H/L Aubin Grove, WA vs Upper Kedron, QLD

[srwx]

As title says?

I'm looking at building my 1st IP. I've managed to narrow it down to 2 suburbs so far?

http://www.yourinvestmentpropertymag.com.au/top-suburbs/wa-6164-aubin-grove.aspx

Aubin Grove, very central to plenty of employment areas in Perth (Train to city, Kwinana, Freo, Airport, booragoon and other shopping districts not too far of a drive away.) There is a train station to be built there in the next year I believe.

http://www.yourinvestmentpropertymag.com.au/top-suburbs/qld-4055-upper-kedron.aspx

I'm a bit unsure of specifics of this area but it's close to trains, not far from CBD really and there's Enogerra Military school is close by. On top of that it's got that beautiful little gold star from yourinvestmentproperty. In multiple places I've read that Brisbane is moving west, not sure if true or not?

I plan on building a 4x2, i'm not worried about the interest that needs to be paid and all that jazz as it's a wonderful tax write off, being in the highest bracket.

Wondering, what would you do?

Once again I'm new to this and my research skills aren't anything too fancy! So I'm looking for a little guidance.

Thanks for reading!

edit: Whoops, price range is around 500k, obviously I'd be happier spending less tho.

 

[sanj]

What are the numbers??

How much more will it be worth at the end of construction once all costs are included? If it isn't worth more don't waste your time building, by something already built.

As for your comment about not being worried about interest because of the tax write off, feel free to give me $1 in exchange for 48c anytime you like.

Making investments to save tax as a primary aim is a mugs game, focus on making money instead.

 

[srwx]

Thanks sanj,

I'm very new to this stuff and am yet to figure out this whole number crunching exercise. I've had people point me in the direction of building, saying it was the best thing for me to do as currently I pay no rent.

I'm worried I'll over think this whole ip thing and end up balking, not doing anything at all.

My question is, if a house may cost a little more than an established house to build, would it not get more rent, have less dramas and possibly go up over time? I plan on holding the place, not building it and selling straight up.

edit: As for the tax, my broker friend said something about if I build the interest I pay is tax deductible but stamp duty is not. That's why I've been pointed in that direction. Once again, just learning here bud.

 

[MTR]

Like Sanj said it comes down to the numbers. You wont know which is best until you sit down and calculate the figures and compare apples with apples.

Land Cost + buying costs
House 4x2 (200sqm)? get quotes from spec builders
holding costs

vs

Same product established

I would contact agents in the area to work out what is achievable in terms of rental income.

Also look at supply and demand in this area, the market is now changing in various areas. My point is if there are lots of houses/stock on the market which is not moving then potentially you may be able to pick up an established property at discount price.

MTR

 

[Angel]

Postcode 4055 includes Ferny Grove and Ferny Hills which are established family-friendly suburbs. The land development at Upper Kedron is currently forest at the end of nowhere. The best thing about this location is that it will apparently be land locked, like neighbouring The Gap, because of state forests and national park.

An established house in FG or FH can still be walking distance to the train station and high school.