My partner and I are hoping to start investing in property. We are looking to buy in South East Queensland and to spend approx 350k with about 80k for a deposit.

We have heard Redcliffe is a good area to buy as there is talk a new railway line will be built for better access to Brisbane. At this stage we are unsure which areas to look into that will have steady growth in the next 3-7 years.

Our plan is to get a loan of 80% of the purchase price and our repayments would be interest only while the property is being rented out. Any extra funds would be put into an offset account to buy an owner occupied property 12-18 months later on the sunshine coast.

We would love any tips or advice anyone may have for getting started in property investment.
 
Hi and Welcome to a great forum

There is a rail line going in to Redcliffe. There is also a new planning scheme coming in, the draft of which had some great increases in density. The draft plan is being reviewed at the moment and an online version is not available. There were blocks in the Kippa Ring area near the train line that were to be rezoned to townhouse/ unit sites in that price range.

Good luck with the shopping
 
We would love any tips or advice anyone may have for getting started in property investment.

Hiya

Depending on how long you intend to hold the investment, it could be cost effective to borrow 90%, pay some LMI (which is deductible) and use a larger deposit towards your owner occ.

You'll need a good conveyancer too - I'd hit up Daryl who's responded above.

Cheers

Jamie
 
Hiya

Depending on how long you intend to hold the investment, it could be cost effective to borrow 90%, pay some LMI (which is deductible) and use a larger deposit towards your owner occ.

You'll need a good conveyancer too - I'd hit up Daryl who's responded above.

Cheers

Jamie
We are looking to hold the IP long term (10+ years). In your opinion would we still be better off borrowing at 80% as we would be paying interest on a lower amount or at 90% for the reasons you stated previously?

Thanks,
 
Hi and Welcome to a great forum

There is a rail line going in to Redcliffe. There is also a new planning scheme coming in, the draft of which had some great increases in density. The draft plan is being reviewed at the moment and an online version is not available. There were blocks in the Kippa Ring area near the train line that were to be rezoned to townhouse/ unit sites in that price range.

Good luck with the shopping
By the sounds of things there is a bit going on in the Redcliffe area, I'd be interested in finding out your opinion on what your expecting the growth of the area to be like compared to the sunshine coast in the coming years.


Cheers,

Mitch
 
I don't know the values in either area enough to be able to hazard a guess at where they are headed.
 
My dad seems to think redcliffe is going to be good buying , i am thinking about buying in the area as well would love a heads up on any information .

Cheers
 
My dad seems to think redcliffe is going to be good buying , i am thinking about buying in the area as well would love a heads up on any information .

Cheers

Hi Jayek90,

Our thoughts on Redcliffe are as follows:

It was promoted a few years ago to be the next big thing- but the proposed rail line to Brisbane never happened; the access by road never improved; and there was always a ?stigma? about the place.
Investors who bought 5, 6-7 years ago will have experienced little if any growth.

NOW;

The train line is under construction as we speak with extensions to existing stations and new ones being built with the line terminating at Kippa Ring, all to make the commute to CBD painless.
The access by road is improving. Nundah bypass is under construction, Gateway arterial has had massive improvements and the addition of a 2nd bridge over the Redcliffe inlet has all made driving out of Redcliffe a lot less stress.
There has also been some significant new development on the foreshore of Margate/Redcliffe/Woody Point with new high rise and apartment hotels that it is also now becoming Brisbane?s closest seaside destination for the weekenders.

The prices in certain parts (close to waterfront-East of Oxley avenue) have boomed in the last 10 months.

We have been recommending a few properties to clients in Redcliffe lately when they meet our criteria.

Good Luck
 
Hi Jayek90,

Our thoughts on Redcliffe are as follows:

It was promoted a few years ago to be the next big thing- but the proposed rail line to Brisbane never happened; the access by road never improved; and there was always a ?stigma? about the place.
Investors who bought 5, 6-7 years ago will have experienced little if any growth.

NOW;

The train line is under construction as we speak with extensions to existing stations and new ones being built with the line terminating at Kippa Ring, all to make the commute to CBD painless.
The access by road is improving. Nundah bypass is under construction, Gateway arterial has had massive improvements and the addition of a 2nd bridge over the Redcliffe inlet has all made driving out of Redcliffe a lot less stress.
There has also been some significant new development on the foreshore of Margate/Redcliffe/Woody Point with new high rise and apartment hotels that it is also now becoming Brisbane?s closest seaside destination for the weekenders.

The prices in certain parts (close to waterfront-East of Oxley avenue) have boomed in the last 10 months.

We have been recommending a few properties to clients in Redcliffe lately when they meet our criteria.

Good Luck
A lot of positive things coming out of the Redcliffe area. I like the look of surrounding suburbs - Margate/woodypoint/ Scarborough etc. Will the railway link have an affect on the value of these suburbs? And with a 350k budget are these suburbs I can afford to buy in?

Thankyou in advance,

Mitch
 
A lot of positive things coming out of the Redcliffe area. I like the look of surrounding suburbs - Margate/woodypoint/ Scarborough etc. Will the railway link have an affect on the value of these suburbs? And with a 350k budget are these suburbs I can afford to buy in?

Thankyou in advance,

Mitch

Those suburbs should move in the same cycle as Redcliffe, a few local factors to consider but some good buying there at the moment.
 
The reason Jamie would suggest going to 90% for an IP would be to maximise the loan within reason of LMI costs specifically to minimise what you had to use of your own funds to settle. This is on the basis that you are going to purchase your own PPOR in 12-18 mths.

I prefer going to just under a 88% LVR to minimise the LMI costs, they jump another band > 88%. This strategy is about changing the mix of deductible debt to non deductible debt in your favour. LMI is a tax deductible cost for an investor (over 5 years). It does depend a lot on what funds available you have to purchase a PPOR. If you have savings sufficient, by all means only borrow to 80% for your IP, but the intention should be to minimise the borrowing for a PPOR. Once you have settled your PPOR and you have accessible equity, then refinance to establish a LOC for investing purposes.

Obtain an IO loan with offset, at least for the period until you purchase your own PPOR, then you swap to an IO loan without offset if you can get a better deal (often you can) for your IP.

Good luck with it.
 
Agree with Greg Reid above. Go 88% + LMI to keep the deal sub 90% which improves credit scoring if applicable and preserve capital for the future PPOR purchase to be stored in an offset linked to the IP.
 
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