{"id":5636,"date":"2015-09-08T01:00:46","date_gmt":"2015-09-07T15:00:46","guid":{"rendered":"http:\/\/realestatetalk.com.au\/?p=5636"},"modified":"2015-09-08T01:00:46","modified_gmt":"2015-09-07T15:00:46","slug":"deception-bay-or-caboolture-mistake-that-many-first-time-investors-make","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/deception-bay-or-caboolture-mistake-that-many-first-time-investors-make\/","title":{"rendered":"Deception Bay or Caboolture? A mistake that many first-time investors make – Margaret Lomas"},"content":{"rendered":"

 
\nOur feature interview this week is a chat we have with Margaret Lomas<\/strong> who we asked to answer a question from Matt about investing in property in one of Brisbane\u2019s outer northern suburbs. Apparently Margaret said in her Sky TV show that it is not her preferred area.\u00a0 We were surprised when we spoke to her that she revealed that she still has her worst performing property in her portfolio.\u00a0 Why doesn\u2019t she get rid of it? Find out today.
\n <\/p>\n

Transcript:<\/h4>\n

Kevin:\u00a0 <\/b>We have a question now from Matt. Thanks for the question, Matt.
\nMatt says, \u201cI\u2019m about to venture into a first investment property using our equity in our principal place of residence. We can spend $310,000. I was looking at younger and newer homes in Caboolture\/Morayfield, but then I saw on Margaret Lomas\u2019s \u2018Your Money Your Call\u2019<\/i> that she prefers Deception Bay\/Rothwell.\u201d
\nFor the same money, he would be looking at a 10- to 20-year-old house. Matt notices also on other research that Caboolture\/Morayfield are lauded as prospective areas for capital growth and is a little bit confused. Thank you for that, Matt.
\nWe have Margaret Lomas on the line from \u2018Your Money Your Call\u2019<\/i> and Destiny Financial Solutions. Margaret, thank you for your time.
\nMargaret:\u00a0 <\/b>You\u2019re welcome.
\nKevin:\u00a0 <\/b>Can you help Matt?
\nMargaret:\u00a0 <\/b>Of course, I can help Matt. The first thing I\u2019d like to point out is that what Matt is doing is what I believe is a mistake that many first-time investors make, and that is that he is busy looking for a younger home.
\nVery often people are driven by those tax benefits that they believe exist in the younger home, such as greater depreciation and therefore a higher cash flow, so they want to get that newer home, and of course, they\u2019re also thinking about the long term and having less maintenance to do.
\nUnfortunately, what that does for many investors is that it means that their primary driver for buying a property is the age of the home, and it\u2019ll drive them to areas where housing is newer and there are potentially other issues in those areas, which I\u2019ll talk about in a moment.
\nReally, what we should be doing when we\u2019re buying investment property is to first of all establish the very best area that we can buy property in, and then work out what kind of properties exist there.
\nVery often hot spots are areas that have 10- and 20-year-old homes and not much in the way of new homes. Of course, that\u2019s because they\u2019re probably already built out. There\u2019s no new land. We\u2019re down to those established homes, and often they can be better hot spots.
\nKevin:\u00a0 <\/b>Margaret, what is it you like about Deception Bay that you don\u2019t like about Caboolture?
\nMargaret:\u00a0 <\/b>Let me first of all say that it\u2019s not that I don\u2019t like Caboolture and Morayfield. I agree with some of the research that, over the long term, they certainly have some potential growth drivers. But in the short term, we have a lot of new land available, particularly in Caboolture.
\nIn fact, if you have a look up there at the moment, many of those brand-new houses that are being sold in that area can be bought for less than some of the homes that are already fairly well established \u2013 less than, say, ten-year-old homes \u2013 and they can be bought for that price.
\nBecause there\u2019s so much new land, we\u2019re not going to see a lot of pressure on established housing, and therefore people who are buying there would much rather buy something that\u2019s new themselves than they would buy the existing property. That means it\u2019s going to take a lot longer for those properties to grow in value, even though they eventually will.
\nWhen we go to somewhere like Deception Bay, we have many of the features of Caboolture. We\u2019re still a close enough distance from the airport. We\u2019re not that far away from the CBD, as well. It\u2019s still a good drive, access from the Bruce Highway, and a growing population.
\nBut the difference is around Deception Bay is that you don\u2019t have so much new land available, so the pressure is being brought to bear very firmly at the moment on those older homes. And to be honest, many of them have had some renovation, so the differences in the depreciation you can get on those homes isn\u2019t as marked as what a lot of people might think.
\nKevin:\u00a0 <\/b>Yes, that\u2019s the thing a lot of people don\u2019t realize, isn\u2019t it? They think they have to buy a new home just to get those depreciation benefits, Margaret.
\nMargaret:\u00a0 <\/b>Absolutely, and in fact, that\u2019s not true. Anything up to about eight to ten years old can have some good depreciation available on it. Then once you get older than that, very often there\u2019s been a fair amount of renovation done. There\u2019s probably a bit of a kitchen done, a bathroom, very often new hot water heaters, carpets, blinds, curtains, all that kind of stuff, all of which are depreciable items, even in an older home. So the depreciation benefits aren\u2019t necessarily completely lost.
\nBut again, I want to reiterate that you shouldn\u2019t be buying for those depreciation benefits; it\u2019s important to get some good cash flow, absolutely. I\u2019m considered the cash flow queen. I like cash flow in my investment properties, but I also don\u2019t like having properties in my portfolio that have great rent return and just don\u2019t grow or don\u2019t grow for a long, long, long time.
\nIn addition to getting enough cash flow so that I\u2019m not going broke waiting for the growth to occur, I like to see growth in my portfolio as early as I can get it, because growth means you\u2019re leveraged into more property, and it\u2019s the broader base of properties that creates a retirement income, not a single property or two properties in your portfolio.
\nKevin:\u00a0 <\/b>Would you class yourself as an impatient investor \u2013 in other words, you want those results or that growth as quickly as possible?
\nMargaret:\u00a0 <\/b>Not necessarily. But I think all investors have to realize that every single investor has a different need for income and growth, depending on where they\u2019re at in their own phase in life and where they are on their investment time horizon.
\nIf you\u2019re someone who may be in your late forties\/early fifties, your kids have probably grown up and your cash flow\u2019s probably improved because you\u2019re not spending as much money on them anymore \u2013 school fees are all gone out the door \u2013 then you actually need a property that\u2019s going to grow sooner rather than later.
\nYou can probably take a bit of a hit on the cash flow for now and afford to fund some of those more negative cash flow properties that you\u2019re going to get growth on sooner. You have to get that growth sooner, because you\u2019re don\u2019t have as big a timeframe to invest in.
\nIf you\u2019re a younger person, you can take more risk on property, so you can buy a property that if it doesn\u2019t work out as well as you would have liked, you have got time to recover, but you can also wait a little bit longer for that growth.
\nThe flip side to that, of course, is that anyone who\u2019s waiting for growth, if they don\u2019t have good savings or equity elsewhere, means that they have a delay in their acquisition of property. Everybody does need that growth at some stage, but everyone has a different need for it.
\nKevin:\u00a0 <\/b>Stay with us. I\u2019ll come back a little bit later in the show and ask Margaret how often she reviews her portfolio, and she reveals the fact that she has a lemon in there, so we ask her why she\u2019s not selling that.
\nThis is Real Estate Talk.<\/p>\n","protected":false},"excerpt":{"rendered":"

  Our feature interview this week is a chat we have with Margaret Lomas who we asked to answer a question from Matt about investing in property in one of Brisbane\u2019s outer northern suburbs. Apparently Margaret said in her Sky TV show that it is…<\/p>\n","protected":false},"author":176692471,"featured_media":5637,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[10,13,25],"tags":[101],"class_list":["post-5636","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-kevin-turner-sponsored-channels","category-latest-story","category-sponsored-channels","tag-podcast"],"yoast_head":"\nDeception Bay or Caboolture? A mistake that many first-time investors make - Margaret Lomas - Realty Talk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/channels.realty.com.au\/realtytalk\/deception-bay-or-caboolture-mistake-that-many-first-time-investors-make\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Deception Bay or Caboolture? A mistake that many first-time investors make - Margaret Lomas - Realty Talk\" \/>\n<meta property=\"og:description\" content=\"  Our feature interview this week is a chat we have with Margaret Lomas who we asked to answer a question from Matt about investing in property in one of Brisbane\u2019s outer northern suburbs. Apparently Margaret said in her Sky TV show that it is...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/channels.realty.com.au\/realtytalk\/deception-bay-or-caboolture-mistake-that-many-first-time-investors-make\/\" \/>\n<meta property=\"og:site_name\" content=\"Realty Talk\" \/>\n<meta property=\"article:published_time\" content=\"2015-09-07T15:00:46+00:00\" \/>\n<meta name=\"author\" content=\"rolanrush\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rolanrush\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"7 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/channels.realty.com.au\/realtytalk\/deception-bay-or-caboolture-mistake-that-many-first-time-investors-make\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/channels.realty.com.au\/realtytalk\/deception-bay-or-caboolture-mistake-that-many-first-time-investors-make\/\"},\"author\":{\"name\":\"rolanrush\",\"@id\":\"https:\/\/channels.realty.com.au\/realtytalk\/#\/schema\/person\/384a57ac9e52cb9bf19896cb15eaa52d\"},\"headline\":\"Deception Bay or Caboolture? A mistake that many first-time investors make – Margaret Lomas\",\"datePublished\":\"2015-09-07T15:00:46+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/channels.realty.com.au\/realtytalk\/deception-bay-or-caboolture-mistake-that-many-first-time-investors-make\/\"},\"wordCount\":1387,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/channels.realty.com.au\/realtytalk\/deception-bay-or-caboolture-mistake-that-many-first-time-investors-make\/#primaryimage\"},\"thumbnailUrl\":\"\",\"keywords\":[\"podcast\"],\"articleSection\":[\"Kevin Turner\",\"Latest Stories\",\"Sponsored Channels\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/channels.realty.com.au\/realtytalk\/deception-bay-or-caboolture-mistake-that-many-first-time-investors-make\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/channels.realty.com.au\/realtytalk\/deception-bay-or-caboolture-mistake-that-many-first-time-investors-make\/\",\"url\":\"https:\/\/channels.realty.com.au\/realtytalk\/deception-bay-or-caboolture-mistake-that-many-first-time-investors-make\/\",\"name\":\"Deception Bay or Caboolture? A mistake that many first-time investors make - Margaret Lomas - Realty Talk\",\"isPartOf\":{\"@id\":\"https:\/\/channels.realty.com.au\/realtytalk\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/channels.realty.com.au\/realtytalk\/deception-bay-or-caboolture-mistake-that-many-first-time-investors-make\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/channels.realty.com.au\/realtytalk\/deception-bay-or-caboolture-mistake-that-many-first-time-investors-make\/#primaryimage\"},\"thumbnailUrl\":\"\",\"datePublished\":\"2015-09-07T15:00:46+00:00\",\"author\":{\"@id\":\"https:\/\/channels.realty.com.au\/realtytalk\/#\/schema\/person\/384a57ac9e52cb9bf19896cb15eaa52d\"},\"breadcrumb\":{\"@id\":\"https:\/\/channels.realty.com.au\/realtytalk\/deception-bay-or-caboolture-mistake-that-many-first-time-investors-make\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/channels.realty.com.au\/realtytalk\/deception-bay-or-caboolture-mistake-that-many-first-time-investors-make\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/channels.realty.com.au\/realtytalk\/deception-bay-or-caboolture-mistake-that-many-first-time-investors-make\/#primaryimage\",\"url\":\"\",\"contentUrl\":\"\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/channels.realty.com.au\/realtytalk\/deception-bay-or-caboolture-mistake-that-many-first-time-investors-make\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/channels.realty.com.au\/realtytalk\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Deception Bay or Caboolture? A mistake that many first-time investors make – Margaret Lomas\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/channels.realty.com.au\/realtytalk\/#website\",\"url\":\"https:\/\/channels.realty.com.au\/realtytalk\/\",\"name\":\"Realty Talk\",\"description\":\"Your Trusted Voice For Property Investing. Anywhere, Anytime.\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/channels.realty.com.au\/realtytalk\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/channels.realty.com.au\/realtytalk\/#\/schema\/person\/384a57ac9e52cb9bf19896cb15eaa52d\",\"name\":\"rolanrush\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/channels.realty.com.au\/realtytalk\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g\",\"caption\":\"rolanrush\"},\"url\":\"https:\/\/channels.realty.com.au\/realtytalk\/author\/rolanrush\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Deception Bay or Caboolture? A mistake that many first-time investors make - Margaret Lomas - Realty Talk","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/channels.realty.com.au\/realtytalk\/deception-bay-or-caboolture-mistake-that-many-first-time-investors-make\/","og_locale":"en_US","og_type":"article","og_title":"Deception Bay or Caboolture? A mistake that many first-time investors make - Margaret Lomas - Realty Talk","og_description":"  Our feature interview this week is a chat we have with Margaret Lomas who we asked to answer a question from Matt about investing in property in one of Brisbane\u2019s outer northern suburbs. Apparently Margaret said in her Sky TV show that it is...","og_url":"https:\/\/channels.realty.com.au\/realtytalk\/deception-bay-or-caboolture-mistake-that-many-first-time-investors-make\/","og_site_name":"Realty Talk","article_published_time":"2015-09-07T15:00:46+00:00","author":"rolanrush","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rolanrush","Est. reading time":"7 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/channels.realty.com.au\/realtytalk\/deception-bay-or-caboolture-mistake-that-many-first-time-investors-make\/#article","isPartOf":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/deception-bay-or-caboolture-mistake-that-many-first-time-investors-make\/"},"author":{"name":"rolanrush","@id":"https:\/\/channels.realty.com.au\/realtytalk\/#\/schema\/person\/384a57ac9e52cb9bf19896cb15eaa52d"},"headline":"Deception Bay or Caboolture? A mistake that many first-time investors make – Margaret Lomas","datePublished":"2015-09-07T15:00:46+00:00","mainEntityOfPage":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/deception-bay-or-caboolture-mistake-that-many-first-time-investors-make\/"},"wordCount":1387,"commentCount":0,"image":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/deception-bay-or-caboolture-mistake-that-many-first-time-investors-make\/#primaryimage"},"thumbnailUrl":"","keywords":["podcast"],"articleSection":["Kevin Turner","Latest Stories","Sponsored Channels"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/channels.realty.com.au\/realtytalk\/deception-bay-or-caboolture-mistake-that-many-first-time-investors-make\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/channels.realty.com.au\/realtytalk\/deception-bay-or-caboolture-mistake-that-many-first-time-investors-make\/","url":"https:\/\/channels.realty.com.au\/realtytalk\/deception-bay-or-caboolture-mistake-that-many-first-time-investors-make\/","name":"Deception Bay or Caboolture? A mistake that many first-time investors make - Margaret Lomas - Realty Talk","isPartOf":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/#website"},"primaryImageOfPage":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/deception-bay-or-caboolture-mistake-that-many-first-time-investors-make\/#primaryimage"},"image":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/deception-bay-or-caboolture-mistake-that-many-first-time-investors-make\/#primaryimage"},"thumbnailUrl":"","datePublished":"2015-09-07T15:00:46+00:00","author":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/#\/schema\/person\/384a57ac9e52cb9bf19896cb15eaa52d"},"breadcrumb":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/deception-bay-or-caboolture-mistake-that-many-first-time-investors-make\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/channels.realty.com.au\/realtytalk\/deception-bay-or-caboolture-mistake-that-many-first-time-investors-make\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/channels.realty.com.au\/realtytalk\/deception-bay-or-caboolture-mistake-that-many-first-time-investors-make\/#primaryimage","url":"","contentUrl":""},{"@type":"BreadcrumbList","@id":"https:\/\/channels.realty.com.au\/realtytalk\/deception-bay-or-caboolture-mistake-that-many-first-time-investors-make\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/channels.realty.com.au\/realtytalk\/"},{"@type":"ListItem","position":2,"name":"Deception Bay or Caboolture? A mistake that many first-time investors make – Margaret Lomas"}]},{"@type":"WebSite","@id":"https:\/\/channels.realty.com.au\/realtytalk\/#website","url":"https:\/\/channels.realty.com.au\/realtytalk\/","name":"Realty Talk","description":"Your Trusted Voice For Property Investing. Anywhere, Anytime.","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/channels.realty.com.au\/realtytalk\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/channels.realty.com.au\/realtytalk\/#\/schema\/person\/384a57ac9e52cb9bf19896cb15eaa52d","name":"rolanrush","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/channels.realty.com.au\/realtytalk\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g","caption":"rolanrush"},"url":"https:\/\/channels.realty.com.au\/realtytalk\/author\/rolanrush\/"}]}},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/posts\/5636","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/users\/176692471"}],"replies":[{"embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/comments?post=5636"}],"version-history":[{"count":0,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/posts\/5636\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/media?parent=5636"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/categories?post=5636"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/tags?post=5636"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}