Help..Newbie

[Slammer0000]

G'day all,

Looking to invest in land and/or a newish property (to rent out) for 2-5 yrs term $$.
Have been looking in both Queensland - Caloundra Area (Belvista estate) in anticipation of the prosposed 3700 acre project of Caloundra downs that is in the making and also now looking in the near coastal suburbs of south of Melb ? at the likes of cheltenham, keysborough, Aspendale, Seaforth ? etc.
Looking to spend around $400 - 450K mark for Property and/or $250 - $400K for land.
Finding it extremely hard to commit due to the lack of knowledge of these areas and was wondering if anyone has any info. to help me decide the best way to go. Currently living in Karratha so unable to get over in the near future. Any help would be greatly appreciated.

Cheers Slammer

 

[alexlee]

G'day all,

Looking to invest in land and/or a newish property (to rent out) for 2-5 yrs term $$.

Don't know much about the area, but why only 2-5 years? That really isn't very long for property.

Slammer, what's your long term plan?
Alex

 

[yo yo ma]

Hi Slammer
I don't think you will see a great deal of growth in 2-5 years on the Sunshine Coast... but if you could hold on for 10 years, then I believe you will see significant growth.

There is some information on Caloundra Downs at these sites:
http://www.lensworth.com.au/index_general.asp?menuid=090.020
http://www.stockland.com.au/NR/rdon...0/InvestorTourPresentationApril07Complete.pdf

The second one shows the location of it & Bellvista on p23, 30 & 33. You can also see that Bellvista has sold 192 lots out of 585... Once Caloundra Downs gets going (not planned until around 2011), then the inner area of Bellvista may experience some good growth... if you are looking for the short term (under 7 years), then I would not recommend it.
Just my thoughts only... please do your own due dilliagence.
Steve

Disclaimer: I have purchased a house & land in nearby Kawana Forest (p31) which is settling soon. I have done this because of the new hospital, town centre & train station that are being built nearby. Again I do not expect to see growth there for 5-10 years until the hospital is complete.

 

[Slammer0000]

Thanks guys

Yeah..you are right 2-5 is not that long. I am still learning the art of investment property. Just sold up in Perth after building a house after two years and did pretty well. But I guess that was just because of the way WA was booming at the time. 10yrs then hey. So with Belvista/Caloundra I guess it would be good to get in now? As I said I am tossing up between Belvista/Caloundra or the bayside suburbs in Melbourne. So any info./help I can get may influence my decision. My long time plan is ultimately develop a portfolio of houses to rent out however for now, to be on the safe side (as I do not know much about the eastern states housing markets) and until I can see what the market is going to do I have been looking at just purchasing some land in either of these two areas. Which do you believe would have the most potential in the short term? Melb or Queensland??

 

[jrc]

If your long term aim is to get a portfolio of houses might it make more sense to buy a house rather than land. At least with the house you're getting income. Depending on your financial situation, the rent from a house might mean you could buy two houses instead of one block of land. Then when the underlying land value goes up you would do twice as well as with one block of land

 

[alexlee]

My long time plan is ultimately develop a portfolio of houses to rent out however for now, to be on the safe side (as I do not know much about the eastern states housing markets) and until I can see what the market is going to do I have been looking at just purchasing some land in either of these two areas. Which do you believe would have the most potential in the short term? Melb or Queensland??

Land is generally more volatile than houses because you usually can't get income for it. I wouldn't consider land to be more safe than a house.

I never play the short term in terms of selling (I don't intend to sell). However, I intend to keep refinancing. Think about it this way, if you buy and make some short term gains (as you did in Perth), are you going to sell? What then? You're now sitting on some money wondering about where to invest next, which is fine but if you sit on it too long you'll lose out. Personally, I think it's better to buy, hold, and harvest gains by refinancing.
Alex