Business or Brisbane

I have been looking at some historical graphs in some outer Brisbane suburbs and have noted there has been very little in growth over the last 10 years.

My thinking is that this won't continue for another 5 and at some point it is going to run strong, otherwise, we would be looking at amongst 15 years of no growth!

I am asking this as over the next few years the company will be making some money and am tossing up between slogging away at the business or buying in Brisbane and renovating again. I will probably look at 4 purchases in the next few years

I am forty and want to be freed up by the time I'm 45, what would you do with 150k to invest a year?

 

I think you have to consider why you are renovating. Are you renovating to on-sell or renovating to rent. If you renovate with the intention of renting it out for an income you will effectively generate a higher yield because your entry costs should be lower. If you are renovating with the intention of on-selling then you could consider that all you have done is created a job for yourself.

 

Is it one or the other?

A business could be sold potentially tax free - so could a property potentially, but not all.

 

I would be looking at suburbs like Holland Park, Mount Gravatt, Coorparoo and Camp Hill.
You can find 3 bed 1 baths were you could create a 4th room and second bath for between $500k - $800k.
You could defiantly make a 100% return on your cash if you buy right.
You could also consider investing in development deals and making 20% on your cash.

 

I would choose the business if you are so certain you will be killing it in cash flow.
TIME = MONEY

Property investing is more like passive than anything else.

45 yo only? What will you do with your 12 hours of waking time? Play golf?

 

It depends if it a proper business or self employment. Business means you are just the "pretty face" and it makes money while you are not there, most businesses I see are self employment, too often underpaid self employment.

Renovating for the next year will be hard - the $25k boost had sent the demand crazy here so trades a flat out and wait for trades can be long.