QLD Brisbane IP ~$500 -550k

I have a preapproval from my bank for $550k, and they called me this week to let me know that the preappoval expires in 2 months. That means I have two months to purchase, or I'll have to wait likely another 8-12 months as my income for this fiscal year is going to be considerably (~25%+) lower than last year (I have my own business). I expect FY19-20 income to be inline with last FY.

My understanding is that they're not going to do any more financial analysis if I make a purchase, though I've read stories on here about people getting bad news when they're banks do a final analysis before giving them the loan, so any offer would be pending finance/inspection. I have run the numbers and can comfortably afford to add this IP even at 6% interest.

I've already pulled equity from IP1 into an offset and have it ready for a down payment. A tangential question is if I need to use my current bank for the IP2 loan as the equity in the offset expires after 12 months - I've already paid additional LMI to have access to that additional equity. If I use another bank and pay the down payment/fees with the money in the offset, will I be in a bad situation, or can I roll it back into my original loan? This assumes I can even get another bank to lend me money, which may not be possible.

Advice seems to be for Everton Park/Stafford Heights for my price range - anywhere else I should consider? Definitely want a quality house on a decent chunk of land that can be rented with either no or small reno. A yield high enough to cover costs would be nice, but CG is top priority.

 

Welcome to the forum @SoroSoro

Both Everton park and Stanford heights are good suburbs, family friendly suburbs.

Re the fund in the offset, why it expires in 12 months?

Also re checking your financial situation by the lender, it depends which lender you use, some do, some unlikely.

 

Keperra. Won’t get much in Stafford for that.

 

Thanks Eric. For whatever reason, that's all that CBA offered me after I told them I didn't want to cross-securitise. I wonder if they did it that way to try and secure the loan for IP2? They said we can revisit when it's coming to expiry and rewrite or consider other options.

 

...but if you've drawn the equity with CBA then funds will be sitting in an offset accounts separate to the facility. Not sure what you mean by "equity in the offset expires after 12 months". Will need a little more clarity on that.

As for areas, north of the CBD has some great purchases for that price point right up to the Redcliffe Peninsula. Yield will also be reasonable so you'll find something to suit your needs.

- Andrew

 

Can’t go too wrong in this whole area for what you’re looking for. Stick to the fundamentals and ensure it fits in with your plan. Stay patient, don’t emotionally jump in because you have a timeline. All the best and welcome.

 

Correct - separate offset. I believe it switches to IO to P&I after 12 months - that's what I meant by "expire." The CBA guy told me we'd have to rewrite it after 12 months.

 

Thanks for this map and the advice. I feel like worst case scenario I have to wait 8-12 months to make my next purchase. Not the end of the world, and may give us some more info on where the market is heading. The risk is that I'm priced out of that area!

 

Should be able to do OK in Ferny Hills for that budget. You can still get something on a quite street, close to good schools, transport links etc.

High OO ratio and demand is creeping up slowly.

 

I'd be very wary of anyone suggesting Everton Park. Massive commuting issues, oversupply of new builds. Plus the North is starting to have car jacking issues. DYOR.

 

Im +1 for this.

I'd also note the low SES aspect of Keperra (aka Kep-"terror").

Consider sticking to the North side close to the upcoming development:
https://www.fernygrovecentral.com.au/

 

I would be interested in where you believe the new builds are? Are you talking about houses or the high density stock appearing on some of the main arterials like south pine rd? These will affect the rental market for a while until stock is adsorbed but the infill usually leads to rising land values as developers enter the market for older houses on large blocks. I notice you posted the same in another thread.

 

Ye

I did. I couldn't stand the spruiking of this suburb, coming from the same characters, on every thread about Brisbane. I know some people out there who have been and are continuing to sell off large parcels for townhouses. And they tell me about the commuting too.

 

Chermside has some good buys

Close to city
And will further benefit from planmed extension of northern busway

Example:

6 Monserrat Street, Chermside, Qld 4032

 

Apologies but really NOT a fan of Chermside mate. In my opinion it's a good bet for a future slum. If you're around the plethora of high density new builds of an evening you'll see what I mean. Some vibrant and interesting characters / drug dealers. Even as you drive out there from the city you can see the effect every km. If had the opportunity to short an area, I'd pick Chermside. I'd actually buy in Everton Park first.

 

Stats say otherwise

 

Thanks brother. The stats you provided are mixed between the two but there's just no way in hell I'd buy in Chermside given the way the change in housing stock has changed the demographic. I believe Chermside is also blacklisted for certain types of stock as well, which can't be ignored by the diligent investor doing their research. It would be very hard to argue that Chermside was the best suburb to bet on in Brisbane. Sorry if it's a suburb you're keen on.

 

Just pointing out your assertion that Everton hills is a more desirable suburb from a pure investment (not to live) point of view compared to chermside is not supported by performance data

But you are certainly entitled to your own opinion and raise valid concerns

 

Chermside has done pretty well.

7.7% unemployment and 60% renters are a little too high for me on the demographics side of things:
2016 Census QuickStats: Chermside

on the other hand, vacancy rate of 2.2% is quite good:
SQM Research - Residential Vacancy Rates

Anecdotally I still feel like the name "Chermside" could be an STI "I'm sorry son you've contracted Chermside", Everton Park just sounds much nicer...but whats in a name..

 

How about you provide an opinion on where to buy in the BCC local area with a $500-550k budget then ?