1st IP on the Gold Coast 2x cheap or 1 expensive

From: Ken Frick

Hi everyone.
I spoke to Ross S on the Gold Coast who is a mortgage buyer for the area. He gave me some great points, not to mention checking out this website www.somersoft.com.au
Well, I'm tossing up on buying my 1st IP on the Gold Coast. The toss up is between 2 cheap $90K rental around $150 pw, body corporate of $36pw, or 1 nicer townhouse on the water for $180k rental around $190 pw. body corporate $17 pw.
I spent $200 bucks for an hour with an accountant expecting some bloody incredible advice. Basically got some quick simple maths on return after expenses between the 2 types of IP and a sheet on tax deductions. A bit of a waste I reckon.
Hopefully someone can get this question answered as this site looks really informative.
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Reply: 1
From: Rolf Latham

Hi Ken

I dont think the boys and girls will stick their neck out and proclaim that a or b is better.

A lot of the decision there comes down to apparently peripheral but basically important information.


How old are you
What sort of tax bracket are you in
When do you want to retire (ie your investment horizon)
What scares you about investing in property
What scares you about investing in shares

The two types of deals are very different

The 2 cheapies will give you good rtn now with maybe stifled capital growth. The pricey waterfornt may give a poor rtn now but may be a capital gain wonder


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Reply: 1.1
From: Ken Frick

Thanks for the response,
I am 29 yrs, only earning $28000 p.a nett
Ready to retire at 35 or 40!
The only thing that scares me about property investing is the timing of buying a valued property and selling a valuable property.
Shares don't scare me as much as they're more liquid and in lesser amounts in one basket, compared to a property.
The trick is for me, the timing.
The loan I'm thinking about is:
through a mortgage broker who offer a higher rate but a relationship in the future with good advice,
or an internet home loan company offering competitive rates and products, comparing apples to apples that is.
Any experience from someone will be appreciated.

Cheers, Ken.
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Reply: 1.1.1
From: Always Learning

On 7/2/02 6:24:00 PM, Ken Frick wrote:

>The loan I'm thinking about


>through a mortgage broker who

>offer a higher rate but a

>relationship in the future

>with good advice,

>or an internet home loan

>company offering competitive

>rates and products, comparing

>apples to apples that is.

>Any experience from someone

>will be appreciated.


>Cheers, Ken.



I would talk to a few more mortgage brokers, one of my basic requirements before using a mortgage broker was that it shouldn't cost me any more. I found a broker who:


<li> Gave me excellent advise as to finance structures available. And suggested a few vendors with packages that would suit me.

<li> Wants me for a long term customer, not just a short term buck.

<li> Not only got me a % rate as cheap as I could find, but cheaper ( a .7% discount from the standard retail rate, whereas I could only find a package with .5% discount)

<li> Negotiated a better LVA than I expected.

<li> He will "suck up" the yearly fee for the loan facility.

<li> Does all work dealing with the bank.


Best of all the cost was $0 to me!!!!


Whilst naturally I would expect there to other brokers around with equally good service or specialist products. However I think you would have to look hard to find one better than Rolf (www.asapfinancial.com).


Rolf, please deposit my promotional fee to the usual place
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Reply: 2
From: Greg Mowat


I use a broker in Brisbane who'll come to you and give you all the info and alternatives. We've bought 3 properties using them in the last 12 months.

E-mail me directly if you'd like their info

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Reply: 1.1.2
From: The Wife

"Ready to retire at 35 or 40!"

This is the key sentence, which way will get you there faster?
In other words, whats your strategy?

Hope that that isnt what you were asking, "whats my strategy?" cause only you can decide that.

Now, if you told us THIS ( give us an outline of your plan) is the way I am going to retire, then I am sure we would all have a go at shooting holes in the plan :eek:)

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