Your Latest Purchase

In the Moreton island?
Tangalooma?

 

Purchased a small 3 bed, 1 bath house (investment) in Wynnum Brisbane a couple of weeks ago. Leading up to the purchase I listened to a lot of 'the property couch'... let's just say I didn't take heed of the borderless investing approach. 100% comfortable with the purchase.

 

Lots of people in the thread are buying in Brisbane!

 

Latest purchase in Newcomb, Geelong in April 2017. Standard 2/1/1 on a 530SQM corner block. Purchase price was $272,000.

Budgeted $15K to get the place tidied up a little plus turning into a 3 bedder. Hoping to cut down actual spend to 10K only. Reno will start towards end of this month so I'll post more details when reno is almost complete but current forecasted rent would be around $300 to $310 which will return a gross yield of 5.4% to 5.6% while capitalizing on Newcomb's rising market

 

Mate seems like a good buy

I was looking at a place in newcomb yesterday, found a ripper, call up the agent to put a get the COS and found out it was already under offer..

Keeping an eye out.

 

Yes your on a winner, low base but moving/rising market. Great

 

Close. Beautiful Woorim. Bribie Island.

 

I'm rely interested in this question. Would love to hear people's thoughts!

 

1 acre block in high country vic. Going to build a house there in Spring with lots of windows to take in the views.

 

I've got a bunch of IPs in the 5-600k price range. But I started in Sydney and you don't need to have IPs in that price range. Most places you just need to avoid the bottom of the barrel (can't attract a good tenants) and you'll be ok. For lower end properties you will tend to have better yields. And when it comes to sell hopefully a lessor CGT hit. But you might have more tenant issues.

 

I usually buy around the $200k mark. Looking for 8%or better gross yield. Aim is to have a few of them paying down debt on p&I over the years regardless of growth. I mainly buy in NZ but have a couple in US. I have 3 lower yield ones in Aus (outer Melbourne, Shell harbour and Perth) but I have specific aims for those. I'm happy with the strategy, had 25% growth over the last year for some of the cheapies , so similar growth to the low yield ones and better cash flow means I only work part of the year.

 

How do you manage tax implications with your foreign purchases (US, NZ)? Doesn't it get complicated with cross-country taxation rules? Does one need to understand this subject in order to invest abroad?

 

@virhlpool with US/Australia we have a treaty where tax paid in USA is credited to Australia.

US tax laws complicated, and I have had to use a US tax accountant who initially liaised with my Australian tax accountant. I also made sure I aligned my US tax with Australian tax, as US tax year ending is December not June.

If you are looking at buying multiple properties I would recommend seeking the help of a US property lawyer to set up an LLC (Limited Liability Company). My Australian Trust is the member of the LLC this way I distribute funds.

Seek professional help with this stuff for your particular scenario very important to get this right

 

Love the avatar

 

I don't look at the $$$ instead look at
1: how it fits in the portfolio (like extra carparks are required for a premise)
2: Net yield
3: The type of property you feel fits your portfolio (eg low management)
4: the market rental compared to passing rental
So the purchases have ranged from $25k to $16m

 

Beano whats your latest purchase?

 

Nothing this year ..tendered for four properties over the last 12mths ...missed out on all
I do have a major concern with the banks forcing me to increase the principal payments
At present it has increased to $32k per day principal which is sustainable but if i take on more borrowings or the banks want more repayments like $40k to $50k a day it will really deplete my cash reserves.

 

OMG, you are in a different league, good on you

 

Completely off the charts...

 

@Beano is deffo in a different league to the majority of us with IP's worth 2-5m but is he legit? Sorry for sounding cynical but would love to hear how you started Beano. Do you still muck around with resi or have most of your last purchases been commercial?