[Beth AshtonParticipant@beth-ashtonJoin Date: 2008Post Count: 13]

January 15, 2010 - 12:37 am

Thanks Sonya, google is helpful but haven't found anything yet!

For the salon fitout, I've chosen aero-stringer Bluestone from Rock n' Stone for the wet area that match with some exposed bluestone blocks in the wall, and bamboo floorboards in the salon to add some visual warmth to the room! Can't wait to see the final result – in perspective drawings it looks terrific – will upload photos once complete

Cheers

[Beth AshtonParticipant@beth-ashtonJoin Date: 2008Post Count: 13]

November 29, 2008 - 8:35 am

JMF, at no point in this Post did I state that I was 'experienced with Recession'? I am 25, far too young obviously to have experienced a Recession first hand… again, that's why I made this Post in the first place (for advise)!

Crashy, fyi (and your comments are seriously going no where, as per my previous Comment)… I was a member of PropertyInvesting.com 5 years ago when I first purchased property

Thank you to everyone who has given valuable insight – your Comments have helped out a fair bit! I'm off to invest : )

Peace x

[Beth AshtonParticipant@beth-ashtonJoin Date: 2008Post Count: 13]

November 28, 2008 - 7:58 am

It's doomsday and probably the last time I make a Post – this site used to be a way to communicate with fellow Investors to get the best advise – it just seems that some people like to make it a personal-issue on one anothers intelligence – let's all complain and go to hell : )

Yep, I have gone with a Variable Interest following constructive advise from Richard. As I already told you, I originally Posted my opinion with questions about the strategy – I put my hand up to erroness cos' I'm not Jesus : )

Any one ever heard of 'a glass half full' ?

[Beth AshtonParticipant@beth-ashtonJoin Date: 2008Post Count: 13]

November 15, 2008 - 4:22 am

Just an update – we have chosen a Variable Interest Rate now, however the CBA, smart kids, haven't reduced the Rate as much as I was hoping, following the Reserve Banks decisions over the last two weeks! And if Interest starts to hike up in the future, I've been advised it will only be a $300 fee to secure a Fixed Interest

[Beth AshtonParticipant@beth-ashtonJoin Date: 2008Post Count: 13]

November 11, 2008 - 1:02 am

Hey Carpe

I haven't read any books on multi-developments before but also interested in finding out – if anyone can suggest!

I guess by the time you have read a couple of books and have Surveying, Engineering + Architectural Drawings your plans could sit in Council a while waiting for DA – by which time, the market may have started heading ^ward again? (hopes)

Are you set up as a Company? You should be able to visit your Bank Manager / Lender with your current Property Portfolio stats and borrow for a multi-development through your Company. During the Development process you would only pay Interest anyway, which would keep your cash flow plenty!

If you are registered as a 'Developer' you can have Sales staff (or yourself) selling the apartments without having an Agents Licence – which could save a few thousand bucks if you know what you're doing!

I guess if you pursue development during the big-bad-Recession, you could always opt toward Leasing your apartments as there will be more of a demand with Vendors selling up! I'd suggest discussing both Off The Plan Sales + Leasing options with your Bank Manager / Lender

Congrats on such an achievement with just 15% debt! That's incredible

Beth Ashton

[Beth AshtonParticipant@beth-ashtonJoin Date: 2008Post Count: 13]

November 3, 2008 - 8:15 am

Hey Fed

Builder and Builder's gf in the house….
Structural walls (on the interior) are generally a solid wall ie. brick or block
If all walls in your home are brick, agreed you should contact an Engineer so they can determine whether it's structural!

Good luck!

Beth Ashton
and her bf

[Beth AshtonParticipant@beth-ashtonJoin Date: 2008Post Count: 13]

November 3, 2008 - 2:56 am

Hey Nepash

I guess if you want to make slight increase to the Rental Price of your Investment, you would do a few minor works on the property…

I've worked in Property Management and noticed that generally the Kitchen and Bathroom are the decision makers or breakers… When women are concerned, these are the two main areas in a house most important + most used (for self and entertaining guests!) Go for options which are in your budget, check out Freedom flat pack Kitchens http://www.freedomfurniture.com.au They are pretty stylish, good value + affordable. You can normally install these yourself – or ask a Handy-Man (maybe a friend) to give you a hand!

Because first impressions are important too, you could simply strip your front yard (pot any plants you don't want + offer them to your neighbors for a Christmas gesture!) and lay some lawn (Buffalo Grass is great in a drought!) Roll the lawn flush with the house + add a feature tree (ie. Japanese Maple) that will add colour and shade over the years! Or you could replant your favourite plants either side of the path to your front door… I'm not Jamie Durie but know that with a constrained budget, your money could be better spent elsewhere + this is a simple and cost effective way to tidy up a currently unappealing front yard!

If I were in your shoes and had the same vision (sub division etc), I would first spend a few $$$s on a small reno (and ask friends to help out to save some dollars!) and have the Investment property Re Financed. I would then use the Equity to Sub Divide the block + (1) sell the land; (2) submit Architect Drawings to Council for DA and sell with approved plans; (3) if there was substancial Equity in the property, would Build on the Sub Divided Block with the option to rent out, live in or sell…
…This way you could add value to your Investment (both Equity + Rental) and potentially have the borrowing capacity for a Sub Division, Plans and or Construction of a new Investment property!

There are so many options, but only you know your finances and means… Hopefully these ideas are a start for inspiration!

PS

Make sure to research everything before you make any decisions. Visit your local Real Estate office to find out from a Property Manager an expected rental value for a renovated property + a Sales Agent for an expected market value for a parcel of land with or without DA on plans!

Good luck Nepash 

Beth Ashton

[Beth AshtonParticipant@beth-ashtonJoin Date: 2008Post Count: 13]

November 3, 2008 - 2:23 am

Ps, Richard you might be able to help with long-term investment options ie. Fixed or Variable Interest??

[Beth AshtonParticipant@beth-ashtonJoin Date: 2008Post Count: 13]

November 3, 2008 - 2:18 am

Thanks for your Comments guys!

Aphex, totally agree with inner subs + bayside areas to invest – there are some gorgeous (heritage) apartment buildings in Elizabeth Bay, although most are small studios they are marketed at incredibly affordable prices! And the concept of purchasing property with rarity is great – Art Deco and Edwardian property is hard to find in Elwood and other bayside subs in Melbourne atm, very desirable (not to mention structurally solid + locally iconic for the past 5 decades!)

Just an update:

My partner and I have visited the Bank's Mortgage Consultant who has confirmed our borrowing 'strategy' with some really helpful info including a Variable Interest Rate… I guess at this moment in time VI is a good idea. What do you all think? I know typically long-term investment properties should be a Fixed Interest but I'll have to find out if we can swap should Rates start to rise in the future (have emailed Consultant for his advise also)

I'm looking at a handful of 1 beddas this week inner subs + bayside Melbourne, all under 200K + my partner will be keeping an eye out for any structural defects next week when he flies down

I have also researched local Property Management groups + the fully furnished apartments on their books are certainly exceeding my expectations by means of weekly Letting prices

I will be sticking to my "worst case" scenario however, where any extra $$$'s will be an added bonus!

………………………………………………………………………………………………………………………………………………………………………….

Hopefully we'll all continue to build wise portfolios… with only potential minor hiccups – but remember our greatest glory is not in never falling but rising in every time we fall and we can only look to learn from our mistakes!

[Beth AshtonParticipant@beth-ashtonJoin Date: 2008Post Count: 13]

October 22, 2008 - 3:38 am

1. I have a residual income from a Business in food + bev (consumables) My Client in Property Construction, should his work diminish from the economic crisis approaching, provides me an opportunity for the time being. I am however, prepared for a kick in the pants if it occurs. At no time did I refer to or imply that my 'job' was "super secure"

2. Your third paragraph is good information, thank you. Instead of a slap in the face, I can digest constructive critisism with some reasoning
 
3. My Partners' opinion is always welcomed and I'm glad he voices it! I have a seperate Business Plan and goal objective and I believe as individuals we should, however it would be brilliant to create a property portfolio of rentals with him for our future enjoyment

4. Glad to hear you are positive about opportunities during Recession

Thanks Crashy

[Beth AshtonParticipant@beth-ashtonJoin Date: 2008Post Count: 13]

October 22, 2008 - 12:11 am

Thanks for your "honest" opinion Crashy and congratulations on being the lesser ratio I was expecting

Firstly, in no way was I manipulating anyone – I don't particularly require a tick of approval for my strategy (we're all in control of our own destiny) purely some information for my partner (which was mentioned in the Post). I did propose the question "could there be a better strategy" as well as include some facts I have found through research. I'm not a downer of a person, so if you do have a better strategy for Investing at this time, I'd love to hear it!

"The Poor Guy" you refer to as my partner, is a Builder, not an economic watch-dog, not a property researcher, valuer or architect. I work in Property Development as a Pjct Manager (currently residential construction) and have worked in Architectural, Real Estate (sales + leasing) and Property Development firms and unlike my partner, invested in property before. So before you give yourself a wedgee and make me out to be a crude biatch on the internet for all to see, how about you request all of the facts first

Correct, I am watching property prices topple like everyone else and I'm also noticing high Rental Yeilds in the areas of my investment. As my strategy is to invest for 'the long haul' as already mentioned, it is not a major concern. If the Reserve Bank decides to slash Interest Rates by another 1 to 2 % or more, property owners aren't going to have such a need to sell and prices won't be as negotiable

Due to the Supply and Demand of property in Australia's Eastern Cost, with a strong skilled migration particularly from Asia (China's economy may be feeling the brunt of the Recession, however Professor Angus Maddison uses PPP (purchasing power parity) to forecast China's 23% share of the world's GDP by 2030 – and will quite possibly be the world's strongest economy) so I don't have many quarms about renters, expatriets or skilled migrants paying their lease or requiring fully furnished accommodation 

I am in my twenties and haven't had the opportunity to experience a Recession first hand, which is why I am here and asking if there is a better strategy or to gain confirmation that I might be on the right track. I do, however have the experience of renovating and leasing property and some market knowledge gained through the internet and other reading material

Your Comments are important to me – let's just try and keep this a happy place : ) 

 

[Beth AshtonParticipant@beth-ashtonJoin Date: 2008Post Count: 13]

October 21, 2008 - 5:18 am

Daniko, I work in Property Construction + Developement and most of the Comments above are fair…

Think of the ramifications faulty structural works (including plumbing, electrical) carried out by an unregistered builder could have on the next occupant of your property. It might cost you a little less to have engineering and a qualified builder on board, but the aftermath of a potential accident (down the track) could quite possibly cost you thousands…. or may be hazardous to say the least!

Cover your back – check out Yellow Pages for a list of Builders in your area (and make sure to check their License and Certification!) http://www.yellowpages.com.au

Good luck!
Beth Ashton