I want to educate myself first, before i do investment.
but now got a chance in TAS. there are 5 continuous house for sell at the same time.
and just next to university.now the return is 8% at this moment.i was thinking if i can buy 2-3 continuous house. and in the future, I may have some development.
and make the return higher. that is the reason I put myself in a hurry situation.
I am afraid to miss this chance. but some of my friends even broker dont suggest this.
that's why i am confuse. My broker also prefer I buy in QLD instead of TAS.
could you suggest which suburb may have some protental for investment in QLD
kennychlorine,
Where do i start on this one?
First .. you've given WAY too much information on the property venture. With the details you supplied in this thread i've already investigated the property area thoroughly. Be more cautious on details. Property eagles swoop.
Second … why are you taking advice from a broker? Finance brokers are not allowed to produce recommendations on investment. Its actually illegal for them to do that without proper accreditation.
Third … your rushing in without proper investigation is tantamount to throwing the money away.
You do have a situation there with a nice set of properties .. most likely owned or purchased for a reason by the university for further expansion (student numbers are dropping across the country due to a combination of high dollar and the fallout from the GFC). However .. thanks to google earth (an investors best friend) did you actually notice that these blocks are all on SLOPING land? Its a series of houses on quite a substantial gradient. Also, and this sets off warning buzzers in my head almost immediately … who is pricing them? You have a series of weatherboards .. multiple bedsits .. and Brick houses .. all within a 80k range of each other.
A substantial slope can lead to very increased develelopment costs. Most of the houses that exist there arent great anyway. So what are you exactly buying? Position with bad land and bad house?
Until you find someone for a land bank resale (thats what it would be) you have decaying houses (upkeep) sloping land at a high gradient (land collapse anyone?) and remain reliant on the consistancy of student rentals (the most unstable income of the lot)
As a starter investor with a bundle of cash and a high gearing … thats a great way to turn solid possibilities back into a money pit.
This is why you must look beyond the numbers specifically and look at what you actually get when you purchase. Property investment is all about getting the most VALUE property for the least amount.
Take a step back. Opportunity WILL come along more than once. But it will take you a proper property education to get things right.
Hey with regards to capital gains, it helps to look at research.
Here's some of the winners and losers in terms of property prices according to the diff states overall last year.
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