- AustIndCorpParticipant@austindcorpJoin Date: 2010Post Count: 3
I'm entering into my first IP @ Fitzgibbon, QLD. To begin in investing I've decided to go and buy as home & land package but will exclude landscaping and fencing from the package. Property is valued @ $425K 3 Bed, 2 Bath, Double garage. Rental returns are $400+ per week. It's 13KM from CBD and 4.7KM to Westfield, Hospital. 1KM to Train station. It's a new dovelopment and expected to complete end of this year. Please advise from your experience and knowledge.
AustIndCorpchriscarmanParticipant@chriscarmanJoin Date: 2009Post Count: 30
I like the area somewhat…
Whilst its built right next to an old dump and its reputation suffers imo from that, that dump is now a large green space to play on!
Location wise its close to all the right things, shopping centres, trains, buslines, parks, highways (but not too close ) etc
Properties in the area are nearly all new (or newish) and the area looks neat, if a little closed in.
My parents have lived in there for 2 years now, and we have a couple of friends live in there.
I have lived in Taigum and the local suburbs for the last 18 years so i feel as though i should have some knowledge of it
IMO capital growth will be there though it wont be as strong as Carseldine or Taigum (neighbouring suburbs).
I think its a good and undervalued area with plenty of long term good points and you could do a lot worse
hope this helpsAustIndCorpParticipant@austindcorpJoin Date: 2010Post Count: 3
Thanks Chris.. for your prompt reply.
What about buying a new IP against existing IP?chriscarmanParticipant@chriscarmanJoin Date: 2009Post Count: 30
hmm i arent an expert (though my definition of "expert" is "drip under pressure" so maybe i do qualify after all )
But in my experience the "new ip" creates profit for the builder i.e. he buys every thing at his wholesale price, adds his margins and then sells the whole property plus another margin…
The counter argument to that is that in a rising market you can often make money buying off the plan as the property rises in value in excess of the purchase price before the completion of the construction. But in the end imo you give a decent proportion of your "initial" potential profit to someone else (i.e. long hold property u are always going to get the CG, but if it was a flip type prospect….)
Conversely, if you buy an established property a lot of the stuff u get charged for on a "new" property (i.e. landscaping, lawns, fixtures, fittings etc) are all included and not priced out in the same way as with the new property. Of course the property is also older so there may be some maintenance issues…
Either way if you are doing this as an IP i would recommend getting the property Quantity Surveyed for tax purposes – those guys list every possible thing in the property and make claiming your depreciation etc deductions a piece of cake for the accountant.
For me i prefer to go find my own block of land, design my own plan, get a private builder to build it and do as much as i can myself (gardening, etc) to minimise the costs added to the project. Or conversely to find the suitable established property and manage the reno / paint/polish etc myself (assuming it was a good buy) This way i know where the money went
anyway i dont know if that helped, but i did warn u i wasnt a expert hehe