Newbie on the Sunny Coast keen for advice!

Hi,

I have just discovered this forum, and now I don't think I'll sleep tonight. There is so much info and so many experts' advice to read.

I thought I'd start by saying hi and sharing my circumstances in the hope that I could get some tips and responses from people.

My husband and I have saved 80k and are working towards buying our first house. However, I still feel like we're a long way off being able to afford a house we'd actually like to buy.

We rent a beautiful house in a beautiful area and love it here! And the rent is super cheap, $360/week. My thoughts are that perhaps we should look at staying here and buying an investment property to rent out.

I'm wondering, is it possible to buy a house in a decent investment area for under $400k? I have been looking at Logan and Gympie because the rental yield seems quite good and the rent would pay the mortgage. If we got a cheap enough property ($300k - $350k) it might even pay more than the mortgage. Are either of these options worth considering? I have also been looking at Nambour, though you need to pay a little more there. Is this a good idea, or is buying a unit in a more reliable investment area smarter? I personally don't feel that I trust units as much.

When we do go to buy our own property to live in in the next couple of years, can I assume that we'd have equity in our investment property to buy our house? Is two years too short a time frame to consider buying and selling and making CG?

I would LOVE to here the opinions of people that have way more experience than me... What would you do with 80k when you're desperate to get in the property market or at least get this 80k working harder for us than sitting in a bank? We have been saving hard for a few years now and I'm feeling the need to advance it to something more profitable because saving is so slow!

Thanks so much for reading. I really appreciate any tips or input you have.

Cheers,
Rosie

 

Well if you can see yourself living in this area for say, 10 yrs at least, then I'd look to buy a PPOR - the worst house in the best street you can afford in the area...or a similar equivalent. Gympie and Logan are not close substitutes to where you currently live I'd imagine.

You said maybe Nambour...what about a slightly poorer cousin? https://www.realestate.com.au/sold/property-house-qld-yandina-134181726

Maybe this thread can offer you some ideas if you like the Sunshine Coast.

The Next Byron Bay

 

Thank you!

I will definitely have a read through that thread.

I'm not after a house to move in to at this stage. I'm just after advice on the best investment location for under 400k, to rent out. I'm a little overwhelmed by the prospect of learning about the property market and CG vs rental yield etc.

I really just want people's thoughts on the next up and coming property region.

Thanks again!
Rosie

 

For $400K have a drive around the redcliffe peninsula Margate clontarf and redcliffe itself. You will see the potential lifestyle options and future growth potential. Look at the streets with the knock downs within 1km of the water they are where gentrification is happening and money pouring in.

 

Oh I like the idea of Redcliffe! Would you say that houses or apartments are safer there? I'm assuming houses are always better?? I'll definitely check it out today!
Thanks so much.

 

In middle/outer ring in Brisbane..houses, always houses.

 

Without knowing the details of your situation, if you’re planning on buying a PPOR in two years I wouldn’t buy an IP now, just focus on saving for the PPOR. Remember that when buying / selling you need to pay stamp duty and agent fees - this will often wipe out any potential CG if you’ve only held the property for 2 years (unless there’s been a crazy boom). You might end up not even breaking even. If you are a first home buyer it’s also important to understand what concessions and grants are available and how buying an IP might affect your ability to make the most of these.

In terms of areas, I don’t see Gympie booming. Maybe Logan if Brisbane in general does, there are a few in here who have properties in Logan who could provide more insight.

I also think Yandina is a great spot, if you’re on the Sunny Coast already then take a drive and see for yourself.

 

This area is nice but you’ll struggle to get a house for your budget and units/apartments generally don’t get very good CG. Perhaps Deception Bay? It has a bad reputation but near the water and should gentrify in the long terms (you’d likely need to hold much longer than 2 years).

 

Yeah that's a good call, thanks! Gosh it's so hard to know what to do isn't it. It's definitely very overwhelming considering entering the property market!!!

 

Two years is too short to rely on CG. If you definitely, 100% want an OO home in a couple of years, I'd be keeping saving or you run the risk of having no deposit.

Also, using INV equity for your OO is doable but not ideal - you could consider buying your ideal OO, renting it out a couple years and leveraging any equity into an INV at that point (IF there is any equity).

That way you definitely get your home, and maybe an INV, than an INV and maybe a home.

 

Thanks so much everyone! It has been a day of pretty heavy thinking! I really appreciate everyone's input. I'm sure you're all right, given the timeframe an investment property is not a good idea.

I'm just so scared property is about to get even crazier and it will keep being out of our reach!!

Thanks again.

 

If you could find a block and build somewhere you would be happy to live to get started, I believe you could get $40k in grants at the moment which takes your deposit up to $120k.

 

If you are hoping to purchase a PPOR in the next couple of years then you should not be considering an IP. You might get lucky, but that is likely far too short a time to get a decent CG and the transaction costs would be considerable. If it were me I'd invest in shares. An ETF gives decent growth prospects over such (any) time frames, has low costs, can provide franked dividends if you need the cash flow, and can provide diversity too. And it can quickly be converted to cash when you want to buy.

Good luck with it all.