Advice for a new chum?

From: Jamieson .


I have just discovered this forum after a short search for information on investing in IPs. It is a great forum and I have learnt a lot already.

A few years ago I really studied investing but had to let it pass until I had some equity built up in my home. Now that this is the case I am keen to start - but where?

What really got me moving was a recent telemarketing approach from a building company. It was promoting the investment and mortgage reduction benefits of new homes. The idea looks good but I am not sure if building a new home is the right way to start.

I can see the advantages of the capital allowance for helping in the cash flow that I need to reduce the mortgage but are there any points to watch out for in new property? What are the risks? etc.

We live in Brisbane and the proposal is for a house and land package up to around $200,000. Anticipated rent is $250 per week plus. My current home equity situation is $180k home value with $100k still owing on a LOC.

Any comments would be much appreciated.

Thanks

Jamieson
 
Last edited by a moderator:
Reply: 1
From: Jude H


Hi Jamieson,

I have just bought a block (under market value) and have employed a builder to put a house on it. My figures, done repeatedly, show this to be a good thing. I'll sleep well with this deal. Equity will be 20K straight off.

However, this is not what you are contemplating. You're talking about a done deal. Be careful.

Some questions you need to ask are;

Can you get the block cheaper yourself?

Is there a builder that is cheaper? Not product, price?

Great deals at the moment, which builders are offering what as inclusions to entice you to build with them?

It will be said time and time again on this forum. Do your homework. If you then find it to be a good deal, then terrific, but always look at all avenues before you commit yourself. A different perspective is always handy, that's what the forum is for.

Good luck with your venture. Keep me informed.

Jude
 
Last edited by a moderator:
Reply: 2
From: William Blake


The greatest advantages for a new property in comparison to an existing property is the extra depreciation, 7 year builders guarantee and the fact tenants will pay more for modern facilities.

The best advice is to really look around, do your homework so that when you sign a contract you know that you are making a sound purchase ... fools rush in

William Blake
 
Last edited by a moderator:
Advice for a new chum? Thanks Jude and William.

Reply: 2.1
From: Jamieson .


Jude and William

Thanks for your advice. I heard on the radio today that new home starts were at a low. Presume this means that building companies will be keen to do business. But is this talk of "Recession" a good time to invest? My employment is very secure so I'm thinking that the outlook for Brisbane real estate is still pretty good.

Will need to get searching and talking to more people.

Thanks Again

Jamieson
 
Last edited by a moderator:
Back
Top