Hi,
I live in Brisbane and I’m looking to invest in a couple of cheap properties.
I like the idea of aiming for high income properties that Steve described in his book.The problem I am facing is this.
The first property I buy will be my first home and I wan’t to take advantage of the $7000 grant and the large stamp duty reduction you get in QLD.I have searched extensivly and it seems impossible to get anything with a return of over about 6% net anywhere near Brisbane and most are well below that.
I can’t tell the bank I’m buying my first home somewhere far away like Gladstone or Townsville and I’m going to commute to work everyday in Brisbane.
What ever I buy I only plan to live in for a short while and then rent out.The only properties in Brisbane that have any chance of positive cash flow seem to be serviced appartments and tiny ex-motel room like studio’s less than 50m2 (So no morage insurance).
A few of them are around 8-9%.
No body I have ever met has had a kind word to say about this class of property including the real estate agents selling them.Can anybody offer me any usefull advice about these kinds of properties ?
Thanks,
Mark.
Mark,
It depends on what yer looking for. Some banks won;t loan you money for less than 50sqm or they’ll ask for a whopping deposit. But 50sqm isn’t that tiny, really. In sydney, 50sqm can get you a one-bedder with a balcony!
Whilst there’s not much good to be said of these investments, there’s also not much good to be said of a shack in the outback for 30K but people are still buying them! It all depends on price, guarantee of rental income, possible finance and what you’re wanting- capital gain or income. You might get little of either in 2003 because the times are changing. But you’ll probably get a fairly new apartment in pretty good nick, and in a central location. Don’t write it off if it’s in your price range and the location is decent. There’s always students in cities who require accommodation.
kay henry
Mark, there isn’t any need to involve the bank in
your application for the govrnment First Home Buyer’s grant.You can apply yourself and it will take about three weeks after settlement to get piad (with a deposit being made in your nominated bank account.
To qualify there isn’t even a requirement that you move in immediately. I understand that you are eligible as long as you occupy the dwelling
within twelve months from settlement.Please verify the above with the relevant government department.
Pisces133
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