help with where to buy first investment property.

Discussion in 'Where to Buy' started by max58, 25th Feb, 2018.

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  1. max58

    max58 Well-Known Member

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    Hi,
    I am in rural Qld, looking to buy my first IP property with buyer agent and hold it for long term and mainly looking for growth.

    - I have 220K deposit and my broker said I can borrow up to 1.3 m so I can buy one or more properties up to a total combined value of $1.5m.

    - I pay around 60-70K tax every year.

    - There is chance we move overseas for 4-5 years, late 2019 so maybe looking for something with neutral cash flow or negative to pay less tax?

    - I am looking to buy maybe 2 IP but I am not sure where? two in Brisbane area? or one in Brisbane and one in Melbourne? Melbourne is still good to buy? Sydney?

    I am open to your suggestion.

    Thanks all
     
    max58, 25th Feb, 2018
    #1
  2. Xenia

    Xenia Well-Known Member

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    Adelaide.

    Talk to Peter Koulizos re- Adelaide market. Over 30 years experience in the market and is also a buyers agent.

    Tony Flemming can tell you about Sydney market - Adelaide also.

    Jacqui Middleton in Melb market.

    All contributors to these forums - except Peter and I can put you in touch with him.
     
    Xenia, 25th Feb, 2018
    #2
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  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Welcome toPC


    Where do u think the Melb and Syd markets are ?

    What others feel isnt that relevant -its your money and goals

    ta
    rolf
     
    Rolf Latham, 25th Feb, 2018
    #3
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  4. Anthony Brew

    Anthony Brew Well-Known Member

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    Don't forget that during the time that you are overseas, any properties you hold in Qld, the land tax will incur high absentee rates. They are the only state that doesn't care if you are a citizen. Remember to factor that into your cash flow projections.
     
    Anthony Brew, 26th Feb, 2018
    #4
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  5. Sackie

    Sackie Well-Known Member

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    With 220k deposit and the serviceability you have, you really have a good chance to buy some growth assets for the medium to long term. I know pretty much nothing about the details of your situation but if it were me in your approx situation I'd be looking at 3 assets, free standing homes in the 11-14km zone from Brisbane CBD. Imo if you select decent assets there you will be very pleased in 5 years from now . As always DYOR.

    If your looking for neutral or pos cash flow just to eliminate any negative shortfall whatsoever your likely to pick poor growth assets . Be careful there . It's a trap many unnecessarily fall into .
     
    Last edited: 26th Feb, 2018
    Sackie, 26th Feb, 2018
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  6. The Y-man

    The Y-man Moderator Staff Member

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    Not sure how that works?

    The Y-man
     
    The Y-man, 26th Feb, 2018
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  7. jprops

    jprops Well-Known Member

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    Remember, paying more tax means you're making more money (unless it's due to poor structure).

    Your focus, when choosing an asset, shouldn't be about paying less tax. The goal is to make money. Negative gearing may be away to alleviate short term losses that impact cashflow with the aim for long term gains. But paying less tax isn't an investment goal.
     
    jprops, 26th Feb, 2018
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  8. Sackie

    Sackie Well-Known Member

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    Thought process mishmash,Typing too fast :)
     
    Last edited: 26th Feb, 2018
    Sackie, 26th Feb, 2018
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  9. The Y-man

    The Y-man Moderator Staff Member

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    Negative to ease tax now could be a pain later if/when you work overseas as you may not be able to make use of the tax deductions.

    The Y-man
     
    The Y-man, 26th Feb, 2018
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  10. radson

    radson Well-Known Member

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    radson, 26th Feb, 2018
    #10
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  11. highlighter

    highlighter Well-Known Member

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    Personally I think Hobart and Adelaide are going great guns right now. Brisbane too, if you're careful about asset selection.
     
    highlighter, 26th Feb, 2018
    #11
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  12. Propertunity

    Propertunity Well-Known Member

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    Why don't you commission your buyers agent to do some research for you? It's what the good ones do on a regular basis for clients.
     
    Propertunity, 26th Feb, 2018
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  13. virhlpool

    virhlpool Well-Known Member

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    Adelaide is going great guns right now? Which areas are you referring to?
     
    virhlpool, 26th Feb, 2018
    #13
  14. max58

    max58 Well-Known Member

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    I personally prefer to invest in Sydney and Melbourne because of growth for the last 30+ . from my research I think Sydney is not a good choice now. what is left is Melbourne and Brisbane. I talked with BA and he said on a clock Brisbane is around 7, Melbourne 9 and Sydney 1 OC. while I think about long term investment, I am not sure if Melbourne is still a good place to invest now? Thanks
     
    max58, 26th Feb, 2018
    #14
  15. max58

    max58 Well-Known Member

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    Thanks Leo, what do you think about Melbourne? is it a good time to invest. Thanks
     
    max58, 26th Feb, 2018
    #15
  16. Sackie

    Sackie Well-Known Member

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    Not following melb closely enough to answer mate.
     
    Sackie, 26th Feb, 2018
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  17. max58

    max58 Well-Known Member

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    good thought, but I am not sure if I can trust them 100%. I usually cross check their opinions:)
     
    max58, 26th Feb, 2018
    #16
  18. The Y-man

    The Y-man Moderator Staff Member

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    It's kind of difficult to answer this one - especially given the overseas thing.

    But let's ignore that for the moment. Me, personally - I'd actually go full hog egg in one basket super-duper negatively geared $1.5m property.

    My reasons as discussed elsewhere is that at that figure, the market is cooling off (not that much competition) and you can buy in the inner east (traditionally "blue chip") or a big land component further out.



    The Y-man


     
    The Y-man, 26th Feb, 2018
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  19. max58

    max58 Well-Known Member

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    max58, 26th Feb, 2018
    #18
  20. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    how many Ips have they bought for you so far ?

    ta
    rolf
     
    Rolf Latham, 26th Feb, 2018
    #19
  21. The Y-man

    The Y-man Moderator Staff Member

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    The Y-man, 26th Feb, 2018
    #20
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