help with where to buy first investment property.

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

 

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.

 

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.

 

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 .

 

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.

 

Thought process mishmash,Typing too fast

 

FYI

Expat absolutely smashed with land tax QLD - Real Estate - Home - Whirlpool Forums

 

Personally I think Hobart and Adelaide are going great guns right now. Brisbane too, if you're careful about asset selection.

 

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.

 

Adelaide is going great guns right now? Which areas are you referring to?

 

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

 

Thanks Leo, what do you think about Melbourne? is it a good time to invest. Thanks

 

Not following melb closely enough to answer mate.

 

good thought, but I am not sure if I can trust them 100%. I usually cross check their opinions

 

thank you