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Hi, check out realestate.com on the net and look at north queensland towns/cities. We also have a friend who went up that way for a few days holiday and ended up buying 2 properties. I also heard (from a developer!) that Gladstone is going ahead, lots of infrastructure going in there. I look in the price range first, eg. click on up to X$, then see what is offering, contact agents, check on the net what other rentals are in the area, etc. The $55/$60,000 properties are units, one of which gets $135 rent. We are in NSW so I do a lot of checking and research. Hope you find something on the net. Anna
Hi, for what it is worth, I can’t see that you can get a better return on those higher priced properties. We have purchased several units recently, none over $60,000 and all well inside the 11 second rule giving us great cashflow. A few houses, none over $130,000 are positive too.
Our strategy was for cash flow and some capital gain and we have achieved both in these lower priced properties. Maybe it’s worth a bit more research on the net. AnnaHi Steve & All,
We have had experience with three financial planners in just over three years.
One crunched the figures and got us into a negative geared property at Coomera that is only now starting to go ok. Didn’t research for ourselves.
The next one (18 months ago) said they could manage our affairs for round $8000, but that we were not in a good position at all and should look at shares etc. At this time we had the above neg. property and PPOR worth about $300k. Didn’t go back after this initial visit.
The third one from Westpac (15 months ago) knew nothing at all about property, focused on shares, managed funds & life insurance that he said we needed for round $3000pa, (can pay off a couple of cheapies for that!) with large trailing commission which was not disclosed until we found it in the paper work. When we cancelled, having decided on a substantially lesser amount of policy of OUR choice and for our needs, he would not return any phone calls and we had to sort out the mess directly with the bank by phone and fax.
I would never consider another financial adviser as I believe the ones we saw had only their own interest in mind. Since being ‘in a bad way’ 18 months ago we have learnt so much and now have 10 properties, most cash flow positive, 2 settling today.
So from experience, I would say the same as others, research research research for yourself, do your due diligence. There is nothing that you can’t do and you are in control of your own financial affairs.
Appreciate the great input on this site.
AnnaHi Wilandel, have used QS reports, under $300 in our area, Hunter Valley, well worth it. Daughter in Sydney had not used one previously, had it done by Depro and received an extra tax cheque. Anna
Hello Dafeldz, it’s good that you’re wanting to invest early. Our daughter purchased at 21, now 27 and has 2 properties. Re the regional areas, we purchased in north Qld, end of last year, price range from $55000 to $60,000. Rents are $120pw to $135pw. Found them via the net. One was only 5% deposit so you don’t need a lot to start.
Also we went to a financial advisor about 18 months ago, he knew nothing/didn’t go along with real estate investment. As someone else mentioned on the forum, Destiny Financial Solutions seem good, and Margaret Lomas is an investor herself. I think that makes a big difference. Depends on where you are though. Best of luck. AnnaHi Graham, we have the same problem. Our accountant is not into property investment and our daughter actually got a further considerable tax refund this year after changing accountants to one in Sydney where she lives. She has a couple of properties there.
Does anyone have a good accountant in the Newcastle/Maitland area? Would appreciate info.
AnnaHi Rick & Partner, we have purchased a mixture of houses and units, all at the lower end of the price scale. All have increased substantially (just been revalued) in 18 months and a number of units purchased since November have 10% returns & put money in the bank each month.
I check the real estate sites almost every day so I can keep up with prices in different areas, as well as rents and look at the area/suburb profiles too. They show what is there, nearness to schools, population, tourism, etc. I watch my own area and other towns I think/hear/read may be ok. We have also set our goals as to what we want to achieve and by when and are ahead of it already. That is in 18 months of purchasing. Seeing that property doubles in value 7-10 years, it’s encouraging to think that today’s properties, say you have $1.5m will be worth $3m, rents will have increased but your debt will still be the same. Good luck. Anna2
Hi Kate & Rich, we were told by a couple of agents that air con would add $15-20 per week in rental on one of our existing properties in Qld. It is a townhouse and we will be having a/c installed soon, split system. Keeps the tenants happy.I guess it may depend on where your property is, whether you put in split system, or just cooling. Good luck with your IP.
Anna2Willie, what a fantastic age to be starting. Go for it, keep learning, read all you can and you will probably be retired well and truly by the time you are 40, if you want to be. Anna
Hello hwdoo7, yes, your first payment is due a month after you settle, eg we settled on a property 16/1, first payment was 16/2, and then 16th each month.. Sounds like maybe you are buying a -cash flow property and need the tax variation quickly. Is it an I/O loan, when your monthly payments would be a little less than P & I. Also I guess you would already be looking for, or have an agent, looking for a tenant. With all our properties, they have been tenanted or tenant waiting to move in. Most pay for themselves. Hope this helps.
Anna2Hi Trying,
We have properties in the Cairns area. Email me at [email protected] if you like and I’m happy to tell you about our properties which are all going well and maybe some other helpful info.
Anna2Hi Young Gun, we renovated prior to settlement. It was a deceased estate which we stripped out of carpet, painted, polished floors, new second hand kitchen, bathroom and laundry, cleaned yard. Had an excellent agent who liaised with the vendor. We also replaced a timber floor in one of the bedrooms as Aussie would not settle until this had been done. Now tell me if the house had not been vacant how on earth would we have been able to do this??? Anyway it worked well and the good tenants have been there 2 years. Anna
Hi Matduqua, just a suggestion, but you could check on eg. websites like realestate.com and domain for comparitive house/rent prices. Also ring agents for info. I have found most of them are helpful and I still do research on areas I am interested in. Destiny Financial Solutions also had pos. cash flow properties in Cairns, less $, looked ok. Look at their web site too. Anna
Hi Geoff, don’t know a formula, but when we purchased, with a fair bit of tidying up, internal repainting, fencing, some kitchen reno, we had gained $75k in 18 months. Valuer came today, asked what had been done since last time (this is for same lender) and we could add air conditioning, further painting, more reno to the kitchen, new appliances, bathroom and laundry reno, plus outside work. So will wait and see shortly. Let you know. Anna
Hi Robert, one suggestion – don’t purchase a property after attending an investment seminar. Do thorough research and don’t believe what you hear. We did but have purchased several IP positive cash flows and so thankfully turned the tide so to speak, at least balanced the loss. I agree with Mitch – we got a lot of negatives, eg. you’re game, I wouldn’t do that, my advisor says shares, etc. when we talked about our IP plan and strategies, so are going ahead quietly now. We justsmile when friends say ‘another one?’
AnnaHarry, why not purchase a positive cash flow property between you if you want to help out? Find something in a less expensive price range for a start. Our daughter has an IP in Sydney and her own unit, and we recently purchased a 10% return property in her name and ours. Do a bit of research and see what you can find. Our sons both have bought their own homes in the last 15 months and will be purchasing the same cash flow return IPs soon. It will help pay the mortgage. Just a thought.
Thanks for all the great information on the forum
anna
APIM, we have also purchased a system which I will set up soon but in the meantime I have used one of those plastic ring files for each property, with dividers for each section, eg, purchase/settlement, property management, expenses, lender, strata,BC,general. I also have a page where I note down any time I have to contact someone re the property, what it is about, etc. I have a photo of the property at the front and all details should I need to contact anyone from the lender to the property manager. I will continue the files as it is all easy to access, and I have a home office but will also set up the system for the accountant this financial year.
Anna2
I’m new to this forum and have found this discussion really interesting so thought I would post my thoughts.
In the last few years we have bought 7 properties, the worst is a 5% return. Since that mistake (for us because we did not do enough research) we have purchased 6 cash flow positive, in price from $55,000 to $130,000. eg. one at %80,000/$170pw, $55,000/$120pw so our strategy is going well for us and there is more money coming in than going out.
That is working for us and if interest rates go up we are still ok. If we lose one tenant, ok. We researched areas where there is work, people want to rent and checked out vacancy rates with the agents. This strategy is working for us and
having received Steve’s tape/CDs etc, I believe we are on the right track (again for our particular plan.) The positive thought is that as properties usually double in 7-10 years and rents increase of course, the mortgage payments won’t be a problem. We start off I/O and fix for 5 years.Thanks to the forum for all the thoughts and ideas.
