QLD First investment property?

Hi everyone,

I am after some advise on buying my first investment property. Im 21 years old and bought my first house in boyne island 2 years ago. I was hoping to use some of the equity that has built up in my house to buy my second. I was hoping to buy in somewhere like agnes water. But not 100% sure that that would be such a great idea. As i dont want to make a mistake and potentially ruin my future of investing. If not agnes water where should i be looking and why?

Thanks in advance.

 

Why Agnes Water?

 

Purely becuase id like to live there one day. Also if the road from gladstone to agnes does go ahead ( People have been talking about it for years ) making it a shorter trip. I would say a few people from gladstone would move to agnes and just drive to and from gladstone for work everyday.

 

I understand your reasoning, I've thought the same thing myself. Is it going to be easy to get tenants in a location that has such limited employment? (I have no idea) And if nothing else, you get your ideal home and rent out the one at Boyne Is to pay for your fuel .

As for an alternate investment path, others can answer that one.

 

Personally I wouldn't mix purchasing future PPOR with investment. Couple of reasons:
1. You'll be biased when during property selection because back in your mind you'll be thinking whether this is property you want to live in instead of whether it'll suit the demographics/tenant pool, and what you could do to add value
2. You want to purchase IP to ensure you maximize the opportunity to make profit - no one wants to lose money when investing! So you would want to choose suburbs based on what your DD tells you to invest in, not where you want to live down the track
3. Your circumstances will change as you move into the 30s and 40s. At that time your lifestyle may be significantly different to what you projected them to be at this point...so say if you buy something now in Agnes Water you may find it's no longer the type of dwelling you want to move into later down the track.

So...why not invest in an area that'll make money first and then when you are ready, take the profit from the IP and then buy at Agnes Water instead?

In terms of where, what do you want this property to do for you? Generally would suggest you to go as close to Brissie CBD as much as your budget allows.

Cheers,
David

 

Thanks for the reply david. Definitely something i didnt think about. I also agree on getting a property that will make me money first. Then when im ready to settle by my dream home. Is there any specific suburb's in / around brisbane i should be looking?

Thanks again

 

I would say work out your borrowing capacity with your broker first (if not already) and then based on that we would be able to give you some suggestions to start off with. No point giving your suburb recommendations which is beyond your budget really.

Cheers,
David

 

Agnes Water is beautiful, I can understand wanting to live there! How far away are you from potentially moving there?

If you're going to be moving in a year or so, buying there now can work. If it's longer, plans can and do change so I would make the purchase purely investment based.

Your first step is to chat with a broker - if this next purchase is going to take out the rest of your borrowing capacity, it's going to be a determining factor in the best path to take.

How much equity do you have in your existing property? Is that your current home, or an investment also?

 

Gladstone Regional Council is currently conducting Community Consultation and collating feedback in view of developing a road from Agnes Water to Baffle Creek.

Apparently...70% of residents from both Agnes Water and Baffle Creek are in favor of a link road.

I understand the idea of a link road from Agnes to Baffle has been around for a while...but there is very strong community support this time...so there is a very good chance that the link road will be developed sooner rather than later.

And the link road will obviously open up the entire area for more development, infrastructure and amenities.

Community Engagement - Agnes Water to Baffle Creek Link Road – Gladstone

 

''Chris Hemsworth was spotted at Gladstone Airport, but why was he there? He heard Agnes Water is the next Byron Bay.''

So if Chris Hemsworth has been sniffing around Agnes Water...perhaps the town may be on the verge of something big?

 

Hey Mate,

If I were you I’d revisit your ‘why’. What are you investing for, what is your goal? Are you looking to generate an asset base or cashflow?

For a younger guy like yourself it might be best to consider building an asset base of high growth properties. I’d certainly be looking at investing in more urban centres as they have outperformed on an aggregate level most secondary regional locations. What’s your budget?

 

Sales are certainly picking in Agnes Water. Not really surprising though... considering the pristine environment and lack of COVID.

Agnes property market records highest sales since 2003

https://www.realestate.com.au/sold/...ater+-+region,+qld/list-1?activeSort=solddate