2nd investment property purchase

Hi all,

My partner and I are now in a position to buy our 2nd investment property are are looking for opinions on area's in Brisbane.

First, a little about our situation. We are currently 29/31 year old DINK's on reasonable salaries - there is a chance in the next year or two we will be down to one income though. We have a 200k mortgage on out OOP in Tasmania and have used to equity in that to purchase a duplex in Dakabin, QLD. This is positive cash flow.

Our strategy is to Buy and Hold and hopefully set ourselves up for retirement on 80-100k income.

Our serviceability is great ATM and have a ~75k cash deposit so are looking for a purchase price under 500k and need CG to assist in future purchases when we may have a lowered income.

So, we are looking at areas on Brisbane and are thinking along these lines:
Inner ring suburbs ? Near finished OTP in an area that hasn't got a huge amount of stock coming onto the market if possible. We understand our buying power is limited so will most likely only be able to afford 1 bedders and it would be too big a risk to take on a long OTP in case we are on one income.
Middle ring suburbs - House and lands, townhouses, 2-3 bed boutique apartments in small complexes. Obviously aiming to get as close to the CBD as possible within our budget.

We are not experts on the Brisbane market so are interested if anyone has any suggestions, or, initial opinions on the following properties (without me providing a huge amount of info). I have my own opinions but wondering whether anyone thought these were good purchases for CG.
- Lutwyche - new boutique apartments, 489k, 7km from CBD.
- Thornlands - new Townhouse, 391k.
- Fitzgibbon Chase, 3 bed house, 390k, 115sqm
- Victoria point - new 4 bed H and L, 550k, 100m from water

Thanks in advance.
 
Hi

Hello,

Hope you are well?
Its freezing in Melbourne tonight can only imagine how you guys are in TASSY.

I have a couple of questions i would like to ask,

1) If you have actual cash to use as a deposit, this might not be the best way to purchase another IP, do you have equity available?
2) When you are looking at another state or an area you might not know, its maybe a good idea to appoint a buyers agent to help you out. I think there are a couple of highly recommended buyer agents from Brisbane on here.
3) Ensure you start to look at setting up your loan facilities correctly from the start :)
 
JP makes a good first point re the cash you have available for a deposit. If you have equity - then it may be a better idea to use that rather than your cash, it will increase the amount of interest you can claim.

If you don't have equity available - you may be able to inject that cash into a loan and re-borrow it. Having said that - it's a conversation you need to have with your accountant and finance person.

Cheers

Jamie
 
Hello,

2) When you are looking at another state or an area you might not know, its maybe a good idea to appoint a buyers agent to help you out. I think there are a couple of highly recommended buyer agents from Brisbane on here.
:)

It is freezing!

Hi JP,

How can you find the Brisbane buyers agents on here?

We too are looking to purchase our 1st IP in Brisbane and will be on q income from September...

My IP toolbox is exploding- anal para

Cheers
 
Thanks guys.

No available equity in either our OOP or IP so the cash that is sitting in our offset account is what will be used. Our broker is excellent and will help us structure this properly when the time comes.

As far as buyers agents go, without going in to to many details we are registered with a company that aren't strictly BA's, however, do source properties and offer them to us. The are 95% new properties however dont always suit our needs and I suppose that is why we are here. The 4 properties listed above are some we have been offered.

Basically we always ensure we do a thorough DD on anything we are offered and go back to the company and provide feedback on our personal situation, where there then aim to source properties to suit our strategy/situation.

There will definitely be people on here that will say 'be careful of spruikers' etc etc. We have had a long relationship with these guys and there is never pressure and I genuinely believe they want to help. It is really about whether they can source us the 'perfect' property or it is going to be better us sourcing our own.

My partner and I are visiting Brisbane on Thursday to inspect our Dakabin Duplex and really want to have a look around the 'burbs and get a feel for the city and possible investment areas.

Do you guys have any opinions on the listed properties above?
What are some of the suburbs that are of a reasonable price point for investment purposes? 500k and below. We prefer new properties to minimize maintenance requirements, no renovations are required, and the tax benefits to assist cash flow.

Thanks again.
 
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