Help for a newbie please!

[Esky]

Hi all,

Just starting out into the world of property investments and was wanting some info. The OH & I have read some books on IP's and have just recently visited a property investment guru.

We have been advised on purchasing a House and land package in the SE Qld area of Ningi (specifically Sandstone Lakes) and would appreciate any feedback, both good and bad, before we sign on the dotted line.

We live in NSW and are confused whether to invest closer to home.

 

[Sunder]

My feedback is to question the source of your advice.

What stake do they have in providing you advice?

Follow the money - who is getting paid, and are you happy paying them?

 

[natecv8]

It's especially important when buying in a place that you're unfamiliar with, that you spend some time researching similar property values, the recent history of the region and in particular what might be the significant advantage or disadvantage to investing in the area.

I would question the advice of a 'guru' unless they are able to provide you with solid information on why it is that the particular property is a good investment.

 

[LynnH]

Hi Esky

Welome to SS!!! I'm sure you will find, like many others have done, that the forum is an invaluable source of information on a myriad of aspects of property investing.

To add to what Sunder has said above ... I think it is absolutely essential that you do your own research before taking the plunge.

I don't know which 'property investing guru' you have recently visited ... but Queensland has a long and inglorious history of two-tier marketing and so-called 'experts' who target interstate investors in order to sell them overpriced property in questionable locations which have dubious capital growth potential. And if they put pressure on you to sign on the dotted line, I would be even more careful.

Please don't let this put you off property investing - just make sure that you do your own due diligence and make sure that you are happy that the deal stacks up for you before you put pen to paper.

Cheers
LynnH

 

[The Y-man]

Hi all,

Just starting out into the world of property investments and was wanting some info. The OH & I have read some books on IP's and have just recently visited a property investment guru.

We have been advised on purchasing a House and land package in the SE Qld area of Ningi (specifically Sandstone Lakes) and would appreciate any feedback, both good and bad, before we sign on the dotted line.

We live in NSW and are confused whether to invest closer to home.

This has got cringe factor all over it for me......

1. The property investment guru - is this meant to say somene who has made lot of money investing in property, or someone who made lots of money selling to suc.... er.... "property investors"?

2. House and land package - eewwww...... (it works for some people but not for me)

3. Property in SEQ, you live in NSW - this could be challenging for a first property. Just look through some of the issues people have been posting about lately where their IP is miles away.......

Again, I emphasize that this is my personal (blinkered) view with the limited info presented.... but I just feel if you go ahead with this, you will have at least one of the following things to deals with:

1. you pay a premium - about 30%-50% above market price
2. your bank valuation won't come up to your purchase price
3. the house doesn't get completed for years, costs more than originally planned, and has defects
4. you can't rent it out - no renters, or you can't get the rent that said you could
5. you can't get the property managed properly and you are constantly doing insurance assisted reno's

Sorry, I just see too many potential issues with the info given to be positive about it.

Cheers,

The Y-man

 

[LynnH]

4. you can't rent it out - no renters, or you can't get the rent that said you could .....

Re Y-man's point 4. above, the last time I drove through Ningi (about 18 months ago) it wasn't exactly buzzing. Unless things have changed enormously, it is quite a small village on the way to Bribie Island with not a lot happening around it. Could be wrong, though ... things may have changed more recently .....

Esky, I would be particularly diligent about finding out the figures for rental demand and vacancy rates.

Cheers
LynnH

 

[granev]

Esky

What they all said !!!

IMO there is nothing a "guru" , who is going to make money out of you directly or indirectly , can do that you cant do yourself.

"guru's" prey on newbies who think that they dont know what they are doing , so they get lazy and leave it to the "experts"

There is no substitute for your own research.

But congrats on looking to start the journey.

 

[quoll]

Hi all,

Just starting out into the world of property investments and was wanting some info. The OH & I have read some books on IP's and have just recently visited a property investment guru.

Well done, reading is great, talking to people is great but the guru's need some heavy filtering.

We have been advised on purchasing a House and land package in the SE Qld area of Ningi (specifically Sandstone Lakes) and would appreciate any feedback, both good and bad, before we sign on the dotted line.

You need to look at the suburb and surrounding and work out if yours is on a par with others. Are you getting ripped off? Is rent similar to other areas and price to rent ratio's similar? Do your own leg work, hire a car and drive around the area. Search Realestate.com for the burb and surrounding, what is selling what has sold, what rent are they getting.

We live in NSW and are confused whether to invest closer to home.

I love investing close to home, really easy when you drive past, usually people have better idea of average house prices in own area, so less chance of buying a lemon. Still possible thou.

The guru selected house might turn out to be a good buy, but you need to work that out before hand. Too many people have bough over priced rubbish from guru's.

Cheers
Quoll

 

[Mike&Wendy]

Do people think there are less property investors due to "Guru"s? That is, they take the advice of the "Guru", get stung and never venture into the market again.

Mike.

 

[vaztr]

All,

I always wonder to myself, why are all these 'gurus' SELLING such wonderful deals - if it was me, I'd be keeping as many as I could (if they were worth keeping in the first place!!!)

My in-laws did one of these - it was V quiet for about four years after, but eventually started to get a small CG. BUT they had an on-site manager who didn't have a clue. They just got out of it after 10 years and the only reason they did as well as they did is because they both retired and so their CGT is negligable!


VAZ

 

[boomtown]

You need to do your own research. I live in Brisbane and have never heard of Ningi.

 

[LynnH]

boomtown

Ningi is not a suburb of Brisbane - it is a little village near Sandstone Point on the way to Bribie Island! (See my previous post #6 above). It has a great fruit & veg stall on the south side of the road on the way to Bribie.

Cheers
LynnH

Additional info: Just Googled 'Ningi' - the combined population of the 3 localities (Godwin Beach, Ningi and Sandstone Point) which are covered under the postcode of 4511 is 4,685 people.

 

[travelbug]

Do people think there are less property investors due to "Guru"s? That is, they take the advice of the "Guru", get stung and never venture into the market again.

Mike.

YES. There are lots of people taken in by these schemes. First they have to get over the losses then they are very reluctant to try again. Shame really. The Govt should take more responsibility.

Our first property seminar was one of those "we'll fly you to Queensland" deals.
We were dubious so had a look ourselves when we visited. "their" price was over the top.

Queensland is not the only place this happens. I'm always cautious with Off the Plan for this reason. Not to say they aren't good but as everyone has said "do your research".

 

[boomtown]

boomtown

Ningi is not a suburb of Brisbane - it is a little village near Sandstone Point on the way to Bribie Island! (See my previous post #6 above). It has a great fruit & veg stall on the south side of the road on the way to Bribie.

Cheers
LynnH

Additional info: Just Googled 'Ningi' - the combined population of the 3 localities (Godwin Beach, Ningi and Sandstone Point) which are covered under the postcode of 4511 is 4,685 people.

Its close enough that I would expect to have at least heard of it. However given that its population is somewhere between 4700 and zero - perhaps this is not surprising.

PS. Just looked at google maps. Its just past Caboolture. The location seems ok from a map perspective but you would want to hang onto it for awhile for the population centres of Bribie and Caboolture to grow together. Then again it might all be mudflats

 

[boomtown]

The Govt should take more responsibility.

Some on this forum would say that the individuals concerned should take more responsibility.