new2investParticipant@new2investJoin Date: 2010Post Count: 37
Just wondering if Phillip Island would be a good investment for the long term.
Properties have gone up in prices over the last 6 years and thinking what it would be like in the next 10 years.
Your thoughts?Mick CParticipant@shapeJoin Date: 2010Post Count: 1,099
i can tell you know Phillip Island is NOT easy to finance; due to valuation and risk of location …as a matter of fact in the last 2 years; i had roughly 15 deals for Phillip Island placed on my table and only ~5 was accepted ( and it was accepted at a very low LVR + crossing security)
So it depends on what your investing for? – lower tax? or pure rental yield?
In regards to capital growth; you would find a lot of these stock on sale right now has been there for well over 200 days- on average Phillip Island has a resell period of 300days + = this mean NO capital growth, as it’s hard to find buyers + hard for the new potential buyer to finance as well= limited buyers.
Michaelkathryn71Member@kathryn71Join Date: 2011Post Count: 5
We bought an IP on the island in mid 08 and it has been revalued +30%.
Taking into account what the previous poster has said, it really depends WHERE on the island you buy. Not Cowes, not Ventnor, Not Wimbeldon Heights etc. If you stick to areas far from the GP circuit then you will be better off…Smiths Bch, Cape Woolamai etc are highly sought after and much higher increase in value of late. Even Newhaven is ok, nice area and more permanents/less bogans iykwim.
We watch the market there very closely and still reckon it is a hidden gem.
True, the area is not easy to finance but if you can do it on equity from another property then it will be much easier (we did) as not many lenders are interested in regional.
Can point you in the right direction if you need…know the REA there quite well (good and bad!!)
KTnew2investParticipant@new2investJoin Date: 2010Post Count: 37
Thx @shape and @KT for responding.
I am still very interested to the idea of having an IP there one day…..
but i think for now I will just keep looking for capital growth props close to CBD (may be 20k from CBD.
See how I go..hopefully after spending last 6 mnths reading books and learning more about Tax …i feel ready.
Time to take some actions and get going.