Hi Steven,
There is a lot of truth in what you are saying:-

The result is before we realize what happened, Rowville went from an unpopular area to an area where housing price shoot over the roof. And now, those who bought in Rowville only 5-6 years ago, they are all laughing.

Sure, this happens often – you might see a lot of renovations…[Read more]

Hi Simon,

looking for over market rent while they have continued guaranteed rental income?

By that, I presume you mean that your friend is bound to pay rent in lieu of the broken lease? i.e. they are “in the gun” for rent until it is leased anew to another tenant.

At first glance, and in my opinion, this wouldn’t pass the “pub test” (or…[Read more]

Hi Steven,

I do somehow get the impression that you make it sound like you have a grudge against new properties or H&L packages.

I’m not sure I’d call it a grudge, but simply that some properties are better for investors than others. And, as you just saw in my response to Cherry, if you have the skills/knowledge/wherewithal to be able to build…[Read more]

Hi Steven,

I do somehow get the impression that you make it sound like you have a grudge against new properties or H&L packages.

I’m not sure I’d call it a grudge, but simply that some properties are better for investors than others. And, as you just saw in my response to Cherry, if you have the skills/knowledge/wherewithal to be able to build…[Read more]

Hi Steven,

I do somehow get the impression that you make it sound like you have a grudge against new properties or H&L packages.

I’m not sure I’d call it a grudge, but simply that some properties are better for investors than others. And, as you just saw in my response to Cherry, if you have the skills/knowledge/wherewithal to be able to build…[Read more]

Hi Steven,

I do somehow get the impression that you make it sound like you have a grudge against new properties or H&L packages.

I’m not sure I’d call it a grudge, but simply that some properties are better for investors than others. And, as you just saw in my response to Cherry, if you have the skills/knowledge/wherewithal to be able to build…[Read more]

Hi Cherry,

Personally, I prefer new house with big land. :)

If you are at the stage where you can afford to build them for yourself (and not be taking some solution product from a H&L developer), I agree with you, Cherry.

;)

Benny

Hi Investor,
If you read all of the words carefully, you will see I was using words like “IF”, “might”, and “could be”.

That means, this was not reality I was describing, but an example of what “could be”. The underlying lesson was that some areas of Goulburn might have a majorly different vacancy rate than other areas, and that you do need…[Read more]

Hi Jaya,
When buying an existing house, I would always get a building inspector to take a look. Maybe a plumber too, if you have a special concern with plumbing.

Re the land – I always like older homes that have big land – especially if the Council is about to re-zone. Going from 17.5 to 30 is nearly doubling the number of houses in an…[Read more]

Hi Investor,

for example Goulburn has about 61 properties for rent, shows cash flow positive which is good but with that many properties on rent whats the chance of someone wanting to rent my property? Should we avoid areas like this?

Good question – I hope the following thoughts might help you:-

It is not so much the number, but more the…[Read more]

Have you been approached by a company wanting to sell you an OTP (Off-The-Plan) property (i.e. it is not built yet, but is soon to be built)? Did they cold-call you? Did they suggest that “The Tenant and the Taxman can make you rich, and help you send your kids to Uni, etc”? And, they likely also asked if you have had your PPOR (your own…[Read more]

Hi Jaya,
That almost sounds like “How long is a piece of rope?”

If you can share what you are wanting from this house, and any/all constraints, like – is it for investment or “own home”, any particular location, return required, can renovate or not, etc it should allow us to give a more meaningful answer.

Don’t forget, we don’t know you -…[Read more]

By itself it is true, but when coupled with my second point, that is just unsustainable.

Fair comment. The answers though still lie within that supply/demand curve. Remove demand, and prices will drop. Or wait a few more years and rents/wages will close the gap once more.

Values don’t grow linearly – they grow more like a staircase in…[Read more]

Hi Steven,

The example you gave relied on a few things:
1. Organic capital growth which is difficult to come by now days compare to 30 years ago

Really? What has Sydney been doing the last 3 years, and Melbourne too? Brisbane is likely to be next…. all part of the cycle, but then each cycle is different to the one before.

2. Rental incomes…

[Read more]

Hi Steven,

The example you gave relied on a few things:
1. Organic capital growth which is difficult to come by now days compare to 30 years ago

Really? What has Sydney been doing the last 3 years, and Melbourne too? Brisbane is likely to be next…. all part of the cycle, but then each cycle is different to the one before.

2. Rental…

[Read more]

Hi Steven,
I guess you might be one of the younger members of our society. Those of us with some grey hairs well recall how the passage of time plays its part. e.g. If you can find some old magazines, or Google for historical figures, do check out the median values of homes in (say) Sydney from the 1970’s through to present day.

You will…[Read more]

Hi KK,
Wow, what an interesting question. Now, upfront, I am not a lawyer or any kind of professional adviser (just so you know) but others on here are, and I hope they step in to assist you.

Meanwhile, I just wanted to give you the “reasonable man” argument and perhaps a few ideas that at least give you a nudge in a direction that may…[Read more]

Hi KK,
Wow, what an interesting question. Now, upfront, I am not a lawyer or any kind of professional adviser (just so you know) but others on here are, and I hope they step in to assist you.

Meanwhile, I just wanted to give you the “reasonable man” argument and perhaps a few ideas that at least give you a nudge in a direction that may…[Read more]

Hi Investor,

Interesting post, I am surprised that buyers agents would even suggest house/land packages especially because they come at a premium and usually aren’t negotiable from what I know.

Good point – there might be occasional situations where a H&L package can be sold at a discount – e.g. where a builder might be in financial trouble a…[Read more]

Hi Investor,

Interesting post, I am surprised that buyers agents would even suggest house/land packages especially because they come at a premium and usually aren’t negotiable from what I know.

Good point – there might be an occasional situations where a H&L package can be sold at a discount – consider where a builder might be in financial t…[Read more]