Halo

We are in the process of doing this at the moment. I wondered if anyone else has done it and has any advice?

NedKelly

Yes , don't.

jad n rich

Anything any good in queensland at the moment is selling within days, sometimes within hours, a lot of stuff doesnt even hit the net, so if this is stuff being advertised for sale overseas I would be very wary as to why.

That aside I wouldnt buy anything without seeing it, simple, 6 pictures on the net dont ever tell you stuff like the crazy neighbour, the howling dogs, the motorway outside, the tennis court under your bedroom window, the local tip wafting on the "bay" breeze

Halo

Oh, please elaborate.

Halo

A good reason to get one's foot on the ladder ASAP I would have thought...

true...

true, but lots of people on this board are moving to Oz without seeing it, so buying an investment property sight unseen isn't perhaps so extreme.

I'm intrigued to hear Ned Kelly's experience. There was a recent feature in Australia & New Zealand magazine extolling the benefits....

bcworld

...was it extolling the benefits of buying investment properties once in Aus or from overseas?

Investment properties are attractive because the tax system allows a large proportion of the loss made on running the property to be claimed back - but as far as I am aware you need to have your own principal place of residence in Australia first before you can claim tax breaks on an investment property. I would seek out advice from financial advisor / tax professional before proceeding down this route.

NedKelly

Have you done your research? Had an independent valuation of the property? Had an independent rental evaluation? Looked at vacancy & void periods? Pest & structural report? Have you considered the tax implications?

This article relates to Queensland but for Queensland you can read Australia.

http://www.jenman.com.au/news_item.php?id=389

renth

By the time the OP arranges for all this to be done the place would be sold if it were anything other than a dump.

Buying a house from overseas without having seen it first? You know the saying: "a fool and his money are easily parted"

SarahJane2007

We have bought investment properties here Brisbane East as the market is fast paced and we wanted to 'get in now' before everything is beyond us. The capital growth here is great at the moment and supply cant keep up with demand. We bought the properties within a month of landing. Rental on average around this area is about $1 to every $100,000 ie $500,000 house will rent for about $500 per week. Thats a great return and its climbing!

longreach

Have you obtained FIR approval?

TrickyTree

Not sure that this is the case when we have been looking for new rental properties in Brisbane and the inner suburbs. We were looking around Morningside and the surrounding suburbs (most recently) and even for something that needed tearing down and starting again you had to shell out $400k+++ for approx rental returns of less than $400 per week. We rent a unit which must be worth $600k-$700k if not more (the Valley) and pay $380 per week which is no return if you had to buy now. We have gradually been looking further north to find the real value but even that is disappearing fast now.

Just did a quick search on realestate.com.au for east Brisbane and a 3 bed house goes for 600k+++ (very bottom end). Then looking at the rent tab a 3 bed rents for around $400 per week.

SarahJane2007

You need to look at Wakerley/Manly West

SKIPPI79

If your looking to part with your money, heres my bank account .............

NedKelly

Purchase at $500,000 plus 5% for legals/stamp/registration/etc. = $525,000.

Assuming you can get a tenant at $500 which I doubt.

$500 X 52 = $26,000 (assumes no voids)
less 8.5% agents fees $2,210
less insurance $750
less pest $200
less council tax $1800

= $21,040

work out for yourself how much the ongoing maintenance will be. There is always something!

=4.0% Net return maximum. Whooppee

And what about capital appreciation.That depends if you are prepared to gamble that we are not at the peak.

SarahJane2007

I'm not looking to make money from the rental....you cant....just cover the little mortgage we have. I am looking at the bigger picture....5/10 years from now....a foot on the ladder for my children.