澳洲Australia property Land Rent - LDA - Canberra | Sydney


在澳大利亚 I need some advice regarding a property purchase. Property - semi-detached house Bedrooms - 2 Condition - average needs internal reno to modernise Street - one of the best in suburb Location - excellent Close to schools - yes Transport - 50m The pool at of an IP needs to be resurfaced (or so the pool doctor says), the cost was estimated to be $10K ($10,000), after recoverying from my impresssion of a cat coughing up a fur ball, it just seems far too much. Its just a standard poo


Hey,

I recently registered for two land ballot releases in the new suburbs of Bonner and Jacka. On both occasions I was successful in obtaining a block selection appointment. Obtaining an appointment doesn’t necessarily mean I will get a block, but there are fairly good chances I will either get a block in Bonner or Jacka. I would not be building for another year. I went to the bank today (CPS - as they are one of only two banks that offer a loan for land rent) and I found out some rough figures.

485sqm block - $210,000 - Paying 2% rent each year which is $4200
Assuming a $40,000 deposit for the house building a loan of about 190-200k is needed. The repayments for the loan would be around $300 a week + the $80 a week for the land. I would build a 3-4 bedroom home with a double garage.

What are people’s thoughts on the land rent scheme? I am only 21 and it seems like a good idea, but I know there are some downsides to the scheme. If I did build the house I would have my gf live with me and possibly even rent out a room. I am currently living at home and have the potential to save about 500 a week at the moment.


I have a few other options as well....

http://www.allhomes.com.au/ah/nsw/s...eanbeyan-east-queanbeyan-region/1316818512911

Something like the above property.. Older and a bit run down. It was recently renovated, but there is still room for improvements. This kind of property would be a good starter project for investing. I would live in the unit for 6 months and do the renovating myself, then use the equity to buy into another unit. Queanbeyan has a strong rental market. The real estate agent on the day said at the current time the property could rent out for 300-320 a week. If I could argue the price down and do some improvements then possibly it could turn into a good investment.

There are also a few options on here:

http://www.allhomes.com.au/ah/act/sale-residential/bonner/121483710

I could buy into a unit for about 370-400k, compared to the land rent.









Thanks,

Cameron  

评论
Hi Cam

What are your long term goals? Being on an investing forum I assume you want to leverage into IPs sometime down the track?

Do you think this type of property will be conducive to that? Considering there's only two lenders that will even consider financing the scheme.

If you've got $40k, why not go down the conventional path? Depending on your serviceability, a $40k deposit with FHOG and potential concessionary stamp duty (depending on your income) might be able to buy you something. It might not be as flash as the land rent property you have your eye on - but if you think longer term, it may be worth it.

Cheers

Jamie  

评论
Hey,

Thanks for the reply..

My long term goal is to have as many investment properties as possible and even make a job out of it. I have been very intestered in investing for over a year now. Last year I met up with Nathan Birch, and I have done a lot of research along the way.

I went looking out today in Queanbeyan. Canberra is very expensive to get into. I found a property that is on the market for 280k or so, renting at 430-450 a week. The unit has two bedrooms and is very big for a unit (96sqm) After looking through the other apartments in the building, I found that the price was fairly high so I am considering throwing in a low ball figure. The current rent and price allows for about a 8-9% yield. The unit is fairly old, but has new carpet and paint. A small kitchen reno and maybe bathroom and a change of the 80's curtains might get me a little equity so I can get into another property.

I deceided not to go down the land rent path. Not only will I have to take another loan out in the future for the land, by that time I am sure the house won't be worth as much as I paid to build it.

I am currently living at home, so my aim is to get 2-5 properties before I move out.

Thanks,  

评论
camdog said: ↑
Hey,

Thanks for the reply..

My long term goal is to have as many investment properties as possible and even make a job out of it. I have been very intestered in investing for over a year now. Last year I met up with Nathan Birch, and I have done a lot of research along the way.

........Click to expand...
Then be very careful about your initial debt loading.....it will stifle the growth of your portfolio. I would give very careful consideration to your serviceability limits not only now, but forecast over the next few years. If you want to do this full time at some stage, cashflow is a big concern as it not only needs to cover your investment goals but also support you along the way. Unless of course you plan to still maintain a J.O.B.

Also, why build over buying established? Does it offer better CG potential or CF than buying an established property? Sure depreciation of a new property is a consideration, but near new may be more cost beneficial as there are many often overlooked or hidden costs in building a new house.

Just a few comments to consider... ;)  

评论
Well after reseaching the land rent scheme it is there to make things more affordable for families. You can buy established houses close to the same area that are only a few years old, but the Canberra market is a killer on prices!!

I have actually found two apartments in queanbeyan.

1 Bed- 82sqm of living - including balcony (which is about 15-20sqm)
Underground locked parking space
Price - $269,000 reduced down from $289,000. Possibly could negoaite down to $255/260k as the couple selling are splitting up and want to sell ASAP.
Rent- $350/week - rented out atm and interested in staying for a long time.
Council Rates- $1154 pa
Admin $354 pq
Sinking $311 pq

From all of that I calculated about a 7% yield.
The real estate agent said they would accept offers over 260k. It has been on the market for about 2 months now and the unit is 6 years old. VGC and well looked after. Looks good on the inside and out as well.

2 bed- 95sqm living - 30+ years old
Covered car space
Price - $289,000
Rent - $420-$440/week - Currently Vacent
Council rates $1154 pa
Body corp I think is about $360 pq

This would be a 8% yield. It has new carpet and paint already. The kitchen and bathroom are a bit outdated, but nothing a small reno could fix, but not overly fussed as it has good rent as is.


Both have there up and downs. What are your thoughts on these?  

评论
Hi Cam

I haven't kept a close eye on the Qbn market for a while but do own an IP out there.

My initial thought is that property 1 must be new because the purchase price is quite high. If that's the case - there's no scope of value add and you'd be able to pick up something similar accross the border in the newer developments (that's not to say these make for good investments either).

Are you sure the second one is going to rent for $440 per week? I can't see a two bedroom unit in Qbn fetching this much rent but I could be wrong. If so, the yield is decent but I think with a bit more shopping you'll find something that provides better value.

Personally, I see value in the older stock - particularly the 2 bedroom units that can be tarted up for easy value add. Most are quite sturdy and shouldn't cost a packet to renovate. The two beddies also recieve decent rent compared to the one beddies.

Make sure you scope out the strata minutes - check out the admin/sinking fee amounts.

Cheers

Jamie  

评论
The first one is 6 years old. It has about 40-50 units in the complex. To buy a new unit in Canberra it starts from 300-400k for a 1 bed!! I have friends that pay $400 a week for rent for only one room apartment. The new ones in Queanbeyan are going for the same sort of price. Starting from 300k and working there way up.

For my first property I want to be able to get some equity out of it, so I can get into another property. Is it worth getting the First home buyers grant and living in the unit for 6 months then renting it out or is it better to buy it as an investment straight away but miss out on the 7k and stamp duty offer? If I did live in the unit, I would do as much of the reno myself as I could and could shop around for good prices. I currently live at home and I pay $130 a week in rent and I know I have to move out eventually. The FHBG saves a lot on the deposit, but it also means I would have to live in the unit for 6 months.


The second unit actually does rent for that much. Very shocking I know!! There are units in the same complex that have rented out at that price recently and they say they rent out very fast.

I want to try get something close to where I live, so I can keep an eye on the first property. Would it be better to venture off to Sydney? I have looked at a lot there and there are some good deals. Canberra is a growing city and rent is in high demand in Queanbeyan.

If I could get something that was around the 200k mark or less then that would be great. I know starting out at a pretty high price won't allow me to continue to build a portfolio. The two apartments above have good yields but have a pretty high asking price, but for the size it is a good price compaired to Canberra.  

Property Investment

Australia property Selling Hints | Sydney

澳大利亚Hi folks I recall ready somewhere about what are some simple tricks for making your place more attractive during a home open. Im seriously thinking of selling my little pad and want to maximise my efforts. Any hints greatly appreciated. 评论 ...

Property Investment

Australia property Re-zoning | Sydney

澳大利亚What would the chances of a NSW Local Council allowing a community titled development (homes, community buildings, etc) on an area zoned Protected Agricultural land? Does anyone have experience in this area? Looking at the local council LEP, ...