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Basic questions for learning investor

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Pat | 13 Feb 2018, 10:53 PM Agree 0
Hi

Just trying to to research and there is a lot of info to factor in and I am getting confused

A few things id like to clarify to ensure I look for the correct things to get an optimal investment property:

1. Location Location Location ( in my budget)
2. Land size in budget ( get the biggest I can afford)
3. House over Units over apartments etc...
4. Look for high owner occupied areas as this will increase my demand for rental? ( need confirmation on this please)
5. Build new construction to maximise tax deducations and save on stamp duty ( need also confirmation on this. I was told if I buy land then build on that I only pay stamp duty for the land? and with building new I can claim depreciation on fixtures and fittings)
  • Jetie | 26 Feb 2018, 11:40 PM Agree 0
    Good questions. With in excess of fifty(50) years experience of purchasing residential properties in Australia, my advice is to begin by buying a modest sized established house on the higher side of a quiet street, facing north or south. Location should be as close to the CBD as possible within budget.
    Do not buy land and build, as that is the most expensive and outer location way to begin on the property ladder. Land appreciates very well - the house building depreciates.
    Reserve that new build for later in life when it’s more affordable.
    If you are a single or couple, seriously consider a 2 bedroom home to begin with, especially if there is room to extend to a 3 bedroom. That option is good for any resale if you choose not to extend in future.
    Do not finance through a large bank, as smaller lenders are all fine with their lower interest rates. I say that as an ex bank manager, and an ex real estate agent.
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