Hi,
I have been using the forum for around 4 months now and I have been trying to secure my first IP. I have so far missed out on a hosue at auction, missed out on 2 at separate dutch auctions (first we came second out of 2; second time we came second out of 8), and another house we couldnt secure becuase we couldnt agree terms/ price with the vendor. Anyway, I feel I ahve learned a lot and really want to buy. Anyway, now I have 2 places I think woudl make good IPs but I am unsure which way to go.
House 1 - in Taringa (6km west of Brisbane, close to bus to uni as well as walk to train station). 5 bed, 2 bath, 2 car space older property. Could do with a bit of work but not much. Situated on a quiet street. Estimated rent could be around $550-$600 per week (renting to students). Says it will be auctioned but I am looking at offering prior to this. I think I would offer $550 max.So 5.2 - 5.7% return.
House 2 - in Fairfield ( 6km south of Brisbane, close to rail as well as a walk (across a bridge) to uni). 5 bed, 3 bath, 2 garage 2 year old hosue, very modern and clean. Would need no work. Situated on a main road. Estimated rent could be $$700 -750 per week (to students). Says price to be negotiated. I think I would offer $650 max. So 5.7% - 6% return.
House 2, I would get some depreciation. But house 2 there is nothing to do so I woldnt be able to add any value. Im not sure there would be a huge value to add to hosue 1 but for example it needs a paint and a clean up and I know that would make a big difference.
I knwo the buying prices are different but I would be able to get a low interest loan (from parents) to cover the amount we would need to get house 2.
So basically I was wondering what people's opinions are - do you go for the newer house so there is less work initially or the hosue where there may be some value to add?
Just for a but more info according to API in OCtober Fairfied's median house price was $472,000 with median growth of 16% while Taringa median was 610,000 with growth of 14%. So groth is similar as is the land size of both.
Any advice/ help will be gratefully received. Thanks
I have been using the forum for around 4 months now and I have been trying to secure my first IP. I have so far missed out on a hosue at auction, missed out on 2 at separate dutch auctions (first we came second out of 2; second time we came second out of 8), and another house we couldnt secure becuase we couldnt agree terms/ price with the vendor. Anyway, I feel I ahve learned a lot and really want to buy. Anyway, now I have 2 places I think woudl make good IPs but I am unsure which way to go.
House 1 - in Taringa (6km west of Brisbane, close to bus to uni as well as walk to train station). 5 bed, 2 bath, 2 car space older property. Could do with a bit of work but not much. Situated on a quiet street. Estimated rent could be around $550-$600 per week (renting to students). Says it will be auctioned but I am looking at offering prior to this. I think I would offer $550 max.So 5.2 - 5.7% return.
House 2 - in Fairfield ( 6km south of Brisbane, close to rail as well as a walk (across a bridge) to uni). 5 bed, 3 bath, 2 garage 2 year old hosue, very modern and clean. Would need no work. Situated on a main road. Estimated rent could be $$700 -750 per week (to students). Says price to be negotiated. I think I would offer $650 max. So 5.7% - 6% return.
House 2, I would get some depreciation. But house 2 there is nothing to do so I woldnt be able to add any value. Im not sure there would be a huge value to add to hosue 1 but for example it needs a paint and a clean up and I know that would make a big difference.
I knwo the buying prices are different but I would be able to get a low interest loan (from parents) to cover the amount we would need to get house 2.
So basically I was wondering what people's opinions are - do you go for the newer house so there is less work initially or the hosue where there may be some value to add?
Just for a but more info according to API in OCtober Fairfied's median house price was $472,000 with median growth of 16% while Taringa median was 610,000 with growth of 14%. So groth is similar as is the land size of both.
Any advice/ help will be gratefully received. Thanks
