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Where to buy next?

Discussion in 'Where to Buy' started by Sakura, 21st Aug, 2016.

  1. Sakura

    Sakura Member

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    Hi,

    Long time lurker, first time poster. I'm looking at purchasing my third IP in the coming months and hopefully a fourth after if serviceability allows. I currently have two IP in South of Brisbane within 15km of the CBD. I'm not sure where to buy next, as I'm wanting to diversify my portfolio. My budget is around 350k so I still have quite a few options. I've been looking at things around North of Brisbane, mainly areas around Kallangur/Petrie area as it looks to have big money being spent on infrastructure.

    Would buying in North of Brisbane still be considered diversifying my portfolio as I'm having IPs in North and South? The things happening up North is very attractive and I'd definitely want in, although the thought of having everything in one basket is a big risk. For my fourth I'd likely be looking in Adelaide with the budget of around $250k, saying that, should I consider Adelaide for my third?

    Other suggestions welcomed.

    Thoughts?

    Thanks
     
  2. Befuddled

    Befuddled Well-Known Member

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    How are you doing with land tax threshold in QLD? Something to ponder if your first 2 have high land content and you've purchased both under your name
     
  3. Sakura

    Sakura Member

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    Currently sitting on 300k and 475k so paying $2250pa, next one up North would be at 200-250k so it'll basically push it up to around the 1mil mark and effectively be paying double at around $4500.

    Looking in SA might just be more appealing now.
     
  4. HUGH72

    HUGH72 Well-Known Member

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    I'm not sure if you are quoting land values only or property value? A 250k purchase, unless it is a block of land would be unlikely to have a land value of much more than 100k.

    You could consider buying in a trust with appropriate advice or your partners name to avoid paying more land tax.

    For 250k either of you options quoted sound good but I'm not sure if 250k will still get a house in the Petrie/Kallangur area. I think you might have to spend slightly more money there to get a house. In the outer suburbs I would forget units/townhouses.

    In that price range you would have numerous options in Adelaide both North and South which would be at least cashflow neutral or better. No problems getting tenants there either.
     
  5. Azazel

    Azazel Well-Known Member

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    Hey @Sakura , welcome aboard.
    Not really the definition of diversifying, but at least all of your eggs aren't in the one basket.
     
  6. Sakura

    Sakura Member

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    Thanks Hugh,

    I was quoting actual land value, I had a look at the Moreton Bay website and was able to find Kallangur at 212k and Petrie at 225k in 2015. My budget for the next would be 350k.

    Havent really looked into buying in trust which I might explore. My partner has one in Qld as well, so it wouldn't be much of a difference.

    Thanks!
     
  7. HUGH72

    HUGH72 Well-Known Member

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    Sorry, should have read your post more carefully. One more purchase in partners name might mitigate the possibility of more land tax.
    350k would be a perfect budget in the outer north of Brisbane.

    Sounds like a sound strategy. I started in Brisbane, then regional Qld, started paying land tax with purchases in individual names then Diversified into NSW and then the last few have been in Adelaide.
     
    ellejay likes this.
  8. JohnPropChat

    JohnPropChat Well-Known Member

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    Perth of course, market is very dull. Good time to start looking and find a bargain.
     
  9. Azazel

    Azazel Well-Known Member

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    Still South Coast NSW, going to be plenty of places picking up again in Spring.
    Glorious day for looking at houses today!
     
  10. Sakura

    Sakura Member

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    How much land tax is consider 'not much', I'm still thinking of going for a 3rd under my name.