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I think it is time for a new PM if this continues!! I have a feeling though that one less property for a real estate agent is peanuts to them since they are only taking a small percentage of the monthly rent
amil wrote:Sure does help – thanks again Breammaster. Are prices for these type of spec apartments usually fixed or negotiable?They are usually fixed, and because people are always interested i dont think they need to lower them. Definetly do some research into their other project though and see what other people in the forums think of the group
amil wrote:Breamaster – thanks for the guidelines.
Have you heard anything about the Azzura Group and the deals they offer?No probs. I've heard from a developer that the azzure group are quite good. But thats only one person. I know they have a development about to go public which will be one of the biggest developments in surfers paradise. Its called Pacific Resort. They have bought a whole block next to budds beach which they plan on building 4 towers with a amusements park similar to wet and wild in the center. I was going to buy one and hold it cause settlement is not for another 3-4 years and sell it before but i have stretched my finances as it is. You can see their plans and drawings for the building at there surfers paradise retail outlet. I know that 1 bedroom apartments are going for about 520-550K off the plan with settlement in 3-4 years. I think a lot of speculative investors have bought into it with plans to sell before settlement, i am sure plenty will also hold onto them. Only a 10% deposit(deposit bond or bank guarantee is accepted) needs to be paid initially and you have 3-4 years of capital growth before dishing out anymore money. The returns could be quite good though and the body corporate would be reasonable considering the facilities in this place. I think body corporate is something around $100 a week which is about the average for high rise resort style gold coast apartments. Apartments can be rented out through onsite managment or you can get a long term tenant through your own real estate agent.
Hope that helps
Scott No Mates wrote:BreammasterWhat sorts of costs are there on the holiday rentals? Cleaning, letting fee, management fee, & how are these determined/rates increased?
SNM
i dont use holiday rentals cause i find th return with a long term tenant is higher. Not sure on exact costs but the return was on average $20 less per week for the entire year.
perryjudd wrote:Breammaster wrote:1)I have a unit in surfers paradise which achieves a rental yield of 8.5% based on a purchase price of the unit, but based on the loan amount its actually 9.5% yield. We bought this apartment this Feb 2007 so its just before the mini boom in gold coast prices. You can still get the same apartment for about 20-30 grand more and the rental yield would be about 7.4% which is still fairly good for todays standards. Answering your question though, i'd say anything 4-5 % is quite exceptable in the current market.Hi Breammaster. Can you tell me where these units are in surfers with that yield? Are they holiday renals or long term tenanted?
Ive been looking in Brisbane for that kind of thing and those yields don't exist up there.
CheersThese units are long term tenanted but have option for holiday rentals.
Try Paradise Island resort in surfers. Its currently the best value for money in terms of units at the moment in surfers. You can get a 1 bedroom unit for around 200-210K(For now that is) with a return of about 270-290/week. Not sure how long it will stay at this price. I have been following the prices of units in gold coast for the past year and this resort would have to be one of the best investments up there if you are after units. There are a few other ones in broadbeach and which cost about 20K more and offer the same return per week(about $280/week) and body corp is probably about an extra $30 a week. Try these if you cant get one a paradise island.pirate wrote:hi – excuse the ignorance but could someone help explain:
1) ignoring capital yield, what % rental yield would a person seek when searching for a potential ip? if in the current market the cost of finance is approx 8% ? i assume anything less than this would look unfavourable.
2) following on from question 1, assume then we accept nothing less than 8% in rental yield for a property, by doing the sums this would mean for a standard $450k property, you would expect a weekly of rent of no less than $692 p/wk. Im no expert, but that to me sounds highly unlikely.
3) For arguments sake, lets assume now then, 4% rental yield and 4% cap yield. Even at these rates, you would expect weekly rent of $346. However even these rental rates, from what ive seen in the papers etc is extremely high and unlikely?
4) Then theres the notion that property values will double every 7-10 years. Assume then a $450k property will double in 10years to $900k. Are we then, therefore saying that the salaries of the country will also increase in a manner relative to this rate? and at the same time, so will costs of fuel, etc basic commodities.?
1)I have a unit in surfers paradise which achieves a rental yield of 8.5% based on a purchase price of the unit, but based on the loan amount its actually 9.5% yield. We bought this apartment this Feb 2007 so its just before the mini boom in gold coast prices. You can still get the same apartment for about 20-30 grand more and the rental yield would be about 7.4% which is still fairly good for todays standards. Answering your question though, i'd say anything 4-5 % is quite exceptable in the current market. However if you put more of your own money in it rental yield will obviously be higher. The only type of properties you can buy now returning higher then 8% are probably student accommodation style apartments and townhouses. Varsity lakes area in the gold coast is a good example of this. Not sure what the capital gains are like in this area but rental yields are really good.
2)As above, student accommodation is probably best best, but $692/ week on a long term tenant is highly unlikely. Only way of achieveing this is through holiday rentals. Sites such as http://www.stayz.com.au allow you to manage your own holiday house for a little fee.
3)I think $346 for a 450K place in a good suburb is achievable. If you hold on to the property for longer you should be getting a higher average gain then 4% pa if your buying in a decent suburb. Your cashflow is going to determine how long you can hold this property for. Try get a line of credit if you can to help pay off mortgage repayments and any rates or body corp fees etc when needed(much better rate then credit card). I'm trying to get one next year to help pay off things when money gets a bit tight.
4)Not sure the answer to this. Not much of a finance expert
Im 25 so im just a newbie:
*1 PPOR – Bought $325K Inner west suburbs – bought 2 months ago(Value would be much higher now since no new townhouses going under 350K in Melbournes inner west
*1 IP – Bought 175K in Feb07 – Valued 190-200K in surfers paradiseWe havent done anything to the property but looking at what has sold in the past two months in the same building, it has risen between $10000-$20000
If after 4-6 months they allow us to use the equity, can i access the equity in any way to pay for purchase costs of another property which we would get finance for through a different lender.
i live in melbourne. I havent invested in melbourne thuogh because its too expensive. My investments are interstate and i dont wanna invest in properties over 150K since im just starting out
Port pirie ? for 100%. lol. u must be getting sick of me asking
Qlds007 wrote:8.2% variableme and my partner have a combined income of ~80K per annum. Would we qualify for this. We also have a rental income around $1100 a month
Whats is the cheapest interest rate at the moment on a 106% loan for a place between 150-200K
Would this be a 100% loan from another bank? Would we be able to touch the equity to borrow money for things such as stamp duty, legal fees etc and get the 100% from another bank to pay for the investment property.
would Churchill in latrobe city region be available under a 100% mortgage. You mentioned earlier that morwell was. Churchill is around pop of 7000 but its right next to morwell.
To use the equity in our current investment property do we need to use the same lender we used for this property? I was told that it was unlikely that our lender for this property would lend us money on basis of our equity in our surfers paradise apartment. It settled a month ago and they were hesitaant to lend us over 85% at the time due to the nature of the type of property.
Dont mean to sound like a noob, but what are the effects of a interest rate rise besides an increase in repayments for home owners. I ask because in steves recent newsletter he says that the forecasted increase in interest rates shows that the property market is about to boom again.
What would you mean by post code restricted? I was thinking of regional victoria or nsw. Some places that came to mind were Ararat, morwell and taralgon
what is considered a large country town in terms of pop size?
So is anyone able to tell me areas worthwhile for under 100k ?
