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Time to buy a house... but where?

Discussion in 'The Pub' started by Mr Messy, Jul 12, 2012.

  1. Hey all whats doing?
    Decided its time to buy a house as an investment, with a view to moving to it in oh, lets say 10 years?

    Fact is ive got no roots down anywhere - not to say i wont in 10 years of course but for now i can buy anywhere i want.
    Sky is the limit up to around half a mil, and ideally looking for a 4br with some space around me - 2000sqm would be about perfect.

    Ive really only a few requirements which i can sum up easily: Beach not too far away (30min drive is acceptable); easy access to transport (ie, decent regular flight airport); some reasonable local job prospects (ie so i can get the place rented out in the meantime, and maybe something simple for me to relax into after working the big hours lifestyle).

    Any suggestions on places to look? About the most attractive option so far is Tasmania... probably Devonport... but ive no idea what its like to actually live there (and i imagine the beaches arent that good :p).

    Suggestions, comments, general crap that stops you otherwise working are quite welcome!

  2. King Island? Great cheese, easy access to beaches, shark fishing [but you might be the bait lol]

    do some reseach on 'growing' corridors in the states you wanna live in. realeastste will be a shite load more pricey in 10 years so if you land a goldmine with a huge block that you can sub divide 'later on' even better
    be wary of the flood prone areas..
  3. And while you are at it research the Redcliffe Peninsula - it is undervalued and will (I think) see considerable growth in 5-10 years.

    Main suburbs to look at Scarborough, Newport etc.

    Compare it so similar properties in Sydney and you'll see what I mean.

    May have rouble getign a 2000m block though, let alone for those $ ....
  4. Somewhere on central or north coast NSW ?
  5. Firstly, Its an investment, You want to rent it out, Doesnt matter what it looks like, it has to be habitable and No money needed to be spent on it to rent it out,

    In ten years, it will have gone up in value 100 % Minimum, And by then you will probably want to live some where else,

    Dont get emotionally involved with it, It has to make money for you, Not be a burden,

    Outer suburbs now. will be suburbia in ten years time,

    I just sold my second house, It allowed me to retire, buy my Boat and gave me enough to live on for the rest of my life, If I am carefull, It was just a 3 bedroom, brick veneer shit box,

    Dont buy a timber house, too much maintenance,

    Its hard to rent if its out in the sticks, and the rent is low,

  6. You're looking at lifestyle considerations, but you need to be considering capital growth first. There's nothing saying you can't sell at the end of 10 years. Although what's attractive to you will probably be for others as well.

    Look at population growth trends, the kinds of industry in the area (sunset or sunrise? maybe not coal mining...), services (particularly for an ageing population - seachangers bring value). And height above the high tide mark :bolt:

    Tasmania has attracted people looking for cheaper housing, but it still doesn't have a lot of jobs growth. Unfortunately.
  7. Umm don't bet on that, there is considerable debate among educated investors about growth potential of residential property in the short to medium term. If you decide wisely you may still get substantial returns but probably not across the board like we have seen recently.

    This bit is spot on though, any investment is the same, it is there to meet certain return goals with as little risk as possible. Your home is not an investment.
  8. King Island wouldnt work, not enough room to ride :p. Though i imagine there isnt much in the way of highway patrol... Will check out the growth corridor tip though! Definitely keeping clear of flood prone areas, and all in all would prefer a gentle sloping block too ;).

    Redcliffe yeah theres a few nice pads around there, not quite the space id like but hey cant have everything. Still would like a decent size block and id probably go a little more money for good land.

    NSW hrm... i could come back... but if i were to go back to NSW id likely go back to the newcastle area :)...

    dm you are right in that if im looking at it as an investment i should consider it just that. I might just have to consider buying a place as an investment and then negative gear my own place off it later down the track once its got a bit more equity. I hear you on timber, brick or nothing!

    titus thats exactly the turn off for Tassie, the jobs growth issue. Nice spot to retire to but for the time being... a pain. Tips on the population growth is good too.

    blue yeah i see the value in houses declining more despite what the economists wax lyric on. Thats why im after a decent block and nice house for a reasonable price. Even if the price drops out some from under it, im still paying what i would feel to be worthwhile for a good property and probably wouldnt complain toooo much haha.

    I suppose the best way to do this stuff these days is through a trust too, as while i could do it through my business and write off a whole lot of shit against tax id have to pay a flat 30% on any income generated... Shrugs, one for the accountant i guess :).

    Still looking, keep the tips coming guys :D.
  9. If you're after a good return, the best place, to buy as an investment to rent right now, is Canberra. Of course, you wont want to live there yourself later on, but good to park your $$ for the next 10 years.

    I know of someone who recently bought a brand new apartment there for around $400k, they have furnished it (somehow though the new fridge, washing machine etc seem to have stayed down here & there are older appliances in the unit...strange, wonder what happened there?). They are renting it out at over $600pw with a 2 year lease to a Public Servant type with no kids. You wont get that kind of return pretty much anywhere else.

    As with other areas, the property prices there haven't be growing much over the last 2-3 years but they haven't fallen huge in the ACT either.

    In regards to negatively gearing your own place, think you better talk to a tax accountant, you might find you cant do what you think you can, if I am reading your statement correctly.

    Putting it through a business can pose other issues should the business not go well down the track. The best way to get the most $$ back from the taxman is to have it in just one name depending on the individual incomes.
  10. Comment from a friend who has aan investment property in Canberra (paid $330K rent $410 p/w) says Canberra has

    "Plenty of people with plenty of money.. and job security"
  11. Dunno if you want to keep it all in qld Mr Messy.
    But the Sunshine coast has been smashed. I live in Coolum on the beach. Have the postie run for the place :)
    What was asking $620's + last year is @ $450 and not selling.
    A four bed house = $500 - $600 in rent.
    There is just no work here. Mortgagee auctions are a weekly thing now almost.
    Investment here on the coast will take the longest to start getting a decent return. But it has been hit the hardest I think. So the value is there for someone who can afford to sit on it for five or more years.
    Right now the Sunshine coast is big. But not huge. Ten years.... I think it will stretch all the way to Bris... It's very close to that now.
    Everywhere on the coast has been hit. North of Maroochy river has been smashed. Mudjimba, Yaroomba, Coolum, Peregian. All heavily discounted and all beach front. Or a five minute walk to it. Noosa has been hit as well. But it looks really tired and scabby. It has gone back to God's waiting room like it was in the early eighties.
  12. in stockton...there's two townhouse's/terrace's being sold together for i think 470k area...one's three bedroom and one's two bedroom - there's a few shitty little apartments for rent in the area with 2 bedrooms and probably half the space with no yard for $280-320 area per week...that means you can expect around $650-700 per week return when both are rented out and it also leaves the option in time for you to move into the 3 bedroom one whilst still renting out the 2 bedroom one - and it's under 5 minute's to the ocean and a stone's throw from newcastle cbd.


    not the most attractive but potential wise it's up there
  13. Blue. These professionals have been trying to get me with their forecasts and every thing else, Tsk Tsk Tsk, I see many have gone broke using their formula's, Hahahahaha
    I have been buying and selling houses and land for over 40 years,

    And over the last 100 years, All propertys have gained a Minimum 100 % over 10 years,

    Land is long term, minimum 10 years, Any less and you will do your arse on it, unless you are very lucky,

    All my propertys have returned me at least 300 % over 10 years,

    One property went done 50 grand in value, But I was still up 150% in actual value, The market goes up and down in the profit margin chronically, But your base value is still there and growing strongly, and at a minimum rate of 100 % every 10 years,

    Last 20 years. all propertys have increased in value, 300 %,

    100-000 is now 400-000 and it will continue to grow at that rate,

    You just dont sell when the market is down, wait 2 years and it will be up way more than it ever went down,

    I have been through four recessions, Propertys never went below the original price paid for them,

    The property I am on now, has gone up about 800 % in the 23 years I have owned it, And I got ripped off on the value of it when I bought it, I was also paying 21.5 % interest, 1990, I am miles ahead,

    These so called educated investors are in for a quick kill and are usually playing with other peoples money,

    Big companys who invest, only invest long term, 20 years or more, Thats why they are still in business, They do it right,
  14. Property is dead around the country. I would stay out of it for a while, it's not the best time to buy.
  15. 10 years is only medium term, and that is the time frame Mr Messy was talking so he should do himself a favor and run the numbers correctly then compare the risk/reward profiles of a variety of investment options before putting all his eggs in one basket. Property can be a very good investment but it is not without risks, educated investors know this and what to look for, just buying anything because "property is a good investment" is ignorant in the extreme and given the size of the commitment a young family is undertaking it is ridiculous not to do it right. I am not going to tell anyone here how to invest their hard earned, I will tell them to look hard at whatever it is and go into it with their eyes open to both the potential risks and the potential rewards of whatever they choose to invest in.
  16. Having moved around twice in the Newcastle area in the last year I feel the prices here are on the up and fast. There is bit of growth and new jobs popping up all over the place.

    Take a look at places like Warabrook or maybe Thornton (Allot of these areas around). Bit of outer subs or new developments but prices are good now and going to go up in 10 years. Closer to the Newcastle CBD areas are expensive and this is forcing these new developments around to grow. Good time to get in.

    Renting prices in the Newcastle area has gone way up from about 350pw to 450pw on a three bedroom in the last year. Sure these outside areas will do the same soon.

    Plus you might move here in ten years as you said.
  17. Go to any quiet rural town that's about to become a busy rural mining town, and build 4 bedroom, 4 ensuite houses.
  18. If you're looking at 10 years' time, then I'd say go the Tassie option. There are plenty of nice beaches near Devonport, but the water can be a tad chilly. The good thing about Tas is the nice roads for riding.
  19. I'd definitely move to Tasmania. From my last short trip I liked Burnie more than Devonport. Launceston was really nice, so was Hobart etc,... Can't wait until summer - definitely off for a ride.......

    ......sorry, got carried away thinking about touring! As you were..8-[