Forum Replies Created
ABS is definitely a good starting point for finding out the demographics and rental/owner occupier ratio of a suburb.
As for investment purposes and the ideal ratio of rentals/owner occupier, well, that might depend on what your goals are.
If you are aiming for maximum CG, then a good place for an IP is an area that has around 70% owner occupiers. The reason for this is that it is home owners that go into renovating and maintaining their properties to a high standard, while rentals tend to be somewhat neglected. Therefore, because there is a lot of love and money being lavished on owner occupied properties, property values in those areas tend to be higher than in areas of high rentals.
Another reason for going with areas with a majority of owner occupied dwellings is that because properties are often maintained and renovated to a higher standard, they add to the desireablitity of the area by renters who cannot afford to buy there, but want to be associated with those they want to aspire to: ie. owner occupiers of nice houses. This would add to the rental demand of such an area as well.
When you are mainly aiming at cash flow positive properties, then you are maybe more likely to find them in localities with high % of rental properties. Lower standard of housing overall will be found in those areas, so lower CGT. The other possible downside to this type of locality might be that the rental supply is higher and so more competition for snaring a renter.
These are all just general impressions, and there will be exceptions to these.
There are lots of variables when it comes to choosing your ideal IP purchase location. You just have to know what you are trying to achieve, then examine the most suitable locality that will enable you to achieve your goals. A bit of hard slog there, but a few things to think about [wink2]
What on earth is Bird-Dogging?
Martine makes a very good point. I was once considering a kit home (my brother built his beautiful home with some of his mates) and what I have learnt is that you need to look into the inclusions very carefully. Do NOT assume that this or that will be included. Get it in writing from the company. At least you won’t get unpleasant surprises.
I didn’t proceed with the Kit home option since I , being female, have no “mates” in the building trades and living in another state than my brother, I really wasn ‘t prepared to manage the construction of it myself. Pity, because it would have produced a nicer home than the bricky that I now have. Shouldn’t complain, though …
I am in total agreemen with Westan. My first priority would be to remove that personal loan first. You don’t really need this hanging over your head especially if you are going to buy a property. The repayments on that will be enough to keep you working away like a weasle. Think of a scenario of you losing your $50K pa job, while having a mortgage and a $30K debt to service. Very scary. Unless you are in the Police Service or other similar job with relative job security.
That’s my opinion anyway.
Where’s the rub? Just curious about your comment, “if things don’t change”. What needs to change?
SG
I just checked mine and it is just 2MB. Maybe you won the email box size lottery? [party]
SG
Correction, Joseph. Not every property for sale necessarily automatically goes to realestate.com.au.
I sold one recently and while speaking with several agents, some said they don’t automatically post the property on realestate.com.au and if they do it will be an extra charge and only at my request. While other agents do it as a matter of course.
Beware!
SG.
Hi Helen,
Not all agents, believe it or not, list with the online services like realestate.com.au. I also found in my last venture to purchase (about 2.5 years ago) that not all agents will update their online listings, whether it be their own website or that of another.
My conclusion at the time was that it is still the best to do the on-the-ground footwork and contact each agent and let them know what type of property you are interested in. Remember also that some properties are never advertised because the agent already has a buyer on his/her books who expressed an interest in a particular type of property.
I found that realestate.com.au etc were good as a guide to prices in an area.
If you can, always make contact with many agents directly. In a buyers market such as now they will be only too pleased to help you out [biggrin]
Happy hunting!
SG
I used to be a student at Monash in the 1990’s and know that there was plenty of demand for flats to rent by students, especially if these flats were walking distance to the university.
Check with the Monash Uni Student Accommodation Service to find out the demand and what sort of flats are preferred by students.
Also be open to the idea, if you are aiming at the student market, that many students will share the flat with lots of others. I had friends who shared a 2 bedroom flat with 6 others!
Ring rental managers for the area to determine demand for your type of flat.
Good luck!
SG
From vague memory, yes CGT does apply in this case.
However, to get the facts, I would recommend you familiarize yourself with the ATO’s website and find the relevant information there. The ATO website is quite easy to use and you’ll find it pretty quickly.
Don’t make decisions on hear-say, ALWAYS get the facts
SG.
Personally, I prefer houses to units at any time. CG tend to be higher, and there is none of the hassle with body corporates. On top of that, if the land is big enough and/or in the right location, there is always potential for development and even higher CG later on.
Go for houses[wink2]
SG.
These ads have the same phone number, but usually different, or apparently different, properties with different prices and different descriptions.
The ads are repeated over years, and , as I said, same phone numbers. This is definitely not people giving up on the ‘idyllic’ country comforts that didn’t work out.
These must be investors who buy land very cheaply somewhere out in the sticks and then try to sell it at a some profit. And since this has been going on for years, both here and in Victoria, there must be something in this as a profitable business.
SG.
Not sure if there is any CG to be made for property that sells at around $40K. I see that there aplenty of houses for sale around $40K and even less in Qld’s backwaters. But I would guess that they would have a flat CG curve. After all, they are that cheap because nobody is buying there.
The idea is to find such a cheapie in an area that is as yet “undiscovered” , convince yourself that is has plenty of potential for becoming a hotspot, then buy and wait. I’m sure that these places are out there, but they would be a real mental challenge to find.
SG.
