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Read Now Or Ready Later? What’s Your Preference?
There is much terminology surrounding the housing sector.
This month we take a brief look at investment properties that can be purchased off the plan and those that are turn-key that is ready to move into.
Which is better? We look at the pros and cons of both.
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Off the plan properties, usually a sales method found in apartment developments, have typically not yet been built. The purchaser is literally buying an apartment “off the plan” based on perhaps a completed prototype or even on the developers history in the development game.
On the other hand a turn-key property is as the name implies, ready to “turn the key” and move in.
It is important to note that in both cases we are talking about new properties yet to be lived in – although turn key does technically apply to any property ready for tenants.
Off The Plan
So lets look at the pros and cons of off the plan first.
Pros:
- you secure a property at today’s prices with minimal cash in (sometimes as low as $1000) and dont have to worry about mortgage repayments for some time – or any other cost for that matter – BUT – you also dont have income from a tenant
- depending on lead time (some as long as 18 months) you could experience substantial capital growth and sell for a profit at time of completion
- You can sometimes determine basic inclusions and colours – usually from a set range so you may have the opportunity to connect with the market better than your developer
- You are gurranteed the property will be brand new and fresh.
Cons:
- there is a risk that a decline in the property market could spell trouble for values and a drop in your LVR. You may not be able to finance the full loan.
- in conjunction with property values, the rental yeild of the property may have falling since
- The developer is only as good as their last project – you need to be sure that the quality of construction and fitout will be in keeping with the price you are paying and the market your development will be aimed at.
- Buying off the plan can be difficult for someone who does not visualise well – being clear on what you are getting, sense of space and functionality will be important.
- you could start paying your mortgage long before a tenant moves in – sometimes the builders work on a progressive scale of work completion – particularly if you are building a house for investment. You could be paying your mortgage months before a tenant moves in. Generally though in apartments you do not start paying the mortgage until the development is completed.
Turn Key
Turn key properties are ready to be tenanted immediately. You will notice that properties listed by Portfolios Property are always turnkey.
Pros:
- You can start your investment cycle almost immediately. Once you have settled you can start earning money from tenants. The only issue is getting the first tenants in – we advise you to work with local agents during the exchange phase to ensure a tenant is ready when the mortgage repayments start.
- Turn key properties in many states attract stamp duty concessions – you need to check in your local state – stamp duty concessions can wipe thousands off the purchase costs.
- You can see what you are getting in terms of investment – you can go through the normal process of getting a building inspections and of course take advantage of the maintenance period of the new property from the builder.
There are not a lot of cons with the turnkey option – at the end of the day you get to choose the property that best suits your situation and market and with the assistance of Portfolios can even look at how the investment plays out over the coming years.
We look forward to being able to work with you to make property investment happen.

Ready Now Or Ready Later? What’s Your Preference?

This month we take a brief look at investment properties purchased off the plan and those that are turn-key.

Which is better? We take a look at the pros and cons of both.

Your Own Investment Property From $32 per Week
What if you could own your own investment property from just $32 per week? You could be realising return on invesmtent in excess of 700%
Portfolios investment property of the month is Chinchilla.
Chinchilla, located in the Surat basin Region is undergoing a massive build up of workers and their families, with a strong capital growth over the last 3 years and with the newly signed LNG deal with China this is a place to buy.
Chinchilla is located about 200km west of Brisbane with ever increasing job opportunities. Tightening rental availability has driven up rents sharply and will continue to do so.
The region has hospitals, schools and many amenities of normally much larger towns. Over $10 Billion being spent on Coal mines, a gas pipe line, rail links, gas exploration and waste water purification projects.
The government is also investing in rail in the Darling Downs, linking this region and its rich, diverse production with export ports such Gladstone.
According to investment sources the region around Chinchilla enjoys a 98% employment rate and a rental vacancy rate around 1%.
If you earn over $80,000 per anum we’d love to talk to you about this deal. We have turn key, brand new, four bedroom homes ready to be tenanted today.
If you earn under $80,000 then you might find this deal to be worth while with low property price entry, expected capital gains and expected rental hikes in the coming 12-24 months.
Chinchilla presents a great opportunity. You can view this and other properties in this region at www.portfoliosproperty.com.au or just go to Featured Properties.

What if you could own your own investment property from just $32 per week? *

You could be realising return on invesmtent in excess of 700%.

Queensland – The Property Investment Hotspots
With all the talk once again of flattening markets in Australian cities astute property investors are looking to regional Australia, Queensland in particular, and with good reason.
There are plenty of opportunities to be found in regional Australia particularly in the resource rich state of Queensland where the mining boom is being re-born in towns where property values are still affordable.
I seriously think we might be staring at another Karratha in the Darling Downs and around service ports like Gladstone. Karratha is a mining town in northern WA wher the property market soared almost overnight due to the intense mining boom of the last decade. Average properties became million dollar hotspots and rents went from average to exorbitant in a short space of time.
The best part of the Darling Downs and Surat Basin area is that property prices are still reasonable and the large projects for the region are starting .It is a case of strike while the iron is hot and this one is hot.
The government and private sector have committed to investing over $10bn in infrastructure which will on its own create significant demand for housing and rental accommodation.
We mentioned in the last newsletter that the largest company to company deal Australia has ever seen has been signed between a Chinese resource company and an British mining company based in Queensland that will see Liquid Natural Gas exported from the Surat Basin to China over the next 20 years.
Putting the Darling Downs aside there’s Gladstone, and surrounding local region, already a strong infrastructure hub set to receive billions of dollars of investment on top of that invested in the last few years in new industry, mining and infrastructure.
Coming back to something more predictable are the growth spots in SE Brisbane. Brisbane and the Gold Coast is the fastest growing population centre in Australia. Areas such as Coomera north west on the Gold Coast Hinterland is a great investment.
Portfolios has property available in all these areas, ask us about places like Chinchilla, Dalby, Kingaroy or Gladstone, Calliope or Coomera. Properties like these ones present a great investment opportunity to enhance any portfolio. We already have clients snapping up these properties sometimes multiples of them.
You can see some of these properties in our Featured Properties section or ask us about other opportunities for you.
The team look forward to working with you to… Make it Happen

With all the talk once again of flattening markets in Australian cities astute property investors are looking to regional Australia, Queensland in particular, and with good reason.

What Are You Seeing In The Current Investment Property Market?
In its monthly review of the Australia property market, Herron Todd White has given us a broad picture of what has happened in January in Australian capital cities both in houses and unit dwellings.
We have focused here on the Australian housing market. For the full report – you can download it here.
The report looks at a number of factors including:
• rental vacancy snapshot
• the rental vacancy trends
• demand for new houses
• trend of new home construction
• volume of house sales
• stage in the property cycle
• and whether new properties are sold at prices exceeding their potential resale value.
The report shows what we all expect – a somewhat strong capital city market leading into 2010. However there are some exceptions.
In Melbourne for example the figures show the volume of house sales to be declining.  This could be the conservative market that Melbourne is with rising interest rates.
The worst performer is Hobart – where the writers believe that in terms of its stage in the property market cycle that it has reached its peak. Not great if you are considering the Hobart market or thinking of capitalising there and selling out. (Unless of course you purchased at the turn of this century. )
In terms of the position on the property cycle, Brisbane is showing recovery trends whilst Sydney, Darwin, Perth and Canberra are all trending as rising markets.
Perhaps Canberra, that city no Australian ever wanted, is the surprise entry, showing strong growth indicators throughout 2009 and into 2010. High rentals are also said to be contributing to the investor market in Canberra.
What are your observations of the property market?
Why not drop us a line and tell us what is happening in your area? The hotspots and the “not” spots.  You can comment below.
In the coming weeks we will look at some of the areas we have chosen to offer you properties through Portfolios Property.
Disclaimer: the information contained in the Herron Todd White report is third party information and should not be construed as financial advice. It merely serves to open a discussion about the Australian investment property market.

In its monthly review of the Australia property market, Herron Todd White has given us a broad picture of what has happened in January in Australian capital cities both in houses and unit dwellings.

We have focused here on the Australian housing market. For the full report – you can download it here.