Looking to invest Brisbane

Hi I’m looking to invest in my first IP in Brisbane , only looking to invest around 300-350k, can anyone suggest a suburb with good growth potential and good property manager?

thanks

 

If you're buying a house you'll be limited to Moreton Bay, Logan or Ipswich.

If you buy in Logan or Ipswich let me know I can recommend a great property manager!

 

Hi, yes I was looking around Logan but there seem to be so many good and bad area within Logan so I’m not sure which one is better, and also was looking at bellbird park/ red bank plains area.

 

looking at that budget because I didn’t want to go through finance and that is what we have available upfront. Also cause first property I didn’t wanna invest too much.

 

Buying property with cash is borderline stupid unless it's only a small % of your assets.
It's locked up, you cant get at it, and returns on ungeared property aren't very attractive.

 

I agree but in some situations it makes sense.

I've spent the last 15 years rentvesting, I fully maxed out my serviceability in 2015 just before APRA rules changed, and I've spent the last 5 years saving up to make one final purchase (my PPOR). I've already got as much leverage as I can get and PPOR isn't tax deductible so I figure, tactically speaking, this isn't a bad move.

 

You're going to be limited to areas in Logan or around Deception Bay in the areas I would be looking at with that budget. If you have that much cash, lending rules are about to relax a little - have you assessed whether you can buy 2 recently?

I can recommend a good property manager up to the north if you end up that way.

- Andrew

 

i hear about the positive and negative gear a lot but am new so don’t have much knowledge, can you let me know more about what’s the benefit if I don’t pay it all upfront?

 

yeah most likely was thinking Logan, can u suggest which is a good area in Logan

 

Is this just because you don't like debt?

 

yeah somewhat yes I don’t prefer debt, but if it helps with investing to have bank loan for deductions or other benefits I guess I won’t mind

 

Do you own your own home?

 

I think you need to understand the basic concept of how leverage works before you even think about the tax implications of it all. If you had 10k, how much would you need the asset to appreciate for you to make another 10k (doubling your money)? 100%. How hard would it be to find an investment that would double? If you think about the risk / reward trade off, it's probably on the riskier side of the equation, right?

Now if you used that 10k to borrow another 90k for a 100k investment, how much does that investment need to go up for you to make the same 10k? 10%. And that also allows you to purchase a much safer asset because you don't need to be hunting down something that will double your money...again, think about risk vs. reward.

HOWEVER, if you don't want any leverage at all, you would still be advised to get a loan. Here's what you do, if you have 300k in cash, you get a loan for 300k. Get an offset account, slap all your money into the offset. How much interest do you need to pay? $0. However you now have 300k ready to go in case you ever need it.

Hope that helps.

 

On the other hand, if you use 10k and borrow 90k for a 100k investment, how much does that investment need to go down to lose your whole 10k? 10%. Leverage magnifies both gains and losses. Usually people buy property with a long term expectation of growth.

 

Logan would be good, and good zoning would be a good idea . Good luck!!

 

I agree, get a loan and whack the savings in offset. Having said that I'd be more focused on finding the best deal possible where there is built in equity available i.e. buy very well and if required do a small makeover to add value. Do that with each purchase and you build wealth quickly.

 

I like Meadowbrook and the upper areas of Logan, but I don't think either will fit your budget.

Personally, I would engaging a local Buyer's Agent like @My House QLD to help if I were you. For a relatively small percentage of the purchase price you will get a better outcome and lower your overall risk and won't have to do most of the work. Particularly given you're buying with cash anyway, it won't be a big imposition.

Don't think about what it's going to cost you up front if you pay a BA, think about what it will cost you in the long term if you don't. Unless you're buying property all the time, the chances are the fee will be negotiated out of the price better than the average buyer can do themselves anyway.

I've used BAs all over the country in markets I either wasn't familiar with or didn't have the time or ability at that time to research.

- Andrew

 

If in the south or west of Brisbane @Tom Rivera can look after you for PM services!