Where to Invest 2018 first timer

@ChelseaB I'm building in the middle of nowhere and am an adviser. I'll advise you to buy that one.

 

If you're not paying him, he's not advising you. He's a sales man with a stocklist.

 

Hi @ChelseaB - generally speaking don't take advice from people who take a commission - they have a vested interest in pushing you into an investment with the greatest possible return for them.

Also generally speaking its a good idea early in the piece to look for properties that have good capital growth potential as this will help you grow your portfolio if that is what you want to do. Typically growth occurs when there is a high demand and limited supply and when there is good income earning potential and population growth in the area as this can support price growth and demand. Again typically these areas need to be near CBDs of cities that have strong economies. Sydney and Melbourne are the largest in Aus and i'm guessing Brisbane comes in third but i'm unsure about this.

You obviously need to consider what your goals are - commercial property can be good for cashflow - although they are subject to being potentially untenanted for long periods so you need to take this into consideration - but typically commercial properties don't have good capital growth. Again you need to consider your goals, stage of life, finances etc - as they say on the property couch - growth is what you get out of the market yield is what keeps you in the market - the balance of growth and yield can only depend on your specific circumstances and you might want to sit down with a good accountant and mortgage broker to work this out.

If I were you I would hold your horses - listen to all of the property couch podcasts (start from the start), the property investment masterclass by momentum wealth, and trawl through the smart property investment podcasts as well as the education series they did with the Right Property Group called Investing Insights with Right Property Group.

take your time to educate yourself as it can be easy to get into property but expensive and hard to get out if you make the wrong decision and if you want advice pay for it in upfront costs - then the advisor should have your best interest in mind and not theirs. As someone else mentioned look for PIPA (Property Investment Professionals of Australia) accredited members as the industry is unregulated and full of cowboys PIPA seems to be a professional body that is trying to change this and self regulate to an extent.

good luck

 

Yep agree with the others, run away very fast from the "advisor".

Also, don't discount south of Brisbane. Somewhere along the line for some on PropertyChat it became gospel that the north had some magical OO appeal and better growth prospects. Complete rubbish. There is no meaningful difference either side of the river. Better to draw a radius line of 10 or 20 ks and filter suburbs by your price point. Then start doing your research on the areas (especially flood zones)

Also respectfully I think you should seriously assess if commercial property is the best fit at that price point. You won't be getting A grade stock and you need to be across the diffenences in financing for commercial property such as lower LVRs, reduced loan terms and loans at call. Perhaps after doing that you still think it is worth proceeding but I think there is a lot more risk and opportunity to get burnt there if you don't know what you are doing.

 

What kind of returns are you looking at with listed REITs? Any CG at all?

 

Hi ChelseaB, Wulkuraka is not where i would put my money even if i decided 4305 is a good post code. Some beautiful property in the 'switch that would have a better prospects but i dunno why u would pay more than 300, 350K.

If i was you i would independently assess where you think people want to live, get a freestanding house maximise your land content (700m plus), avoid new builds, and think about transport links to the CBD and to the gold coast.

I like trains, others might prefer freeways.

It is not actually rocket science, but i would contest the theory of 'rings' from CBD and look for sleeper suburbs with good transport links, maybe think of a map where time to CBD is used in place of distance. consider peak times ..... 20 minutes to CBD is excellent, 30 minutes OK, 40 well maybe, 50 not preferable.

That will actually lead to looking at the southern suburbs, but those that like the North may think that compares favourably too.

my 0.02c

 

Or you buy an ETF (such as VAP) that encompasses them to be even less risk adverse.

 

You

You were right, I made a phone call and found out that the deposit for the commercial property would be $25-$40

Thank you for this reply. This only reason why I am considering wulkurraka is because the property is a dual dwelling home, and the tenants rent should cover all the fees. Not costing me anything week to week will be a big plus, is this even possible with a single dwelling home in a decent area?

 

There is always a cost. In this case its overpaying, CG and a higher risk deal overall imo.