Hi All, Currently looking to buy 1st investment property in Port Douglas. I want to buy an apartment under 150k outright. Just wondering thoughts on this with property management fees, rates etc..would this pay off in 5-10 years? Cheers Matt
Hi Matt Why Port Douglas? A holiday market would be the second last place I'd be looking for an IP- only slightly better than a Mining Town in my opinion. I don't see any growth drivers in this market. Along with the other guys, I'd also question why you want to buy it outright. I'd use that capital to by 2 x IP's in different markets, eg one in Brisbane & one in Melbourne (assuming you can meet servicing requirements).
I obviously need a educating in investing, however looking to go abroad for the next 3-5 years with little to no stress. Would rather put money into property than do nothing? I'm just wondering whether holiday apartments are good investments? Matt
Thought I was clear, No holiday apartments are not good investments. Holiday apartments are good for holidays. I would be looking at a bread and butter house (not an apartment) in the outer suburbs of a capital city. For the 3- 5 year horizon you talk of, I would be looking at Brisbane, Melbourne or Adelaide.
re-sale value? I probably wasn't clear when i said investment, not looking for huge returns. Just want something better than what i'm doing, which is nothing.
If you want stress free or investment with little stress, there's no such thing. Not that I know of anyway. Pays to do your homework and read up here. Holiday homes are seasonal so you don't get steady rent. Of course if you finance the purchase fully then no drama with mortgage.
Residex data: Median unit price 2007: $284,000 Median unit price 2016: $217,000 Negative growth. During same time other markets have moved 50- 100%. Not where you want to be parking your cash.
If you want less stress, it might be worth shoving the money into an ETF and simply enjoying your time abroad....
Let me be a very sharp shooter here. Leave your money in a term deposit whilst you travel and during your travels pick up a lot of books about general investing before you place a cent anywhere else.
Sorry but why wouldn't you be looking for huge returns? Would you be happy with a mediocre performer? The more I'm in this game, the more I realise with every purchase you should have an expectation of huge returns... of course, it may not happen but you should still focus on all the ingredients/drivers that will make it happen. Every purchase is important Hold onto your deposit and start educating yourself over the next 12 months; read this forum, Somersoft forum and interviews with property investors, read magazines, books, etc. Then we'll see if you are still interested in investing in Port Douglas with not "huge returns"
I agree with the general advice here. If you wish to succeed at property investment, you need to educate yourself. Indiscriminate, careless investment on a whim can be very risky. It's not something you can just set and forget: successful investment takes a huge amount of ongoing work, judgement and attention. It sounds like you want somewhere to park your money while travelling. Put it in a term deposit (ideal if you're looking for a basically risk free "not huge" return) and revisit your property investment intentions after some self education.
Agree with the posters here. It's a very bad idea. Additionally, if you do holiday lets, only focus on capital cities where tourism is not the main driver of the local economy. When you are a mature enough investor and you have built a solid portfolio only then might it be ok to buy your own personal holiday home in a holiday location. Because capital growth is by no means guaranteed. For now you should put your money into a term deposit and do a lot of reading.
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