New housing estates se qld

[Younginvester]

Hi all,

I am in the position to purchase my first IP. My current situation is mid twenties, deposit saved of just under 100k, income 150k+ p.a. right now my investment strategy would be buy and hold ( with possible revovations on oldegpr property) which id like to undertake with minimal risk as possible. I would then continue to buy ips with the equity generated through capital growth / renos if applicable on the existing IPs

My accountant has put me in touch with a property advisory group who specialises in wealth creation and tax minimisation through new property. Naturally, i have been offered properties by the property advisor, 1 is a 4/2/2 in an estate in Pimpama qld, the other 4/4/2 in an estate Goodna qld. Both are yet to be constructed. Obviously the property advisor has a multitude of reasons why he has selected these areas etc so i wont go into that.

Ok now to my questions:
I understand that the new property has good tax advantages through depreciation and maintenance is next to nil so all good there. However i am concerned about the capital growth prospects when buying new property in estates. I have minimal knowledge of these areas , only going off what i can find online for plans for these areas. My major worry is that with housing estates the scarcity value of the property goes out the window as more and more land just keeps getting released. How important is scarcity value of a property to capitial growth in these areas? Would this issue not be of concern in say 10 years?

Would i be better off purchasing an older house in a more blue chip suburb closer to a cbd. Which would be negatively geared?

Or purchase a newl completed apartment / cbd near a cdb, so therefore be still blue chip but also have good tax deductions.

Any comments / experiances welcome.

Thanks

Yi

 

[Aaron_C]

Assuming you are in Victoria - what the hell are you doing looking at properties all the way in SE Queensland? As many of the Queenslanders here can tell you the market in SE Qld (and the Gold Coast) has turned to crap.

Usually people trying to sell you new OTP properties in random estates are people who get a large commission from the sale and are not 'advising' you - they are selling to you. Please stay away and do your own research. New estates can be a good investment but I suspect not in this case.

 

[Ed Barton]

My accountant has put me in touch with a property advisory group who specialises in wealth creation

i would suggest that it's their wealth creation they specialise in, not yours.

 

[JWR]

Accountant gets kickback most prob

Housing Estate = OVERPRICED

Better to buy a 2-5 year old property from the idiot who bought the housing estate and is selling it at a firesale price as its highly negatively geared.

Even better (imo) to buy a much older property on the cheap with heaps of land so you can build your own 'estate' in the future.

 

[Andrew_A]

i would suggest that it's their wealth creation they specialise in, not yours.

Agreed. Would check carefully if they weren't offering tax effective investment in trees a few years ago as well

 

[livewildcard]

Do more research into other areas I'd say as well thats my only advice unless you can give us some feedback of why you have chosen that area and why you see growth potential etc.

In terms of deposit and income etc sounds like you have it all covered for your mid 20's - just choosing the right area/house/strategy is what you need to work on.

 

[Bigtone]

nothing wrong with buying in qld but don't buy that crap of a marketing company.

much better off calling andrew allen and paying for a buyers advocate who is looking after your interest and not the developers

 

[Rolf Latham]

Goodna

Goodness Gracious me

I like Goodna for older block well established sub div blocks, but new housing stock, perhaps not so much


And Pimpama is "no mans land" between GC and Brissie. Again prob ok for older stock on large blocks.

Id suggest if you are keen on Brissie and surrounds, get onto a good Buyers agent such as Andrew Allen that has posted above.

ta

rolf

 

[Younginvester]

Hi everyone,

Thanks for the input. I have had a think about it overnight and will not be going ahead. What you have all said is likely correct aswell. Would prefer to conduct more research first and stay closer to home i.e melbs and possibly perth (as i fly through there for work so in person look and see is possible).

Cheers

Yi

 

[Younginvester]

In terms of deposit and income etc sounds like you have it all covered for your mid 20's - just choosing the right area/house/strategy is what you need to work on.

Yer tell me about it. Sometimes being more covered now is a burden as i have more options lol and cant make a decision.

 

[tobe]

If you like the idea of depreciation and the reduced maintanence of a new property, visit some display homes (or internet sites if you are out of state) and talk to some builders, do some research on rental returns for these estates. You cant expect to get much capital growth in new estates, but after tax, new homes can be almost cashflow neutral. If this is a long term investment, and you can save the tax return instead of blow it, you will have a higher after tax income to commit to the next investment purchase.

new homes arent all bad, the buying process can be a lot simpler than trying to negotiate with estate agents for existing stock.

Just go into it with your eyes open.

 

[boomtown]

As has been said previously if you want new low maintenance buy one a few years old. Don't pay the premium associated with a brand spanker.