The ideal property for the new investor

Hi guys/girls,

@Realist35 and I are new to whole investment process.

What are your thoughts on the perfect IP for B&H strategy?
Our max budget is 630K, we're looking in Brisbane and we can get at 88% loan, I/O 15 year period. Our goal is for max CG.

Also do high schools and primary school affect the value? This seems to the be case in Perth.

Many thanks.

 

For me it would be something that could be developed later. For example, an old house that can be rented now but in the future I could knock down and build two houses. It depends on what you are looking for though. You might not be interested in building in the future. In which case, maybe something newer with depreciation potential?

I think yes. Popular Brisbane schools driving up property prices

 

Looking for the perfect IP is akin to analysis paralysis. You keep looking, never finding, and miss some good opportunities along the way! I think it was @kierank who mentioned in an earlier post, sometimes its better to "ready, fire, aim"!

I wouldn't be looking to max out my budget, unless your budget has a decent buffer included for serviceability.

Good govt schools can affect values, I think that's the case in any state where the school intake is determined by boundaries.

 

Thanks a lot guys.

Any suburbs you guys think would be worth keeping an eye on (we're watching Moorooka for now)? Some of the suburbs often mentioned are The Gap, Mansfield, Bracken Ridge, Zillmere, Keperra, Petrie (the first two thanks to @Perthguy). My understanding is that it's best to focus on suburbs within 10km grob CBD.

Also we are aiming for strong capital growth (hence a house) and rental yield of 4.5% or higher. Maybe unrealistic?

@Phase2 we do have a buffer, however this will be our first property so obviously we need to look after the cash flow as well.

 

The main thing when receiving advice is that the adviser takes into account your overall goals and risk profile as this will determine the strategy and therefore the property (type, budget, etc). Too many people focus on the actual property first which is a consideration for later down the track.

Assuming you've done this and are only planning to make a one off purchase, your budget is about right for the areas that we believe will see the best CG for the foreseeable futre. School zoning definitely affects price.

I would suggest the use of a Buyer's Agent for a variety of reasons and I use them myself these days for all purchases. We don't provide this service directly however can refer to reputable companies with whom our business is aligned if you choose to go down this route.

Feel free to contact if you'd like any further information. Being successful in property investment is a long process but it starts with the fundamentals of obtaining the right advice and strategy to get the grounding to grow from there. Getting it wrong can literally cost you years and hundreds of thousands of dollars.

All the best

- Andrew

 

Another popular state high school is Wavell on the north side.

 

Thanks guys. Keperra seems to be the pick of the bunch considering our budget and CG focus. It also has a train station which I believe is a big plus.

Any other recommendations?