haven’t invest in property before, just thinking of investing in Queensland. As it is more affordable than Sydney.
Just few questions, I know I can get bank to approve 300k loans. should I be investing in 300k house or 2*150 townHouses. Which one will give me a better grow from the past experience?
what do you think of the way market is going ? would it slow down or will it crash?
thanks in advancehilaryMember@hilaryJoin Date: 2002Post Count: 146
If you want income, then go for the 2 townhouses. If you want capital gain, then the house will get more. If you can get into a great area, you might get both, but since there is more land attached to a house, then that is where the gains happen.
What area are you looking at?CocopopsParticipant@cocopopsJoin Date: 2003Post Count: 10
Given this is your first investment property Im assuming you are wanting cash flow, may I suggest that 2 townhouses will spread your risk. My neice recently purchased a beautiful townhouse on a decent size block of land for $150K in Labradoor Queensland.
Good luck!!!!hilaryMember@hilaryJoin Date: 2002Post Count: 146
good point about the risk – less likely that 2 are vacant together – one house vacant leaves a big zero income.
thanks for the replied, I am thinking of springwood in Queensland. Rental return is not that great, say $160,000 for the townhouse and get $190 per week.
any body know about the Salibury suburb, the town house goes for $190000, and rental return of 210 per week, will this give me a better grow than the Springwood?
Reason I want to buy, is get some tax back, and it is affordable.
Charksushi03Member@sushi03Join Date: 2003Post Count: 33
I am basically a newbie myself.
I think you need to establish exacly what your goals are. Judging by the numbers you gave for the 2 houses, and assuning you have a 20% deposit for each these are some rough calculations for you.
Purchase price: $160000
Deposit: – $32000
Stamp duty : + $4300
Legals:approx: + $500
Mortgage fees: + $500
$133300 P/I loan @ 6% over 25 years works out to be $858/month
Rental income $190/week works out to be $823 /month
Leaving you $35 a week out of pocket
This does not include Rates, insurance,management fees, Etc
Purchase price: $190000
Deposit: -$ 38000
Stamp Duty: +$ 5275
Legals approx: +$ 500
Motgage fees : +$ 500
$158275 P/I loan @6% over 25years works out to be $1020/month
Rental income of $210/week works out to be $910/month
Leaving you with $110 out of pocket each week.
This figure doesnt include the other outgoings as i have stated above.
What you might have to think about is that the tax saving really worth you being $150 /week out of pocket before all the other charges.
Anyone please correct me if i am wrong as i am trying to get the hang of all this myself.
Basically Chark all i am saying is that you have to work out what road you want to take to your investing goals but i would much rather have a property put money into my pocket each week than take it.
I hope i have been of some help.
Take care and happy investing.sushi03Member@sushi03Join Date: 2003Post Count: 33
sorry about the long post
I have done a rough calculation on IO loan, and plus tax refund (depreciation) I will be forking out about $35 a week of my pocket.
I have read Rob Kiyosaki’s book about positive gearing , it seems to be impossible in Australia, I have also read Jan Somers book, which I found to be more achievable. Having said that, I saw couple properties up in Rockhampton or North Cairn, which satisfied 11 sec rule, but it is too far for me, I preferred to buy some where that I can drive to.
Charkhwd007Member@hwd007Join Date: 2002Post Count: 247
The 11 second rule lasts about 11 seconds. Then comes the rule of thumb which has evolved over thousands of years of wise and not so wise decision making.JoffMember@joffJoin Date: 2003Post Count: 50
By now you are probally already aware there lots of variables in investing, all according to your goals.However,in my humble opinion,the bottom line should always be return on outlays first followed by capital gains.set yourself minimum returns you are prepared accept in order to stay positive geared, then look and look till you find
a property that also shows potential for future gains/renos/development/sub.div.
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