[Andrew_AParticipant@andrew_aJoin Date: 2003Post Count: 392]

September 14, 2012 - 9:39 pm

Apart from the depreciation schedule which is one of your best friends as an investor; ditching the self managing is a wise move until you have more experience or probably ever, you tend to attract the tenants who wouldn't bother applying through an office due to their record.

[Andrew_AParticipant@andrew_aJoin Date: 2003Post Count: 392]

September 11, 2012 - 10:28 am

Qlds007 wrote:

Agree with Derek don't hold any NRAS stock in my own portfolio but have financed a few dozen for clients.

Not saying they are all bad or overpriced but make sure your Broker orders an upfront valuation and you get a copy of the valuation report before going unconditional.

You have to ask yourself if the marketing agent (as Derek mentioned) is getting upto 8% of the purchase price by way of a commission is the property overpriced ?

Cheers

Yours in Finance

Good advice about the valuation, I'm yet to see a NRAS property I would personally invest in but they could well be out there. A 8% commission (or anything approaching that insane figure) is going to make you mighty inclined to focus on the better points primarily of the property you are selling  

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September 11, 2012 - 10:23 am

Not sure if you can get it in E-book form but 'Investing story by story' by Jan Somers is a great read for inspiration.

[Andrew_AParticipant@andrew_aJoin Date: 2003Post Count: 392]

September 11, 2012 - 10:22 am

If the development  deals were profitable then that's an obvious choice as pointed out  

Depends what sort of an income you need as well, presumably if you are looking with a longer investing time frame and talking 20%+ p/a returns then it's going to have to be value adding or business of some kind. Not a bad place to be starting from anyway if it's somewhere between 0 and a +600k net position.

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September 11, 2012 - 10:08 am

Likely to help new home developers for a start, don't expect it will have a large impact however. What would be a major boost to the industry would be the phasing out of stamp duty for all buyers in my opinion.

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July 29, 2012 - 4:23 am

Have you explored the chance to use the property as something with a commercial angle? Sounds like a fascinating property, trying to place it but I don’t have quite enough information at the moment

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July 6, 2012 - 4:37 am

Yes good advice about doing as much as possible on friendly terms, that’s useful advice for pretty much everything involving property negotiations, don’t burn bridges unless you absolutely have to.

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July 6, 2012 - 4:20 am

Occupancy isn’t really an issue for any property that is in decent condition, the rental market is quite healthy.

I buy in this area often, generally 480 will be a little tight for a house buyer but good choice for townhouses and excellent choice for apartments. Work with 5.2% gross yield as a rough rule of thumb. All depends on what you are looking for, helps to narrow down the search criteria as much as possible.

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July 4, 2012 - 12:48 pm

Doesn’t sound that bad if you are keeping your family, youth and health! Bought a few houses in that range 50-100k discount from previous sale price in the last year, some crying vendors but it’s really just a question of changing perspective in most cases, still a lucky country!

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July 4, 2012 - 12:42 pm

Quite a large complex. Not necessarily a red flag as it could be a premium location.

Would be inclined to look at smaller complexes for relative yield and land value/content in the same area, or even houses if just for comparison before going ahead, the condition questions are worth exploring though, you would want to know the chance of ongoing problems happening.

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June 28, 2012 - 8:13 am

Can be area specific, are most of the other houses in the street rendered? In terms of a longer term rental would be hard to go past the paint option though.

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June 8, 2012 - 2:40 am

Excellent article, thanks for sharing!

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June 8, 2012 - 1:14 am

Like development it’s important to know your end market, who you will be selling to and for what price, once you own that space you can work backwards through the marketing, renovation work, purchase price/location/property type to work out a detailed feasibility study to arrive at your present position!

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June 5, 2012 - 10:07 pm

Don. wrote:

I think 25bps is a good call. Leaves the RBA plenty of room to move on monetary policy. Don't forget we still have the highest cash rate (in the world?) or up there at least. 

There is still a lot to do in the area of fiscal policy reform and a downturn may speed things up in this area, who knows? Not that we would wish it.

Company tax rates need to be overhauled and there are a lot of restrictions and barriers to entry in many businesses and industries. Look at groceries etc. We need less regulation, more competition with fewer rules but harsher penalties for those that do break rules.

We should not just look to monetary policy as the only brake and accelerator of our economy.  It does not really work because the lead/lag times are to great. We need more competition to control prices and inflation and more spending on R&D to development world class technologies not just (relatively) short term infrastructure projects. We can only hope.

However, nothing gets the property market moving quicker than a new port, road or rail line.

Seems very logical, especially about developing smart industry. Terribly unbalanced economy we have here, still.. whether it’s dumb luck or just luck we are still.. lucky! Which always helps

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June 3, 2012 - 9:38 pm

rusty05 wrote:

I guess it begs the question tho, is an 8% return the minimum that we shoud be aiming for or do the numbers still not work at 8%? I'd be interested to hear what returns people find works for them – Obviously it depends on costs etc because it's a gross figure.
Rusty

It is an interesting question because it directly relates to your investing strategy and what you are hoping to achieve.

Net yield is the key as you point out as we can't define cashflow until we know things such as yield after all costs, heavily influenced by the size of the deposit amongst other things.

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June 3, 2012 - 9:06 pm

They always seem to be clued in about the Brisbane residential market, has to be the best free market update in Australia I think.

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May 27, 2012 - 10:34 pm

Damien Y wrote:

For QLD:

I find information Queensland interactive mapping an excellent way of searching a property to identify its exact land size and which local government it resides in.

http://gis.qld.gov.au/iqed/map/

As Andrew has mentioned a number of larger councils within Queensland use the PDonline system i.e Brisbane, Gold Coast, Ipswich, so on.

As you would expect larger and more develop LGA’s provide a better service for finding out zoning information and the smaller LGA’s with limited resources it is definitively going to be easier to just contact the local council from the get go.

Hope this helps.

Well said, local council are always worth a phone call when talking about higher use for a property, usually pretty helpful I have found.

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May 27, 2012 - 10:30 pm

PFrankyX wrote:

I am based in Sydney, considering my first investment purchase in QLD. I have read that i must use a conveyancer in the state of purchase. Is this correct and if so, does anyone have any recommendations for conveyancers in Brisbane?

Are there any other considerations to be made for purchasing property in QLD?

If you are buying something new then an independent valuation will be the best money ever spent, also an independent building and pest inspection should be done. Otherwise do your research carefully in terms of comparable rents and values, also airfares are cheap so a walk around your chosen area and getting to know the locals will be invaluable.

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May 27, 2012 - 10:27 pm

You just need to have a look at the ownership records to know what a massive impact investors and investor groups have on a town that looks suspiciously like a ponzi scheme such as Moranbah. Plenty of money has been made and will be in the small mining towns but the risks will only be fully known after the fact, also there are other issues to watch out for such as build quality with ‘investor grade’ properties that are brought to market quickly to satisfy the demand. Tread carefully.

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May 27, 2012 - 10:20 pm

Kristin Simondson PBRE wrote:

…If you want a real estate agent to find you the best deal as a buyer no matter which agency the listing is with – get a buyer's advocate…>

Great advice

People should know better… but they often don’t is the issue, a combination of effective regulation and education has to be part of the answer.