jacknscoob

Hi Guys

I am considering buying a unit in Queensland to let it out as a source of income.

Have others considered it or experienced it. I understand alot hinges on the tenants you get, however what else.

Thanks in advance

Amazulu

Negatively geared - no

Positively geared - possibly

It depends on a lot of factors and everyone's situation will be different

jacknscoob

Thanks, I have learnt something new as I had to look up positive and neg gearing

The purchase would be a cash buy in Queensland

J

Beoz

Current yield.

http://www.realestate.com.au/advice/get-best-rental-returns/

What's likely to get you the best growth? Well where's the lowest supply and biggest demand? Probably somewhere in Sydney but you'll also need a crystal ball for that.

Amazulu

A cash purchase would enable you to generate a return but whether this will be a decent income will depend on you

xizzles

Congratulations in advance. While I don't have any experience in the Queensland property market, I have to say I've been pleased as punch with the returns on my purchases in Sydney and Melbourne thus far. None of the properties are negatively geared (I happen to belong to the same school of thought as Amazulu - and for the longest time, I thought I was the only fool on the block until I read his remarks about being negatively geared: while I can't say that makes me a genius, I can safely say that if I'm still a fool, at least there are two of us now ).

Pre-taxes, and pre-creative accounting (don't look at me, my accountant does all the filing and returns for me), the returns on my properties amount to, shall we say, a very comfortable sum - but as they say, different strokes for different folks, different grass for different cows, your mileage may vary and one man's meat is another woman's orgasm (I might have gotten that last bit somewhat garbled) - so what constitutes "comfy" for wifey and me might be mere peanuts for another blessed with an eye for the finer accoutrements in life

Enjoy the buy!

astera

I think the negative gearing notion is a bit outdated. Who the heck even mentions that?

You're either looking at making great returns on investment via rental fees (positive gearing), but with lower annual appreciation of the property's value...

... or making less on a monthly level but looking at the property itself shoot up in value to make up for it (and then some). Not exactly negative gearing, just slightly less positive and ultimately more profitable...

spouse of scouse

There's a lot you should learn before plonking your money down on a buy to let.

What's more important to you, yield or capital growth?
Are to up to speed on all the legislative responsibilities landlords have?
Have you researched the area/s you're interested in? Not only achievable rents, but rental demand. No use getting a lovely property at a good price if no one rents it.
When calculating yield, you need to include everything to get an accurate return on investment - property price and purchasing costs, insurances, maintenance, void periods, cost of meeting legislation (eg RCDs, hardwired smoke alarms etc), management fees if not self-managing.
If you're going to self-manage, are you prepared to be on call for tenants should there be maintenance or other problems, have you worked out how you're going to manage any rental arrears, are you up to speed on the legalities of the eviction process?
Have you explored other investment options as well as buy to let?

jacknscoob

Thankyou, you raise some very good points. Yield is more important to me than capital growth and no I havent explored other investment options, I would be interested to hear about them...Thanks

Swerv-o

That's three of us now then...



Just about everyone at a suburban Sydney weekend BBQ in my experience. I think you can normally go about 10-15 minutes before somebody starts to crap on about their negatively geared property portfolio.


S

spouse of scouse

I can't advice you of what would be a good investment for you, as that very much depends on your individual circumstances as well as your appetite for risk. One size certainly doesn't fit all. Your best bet is to seek professional advice - and remember the old adage, if it seems too good to be true, it is.

Beoz

+4



For QLD about a year ago Caboolture had excellent yield. Not sure today

jacknscoob

What appeals to me re investing in a property to rent out is that I'll be getting a weekly/monthly income (minus costs). As long as I have a tenant there will be money coming in. I kinda think it is low risk. I'd feel I would have more control over it rather than investing in something I don't really understand that could go tits up (excuse my French)

I wouldnt even know where to get financial advice even that is daunting to me...arnt they like real estate agents??

Swerv-o

Some friends of mine have had a lot of success with a small Inner West Sydney apartment that they let on short term AirBnB lets, as it cuts out the need for an estate agent.

Of course it does also mean that you need to be available to change the sheets etc - If you can find somebody local to do that inexpensively, you could be laughing.

There is also some level of statutory risk, particularly where councils and strata bodies are deciding to prevent owners from participating in AirBnB. Ideally you would find an apartment that has no need for access over common land - which may well be easier said than done....


S

spouse of scouse

Highlights the amount of research people need to do prior to investing in property, and there's no easy way to do it, it's bloody hard slog.

It took me a year to get to the point where I felt comfortable to start offering on properties, and that was just in a relatively small area of the UK. I won't offer on a property unless my ROI is at least 10%, but I also won't put tenants into crap housing so it's slow going!

The flip side of that is while yields are good, capital growth is rubbish. But for my and scouse's circumstances, that's ok. For people with different aims and circumstances, it could spell disaster.