IP #5 time

Hi guys,

I have 2 IPs (units) in Western Sydney and 2 IPs (townhouses) in Beenleigh/Eagleby. Currently going through pre-approval so I can buy another. For #5 I will be buying in QLD again. This will be buy & hold, main goal is short and long term CG and I need it to be neutrally or positively geared.

My mortgage broker is not yet sure what my borrowing capacity will be, given all the recent lending changes, but let?s work off a maximum of $350k.

1. Thoughts on areas to check out? Given I already have 2 in Logan, I wouldn?t mind buying elsewhere this time around. Would like to be well within 30km of Brisbane CBD. Not fussy on unit/townhouse/house.
2. My current salary limits my borrowing capacity a little bit. However, I plan to purchase in July. I will then have a large sum of cash coming in (commission) from August ? December, and then my salary will increase early next year. With this in mind, rather than having a whole heap of cash sitting in my offset from August-Jan, I was thinking another option would be to use this cash for a reno or value-add somehow, and then reval around Feb next year when my salary has increased. Is there much scope for a purchase sub $350k with value-add potential in QLD? I am in Sydney and time-poor so it would have to be managed by someone locally.

As usual, any help would be appreciated! :D

John :cool:
Any ideas of areas to buy, and value-add opportunities in QLD, guys?

Not my area of expertise (I was planning on doing similar on multiple places at once until the APRA changes) so take this with a grain of salt but I'd imagine with that sort of budget you'd want to pick up an ugly ducking HOUSE that needed a max of about $30k of work to bring it up to scratch.

There was a good example in the Logan area I saw a month or two ago.

$215k purchase price for a highset owned by hoarders (looked a hell of lot worse than it really was simply be being packed to the rafted with crap). Bit of work and it'll val at $300k or so and be CF+.

Something similar in another entry level area might work.

Another option would be to hunt for one you could simple spruce up (repaint/recarpet/polish floors/resurface kitchen/bathroom/new handles) and most importantly, ADD A BEDROOM with as little work as adding an internal wall. Plenty of those around if you dig deep enough and you instantly jump into a new price bracket. Even a cosy 4 bedder will generally val higher than a spacious 3 bedder.
Hi Richard,

Thanks for the reply. I had a similar idea re: doing a reno with cash, or adding another bedroom.

My only issue is I've never bought a house and don't know exactly what to look for. I suppose once I get out there and start comparing properties, I will realise what prices are being achieved for properties in different conditions etc.

Any tips on someone to use to manage the reno works in SE QLD?