Is this safe?

[WebBoard]

From: John H


Hello

I am preparing to dabble in investment property when I receive a retrenchment pay out in a couple of weeks. An investment group has been discussing exactly this option with me already.

They recommend buying townhouses or units close to the CBD as they say these offer better returns and benefit more often from the "ripple effect" when values increase. They have also told me that, although I will benefit from their extensive assistance, I won't have to pay them anything as they are paid by the vendors selling the properties.

This makes me extremely uncomfortable as it appears to me that they are simple real estate salesmen looking to cash in on property investors.

What do others think about this? I won't name the group but I am in Brisbane.

Thanks

 

[see_change]

Reply: 1
From: See Change


John

It might be worthwhile reading the latest issue of Australian Property Investor which has something to say about the ongoing activities of marketers

see change

it's better to be guided by your dreams than your fears

 

[Rolf Latham]

Reply: 2
From: Rolf Latham


Hi John

Suggestions:

1. Join freestylers
2. Get your own finance and legal people.
3. Get your own valuation of ANY property you are going to buy that is not purchased at arms length, yes it costs money, but 300 to potentially save 25 000 is worth it.

I assume you are not 30 years old if you are getting that sort of money. A narrow investment horizon, mixed with a strongly rising (some say peaking) market makes for an increased risk profile.

Safe ? probably not, manageable risk, probably yes.

Ta

Rolf

Rolf

 

[Ross Sneddon]

Reply: 2.1
From: Ross Sneddon


Hi John

Three broad guides as a suggestion.

1 Decide how much you can afford and how it may be comfortably funded from your income. Get the preliminary investment, finance and legal advice first.
2 With this information, you can then decide where to invest, then get a property valuation.
Yes closer to the BNE CBD affords you the ripple effect but that is provided the pebble is always thrown in the centre of the CBD. If Brisbane is your choice, be aware recent reports indicate that the CBD is and will be over supplied with apartments for a couple of years. Be prepared to look a little further out, not in the sticks, but within say 10 or 15 KM of Brisbane CBD.
Land appreciates, buildings depreciate. Therefore houses appreciate more than townhouses and townhouses more than apartments, not entirely but mostly because of the land component.
3 Consider what you will invest in and where lastly.

Regards

Ross

 

[Anonymous]

Reply: 3
From: Anonymous


about 14 months ago i looked at a one bedroom unit in auchenflower brisbane thru an investment organization price 156k rent 200 a week didnt buy it.
bought a old 3 bedder in newcastle instead for 154k rent 180 now worth 240k without any improvements.
Stumbled across 1 bedroom unit in same complex a couple of weeks ago advertised for 154k,14 months later.Phew!
That was my 1st. IP and luckily i didnt buy that unit.Do your RESEARCH newbies!!
Its easy to get caught up in all the hype I was.

 

[WebBoard]

Reply: 3.1
From: John H


Thanks people. I think I know which way I'm going to jump on this one.

I appreciate the comments.