I have been doing some reading and research into buying my 1st IP in Brisbane area. Couple of weeks back I was approached by one of the Investment Properties Agents who is offering me a house and land package as an investment. The company works as a one stop shop including sales, finance, real estate agent/advisor etc. So far the people we have met seem to be very professional and knowledgeable and claim to be experienced investors themselves. I was told they work with only reputable builders (don’t have any names) with whom they have long relation ship so they have better prices from them. They are also paid on commission from the builder (ultimately by me anyway). We were presented by a “property finance report” and the conclusion was that it would cost me about $30 from my pocket after tax and depreciation. The numbers looked quite realistic on which this was based ($410k property + costs and $380 rent). This week they will take us around few areas with potential development sites.
From reading several threads on the forum I understand that most members are against buying of the plan in current climate. I am still kind of inclined to find some older and cheaper house since I don’t want to commit that much even though I can afford it. What are the pros (brand new, lower stamp duty, more depreciation) and cons (lower value than paid, lower rent than expected, problem finding tenant)? I thought I will go along on Sat and at least figure out what they assume to be the growth areas.
Any thoughts?
Yeah I also could not find too much credible information about the company. They claim to be around for some 40 years?!?
Cheers
From reading several threads on the forum I understand that most members are against buying of the plan in current climate. I am still kind of inclined to find some older and cheaper house since I don’t want to commit that much even though I can afford it. What are the pros (brand new, lower stamp duty, more depreciation) and cons (lower value than paid, lower rent than expected, problem finding tenant)? I thought I will go along on Sat and at least figure out what they assume to be the growth areas.
Any thoughts?
Yeah I also could not find too much credible information about the company. They claim to be around for some 40 years?!?
Cheers