit of equity in the PPOR and you can use this equtiy to get the loan for the IP rather than a cash deposit,
as long as the total "loan to valuation ratio" doesn't go above 80% you shouldn't have to pay mortgate insurance,…
but still having said that I wouldn't let paying mortgate insurance get in the way of investing,…. even if you had to pay $2000 insurance would you let that stop you doing a deal where you could possible make a $50,000 capital gain,…. waiting till you have a larger deposit just to save a few $$$ might mean you end up paying thousands more for the property in the future and paying thousands more in interest on this bigger loan,
another piont is that I would rather use any lump sum of cash I had to pay off the PPOR rather than use it as a deposit on an IP because the PPOR loan is not tax deductable where as the IP is,… so you want to maintain as much of your debt on things that are tax deductable,…. I would have the IP with a 110% Interest only loan till I had paid of the PPor
Handy Andy wrote:I think you could almost do both….buy your PPOR, then access the equity again to buy your IP..good luck!!!
Andy does have a good piont,… with such a large deposit you could by a modest home then use the equity to by an investment.
Be sure to use the large deposit against the home though as that loan isn't tax deductable where as your investment will be. so you want the your home loan as small as possible and the investment maybe at 110% LVR,
Another thing to think about is that you said you have no money to invest but you wish to start investing,
why is it that you want to invest in the first place?
why don't you have any money?
I think before you start to invest you need to find out the real answer to these to questions.
If you enter into a wrap aggreement you will be paying more interest than you would be if you bought it and loaned the money from the bank,
for the simple reason that the investor has loaned the money from the bank to buy the house for about 8%, so he will want to charge you 9% or 10% because the interest margin ( the differance in the interest his is being charged and the interest he is charging you) is where the investor makes his money in the wrap deal.
as "mr fair go" said, if you have enough money for a deposit and a good credit rating and a steady high paying job,you can get cheaper interest from the bank,…
however if you have no deposit, questionable credit rating and income is not steady you are a higher risk, so anybody giving you money will want a higher return as a reward for accepting the higher risk,
deppro are good,….
