Australian Property Investment Blog by Micah Keall-Grant

This article follows on from my previous article: Should You Invest for Positive Cashflow or Capital Growth? Question from a reader: Playing devils advocate here what are your thoughts if both properties were sold at the 20 year mark and capital gains taxes applied? Also one advantage of the positive cashflow property is that the extra revenue it generates can be re-invested - if this is figured into the analysis then perhaps the overall difference between the two strategies is closer? Thoughts? Good question. The initial example was relatively simple however these calculations can get very complicated, very quickly! Answer: I believe you still come out significantly ahead with the capital growth strategy. Let's make some further assumptions and do some additional calculations, while also taking re-investment into account: Let’s call the positive cashflow “Strategy A” and capital growth “Strategy B”. -    Assume a more realistic scenario of a $200k deposit and an ...

This is a question that many property investors ask themselves when considering their investment strategy. Countless articles and books have been written on the subject, each with a slightly different perspective. There are a couple of factors to consider but first let’s take a look at the differences between the two approaches: Positive Cashflow Strategy: A lot of people don’t realise that there are significant costs associated with purchasing and maintaining an investment property; mortgage payments, building and landlord insurance, repairs and maintenance, leasing and advertising fees, property management fees, utility charges, council rates, additional tax return fees and sometimes you also have company/trust fees and land taxes. In most cases, especially in the initial stages of ownership, the vast majority (if not all!) of your rental income will go towards covering these costs. The main goal of a positive cashflow strategy is to ensure that the income from your p...

There are 3 key habits you need to begin your investment journey and grow your personal wealth. They are an important first step to get started in property or other investments and to monitor your progress. I have adopted these habits over a number of years and continue to regularly review my own personal financial situation. 1) Spend Less Than You Earn Unfortunately you can’t invest if you don’t have any money! You will need to save up and there is really only one way to do this – you need to earn more money than you spend on a regular basis.   Once you have excess funds available, you can allocate these to your chosen investments. 2) Track Your Monthly Expenses If you are struggling with Step 1), then Step 2) is the best way to take control of your finances and see where your money is going each month. Categorize your spending into simple groups (e.g. rent/mortgage, supermarket, eating and drinking out, entertainment, holidays, sport and fitness, other person...

When purchasing a property, it is very important to conduct proper due diligence to ensure you don’t get caught out by any unexpected issues. During the property search Whilst you will engage professionals to conduct a large part of the due dilligence, there are a number of   basic things you can check yourself before inspecting or offering. This will save you a lot of time and hassle! Online (before you attend the inspection) : -        Size and shape of the block of land -        Proximity to main roads/train lines -        Proximity to airports/flight paths -        Proximity to shops/schools/transport -        Google Maps – Satellite and Street View (to get a feel for the area) -        Flood checks – free online council resources available -     ...

1) Save a deposit First things first, you need money for a deposit. Usually it is in the range of 5% - 20% of the purchase price, depending on your individual circumstances. The most straightforward way to achieve this is spend less than you earn, have a budget and track your savings over time. Alternative ways are to pool money with a partner/friends/family or borrow money from your parents. In addition to the deposit, there are a number of other fees during the purchase process you will have to take into account – solicitors fees, stamp duty, property transfer fees, building and pest inspections, insurances etc. 2) Arrange your finances You will require the remainder of your property purchase to be funded by a mortgage lender and you will pay the lender interest for the money borrowed. The most common ways to arrange this are either through a mortgage broker (who can shop around different lenders for the best deals and provide general advice) or to go directly to the lender ...

Key Details: Price: $400-$450k Rental Return: $400-$430/week Location: Northern Growth Corridor of Brisbane ~25km from the CBD Purchase Details: This client had a budget of up to $450k and was not familiar with Brisbane so asked us for recommendations for good investment locations. He was targeting a house on a decent block, in good condition and with possible future development potential. I advised the client of an excellent suburb in the Northern part of Brisbane which would suit his criteria well. After a few weeks search we secured this low set brick, 4 bedroom, 2 bathroom house, on a 600m2 corner block, with multiple living areas and potential for future development. It has a large double garage, good outdoor areas and is well located near schools, shops and transport.

Key Details: Price: $500k-$600k range Rental Return: $450-$500/week Location: Family friendly middle ring suburb ~12km from Brisbane CBD Purchase Details: These clients were targeting a house in the $500k-$550k range – long term buy and hold with good capital growth prospects. They wanted something that was near a train station, with good street appeal and with a minimum of two bathrooms and two living areas. I secured this low set brick house for them in a suburb ~12km to the CBD, which is 800m walk to the nearest train station and in quiet, family friendly pocket. It is 4 bedrooms, 2 bathrooms, modern layout and in excellent condition with happy long term tenants.

Key details: Price: $900k-$1m range Rental Return: $700-$800/week Location: Blue chip suburb 5km to Brisbane CBD Purchase Details: These Sydney based investors were focused on securing a house in a premium suburb with excellent capital growth prospects. They wanted something that was immediately rentable with no work to be done and that would appeal to a wide range of tenants. I secured this property within the first week of listing in a multiple offer situation by negotiating with excellent terms and conditions that suited the sellers perfectly. This house is 5 bedrooms, 2 bathrooms, immaculately renovated and is well located near a train station, shops, parks and good schools.

Welcome to the blog! My name is Micah Keall-Grant and I am an investor with a goal of achieving financial freedom. My main focus is on property investment (as this is also my job!) however I also invest in individual shares, index funds and ETFs, amongst other things. This blog is about sharing my experiences and knowledge while also continuing to learn more about investment myself! My job, background and experience:   I am a Registered QLD Property Buyer’s Agent and an expert in the Brisbane property market. I come from an engineering background having completed a Bachelors (Hons) and Masters in Engineering at Canterbury University in New Zealand and working professionally on various projects throughout Australia, USA and Africa. I developed a strong interest in Australian residential property through substantial research and reading and then began investing a number of years ago, developing a keen eye for good quality investment properties, and learning lots along ...