Time to shop for IP #5 and 6

13 hr day, i thought you worked in an office :eek:

I do, but I sometimes get home around 4-5pm and work from home for another 3 hours or so.

Cheers for the info everyone. Keep it coming.

Any suggestions re areas to buy units/townhouses closer to the CBD sub $300k with a close to neutral cashflow?
 
I do, but I sometimes get home around 4-5pm and work from home for another 3 hours or so.

Cheers for the info everyone. Keep it coming.

Any suggestions re areas to buy units/townhouses closer to the CBD sub $300k with a close to neutral cashflow?

hey john,

How come your so focused on units / townhouses is it purely for affordability/ yield? you can still get decent houses in logan with land content under the 300k mark.

With all this talk of council changing there rules with duel income places, houses certainly give you more options.
 
Hi guys,

IPs 1-4 have all performed well lately and I'm preparing to reval shortly. My MB suggests I can comfortably purchase 2 x $300k IPs using just equity which I plan to do around May-June. After that I'll take a break for a year or so :)

IPs 1 and 2 are units in Western Sydney, while 3 and 4 are townhouses in Beenleigh and Eagleby.

For 5 and 6 I will be buying in QLD again. My options are:
- Houses in Logan (circa $300k)
- Units/townhouses closer to CBD (circa $300k)
- One of each of the above (circa $300k ea)
- 1 dual income house (circa $350k) + 1 unit/townhouse (circa $200k)

These will be buy & hold, main goal is short and long term CG and I require them to be close to neutrally geared.

I also thought about a duplex but the asking prices of the few I've seen don't make sense. ie: This one in Waterford West
2 x houses on 786sqm yielding $700/week for $630k. Wouldn't I be better off buying 2 separate houses at $280k each with similar rentals, higher land sizes and I'm guessing they would value up better/easier than a duplex. Surely you would need a 20-30% discount on 2 freestanding houses to purchase something like this.

Something like this one in Woodridge is interesting but still 7.1% return. I would think a freestanding house @ 6.7-6.8% would be better for CG and ease of valuation.

The below properties are interesting - I'm guessing if rented separately they would yield something like $520-550/week so could potentially yield around 8% and valuations would still be pretty strong. Are these types of dual income properties legal though?
http://www.realestate.com.au/property-house-qld-slacks+creek-119275863
http://www.realestate.com.au/property-house-qld-beenleigh-119266183
http://www.realestate.com.au/property-house-qld-eagleby-119230531
http://www.realestate.com.au/property-house-qld-eagleby-118813919

Questions:
  1. Thoughts on duplex purchases? Am I right in that you would want a 20-30% discount on what you'd pay for 2 freehold houses? How do the valuations generally stack up?
  2. Are the above types of dual income properties legal?
  3. If a 3bdr house yielding $350/wk is $290k and a dual income 5bdr house yielding $440/wk is $330-350k then that seems like a reasonable difference in capital value, the return will always be much stronger in comparison (which can only help the valuation) and there seems to be a good pool of comparable properties around Logan, so I'm guessing valuations would stack up okay on these types of dual income properties (as opposed to houses + granny flats in Sydney which can be hard to value from what I hear). Correct?
  4. Where would you look for a unit/townhouse around $250-300k closer to the Brisbane CBD with a close to neutral return?

As usual, any help would be appreciated!

Cheers!
John

John,

Here is what I do when make an investment in property.

I like to buy new. It much more efficient from a management point of view. And you get better tenants.

I choose only properties where I can get a early capital gain, at least 10% in the first year.

I research infrastructure development that bring neighbourhoods closer to the high paying city jobs (roads, trains, airports) also job generators (new hospitals , schools, new industry), also look at existing community infrastructure (no one horse towns). See if companies with big research budgets are moving into the area, ie Bunnings, Masters. Also check local councils for development pipelines.

Also Subscribe to data and research houses that bring me the information. Finally I visit the areas, to get a local feel from agents, lawyers, developers.

Then target local areas in the proximity of the job growth driver. Everybody wants to live close to work, and this creates scarcity. With scarcity you get capital growth.

Next I find developers who need my money. They can discount their product with the promise of my cash money. It helps with their sales, loans. In essence create value by being a "funder" of sorts for the project.

Often you can sell at settlement with a profit, or even use a put & call option to on sell without even purchasing at all.

But the bet way is to keep the property long term and put your capital growth and positive cash flow into a buffer cash account. This adds valuable liquidity to the investment. The biggest downfall in property investment is the lack of liquidity, this buffer account helps counterbalance that.

PM me if you want some further assistance.

Jerry Parker
 
How I Invest

Hi guys,

IPs 1-4 have all performed well lately and I'm preparing to reval shortly. My MB suggests I can comfortably purchase 2 x $300k IPs using just equity which I plan to do around May-June. After that I'll take a break for a year or so :)

IPs 1 and 2 are units in Western Sydney, while 3 and 4 are townhouses in Beenleigh and Eagleby.

For 5 and 6 I will be buying in QLD again. My options are:
- Houses in Logan (circa $300k)
- Units/townhouses closer to CBD (circa $300k)
- One of each of the above (circa $300k ea)
- 1 dual income house (circa $350k) + 1 unit/townhouse (circa $200k)

These will be buy & hold, main goal is short and long term CG and I require them to be close to neutrally geared.

I also thought about a duplex but the asking prices of the few I've seen don't make sense. ie: This one in Waterford West
2 x houses on 786sqm yielding $700/week for $630k. Wouldn't I be better off buying 2 separate houses at $280k each with similar rentals, higher land sizes and I'm guessing they would value up better/easier than a duplex. Surely you would need a 20-30% discount on 2 freestanding houses to purchase something like this.

Something like this one in Woodridge is interesting but still 7.1% return. I would think a freestanding house @ 6.7-6.8% would be better for CG and ease of valuation.

The below properties are interesting - I'm guessing if rented separately they would yield something like $520-550/week so could potentially yield around 8% and valuations would still be pretty strong. Are these types of dual income properties legal though?
http://www.realestate.com.au/property-house-qld-slacks+creek-119275863
http://www.realestate.com.au/property-house-qld-beenleigh-119266183
http://www.realestate.com.au/property-house-qld-eagleby-119230531
http://www.realestate.com.au/property-house-qld-eagleby-118813919

Questions:
  1. Thoughts on duplex purchases? Am I right in that you would want a 20-30% discount on what you'd pay for 2 freehold houses? How do the valuations generally stack up?
  2. Are the above types of dual income properties legal?
  3. If a 3bdr house yielding $350/wk is $290k and a dual income 5bdr house yielding $440/wk is $330-350k then that seems like a reasonable difference in capital value, the return will always be much stronger in comparison (which can only help the valuation) and there seems to be a good pool of comparable properties around Logan, so I'm guessing valuations would stack up okay on these types of dual income properties (as opposed to houses + granny flats in Sydney which can be hard to value from what I hear). Correct?
  4. Where would you look for a unit/townhouse around $250-300k closer to the Brisbane CBD with a close to neutral return?

As usual, any help would be appreciated!

Cheers!
John

John,

Here is what I do when make an investment in property.

I like to buy new. It much more efficient from a management point of view. And you get better tenants.

I choose only properties where I can get a early capital gain, at least 10% in the first year.

I research infrastructure development that bring neighbourhoods closer to the high paying city jobs (roads, trains, airports) also job generators (new hospitals , schools, new industry), also look at existing community infrastructure (no one horse towns). See if companies with big research budgets are moving into the area, ie Bunnings, Masters. Also check local councils for development pipelines.

Also Subscribe to data and research houses that bring me the information. Finally I visit the areas, to get a local feel from agents, lawyers, developers.

Then target local areas in the proximity of the job growth driver. Everybody wants to live close to work, and this creates scarcity. With scarcity you get capital growth.

Next I find developers who need my money. They can discount their product with the promise of my cash money. It helps with their sales, loans. In essence create value by being a "funder" of sorts for the project.

Often you can sell at settlement with a profit, or even use a put & call option to on sell without even purchasing at all.

But the bet way is to keep the property long term and put your capital growth and positive cash flow into a buffer cash account. This adds valuable liquidity to the investment. The biggest downfall in property investment is the lack of liquidity, this buffer account helps counterbalance that.

PM me if you want some further assistance.

Jerry Parker
 
I do, but I sometimes get home around 4-5pm and work from home for another 3 hours or so.QUOTE]

is that the due dilligance for the next buys? :D
Haha nope, that's just work. I then do some research afterwards if I can keep my eyes open!

hey john,

How come your so focused on units / townhouses is it purely for affordability/ yield? you can still get decent houses in logan with land content under the 300k mark.

With all this talk of council changing there rules with duel income places, houses certainly give you more options.
Hi mate, units/townhouses have served me well but I'd actually like to get some houses in my portfolio moving forward.

I was just wondering if I could pick up a neutrally geared unit/townhouse a little closer to the Brisbane CBD as that would be of interest as a nice long term buy and hold.

Cheers
 
Haha nope, that's just work. I then do some research afterwards if I can keep my eyes open!


Hi mate, units/townhouses have served me well but I'd actually like to get some houses in my portfolio moving forward.

I was just wondering if I could pick up a neutrally geared unit/townhouse a little closer to the Brisbane CBD as that would be of interest as a nice long term buy and hold.

Cheers

There defiantly out their! I kept missing out on them,
I started looking at places that were sitting on the market
for a while, i sent out plenty of low ball offers it defiantly
helps if you can be on the ground:)

Good luck mate :D
 
Cheers mate :)

Any thoughts on the benefits of buying a duplex? Is a 20-30% discount what you'd expect vs buying 2 separate houses?

You would hope so:) yields certainly seem better with
buying a both sides of a duplex
Ive never bought one so not sure how insurances work
and how much a p.m chargers to manage each side.
It would defiantly be worth doing your d.d on those things.

Not sure why my p.m mentioned it to me and now hasn't gotten back
to me about it. :confused:
 
You would hope so:) yields certainly seem better with
buying a both sides of a duplex
Ive never bought one so not sure how insurances work
and how much a p.m chargers to manage each side.
It would defiantly be worth doing your d.d on those things.

Not sure why my p.m mentioned it to me and now hasn't gotten back
to me about it. :confused:

Duplex on one title still means 2 separate tenancy agreements and generally 2 separate insurance policies, at least ours is. One rates notice if not strata titled.
You may receive a multi property discount depending on the RE agency
 
Duplex on one title still means 2 separate tenancy agreements and generally 2 separate insurance policies, at least ours is. One rates notice if not strata titled.
You may receive a multi property discount depending on the RE agency

thanks mate good to know:)
 
Top