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
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