Hi all
we currently have 4 properties (1 PPOR, 3 IP) in Adelaide and now looking for the next IP. We’ve agreed to look interstate and at the moment are looking at Brisbane but not fixed on this yet.
I thought I’d give Ironfish a go, just for a chat. I wasn’t to impressed with them because they just blurted out, within a minute of starting, that we should buy a brand new house in Brisbane. Now, as I said, I’m not discounting this as I was already thinking about Bris before the meeting, but my issue just now is about buying a new build or not.
Can anyone give me some input or advice into this. My initial reluctance is that no matter what I buy, I guess $30-40k will be the builders profit, so I reckon I’ll be immediately in negative equity before I start. A quick look online brings up a lot of house & land deals but they all seem to be in estates which I don’t see the appeal in at the moment. Incidentally, I wouldn’t use Ironfish either because, despite them saying they get paid by the developer, it doesn’t take a genius to work out where the developer gets the cash from.
Please remember, I’m definitely not interested in apartments, we’re looking at a family home with some garden area. We saw our accountant yesterday and asked him his advice about another property and he just said to buy new to get the depreciation. We’re in a position to cover an element of -ve gearing but obviously don’t want to over-commit, but capital growth is the main aim. My main interest is to buy somewhere we can renovate fairly cheaply and improve it that way, but we’re currently doing up our own house just now so want to save cash for that.
If we do go for new, is it best to buy off the plan, or to buy a new build. Any input is welcome and feel free to abuse my cynicism if you want. And if anyone has any suggestions for investment-friendly areas of Bris, please add that in too.
Cheers.
Hi strommer
I think I can help you.
I am currently putting together a new concept for Investors looking to build in se qld for as little as cost plus 3%
If you are interested, let me know.
regards
ripaJust a question- How many properties does you accountant have? What’s his financial position? If it’s not where you are hoping to be change accountants.
Some people swear by new properties but tax advantages should NOT be the reason you buy. If it can’t stand on it’s own feet with regard to Cg etc then I wouldn’t touch it. I’m not saying don’t buy new but do the same due diligence that you would dop if buying an existing property- eg look at the area (where is it going?) What is the price difference between new and existing? Are you paying a premium to get the depreciation perk?
A friend of mine recently bought several house and land packages and he did very well because he researched the area and it was an area that was due for CG etc etc. This cannot be said for all areas. I have also seen houses a few years after the new build selling for less than the new price.
The answer- do your research. Good luck with it.Catalyst, it seems your reply tells me what I thought, there’s no specific pros or cons but we need to treat it all the same as any other purchase. Unfortunately, not knowing the Brisbane area, we might need to enlist some help but it seems there are a few guys on here to help so will chase them up.
Ripa, do you have a website. Any further information just now on what you’re planning. What makes this new concept better than any older concepts. Not dismissing your idea but I’d like to hear what you plan to do.
Still would appreciate some advice regarding buying off the plan or newly built, if we do decide to go for a new place.
Cheers.
Strommer,
No website yet mate. My concept is truly in its infancy, but it will definitely work.
I think I can create a vehicle for the right investors to build new properties with positive
equity.
this will only suit certain investors, and I will need to select them carefully.
this is a genuine offer, and will cost you nothing to look at.
you are the first person to reply.
is it alright to give you my phone number on this forum?
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