Hello,
have been following this forum for quite some time now, never posted as I don't have much to say about IP's – don't have any yet, hence my post
Me and my wife are thinking of getting our first IP any time now. Problem is I noticed few threads to popup about house market crash in USA, that it can affect Australia, 30-40% price drop etc.
What is a general feelings right now? Should I wait or should I just buy and pray for the best?
Our strategy is to hold property and never sell, no problem with servicing, have loan already pre-aproved etc..
We are from Sydney, but thinking of buying in Brisbane.
Any help is appreciated.
If it is any help prices in Brissie are certainly not going backwards.
Must admit I can't comment about the rest of the Country but there is still plenty of demand up here.
Richard Taylor | Australia's leading private lender
Warning: I am a newbie. I think it depends on each person's individual situation and what the market is like where you are going to buy. Everything I had heard from seasoned and successful investors seems to be: don't over commit or even stretch things a bit in the current economic climate. Factor in interest rates rises and see if you can afford the repayments at a 12% interest rate. Keep it neutral or positively geared.
pinoob,
We all go through pre-purchase and post purchase jitters. I have delayed and waited off on Brisbane and as far as I can see Brisbane has came back from 2003 highs to very low growth some are -ve and is starting to increase again, basing this on Residex and looking at postcode trends on domain and rpd data etc. I am targeting lower price areas with a decent yield, depreciation etc so for me its H&L package where I know exactly what the land price is and how it compares and also the market rate for building and the builder himself it is easy to check, the value is clear to me no speculative buying. If it goes backwards then I should be able to hold anyway (got a 10 year lease back) and if I exit I might loose stamp duty, agent costs and because it is at entry level hopefully will appeal to the largest amount of buyers and I wont get a complete whooping thats my safety zone.The US market is not all downside and not all areas are sliding. UK is now looking like it might come back as well for the first time for a long time.
On the other hand in Bulimba where I bought my PPR I got a bank valuation and believe it or not got a 20% increase in 6 months which is fine for me but I wouldn't buy in here as an IP because I think these kind of price rises could come back if there was a slow down.
Metropole have a buyers' agent service in Brisbane.
Google them and ring them up to find out what they think property is doing in Brisbane.
And don't wait….
No, serious call them NOW! 1300 20 30 30.
deka wrote:Metropole have a buyers' agent service in Brisbane.Do you know if they are any good as buyers agents? I wouldn't mind using BS overall, as I have no idea about Brisbane market.
Only thing is I know that BA can cost around 8k? Is this right? It's a bit of money, so would nice to know if they will do decent job.
Any other BA's you can recommend in Brisbane are?
piNoob wrote:Do you know if they are any good as buyers agents?
I would suggest to you that a BA worth half their salt would save you 10k + and all you have to do is pick up the phone.
I'd suggest you contact several BAs, ask them their rates and then plan a Holiday to Brisbane to meet with them.
The BA should charge you nothing for a chat and this will open your eyes.
Who needs buyers agents. Save your money. Do the hard yards yourself. After all I could never be a Buyers Agent anything worth buying i wouldn't be selling to anyone else i'd buy the best and sell the rest to the rest.
There is too much hand holding going on and buyers are not making their own decisions based on real hard core self investigated facts, these are the people with their backs to the wall who cringe at interest rate rises.
Buying house and land packages is great if you're going to buy and hold for 10 years. Great for a property portfolio mix of an established investors.
There is no short term money to be made unless you are the developer adding in about 80-100k to the price. Happens everyday of the week and its the same hand holding which leads people to buy above market values with flimsy valuations and there old an grey by the time they have made any real money. Just the way it is.
Buy something that has potential and make that potential happen right now and like me your first investment property might be worth 70k more afer owing it for just 30 days and oly with spending under 5k on renovations.
You make money when you buy, you make it a lot slower when you buy and hold, when you build and depreciate patience is a true virtue. Guess it comes down to risk and reward. When you're starting out playing it safe based nice neat numbers on paper is the long way around.
Buyers agents on an investors site, investors not desk chair bankers, o here's my money find me something to buy and buy it, ain't investing.
A good buyers agent will save you money, but you can save yourself the same amount by doing your homework and due diligence. I used a buyers agent for my 2nd IP and i don't regret it at all. there were many things about investing which she taught me, and also i had never bought in QLD, and the negotiating / contract process is different to what i had experienced in nsw. A buyers agent is very very convenient, they do all the ground work and negotiating for you. I would recommend using a BA if you are short of time, or not confident to find a good deal yourself…. BUT if you feel like its something you want to challenge yourself to do, there is ample information out there for you take in and plenty of oppurtunities in todays market for you to find a good deal yourself. GOOD LUCK!
I totally agree with Stumunro!
Confident with time, do it yourself,
Unsure and time poor use a BA!
The only research you got to do for the latter is which BA is a good BA. And probably this will require even more time than searching for a good property deal. My 2c thought.
CiaoOpportunity In Everything wrote:Who needs buyers agents. Save your money. Do the hard yards yourself.
Buyers agents on an investors site, investors not desk chair bankers, o here's my money find me something to buy and buy it, ain't investing.Ok sure I did well on my first IP as well with no BA – But I was lucky.
I agree that doing the hard yards yourself can be a good way to learn – but at what cost.
BAs should specialise in a small area then they can sum up a property deal in minutes.
It took me six months of reasearch, umming and arring, open houses before I finally settled on a property. And I live within 3Km of it. Now that I'm looking outside my own state I dont have the time to travel and research.
Maybe when I reach my desired income from IPs I will devote more time.
Remember BAs work for you, make sure they earn their money (and don't get Kickbacks from RAs)
Hi mate…
It's important to note that the US and the Australian housing markets are very different.
Prices are not as volatile here in Australia as the US market…
As you would know is not uncommon in the US to see a house sold for $100,000 less than what it was purchased for…
Whereas, generally speaking, housing prices in Australia tend to hold their value (especially at the lower end of the market) during a downturn.Most Australians would not be familiar with the "second mortgage" concept as that sort of thing doesn't happen here.
Obviously there is a difference in the tax systems aswell… this is something you will need to read-up on… (there is a lot of information on this site)….
Now…
I must say you sound like you are on the right track…
If affordability is not an issue, then I would BUY BUY BUY in Brisbane (and buy LAND)…
Buy a house (preferably on the northern suburbs) within 5-10km of the city and you will NOT look back.
Lock in the interest rates… don't listen to the media… and you will be a happy man!!Just quietly… I recently looked @ 50 blocks, ALL around 400sqm in the city, all around $500K…
I would have bought any of them… It was too bad… they were all soldIf you would like any more specific information… feel free to private message me.
All the best,
Anthony.
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