First IP Bris help please!

Hi All
Long time lurker, first time poster. I'm currently paying off my home in Chermside West. Considering an IP, and have saved 50K. If I use a BA I won't be left with much, but know one could save me a lot in the long run. Should I keep saving, then use a BA? Any advice appreciated. I'm on my own, and would like to invest and one day hopefully not depend solely on my work wage. Am I kidding myself?

 

Here are some examples of what I've been looking at:

10 Twickenham Pl Bald Hills Qld 4036 - House for Sale #126091958 - realestate.com.au

59 Larcombe Street Zillmere Qld 4034 - House for Sale #126067450 - realestate.com.au

73/11 Crosby Ave Arana Hills Qld 4054 - Townhouse for Sale #125996298 - realestate.com.au

 

Hi Mel

BA's save people a lot of time, but not necessarily money. Find an agent through friends or family that you trust and like and work with him .take his advice (substantiated by your own research) and build that wealth !!

 

What is it that you are looking?

I don't know the north side very well (only lived there for 2 years) compared to the south (lived about 20 years) but from those three properties I would only consider 2 and 1 (in that order). However this is my thoughts and what suits my criteria and strategy, others would say 3 1 2 suits theirs.

 

I've got time to look. Just scared I'll buy something that will be a dud and end up costing me. My current house has needed a lot of work (things not identified in Building & Pest) and hasn't done much in terms of value. Don't want to make a huge, costly mistake. Thank you for your reply

 

A house/land would be ideal. I can't afford major maintenance/renos, so something fairly solid/easily rented would be fantastic. These areas are close to the train, which I've gathered from these forums is the way to go. I included no. 3 because it seemed low maintenance and has very low body corp- but I know a house is the way to go long term.

 

If you are looking long term with the best chance of capital growth at the expense of taking slightly less cash flow then number 2 (or something similar) would be my choice (not advice). I see much more value at 520k for house 2 than 500k for house 1 even though house 1 is a better house.

Personally number 3 I don't know enough about the minor details (owners corp rates etc) but I want to be in full control of my assets which owning 1 townhouse doesn't in a complex doesn't give me. I would prefer to own all the units because then I have full control so I can demolish and rebuild or change the paint colour/repaint the property etc.

 

Good point with the townhouse. Thanks so much for responding.

 

Do you think that's a good price for the Zillmere one?

 

Sorry but I don't really know the north side so it would be best I do not answer.

If it was the south side especially along Beenleigh line I would have a better understanding of .

But from no research house two appears to me be better value for the extra 20k - I know they are both + figures so depends on how much + they are after.

 

For me Brisbane is very simple. Buy as close to the CBD as your budget will allow. Buy a free standing home with as much land content that you can get for the budget. Buy a rentable home but nothing that someone has spent a lot to renovate otherwise you will be paying them a premium. And buy something that has room to add value for the future, even if its a simple reno. Also buy in areas that appeal to OO. Stay within 10km of the CBD if you can.

And make sure the FIRST thing you do when you see a property you like is to check the flood maps before you waste time doing anything else.

That's where I see the best medium term CG.

 

What Bris suburbs do you recommend? Thanks for the advice- great to remember

 

This

 

If in Bald Hills, I would be looking closer to $420k and over 550sqm+. Maybe a bit older but will still rent for around $400pw (still brick and tile).

Zillmere looks ok, paying a premium for the reno already done though.

I would stick to houses around all the areas you have listed.

 

Thanks for your help!

 

I really think anywhere within 10km of the CBD, compare suburbs to find the best bang for buck considering the buying criteria you have. I would definitely stay away from units.

 

Y

yes I definitely will

 

@MissMel

Is there a reason you'd be using cash savings and not equity? Equity for investment purposes will be tax deductible. You'd rather hold your cash savings for personal expenses like holiday or emergency funds etc.

 

At the risk of sounding like a complete idiot, I don't really understand how to use equity? The value of my house hasn't really changed in two years

 

Real simple terms and you need serviceability to get the money (ability to repay loan).

You purchase a house for 500k and have a loan of 400k (80LVR), the house increases to 750k but your loan is still 400k so there is 250k increase in value. To keep he same LVR as before and not pay mortgage insurance the bank will allow you to borrow 200k (best as new loan) against your property for you to do what you please.

So then you have 200k to spend and you go and buy another 500k home and you use 100k of 200k as deposit and all other costs let's say 50k is also paid from this money. You will then have 50k sitting in the 200k (150k owing) loan plus the new loan of 400k (house 2) and your original loan of 400k (first house) or 1M in loans with 50k in an offset + whatever savings with two homes worth 1.25M (750k & 500k).

If you were living in house one you cannot claim the original 400k loan interest as an expense but you could claim the 200k plus the new 400k loan or 600k interest if it is used towards buying an IP.

That is the simplest way I can explain it but please not I am not qualified to give financial advice so best to speak with a professional to make sure it is right for you.