My first property! (IP)

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darkliger

Hi guys, I would like to purchase my first property somewhere in Brisbane. I've decided to go with an investment property for my first purchase. I've been looking on the north side of Brisbane for awhile now. I would like to spend up to 300k on a unit.

Can I get some recommendations on some areas?
 
I think if you could get a nice unit around Redcliffe area you would be doing very well in that price bracket. I don't know much about units as I'm more into houses, but Redcliffe seems to be the go-to place on the northside at the moment.
 
Try and follow the train line, you'd probably need to go fairly far out for a decent 2 bedder unit for $350K don't forget you have to pay stamp duty on IP.
 
Thanks for the reply guys.

If I were to go for a house. Which suburb in Brisbane should I be looking at if I had a budget of $300k? I don't particularly have my eyes set on getting a unit, I just thought it would be difficult to get a house for that price.
 
darkliger said:
Thanks for the reply guys.

If I were to go for a house. Which suburb in Brisbane should I be looking at if I had a budget of $300k? I don't particularly have my eyes set on getting a unit, I just thought it would be difficult to get a house for that price.
Click to expand...

What about this one? Nicely renovated, good yard size, close to shops, transport, polished floors, low body corp, 6km to city, positively geared. Do yr due diligence, of course

http://www.realestate.com.au/property-unit-qld-lutwyche-115357067
 
Last edited:
darkliger said:
Hi guys, I would like to purchase my first property somewhere in Brisbane. I've decided to go with an investment property for my first purchase. I've been looking on the north side of Brisbane for awhile now. I would like to spend up to 300k on a unit.

Can I get some recommendations on some areas?
Click to expand...

Whats your investment strategy?
 
Rixter said:
Whats your investment strategy?
Click to expand...

This property will be the start for my investment portfolio, I am hoping to learn a great deal from it.

From what I've read and the people that I've talked to, I would like to purchase and hold it for 7-10years to see growth. As it is my first property, I would like it to be positively geared.

As I said before I am new to all of this, I welcome all opinions anyone may have :)

A little about me:
Age 27
Income - 100k gross
Savings - 60k
Just started reading investment books (if anyone has recommendations on books to read please let me know :))
Going to get pre-approval for a loan next week
 
darkliger said:
As it is my first property, I would like it to be positively geared.
Click to expand...

Why? What is your objective in buying the property? Cashflow, capital gains, what?

If the property is negatively geared, but it has better capital gains, is that better or worse than a positively geared property with lower capital gains?
 
darkliger said:
This property will be the start for my investment portfolio, I am hoping to learn a great deal from it.

From what I've read and the people that I've talked to, I would like to purchase and hold it for 7-10years to see growth. As it is my first property, I would like it to be positively geared.

As I said before I am new to all of this, I welcome all opinions anyone may have :)

A little about me:
Age 27
Income - 100k gross
Savings - 60k
Just started reading investment books (if anyone has recommendations on books to read please let me know :))
Going to get pre-approval for a loan next week
Click to expand...

In that case you need to target areas that have in the past achieved the CG levels you are looking for or areas under gentrification that will sway the underlying demand/supply fundamentals to increase CG for that particular area.

In relation to books get hold of Jan Somers books & Michael Yardney's books.
 
darkliger said:
Both cashflow and capitial gains. That's why I wanted it to be positively geared and was willing to hold the property for 7-10 for capital gains.
Click to expand...

You make 100k a year. You have plenty available to be negatively geared.

If you're after cashflow, forget standard residential property. Go buy some Telstra shares.
 
Rixter said:
In that case you need to target areas that have in the past achieved the CG levels you are looking for or areas under gentrification that will sway the underlying demand/supply fundamentals to increase CG for that particular area.

In relation to books get hold of Jan Somers books & Michael Yardney's books.
Click to expand...

Going by prices, are areas closer to CBD the ones which have a higher chance of gentrification?
 
alexlee said:
If this is from a specific bank, don't. Talk to a good broker instead.
Click to expand...

Yep I made an appointment with a broker. I've never been to one actually, in the past I've always talked to banks.

Can brokers negotiate a better rate than us going directly to the bank?
 
darkliger said:
Can brokers negotiate a better rate than us going directly to the bank?
Click to expand...

Not necessarily, but a good broker can find the right lender for you at your stage of the game.

Rates are WAY down the list of what you should be looking at. At least, serviceability calcs, response time and loan features are more important than the rate.
 
darkliger said:
This property will be the start for my investment portfolio,As it is my first property, I would like it to be positively geared.

As I said before I am new to all of this, I welcome all opinions anyone may have :)

A little about me:
Age 27
Income - 100k gross
Savings - 60k
Click to expand...

Darkliger, well done on achieving such good savings and income at your age! :)
I gather if this is your first property, I surmise you have not bought a PPOR yet? If so, is there any reason why you're choosing to buy an IP over a PPOR? As you probably know, there is no capital gains tax to pay when you sell a PPOR. Whereas with an IP, CGT is applied when you sell.
 
On the other hand, you can only have one PPOR at any one time.

How many IPs can you have?

Buy the IP. Buy many IPs. Learn to think about property solely in terms of numbers and data. Flush that 'my home' mentality completely out of your system before buying a PPOR.
 
Beanie Girl said:
Darkliger, well done on achieving such good savings and income at your age! :)
I gather if this is your first property, I surmise you have not bought a PPOR yet? If so, is there any reason why you're choosing to buy an IP over a PPOR? As you probably know, there is no capital gains tax to pay when you sell a PPOR. Whereas with an IP, CGT is applied when you sell.
Click to expand...

Thanks Beanie Girl :).

I don't have any property at the moment (I'm currently renting). There were two things which made me want an IP as my first property. I wanted the tax benifits and I wouldn't be as emotionally attached to the property location as I would not be living in it :).
 
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