Getting Started

Discussion in 'Original Property Investor Forum Archive' started by WebBoard, 28th Jun, 2001.

  1. WebBoard

    WebBoard Guest

    From: Mike .


    Starting out in Brisbane
    From: Tully
    Date: 12/19/99
    Time: 9:35:09 PM

    I only have about 20% equity in my home, so I can only afford to borrow about a small amount for my first investment. I've therefore come up against the house (in an outer suburb) or unit (in an inner suburb) dilemma. I've decided to go for a cheap unit in a good suburb near the uni/city, as this is an area I know well and feel reasonably confident about.

    If you could answer a couple of questions I have, I'd really appreciate it. Firstly, how do I know what figures to put into my PIA software for capital growth and inflation? Also, is the inability to depreciate an older property outweighed by the (hopefully) better growth of the good suburb? How can I find out a bit about the body corporate of the block?

    Thanks in advance. This forum is a great idea. :)
     
    Last edited by a moderator: 5th Apr, 2017
  2. WebBoard

    WebBoard Guest

    Les

    Reply: 1
    From: Mike .


    Re: Starting out in Brisbane
    From: Les
    Date: 12/20/99
    Time: 11:56:48 PM

    G'day Tully,

    Check out an earlier entry named "Houses, Units, or Wait?" It goes some way toward addressing the "which way to go" question.

    Re likely Capital Growth and Inflation figures, polish up your crystal ball, and let us all know ...... ;^) My opinion leans toward a continuation of the same unexciting growth in Brisbane, but some experts say that building starts are down for this last year, and "near-city" units are nearly all sold, so a jump in prices could be on the cards. By the way, that "unexciting" comment doesn't mean NO growth - Brisbane just seems to tick away quietly, without the volatility of Sydney. If you believe Kevin Young (Investor's Club Founder), Brisbane is set to leap over the next 5 - 6 years. (I hope so !!!).

    On the inflation side, consumer levels appear to be on the rise, but some of this could be "pre-GST" reflections (buy before the prices rise) - and could conceivably level off (or fall?) post-GST. Oil prices are at wee bit volatile at the moment which would have a major inflationary effect if they soared. But, as with Interest rates, competition should keep both in check.

    So, (my opinion) inflation should remain around the same 2 - 3% range for a few more years barring any major economic changes. (how far away is Y2K? and what is ITS likely effect? ....)

    I believe the current technology gradient will continue to drop the prices of current services (phone calls, information access, monetary services, etc.) and continue to drive down costs, thus keeping the lid on inflation.

    But maybe MY crystal ball is getting a "rosey coloured" tinge in it (it is getting a bit old ;^)

    Any others out there with a new, Harvey Norman, Pentium IV crystal ball with DVD and 1Gbyte of memory???

    Regards, Les
     
    Last edited by a moderator: 5th Apr, 2017