New to the forum

[bronze]

G'day,

I am 28 and have been reading this forum for a while.

My first IP was a unit in Eastern burbs of Melbourne when I was 21, I unfortunately sold it a couple of years back,

Recently I have been on a IP buying binge in Nth Queenslend mainly, I have recently settled two up there last month with another one next month and a victorian house settling next month.

I am looking at purchasing a block in Nth Qld now also with the idea of placing a prefab duplex on same, on my costs i reckon it should be done for 300k including land with the same duplexs renting at 800pw in that town and selling for high 4's, problem is atm one is all i can do, even though there appears to be 150k profit in the deal, very frustrating those bloody banks.

Anyway, I will keep plugging on and hope the town doesnt boom too much before i can get another one or two in the pipeline.

Look forward to hearing from you all,

cheers

 

[steveadl]

Good to have you Bronze!

Geez, that duplex sounds like a good investment!

 

[bronze]

Absolutely, the funny thing is the land is cheap but the houses are 300 plus for old dongas whilst land is 35-60k only

i bought well a little while ago with a house at 215k renting at 350pw valued mid to high 2's, one at 220 at 400pw and one at 255 at 460pw, all these rents are climbing heavilly at the moment and the sky is the limit, so want to jumpo on for the ride

 

[steveadl]

Wow, well done indeed! And here I was happy with my rents at the 6% level! (although will be closer to 7% next year as rents are increasing rapidly too)

 

[bronze]

6% is good!,

Obviously in a more remote region higher returns and possible large capital growth are required to make the risk worthwile,

but after looking heavily in to the area I believe the only way is up,

atm median is about 240, I believe within 12 months could be high threes, I may be wrong but rents are going up by 20-50pw every six months at the moment and just on return alone prices should rise heavilly due to zero vacancy and lots on waiting list for rentals etc

 

[steveadl]

It'll be a bit harder on the cashflow, but if you believe in the area that much - would it possible for you to land bank more now while the land prices is still low? ie. buy 4 blocks instead of only 1 and putting a duplex on it straight away?

Then in a year time when you can afford it, you'll have 4 blocks ready for a duplex.

(Look forward to your answer Bronze, gotta head off to the Adelaide meeting now...)

 

[bronze]

Steve,

am thinking about it but on an average wage and with five IP's for the year serviceabillity doesnt get any easier, it will though after about may/june when hopefully project could be completed

 

[aaarghhh]

I am looking at purchasing a block in Nth Qld now also with the idea of placing a prefab duplex on same

Hi Bronze
Where are you getting your PREFAB duplex from?

Gotta any pics, plans or links????

BTW welcome to the forum

Aaron

 

[CairnsInvestor]

Recently I have been on a IP buying binge in Nth Queenslend mainly, I have recently settled two up there last month with another one next month and a victorian house settling next month.

I am looking at purchasing a block in Nth Qld now also with the idea of placing a prefab duplex on same, on my costs i reckon it should be done for 300k including land with the same duplexs renting at 800pw in that town and selling for high 4's, problem is atm one is all i can do, even though there appears to be 150k profit in the deal, very frustrating those bloody banks.

Where is Nth QLD have you been buying? Cairns? Townsville? Where exactly are you building the duplex as $800pw seems unbelievable unless you're buying into a mining town? Like to know if you don't mine sharing. Cheers!

 

[steveadl]

Steve,

am thinking about it but on an average wage and with five IP's for the year serviceabillity doesnt get any easier, it will though after about may/june when hopefully project could be completed

Fair enough. Still good though - once you have them all up and they are paying for themselves, your serviceability will increase again, and with the increased equity you expect, the banks lends you more money and you don't have to worry about chipping in for the original ones. Bit of a circle until something gives ie. yield deteriorates with cap growth.

 

[bronze]

yes, it is a mining town, but also has a large beef industry

 

[bronze]

There is a mob called glendale homes who build a lot of prefab homes, they also have a website

 

[Belu]

bronze, mind sharing some info on the town please? looks good, would love to have a look around re.com for it.

Cheers

 

[bronze]

mining town within 2hrs of mt isa with 50% growth in last 12 months

most properties on re.com are under contract atm, only a couple left, some on re.com are not listed as sold but have been sold by other agents not on re.com

need any more clues

 

[bronze]

no guesses yet?

 

[steveadl]

no guesses yet?

Nah, got no idea about QLD, but when you finally tell us, I'll check it out on REA!

 

[bronze]

rhymes with cloncurry