QLD What are some good suburbs to invest in? in Brisbane.

If you have 400k to 600k and you have to invest in a place in Brisbane.

Which suburb and what type of property would you get?

Your income is fairly high and you are currently paying alot of tax and want to negative gear.

and this is your first investment property.

 

Who WANTS to negative gear? This is an unnecessary byproduct of a bigger goal. I'd scrap that concept for starters.

I bought in Mt Gravatt East recently in that price bracket. That's the southside (negative geared!) closest area/ring for that budget... Moorooka would work too

 

ok thanks.

Does anyone know where the checklist is? for checking off for buying IP?
like public transport, noise corridor and flood zone etc?

 

To maximise your negative gearing you want to find the lowest yielding suburbs.. Looking at re.com it appears the Valley has the lowest yield at 2.1%, but entry level for a house is more like $800k.. You could try Clayfield, it has a 2.7% yield and $600k should get you a nice house on a main arterial road.

 

what's the lowest yielding mean? what is the percentage of?

 

I would go close to Chermside with that budget.

 

Even further, charge your prospective tenants $1/week and then you can make even more losses!!

 

Be careful. Your serviceability

 

Yikes!
Definitely a novel technique for searching for property

 

How's your temple going @fullylucky ?

 

i like your thinking, but ato says the rent must be at market rate

 

That's easy to get around. Just buy well above market value

 

Keperra. Draw a 12km ring around the city and find a better value suburb that's not flood prone, has a decent shopping centre, schools close by and a train station where you can still purchase for under $500k.

 

You want to get something quite new for good depreciation and whilst I get that you want to NG for tax reasons, you need to ensure good capital growth to make it worth while. So stay away from apartments. I'm guessing you just realised how much tax you paid this financial year without anything to show for it? You should be looking for a townhouse in the 5km to 10km City ring. Possibly between Nundah and Chermside to the North or Moorooka to East Brisbane (ish) in the south.

 

Good point Bran. Other tax reducing strategies...ask your boss for a pay cut..guarantee you will pay less tax.

 

no progress since last update.

thinking about going to apollo gardening supplies to buy the remaining pavers.

 

I'll sell you a unit a very low yield if you like

 

I'm not sure if I agree with you on this, because take the following two cases:

Case 1: someone earns under $37k. each dollar they negative gear they save only 19c.

Case 2: someone earns over $180k. for each dollar they negative gear they gain more than 2.3 times more compared with the first person. (45c / $1)

so in this single example you can see the person in case 2 they need negative gearing badly and benefit more from it compared to the first person....

Taxable income Tax on this income
$18,201– $37,000 19c for each $1 over $18,200
$37,001 - $80,000 $3,572 plus 32.5c for each $1 over $37,000
$80,001 - $180,000 $17,547 plus 37c for each $1 over $80,000
$180,001 and over* $54,547 plus 45c for every $1 over $180,000

 

It's not for me but a friend. I have 1 IP already.
But what you have said is spot on. Thanks for the tips.

 

If your "friend" desperately needs negative gearing I have a unit in Greenslopes I can sell for $600k. I can also sort out a loan paying 20% interest to maximise deductions.

You may be able to write him up the depreciation schedule to save some money too?