I am very new to IP and am about to sign a contact for a house and land package in Augustine heights. Can anyone tell me about this area and the rental market in this suburb.
I am very keen to here from anyone esp who has rental property here. How long will it take for the investment to be fruitful ie short, medium or long term.
Hi Vinay
Firstly welcome to the forum and i hope you enjoy your time with us.
AH is great suburb and has a good rental demand. (Slightly biased because i like playing around at Brookwater GC.)
Buying new will provide you with healthy depreciation and capital allowance claims.
Although in saying this dont buy merely for the Tax breaks. Talk to a couple of local property managers and get their feedback before you sign a Contract. They will give you a run down on the type of property which attracts the higher rent and is in constrant demand.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Richard, Thanks for your input, i ll talk to some local property managers and get a feeling for that place.
Hi Vinay, yes welcome as well and investing is all about learning and reading forums like this.
I am slightly concerned that you say you are about to sign a contract for a house and land package but you are still not sure what the rental yields are or about the area!!! This is something you should already know by now where you can very quickly off the top of your head provide the rental returns you expect to get based on the house you are about to build, some reasons why you chose this area and possible future growth in this suburb plus surrounding suburbs and even the state…
I am not trying to be a know it all – I am still trying to find the right strategy but it is important to find out as much as you can and do the numbers before you start any such investment strategy… research is key….
Either way good luck with your IP and I hope it all works out well.
Sam.
Hi Sam, thanks for the input
I have spoken to several agents in the area and they all providing me with data which shows the yield is around 5 to 5.5 %. I would love to hear from people living or have properties in that area.
I know that the govt has been investing heavily in that area but for some reason my lender rejected the loan application citing environmental issues and low rental returns. I am currently in talks with another major lender.
Hi Vinay
Just be careful that this so called Major lender doesnt do another credit search.
I see it every day of the week loans declined by one lender and then client goes to another lender who promises the earth and then declines the deal on credit scoring.
Talk to your Mortgage Broker and find out your options before rushing in with a lender as they are not interested in protecting your credit history and will do a CRAA before you know it.
The deals we are doing in AH / Springfield are holding up well on valuation but i certainly now the lenders to avoid.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
vinay wrote:Hi Sam, thanks for the input
I have spoken to several agents in the area and they all providing me with data which shows the yield is around 5 to 5.5 %. I would love to hear from people living or have properties in that area.
I know that the govt has been investing heavily in that area but for some reason my lender rejected the loan application citing environmental issues and low rental returns. I am currently in talks with another major lender.
Well those are two large red flags, in the absence of specific evidence would suspect that you are paying over the mark rather than the lender is getting it wrong.
I was looking at AG 18 months ago and couldn't find possibility for even neutral position, not to mention positive. Maybe things have changed in 18 months? Have you checked recent comparable sales in the area? If you have a servicability for a loan AND have enough deposit, banks would not refuse your a loan. It is normal residential area, developing one. Something is missing here?
I live in Springfield and really like the area. I do know there was a time when it was hard to find people to rent property in Augustine Heights because it seemed that little too far out for people – in some cases very few properties rented in a street or renting well below what you would get for the same quality of house elsewhere. I would say this is going back 12 months ago. I think as infrastructure is developed that Augustine Heights would be a more popular place to live so as a long term investment it would be good, Im not so sure of this in the short term however.
All, Thanks you very much for valuable comments. Its much appreciated
vn
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