Hello, I have 800K pre approval.Will take the LMI route, 88% LVR. Thinking to invest in 2 properties.These will be for long term hold 10+ years. Ideally would like cashflow neutral but can afford holding costs upto 6K/year.Mind you these will be my first property in Oz I haven't done a thorough DD but so far I'm thinking of following split: 1. Brisbane 450K in middle ring - Zillmere, Geebung, Aspley 2. Geelong 350K - Newcomb I'll hiring a BA as with my job and family in Sydney cant fly every other weekends for inspection. Whats your thoughts?
Nah! not that lucky! Lucky are those who rode the 2013-2016 Sydney/Melb wave. *Now running for cover as this will draw a lot of flak* Okay it was hard work + luck
I'm a huge fan of Zillmere. That whole airport corridor is set to see massive development over the next decade and Zillmere is the closest affordable place left. Tingalpa and Alexandra Hills are also somewhat affordable, although they've already seen some hefty growth.
You dont need to fly every other weekend, there are lot of sydneysiders bought without even inspection, may be a friend or B&P inspector etc. For 450K i suppose geebung, aspley could be out of reach for a decent size land; Zillmere should be fine but again that budget is tight. For 350K heard from locals Newcomb is firing, as its closer to east geelong so you need to be quick, again that budget is tight. Good luck.
I'm in a similar position. I will be choosing one or the other though. Have both markets moved considerably or is it still a good time to get in?
I dont know much about the areas you mentioned but assuming you advising 1 ip in better/blue chip suburb? Im just trying to speard the risk by buying in two cities at lower price point
Yes they're blue chip suburbs - i mean't getting 1 IP for 800k as opposed to 2 IPs for 400k each. What you've said is fair enough.
What I have noticed is that the further out from the CBD, the lower the capital growth (due to lower demand and higher supply), and consequently higher yield (to make it attractive enough for people to still invest). I believe that around 600k (melb/bris) is where this is most noticeable, even though it would be a sliding scale. For this reason, if I was able to, I would go for a more expensive blue chip property. I think you are losing a lot more than you may realise by going for 2 cheap ones. Is this an option - buy a bigger block of land closer in (eg 800sq 10km from Brisbane) where the property is on one side and you can make sure zoning allows you to split the title and put a second house? If you can get a property for 600k in a blue chip suburb, you might be able to end up with 2 properties for 800k. Best of both worlds - both in blue chip suburbs for long term capital growth and high yield to go with it. Have your cake and eat it too. Oh and at that point, it would be valued much higher so you may be able to pull a bunch of equity out of it even if the market was not moving (and more if it was) Not advice - just something I have been thinking about lately.
