QLD S. Brisbane Property to Live in first and then rent it out.

Hi Guys,

Newbie and a first time poster here. We are looking for a house and a land package (or an old house) for under 500k in Brisbane. Found out couple of interesting packages in Heathwood, Pallara and Park Rigde. H&L Packs for about 500k. The problem is I can`t really set my mind on one. So Kind of hoping that you guys would help me out.

We are going to living in that house (4 Bed 2 Bath 2 Park) for about a year and a half and then planing to rent it out. So I need to have the ability to rent the place out easily as well. that where the question of location and neighborhood comes in.

What is you guys opinion about the locations.and do you think it is a good idea to build a new house instead of buying an old one.

Thanks heaps.

 

Get the loan structure right from the outset by going interest only with with an offset. Dont pay any funds into the loan itself besides monthly interest payments (from offset). This will preserve the original loan amount so will have max deductions once you convert to IP down the track.

Use the figures rather than emotion to guide you. PPORs are bought with emotion and IPs with the numbers minus emotion.

 

If you pan to live there for 18 months, then why not buy an established house closer to the city and spend your time there making improvements. If you can get a house that is simply tired or outdated you can do a lot of the work yourself, painting, gardening etc that can add value.
Marg

 

Where do you work? Why choose to pay $500k for something so far away from the CBD. Who else (as your tenants) would want to live there when you move on.

 

Has anyone invested in Pallara? What are your views on the place and its prospects?

 

I would agree with some of the sentiments above.
I would think about buying a place for 500 or less closer into the cbd and rent out a place with your family in areas like park ridge if that's what you want.
This gives you flexibility to move out in the future ( which may or may not happen according to plan), whilst the purchase closer to the CBD ( as long as its not in direct competition with high rise units) will make it much easier to rent and also get a good yield. From an investment perspective, I would think this is the better option.
My 2c.

 

Don't buy a h and l package.
Quality is poor
Far away
You don't know start your getting they always exaggerate
Can turn into ghettoish suburbs later.
More volatile to market changes than suburbs closer to cbd

Buy a house in Geebung for example. Can improve and modify.