Forums / Property Investing / General Property / Property in north brisbane

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  • Profile photo of qldminer11qldminer11
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    @qldminer11
    Join Date: 2011
    Post Count: 8

    I am at a crossroad with a property in Bray Park , we bought it in 07 at the peak of the boom and now we are thinking of selling it or renting it out.  What is everyone's opinion of the market in brissy is are the prices picking up? what is the market going to do in the next 2-3 years?

    Cheers Allister

    Profile photo of Richard TaylorRichard Taylor
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    @qlds007
    Join Date: 2003
    Post Count: 12,010

    Hi Allister

    Every property i own is in Brisbane or SE Qld so i guess i am slightly biased.

    In my opinion many parts of Brisbane didn't really fall as much as others post 2007 and certainly we are starting to see the right property become sought after with investors / owner occupiers.

    Valuations are certainly stacking up and in fact a couple of deals i did this week the valuer actually commented that the property was good value.

    In saying all of this whilst i think we will see a further pick up in Brisbane prices over the next couple of years can i ask you why you are looking to sell.

    You mention that you might look to rent the property out so i am assuming it is currently being used as your PPOR.

    As long as you aren't looking  to buy another PPOR and the current  loan is currently structured incorrectly i can't see why you wouldn't rent the property out and look to build your portfolio.

    Remember there maybe both non cash deductions i.e Depreciation & Capital Allowance as well as cash deductions such as interest, rates and insurance etc that you claim.

    If the property is not held in your sole name and you are the higher marginal tax payer a spousal transfer maybe with thinking to maximise your deductions even further.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of qldminer11qldminer11
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    @qldminer11
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    Thanks for the reply Richard.  the reason we are selling is that we are living out of brissy and renting the property out.  we have a LVR of 93.5% atm .  and in my current job without the property i would be about to save approx 20 k per year.  so in 2 years i could have approx 40k to look for a propery that is neturally geared.  If i keep the property i dont think that its value will rise 40k. I am not keen on selling but i dont think that the market will rise that much. 

    Profile photo of Richard TaylorRichard Taylor
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    @qlds007
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    Hi again qldminer

    Are you sure those figures are correct as a 20K after Tax loss seems mamoth.

    I will assume you are claiming everything you can claim. Building must be an old building (pre 87 at least) and can only assume you have a fixed rate which has not fallen.

    Also remember if you purchased at the peak of the market you might find that your net sales amount post agents costs etc do not cover  the existing loan balance. Unfortunately you wont get a refund on the LMI premium paid.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of qldminer11qldminer11
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    @qldminer11
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    sorry i should have said that after i sold the property i could save 20k from my wage.  we have worked out  the minimum  amount that we will have to sell for to break even.  If we cant get the required sale price we will just keep the property a little bit longer

    Profile photo of matthewhornematthewhorne
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    @matthewhorne
    Join Date: 2012
    Post Count: 37

    Hey qldminer,

    I am not sure if you're aware but Steve McKnight is having a market update at the Convention Centre this Tuesday night (6th). I'm going to that and hoping to learn some really insightful tips on the Brisbane Market now and in the future.

    I also live in Lawnton / Bray Park and I am seeing a lot of properties for sale these days, moreso than normal, however rental properties are still remaining around the same in demand I believe. I don't know that it would be a time to sell the house right now, if you are keen to sell I feel like it would be worth waiting a couple of years if you're not looking at renting the property out.

    I wish you well.

    Regards,

    Matt.

    Profile photo of qldminer11qldminer11
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    @qldminer11
    Join Date: 2011
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    would like to go but living in biloela its a little far to travel.  Its a hard call to make weather to sell or keep wish the crystal ball was working lol

    Profile photo of Scott No MatesScott No Mates
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    qldminer, are you looking at your net position or just your cash position in being $20k pa better off? As Richard points out there are several ways to skin a cat and get money out of the property eg depreciation. Is your current loan principal & interest or interest only? Are you on the best loan for your situation etc? I can't offer too much insight into the Qld market other than I thought it stalled a little later (2009/10) and Bris/GC generally stagnates for 7-10 years after a long run of activity. Was it the RP Data report which showed it expected growth of >12% over the next 3 years in Brisbane (slightly less then Melb/Syd).

    Profile photo of qldminer11qldminer11
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    @qldminer11
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    Thanks for the advice guys looks like we will keep the brisbane property for a little while longer and see where the market heads.  Going to do a few little reno's so it will get better rent and hopefully worth more to sell down the track.

    Profile photo of Melanie ThewlisMelanie Thewlis
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    @melanie-thewlis
    Join Date: 2012
    Post Count: 7

    Hi Allister,

    You might also want to consider refinancing – we covered this last week in our company blog. The discounts available from the headline interest rates have increased in the past several years – so you may for example be able to negotiate a .70% reduction on a published rate.

    Best of luck!

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