Investment property in Brisbane with a $35,000 deposit

Hi there,

This is my first post so please go easy on me.

My daughter and wife left for Brisbane this morning on a mission to find my beautiful 19yo daughter an investment property.

While I already have 7 properties myself, giving investment advice to a loved one scares the hell out of me.(probably after I halved my sons life savings on the stock market. Lucky I gave him a guarantee on his capital!!)

For a purchase price of $300-$350k we are looking around Goodna, Ipswich, and the Logan area.

Does anyone have any property in theses areas?

All thoughts and opinions welcomed!!!

Cheers

Deano
 
Since they are there this morning, tell them to have a look at these 2 properties in Logan

Original part of North Slacks Creek, corner block, legal height, full brick house, 5 bedrooms, 2 baths, internal staircase
http://www.realestate.com.au/property-house-qld-slacks+creek-119275863

Kingston, nicely renovated, dual living, 4 beds, 2 baths, big block, separate entrances
http://www.realestate.com.au/property-house-qld-kingston-119248159

Both should get good rent as they can cater to 2 related family and friends
Both have options and land to build/add an auxiliary 2 bedroom unit later on
The house numbers are not terribly auspicious but these 2 houses present good examples of what is within your budget
Building and pest inspection always a must
 
Hiya Deano

I won't comment on those areas but noticed the subject title says $350k IP with $35k deposit.

Does that $35k have to cover purchase costs (stamps, etc) too?

Cheers

Jamie
 
Yes Jamie, we may have to tip in a bit for her if needed

QUOTE=Jamie M;1285929]Hiya Deano

I won't comment on those areas but noticed the subject title says $350k IP with $35k deposit.

Does that $35k have to cover purchase costs (stamps, etc) too?

Cheers

Jamie[/QUOTE]

Yes mate we may have to tip in a bit if needed
 
Thanks Beanie Girl I have passed them on to consider.

Cool - the reason I ask is that you really want to be contributing at least a 10% deposit + costs for an IP.

With anything less than 10% your scope of lenders is dramatically reduced, the LMI costs skyrocket and the chances of approval decline due to tighter credit scoring.

Ideally - if you can chip in a 12% deposit it's even better. That will reduce the LMI cost further and open up your scope of lenders more.

Cheers

Jamie
 
ipswich areas

hi, just saw the areas you're looking at. my experience in this has been rather mixed. bought a IP about ten years ago for the same price as you are thinking off. it has gone BACKWARD!! yes, backward. the cost was 345k including costs, rent 350 pw. with costs, agents fees etc...it's a negative gearing nightmare.
well, that's my experience anyway for what its worth.

ps: i have two other IP's one on the central coast of nsw and the other near cabramatta in nsw. both were bought eight years ago and have doubled in value and are cash flow positive.
i think there's a lesson there somewhere.
 
hi, just saw the areas you're looking at. my experience in this has been rather mixed. bought a IP about ten years ago for the same price as you are thinking off. it has gone BACKWARD!! yes, backward. the cost was 345k including costs, rent 350 pw. with costs, agents fees etc...it's a negative gearing nightmare.
well, that's my experience anyway for what its worth.

ps: i have two other IP's one on the central coast of nsw and the other near cabramatta in nsw. both were bought eight years ago and have doubled in value and are cash flow positive.
i think there's a lesson there somewhere.

You spent 345k in Goodna, Ipswich or Logan 10 years ago and your IP has gone backwards...? Is it possible that you overpaid for it edroy?

Can I ask which suburb you bought in, and what you think went wrong...?
 
hi, just saw the areas you're looking at. my experience in this has been rather mixed. bought a IP about ten years ago for the same price as you are thinking off. it has gone BACKWARD!! yes, backward. the cost was 345k including costs, rent 350 pw. with costs, agents fees etc...it's a negative gearing nightmare.
well, that's my experience anyway for what its worth.

ps: i have two other IP's one on the central coast of nsw and the other near cabramatta in nsw. both were bought eight years ago and have doubled in value and are cash flow positive.
i think there's a lesson there somewhere.

Did you buy in late 2007 or early 2008? If so I'm not that surprised as it was the peak of the market and lots of these areas values especially between BN and Ipswich where seriously affected in 2011 by flooding? Interested to hear more from you regarding the exact location
 
yes, i overpaid in hindsight. the exact location is one mile. oddly enough the house was not affected by the flooding, but council in its wisdom has decided the whole area flood prone and hence falling prices. needless to say lesson learnt.
 
yep, late 2007. never really had problems getting tenants but capital gain? nada.
exact location is one mile.
You might get some over the next couple of years hopefully, A lot of places carry a bit of stigma even if not affected by flooding, sometimes entering the market just at the wrong time can be unfortunate
 
Since they are there this morning, tell them to have a look at these 2 properties in Logan

Original part of North Slacks Creek, corner block, legal height, full brick house, 5 bedrooms, 2 baths, internal staircase
http://www.realestate.com.au/property-house-qld-slacks+creek-119275863

Kingston, nicely renovated, dual living, 4 beds, 2 baths, big block, separate entrances
http://www.realestate.com.au/property-house-qld-kingston-119248159

Both should get good rent as they can cater to 2 related family and friends
Both have options and land to build/add an auxiliary 2 bedroom unit later on
The house numbers are not terribly auspicious but these 2 houses present good examples of what is within your budget
Building and pest inspection always a must

I see the Kingston property was purchased for 242k in Jan 2015 - quick reno and sell. You might be best to try and do a reno also on another property. How did the trip go - have you purchased somewhere?
 
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