QLD Help with “analysis paralysis” please

$2k for maintenance works well or another method is to allow 30% of rent for fees, insurance, rates/water and maintenance. This seems to give a fairly accurate figure.

Maintenance is so variable year to year and is influenced by the age of the property and how the tenants look after it as well.

 

In states like SA, NSW, and Vic.

I would allow 35% in Qld...due to how much more expensive rates are there.

 

@markson,


I went through exactly the same process and these are my conclusions:


- Set you targets. How much money you want to make? When? Do you want to get extra income? Want to retire earlier? Once set you can work backward.

- RE is just a form of investment. It worked well to date as taxation and laws heavily supported it here in Australia. What is going to happen in 5/10/20/30 years? We can just guess, I know, but it can be an informed guess. At the end of the day, it is what we do in our daily lives.

- There are other form of investments out there: work more (yes, it is), change job and get more money, start a business, buy shares and so on…

- Is RE the right form of investment for you and for your target? Don`t be affected by the euphoria moment. A lot of people made money not making much DD, just luck! Now it is changing, it is not easy as before.

- Are these people really rich? You can have 1bn portfolio with 0.8bn dept, what will happen when the wind changes? Wind can change quickly. Read this: When a property investment dream turns sour | The New Daily

- DD: you must spend “a lot” of time on this if it is your first IP. It will become easier with the 2nd, 3rd. You need to build your team. Only finding the right lawyer / conveyer was a painful process for me.

- Crunch the numbers and make sure you do this right. Did you allow for Impact of Inflation, CGT etc.


Because of these and other reasons + lack of time I decided to spend more time (and money) into shares than RE.

 

Good advice Luca.....in the end what matters is where YOU want to get to.

Run your own race comes to mind.

Spot on about not getting caught up about this areas or that area. Do your own due diligence.

Lots on this forum who offer advice.....ask they what they have done..if they say they can't disclose of privacy reasons and they won't even discuss one one one....the question needs to be asked are they fair dinkum?

 

Thanks guys.

@Luca Goal would be to pull $100k equity in 5 years time for IP #2. May not be realistic but that would be a goal.

Seems pretty crazy it is going to cost me around $7k per year to hold it. In 5 years time that means I have spent $35k to holding the property Lets hope it makes money!!

 

Any way of getting a more competitive I/O loan than the one offered by NAB at 4.93%?

 

Yeah do a 5 year Fix. Working on an equity pull in 5 years this would work. Lower rate and set and forget.

 

Help with “analysis paralysis” please

Just buy it already.

 

Hey mate FYI - depending on age and fit out of property you may also be entitled to a healthy tax deduction through depreciation and costs which will offset running costs. Your accountant can setup a pay in advance option for this or through normal tax return at the end of every FY.

Add in purchasing costs for a Tax depreciation schedule for about $500-600.

 

Did you end up putting an offer on the table?

 

Exactly, in fact it makes perfect sense to target rising markets/booming cycles to grow capital in shorter time frame, you need capital to create income streams.

MTR

 

I am not surprised, why would you not be feeling this way when clearly property market sentiment around Australia is changing. Oops, I have said it now.

Take your time and continue researching strategies etc there is absolutely no need rush. Most markets around Australia have either peaked, about to peak or falling, 2017 will be a very interesting year for property. Personally I think many investors have already made their money.

Continue researching targets areas and properties that suit your budget, contact many re agents find out what is in demand, how much stock is on the market and how quickly it is selling. Do the ground work to find out what is fact and what is fiction.

Forums are great but not everyone on a forum will make wise decisions some may be losing money, who knows? That's why you take it with a grain of salt, follow the leads but make sure you understand what is happeing

 

Not yet, I have been overseas. Fly to Brisbane tomorrow for a couple of days. Inspecting properties around Rebank Plains, Deception Bay, Kallangur and Bray Park areas. Different price points from $320k - $370k

 

I noticed your sheet had 20% deposit. What are your sentiments a lower deposit and paying LMI?

 

I am using equity for the deposit not cash. So not really worried. All interest will be tax deductible.

 

Wow I have to say this is great!

I'm super curious about the same breed dog theory but maybe you answered it later in the thread

 

You will know more once you are on the ground. I did the same thing as you but in Melbourne. I nearly drove myself crazy with months of desktop analysis. Once I flew over and started inspecting properties though it was a whole lot clearer. I could make a fast decision when I was in the areas I was interested in.

 

You want to get rid of analysis paralysis? Simple - buy a property, and you will find you immediately suffer from buyer's remorse instead

 

Really? I don't get buyers remorse.

 

Nor do I Perthguy, but then I don't get analysis paralysis either