Yeah, most likely

Hi DerekYes I agree and that was sort of more what I meant.Mining towns are always a risky option as your growth is always more dependent on external forces, like how much or the resource China or India are buying.

You need to look for areas that have mines going in or just gone in. Towns like Moranbah are great for people who got in 2 years ago, but I fear if you got in there now you would be in trouble when rents drop and especially if owner occupiers are leaving town, there will be no one the buy the properties.It's Mom and Dad investor stuff there now.…[Read more]

Their model has always been unsustainable!The idea that you can live off equity borrowed back from a Bank when you retire is rubbish."Hi Mr Bank, I'm 70 and want to borrow $500,000 from you to use to live off for the next 10 years"If your sole income is rent, then a Bank will normally only lend you based on 50% of your rent received.And seeing as…[Read more]

luke86 wrote:

PISTORE wrote:

Catalyst wrote:

PISTORE wrote:
The idea with any property investment strategy is to aim for a neutrally geared portfolio.

Really??? What's the point in that? OK if you're working a job I guess but it certainly wouldn't be anyones aim.  My investment strategy is to be POSITIVELY geared. I want to be making…[Read more]

Laury wrote:
My assumption of neutral gearing is that after you have crunched all the numbers including depreciation etc Mr Taxman chooses not to take a cent off you but in reallity you have actually put a couple of dollars in your pocket.   Please correct me if I am wrong!

Essentially your right. It's about running the books at a balance. R…[Read more]

Catalyst wrote:

PISTORE wrote:
The idea with any property investment strategy is to aim for a neutrally geared portfolio.

Really??? What's the point in that? OK if you're working a job I guess but it certainly wouldn't be anyones aim.  My investment strategy is to be POSITIVELY geared. I want to be making money. The more positive my…[Read more]

Hi LauryReally depends on your own situation as to what location would or what location might not be suitable to your numbers.It's a tailored process, so not really a one size fits all scenario.It is a some what fine balancing act that needs to be looked at in more depth, but with most locations we have seen, it's pretty easy to see a neutral cash…

I don't believe you have to trade off Capital gain for income. You just need to find locations that have both. Sydney doesn't have Billions in infrastructure and Government Spending and nor does it have the same % in population growth many other locations have in Australia.Your dollar goes a lot further in many other locations than it does in…[Read more]

Thanks for the info Mattnz, although that is based on a dollar value in that report and not a % value, which Calliope was actually ahead.Calliope is value for money, it's a lot prettier than being in a lot of areas in Gladstone. It's higher up too and has better breezes and is overall a lot cooler location, so the Poms moving in from OS will be…[Read more]

Paullie wrote:

PISTORE wrote:
Personally I would not be looking at Perth. Not to say that it isn't a great place. There has been many great stories of growth, but it is a VERY long way from the rest of Australia. This does tend to mean price fluctuations, when they happen, can be extreme.A  forgotten city that would be better to consider…[Read more]

If you still have a mortgage you need to look to keep buying in areas that are cash flow strong and yet still get good growth. Doing this will enable you to build equity so you could sell in a few years and pay off your current home loan, which in turn will open up plenty more equity to keep buying more investment properties if you so…[Read more]

Don't limit yourself to Sydney. There's a lot better value around Australia with FAR better rent returns.

Can't claim STD on your tax, so if you can buy the land and only pay STD on that, then build the house (you'll pay holding interest while building, but you CAN claim that) so building your own house and land V's buying finished is financially a better way to go.Also, finished homes are usually more expensive as someone had to pay the holding costs…[Read more]

Neither, Wandoan QLD3,000 people moving in for a new $6 Bill open cut coal mine, biggest in QLD, one of the biggest in the worldClose to Chinchilla, Miles and DalbyMine has already purchased over 40,000 Hectares of land and ready to go.500 people currently live there so there will be a massive reason for property to be constructed to house all the…[Read more]

Hi InvqldCalliope has had better growth than Gladstone City over the last 12 months.It's cheaper and is a nicer location (not as industrial)PM me if you need some further help or info.

People forget that you are still getting tax benefits with a positive geared property. The idea with any property investment strategy is to aim for a neutrally geared portfolio. Negative gearing effects your borrowing capacity and lifestyle. There is no reason you can't own 20 IP's and have them be neutrally geared. It's all in the numbers. Too…[Read more]

QLD = Winning!

QLD, like all states is a big place. There are hundreds of markets that exist so it's hard to say that a whole state is good or bad.As long at you have Infrastructure, Government Spending and Population growth, it doesn't matter where it is, you will do well.Don't get sentimental about locations, but rather look for the 3 factors above and you…[Read more]

Ant45 wrote:
Hi Guys,I'm just starting to look at Gladstone with a view to a investing in a house. What suburbs would be your focus? The pure focus is capital growth with a reasonable rent returnAny help would be much appreciated at this early stageAnt

Hi AntReally depends what your budget is. Gladstone is getting up there a little in price…[Read more]