Hi from Katniss

Hi all

I am a newbie not only here, but in Property Investment in Australia. - I just realised I will never be able to have the life I want only with my wages.

Looking to learn and if possible contribute with all the members of this forum!

May the odds be with all of us!

Cheers

Katniss

 

@Kate - Welcome. 700k would go well in Brissy IMO. Though if it was me I'd stretch the budget a bit to 400k x 2 purchases and get something with quality

S

 

If the cities listed I would go Brisbane.

The city is at a low point on its cycle and it has good long term prospects with factors that cannot be replicated elsewhere.

 

Bris inner ring is where I'd be looking. But your goals and circumstances may be different to mine

 

Thank you Ross. If this was an open question: "Where to buy in Australia with 700k" - what would be your answer?

 

I would wait 18 months and buy in Perth because that is the only area I know.

 

I'd spend 700k in Brisbane. Again. But each of us has our own biases - doesn't make our advice right.

 

Any suggestion of suburbs @PropertyTwins ? In case I can stretch my budget?

 

Any suggestion of location Ross Forrester? It would be much appreciated!

 

Why Brisbane Bran ? And where in Brisbane?

 

No. I would use a buyers agent in Brisbane as I have no idea.

 

wylie, I might be able to stretch i a bit. Where would be your suggestions for two cheaper places?

 

Ross Forrester I would prefer buying now and accessing my equity in 18 months and maybe buying in Perth !

 

Hi @Kate
Both South and North Brisbane within 20 to 30km ring should offer you properties in that bracket.

 

Fair call.

I hope you nail your predictions and get to come back later on with glee.

I am so conservative. I prefer a guarantee to make a dollar than a half chance to make two dollars.

 

I'm the newbie here, so I think
I should listen to others that have more experience than me!

However, In my understanding, keeping cash in the bank ( I have less than 20% deposit ) while properties in Sydney increase ~ 10k a month (I'm based in Sydney) might not be the best strategy to start building my property portfolio. I'm more then happy to listen to suggestions.
I would definitely engage a buyers agent. I just don't know how to pick the best location.
Any suggestions in how to study/analyse market growth?

Thank you!

 

Suggest you start with reading up on Property Chat and on the predecessor forum www.somersoft.com/forums to get an idea

 

Before thinking too much about where, make sure you consider strategy ( what you are trying to achieve ) and investment conditions.

Yield and cashflow is critical in the current interest rate environment, particularly if trying to build a multi-property portfolio.

Banks are much tougher on lenders than they were 2 years ago due to regulatory changes and pressure imposed by APRA. There is plenty of discussion of serviceability in the forums so make sure you read up on how the bank calculators work.

If you can, try to aim for yields of 5% or greater. Rule of thumb for neutral cashflow is yield around 1 percentage point above your interest rate. So if a loan of 4%, aim for yield above 5%.

Recently renovated or new properties will have much greater depreciation. This really helps with your cashflow. A factor to consider when selecting a property.

I like add-value strategies. Buy ideally with good enough yield to hold at neutral or better cashflow. Then when you are ready ( and market conditions are right ) develop. Essentially land-banking. Future development then boosts your equity and / or cashflow.

Granny flats are a good way to significantly increase yield on a property. Subdivision of larger sites another ( e.g. Split off a backyard and build another dwelling ). It gets more complex with townhouses etc.

In QLD I like the Moreton Bay region. Affordable and better yields than closer to Brisbane. For quality look in the suburbs closer to Redcliffe. Alternatively near any of the stations on the new rail link. There has been widespread rezoning in Moreton Bay which allows for medium-high density development to add value down the track ( pun intended ). You could easily get two future development sites @ $400k each.

For $800k you may find a good future development site much closer to Brisbane. You would likely get better capital growth but you will sacrifice yield. That market ( particularly for development sites ) is hot, hot, hot. Easier to make development profits though ( better margins in the end-product ).

Melbourne is worth a look for future development ( council/infrastructure charges are lower and better margins ). Market is doing well and better economic/employment conditions than Brisbane. I don't know it well though. Very competitive too.

For simples strategies as a beginner, a few here are doing well with H&L packages in outer Melbourne. Good yields and infrastructure is going in. You will learn something about building/construction process which is highly valuable if you want tackle more complex development strategies later.

Edit
- if I had $$$ at the moment, I'd pick Melbourne
- if you like development in it's many forms as a strategy. Look into council charges when selecting ares. They can significantly impact profitability. Not a major concern for H&L packages.

 

Because I know it very well, can pick a bargain and still think that price point is going to do very well in my favourite suburbs. You can read about these on the forum