Agree Richard – valuations rarely recouperate the full cost of the granny flat, so it’s almost purely a cash flow play. I’d personally rather invest that capital into multiple other investments which in the long term will increase your portfolio size and allow for larger growth/cash flow.
Short term vs long term outlooks.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Thanks for that I hadn’t actually consider what the valuation on granny flat would be. So would you consider a duplex build to be a more secure way of manufacturing equity?
Generally a duplex is more likely to not lose equity, than a granny flat scenario. In the end it comes down the individual property, so best to crunch the numbers on what end values would look at vs costs.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Hi Richard
Considering your post was in January, would you still not invest in Cairns? There does seem to be some growth in the area but I do agree with you that the body corp fees are huge.Where would you suggest investing?
Hi Sharon
Unless i can buy the whole block I personally don’t invest in units full stop.
For me Brisbane is the place to invest but in saying that I am slightly biased.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
I have commission a buyers agent who are recommending Ipswich area due to my purchase being under SMSF and needs to be cashflow positive from day 1. The budget is $340k max and I was told that in this area, we can get 4/2/2 brick house and less than 10 years old. Please let us know your thoughts. The suburbs they are looking are East Ipswich, Raceview, Holmview, yamanto, Leichhardt.
Hi Monique
As a Buyers Agent we buy a lot of properties in that SW pocket for forum members but must admit i am not sure i would be buying in the suburbs your current BA has listed for a number of reasons.
Certainly the enclave is a popular area for SMSF purchases but i think you can do better than the suburbs outlined.
Just want to make sure your SMSF Financier is happy with the mentioned suburbs.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Richard,
I am one of those people who is interested in finding a property and adding cash flow through a granny flat (as well as long term capital gains). I am in the early stages of looking for a location where this would be possible. I am leaning towards a south western suburb of Brisbane and have had a drive around the likes of Oxley, Inala, Durack, Durra. These suburbs have larger blocks that could be utilized whilst at the same time are not too south of Brisbane for the daily commute. There has been much talk about the likes of North Lakes, Narangba, Mango Hill but I feel the South West could also see strong capital growth in the coming years. Would like to hear your thoughts on this. Thanks.
Thanks for response Richard.
What are your thoughts about redbank plains? A house on offer for $327k 4/2/2 on 510sqm block. It’s currently rented at $365 until April 2017.Looking forward to hear from you.
Cheers
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