Positive geared IP

I am from Sydney and have been looking interstate for a positively geared IP, I saw some around Brisbane but I heard some bad feedback about the area. I understand there is good and bad everywhere, but its a big call to make when you don't have a feel for the areas you are looking at.

Could anyone recommend an area of good return with a good employment rate so there is a better chance that the property will be respected?

I am nearing 50, I own my own home and I have one IP in Sydney. It has lower % return than interstate but growth is very good, so now I want one the other way around to add income to the portfolio and help pay the first one off. Then I will move on and work on number 3. I would love to self fund retirement for myself and my wife, nothing fancy just enough to not worry about bills and have some holidays

Any help would be great.

 

Hi @Revhead - there have been forum members who've started at a similar time frame as yourself (whilst you already own an IP) and have made it work.

Read up @Travelbug 's story on Somersoft (previous forums).

Understand Travelbug was hands on when it came to renovating and moving forward. This enabled both cash flow and equity.

Sydney won't offer you the cash flow returns you seek. Where have you considered?

 

There is a lot of people, even on these forums, who talk of positive or cash flow positive properties, the reality is they are pretty rare & if in good areas, even rarer.

Saying around Brisbane is pretty loose, check many of the specific or Bris threads for clues.

 

We bought a few properties (2008-2012) in Western Sydney. Some were ex housing com. We did a 5 week full reno on each resulting in increased CG and they were CF+ or neutral at worst after the 5 weeks. This worked well for us. But you need to get your hands dirty.
Another possibility is buy something and build a granny flat in the back. Increases cashflow.

 

Have you checked Kallangur and the surround ? It offers everything you are looking for

 

Do your research if you plan to build a granny flat in the Brisbane area.
Rules can be very different to nsw.
Marg

 

Except in Sydney at the moment, where2.5 or 3% seems ace & according to some, who think Sydney is just going to keep steamrolling ahead forever, in 2 years....1.5%.....and then and then.... oh wait, if we keep doing this I am going to lose money

 

Government housing can be hard to sell later on too, and it seems like everyone is on the granny flat train so any house with enough room for one is priced like its a development block.

Thanks I will have a look, I was looking at southside, much closer than Kallangur but I heard the area isnt good.

Thanks

 

I think you can selll anything in Sydney for last few years, including a garage turned into a quasi apartment that may not even have a proper title, Houso is quite a few steps up from that

PS ex housing is different to being in the quagmire itself.

 

Very true, but some stigma still attached I think.

For sure, anything can sell if the price is right.

I understand positive gearing maybe be hard to find (without adding a granny flat etc) , I have seen rents much higher than repayments and I wonder why people wouldnt just buy the place and save money but there must be other factors involved, this is what I want to know.

Cheers.

 

You missed this one, among other things we have all looked at with confusion before.

https://www.propertychat.com.au/com...tion-unable-to-get-finance-ceiling-1-8m.15670

 

I disagree generally. Stigma? Maybe for you. Thousands of people live in ex housing comm houses. If you do your research when you buy (and you'd be crazy not to) you will have no trouble selling. The only ones I've seen have difficulty when selling have been in the wrong streets or in very poor condition. Know your area. Research is key wherever you buy.

 

OK cool, your a buy and sell investor, I'm looking for something to hold on to, to eventually own and collect a rent from.

What about Mt Gravatt, Sunnybank, Acacia Ridge areas?

Thanks

 

Actually I'm not a buy and sell investor (not that that makes any difference). I only sold some to pay down debt and retire. I still have lots of houses in Mt Druitt and have never had trouble getting good tenants. If you are looking at something with good yield you need to get over you "stigma" issues as "those" areas are where the good yields are.

I thought you were after information here. I thought I was giving it. My mistake.
Remember- "you don't know what you don't know".

 

I think you'll struggle to find many genuine good quality cash flow properties in these areas. Close to neutral perhaps, but there will certainly still be shortfalls after taking into account all costs. Factor in rising interest rates and the artificially CF+ properties will be well under water as rates rise close to the historical average.

 

You won't get positively geared properties in those suburbs, For houses I doubt you will find neutral cashflow places either.

 

Negative, neutral, or positive geared is an investment status at a point in time.

Personally I believe if you are buying quality even in Sydney, we are going to see a medium term drop in rental supply thank you APRA etc.

When rents increase, the negative CF will become neutral, the neutral will become positive.

Play the long game. If you don't believe values in your area will collapse (established area, long term rental appeal, good infrastructure &amenity, limited new supply (like no new vertical ghettos) etc), then perhaps the smart move is to budget 3-5+ years cash flow -tive.