Forum Replies Created
You could try Monahan+ Rowell who have become part of Colin Biggers and Paisley who should have acess to american lawyers.
Nigel Kibel wrote:Why would you invest in HorshamThe mines and seperation plant Nigel . The projected 1000 jobs created will have a massive effect to a town like Horsham.
NHG wrote:How would that work out of curiousity? Some colleagues of mine are farmers and after hearing the ROI, unless your a large corporation seeking a steady yet small return or an individual who has had the farmland for decades, it is too pricey to buy in and make profitable.It's more a lifestyle choice rather than a good ROI. Would that minimal profit not limit the land value?
Not sure who you are refering to NHG. Ive bought a few blocks of Rura land, the prices paid when transacted are listed on the title first price recorded in 1967 is $640, in 1976 $24,000, in 1993, 90,000 , in 2009 identical land next door sold for $240,000, sold again in 2011 for $280,000, In the last few weeks identical land on the otherside sold for a reported $ 400,000. This land could be leased for $28,000 pa, the only expense would be about 3-4k in rates. To be very general I think rural land hit the top of the cycle a few weeks ago and prices will fall or be flat for a couple of years before taking off again. You need to buy reliable versatile land in tightly held areas with high demand at oportune times. Even despite the high dollars foreign buyers have recognized the opportunities, with arabs and chinese showing a lot of interest. Glencore has been buying a lot if land they didnt become one of the worlds most suceesful companies by making dud investments. While it maybe pricey, it is not to pricey too buy, while the banks may only give you an LVR of 65% I have found the vendors keen to give vendors finance as it suits them( and it may be a no interest payment in installment loan, or low interest loan). I dont know what you mean by poor ROI, on an ivestment that can be practically 100% financed. For me it has been far better than investing in RIP ponzi investing that as no underlying basis. Like any investing it depends on the market within the market, and what is driving prices. At the momment I wouldnt be looking at farm land, but perhaps grazing land perhaps with some potential to farm. Also I know of people who have formed syndicates to buy land for little capital per investor and contol $tens of millions worth of property.
Doesnt matter how much you save it is what you do with it that counts. I started with none when I was in primary school school ,I got ballons at a show given away for free then walked around and sold them. I bought something like 10 Pivot shares for something like $50.00. I would be wary of the investor club, but you may learn something there but if you do buy something do your own due dilligence.
Scott No Mates wrote:Nothing noteworthy or new about landbanking. it is a waste of productive rural land for the purpose of speculating n rezoning & windfall profits pushing farms further away from their markets & increasing the cost of fresh produce.Where did that come from ? Scot. Who said any thing about land banking??
Depends on the specifications, Elders, Landmark BR&C Agents.
Thats interesting Ballerina, In 2009 I Was considering buying a neighboring property but wanted some diversification and wanted to invest in Queensland with so many options and limited knowledge, I went to the Melbourne office. I was told Melbourne is rhe best place to invest . Ye right, best place for them ! When asked about Land Tax, "dont worry about that its neglible" didnt know much about it then. So I went ahead and bought an albatros and slung it around my neck. To find out BC fees are now 4x what they said, got hit with 2.5 k land tax, increasing insurance, vacancy,minor maintainence issues, rent going down instead of increasing 10% as they said every year, while paying increasing rates = compounding debt. Bank wont increase loan as the price paid was at the very top of price range. In 2008 and 2010 I did some developing in regional areas they say are bad places to invest . With one the value of my investment increased 15% in 3 months with 5.5% yeild, the other 10% in 3 years but it is nuetrally geared and the rent is rising. Anyway the neighboring property had a gross yeld of 12% and sold for 480k it sold again 2 years later for 580k , so instead instead of making 80k for the lease and and 100k in CG, Ive borrowed another 60+k to pay the holding cost and CG only cover the stamp duty and acquistion cost. Lesson the grass isnt greener on the other side of the fence. The whole buying process is another long story, but it was like every 2nd week dealing with some-one different.
Ballerina wrote:Hi Landt
We have used them on two accounts: as a buyers agents (in2008) and as a property managers (2009/10). As a buyers agents they have done a great job for us. As a propert managers-we changed them recently. We werent happy. they change staff in property management section too often, employing very junior personel, who did not deliver, as far as we are concerned. We are experienced property developers and know what to expect. they rental estimate was wrong (under the real value). Which was proven shortly, when we secured tenants easily for a 10-20 % higher rent then their estimate.
Are you looking for a JV partner? If so, we may be able to connect you to someexperienced people.
Hi Ballerina would you like to give an indication of the yeild and holding cost of the property? All the staff seem to change Eddie the strategist left and catherine the BA left. I think they may have found some morals. I was not impressed with the <moderator: delete language> spin and attiude of the new strategist. I also find it strange how negative comments about the above are removed from sommersoft forum.
landt64 wrote:Hi Patcon, I have not used Metropol as such but have used Rolf who is a senior broker there and he is very good,and has a very good reputation. I have only heard good things about Metropol. Michael Yardney who is the founder has a regular column in the Australian Property Investing magazine, so maybe you could check out some of his atrticles and get some idea of how he operates. LandtA google search or a squizz at bubblepedia.net.au might change that.
dj_ajay wrote:"They were endlessly baffled by my Australian tax return and even more confused by the fact that it was actually day time in Australia when it was night time in the US."Some Americans are really this stupid….they probably thought you were from Austria.
I had an american, when told I was from australia, say, well from your accent that must be a southern state. Another said your english is good for a foreigner. Another said I have driven from oneside of your country to the other all the way from Melbourne to Sydney, very beautiful lush, green country.
Catalyst wrote:Nigel Kibel wrote:It really comes down to wear you are buying. Frankly I would rather buy a townhouse in an inner city area rather than a house in the outer suburbs. There is a mistaken view that a house with land is a better investment. The reality is the land the townhouse sites on in an inner city area is far more valuable based on a per square foot price. than the land of the outer city houseYep. I was surprised when I got my land tax bill. My 28sq unit in the city has a similar land value as my 600sq land house in the suburbs.
The question is too broad to provide a 1 2 3 answer.
The answer is- it depends. I have all 3. I buy for the deal, not whether it's a house, unit or villa. If the numbers work I buy it.Ditto I have a unit and when I got my land tax bill it value was the same as 4 of my houses.. But the yeild is crap on the unit. It depends on what you are trying to acheive as to what MAY be the best investment.
Feckle, I invested in US property 18 months ago including commercial/retail over that period it has been my best performing investment , with a net yeild of 8% and CG of 4% in the first 12 months . And I am not sharp or nimble.
Yes you own the house but you probably have to pay a lease fee of, 5% of freehold unimproved land values and rates(which increase). I dont think they are a good idea as they onlly give a net yeild of about 2, have low LVRs, about 50% and are difficult to sell.
Sack the account . Every-one here seems to be missing the main point here. Claming or paying depreciation is very trival, when compared to the massive opportunity costs of not having even a few hundred dollars a year tax refund, that could have been invested in the early 1990 s. At that time my few hundred extra dollars I had due to tax saving went into companies before they listed on the ASX for 5 cents after listing they were worth over $3.00 after 10 years worth 8- 13 dollars. The divedends each year are more than the intial purchase price.
You are a bit slow Jess thats old news. In fact over the last 6 months world wheat stocks have risen to a record high. After many years of sustained Land price growth. I think growth will slow, and steady. Nothing can rapidly increase forever . I think yeilds will steady for a few years before increasing again. If you arent aware commodity prices have fallen.
Id go to phillippiines too, but not if you want a sound ivestment, consider it speculating or life style choice, a journey or buffering It is risky investing in PI . You will need to piss in pockets, have contacts in the right places, Buy the police cheif a set of golf clubs for christmas was the first piece of advice I got when investing there. Those with power are corrupt right to the very top. There is no justice the law is the police can do whatever they want and what they want can usually be decided by a donation. I have seen one property get sold to 3 different foreingers in one year, while the owner and all the respective lawyer had a ball sucking them all dry. Have also been at court there when australians have been sentenced to death for drug dealing, to keep the media and every-one satisfied. Stopped at a bar on the way home same day and saw the guys who were supposed to be on death row, having a grand old time drinking and carrying on. When asked why the werent in jail they said they bribed the judge, and now it has all been forgotten about. I know many people who have been setup and thrown in jail, some who cant pay just rot there. I could write a book with endless examples. Have any convictions been made for the ampatuan massacre? Once again alot of noise made then forgotten about? mmmmm allies of a corrupt government? I was in Mindanoa during conflct and saw idiot western government supporting PI army to fight NPA, the soldiers would go home after working as a soldier switch uniform and become NPA. It is all just a game you play in the PI. And for some strange reason those in power are respected and not despized like they should be.
freckle, another thing you and that economist who sits up there in his distant Ivory tower and work out average incomes is that there is so much work there a lot of people can demand to be paid in cash. No cash no workers. There are people on social security benefits working for cash, counted as unemployed , thats is what makes a great place to own rental property, they also get rent assistance, if they atr short of money to pay the rent they can just go and get a day or a couple of weeks work pickingfruit or something. Of course the unemployed will move there, cheap housing. Also the average incopme figures are nonsense too as some people work 2 jobs sometimes one is under a false name the tax man only knows about one . Than the idiot buearocrats wonder why there is so much unclaimed supper annuation. I know lots of examples where newly arrived migrants who arrived own nothing but a debt for there travelling expense after 2 years own a house and a new car, a couple may have 5 jobs between them and they may work 18 hours a day. You know what they say about lies and statistics. Also some of the worker have small fruit blocks and offset there taxable income further skewing statistics.
freckle the link you posted said mildura had a population of 50,000 than you say there are 82 rental vacancies , well you do the sums.
engelo10 wrote:Hi Crusty,How many do you have in Mildura? There is a bright future for Mildura. I have many contacts there and everyone reckons the market will pick up significantly in the next few years. There are many new listings and many sales but prices arent moving upwards yet.
Thanks for your time.
Hi Englo I have 3 built 2 , 3br2b town houses and bought a 4 br 2b brick house. Had 2 others sold one before settlement for 10k profit in 2003 and bought one in 1997 cash flow + and sold in 2004 for 50% gain I think it is good if yuo buy after yhe market is flat as we know the market doesnt go up constantly steadily, it jumps over a short period , which mean it could jump in a few years to revert to mean growth.
I dont know hoe you construe a report saying Irymple can onlly support one new supper market instead of 2 because there are a whloe bunch of new shops and woolworth shopping complex being built 2 k down the road in Mildura as bad?? I would consider it good news if even one was considered viable. You havent got a clue freckle, there are people who dont want to or dont know how to work, one of the problems holding back the region is a lack of competent and williing workers. IF you had a look around you would notice lots of people in mildura from oveerseas many sponsored by their employers because they cant get locals to work or they havent botherd to get the necessary training or skills. I know lots of people who have just went and knocked on doors and got a job. Mildura has a very diverse range of industries more so than most other places some which can easily be swapped. The report you linked mentioned nothing about the record grain production for the last 2 years or that the area was one of the only area to consistently produce grain over the 10 year drought.. IF it wasnt for that region being a reliable producer of grain Australia would have been relying on imports to feed itself. It also mentioned nothing about grazing, meat production or almonds or wool or etc. The revolution in farming over the last 10 years with no till farming has meant increased (X3) production and more reliabiity cropping every year instead of every 3 and higher yeilds as well new varities such as hindmarsh barley that yeild 30% more not to mention more marginal country can be farmed too. What about the new varities of canola that can be grown and high prices paid for it. YOU clearly have no idea what you are talking about there have been fruit fly outbreaks over the last couple of years the industry didnt collapse, the fuit in the designated zone just had to be inspected before it was sent away, and I would expect some countries would only accept fruit grown outside the zone but still from the region. IT aint a small town it is a major regional city sounds like you are a know all about a place you have never been. There is a lot more than just horticulture Also noticed the ecomomist never mentioned the solar power stations they have started constructing or new airport, riverfront development. You cant be serious when you say declining and narrow agricultural base?? Where is the bad news in the report and why post an old outdated report when there have been 7 more up to date ones released since maybe the one that said Irymple house price went up 40% does fit you bias. Most of the factors you mention affect every town so why single out Mildura. You should just tell half the story the period when the shops became vacant was when parts of the mall were closed for a lengthy period due to it being rebuilt some of the buisness were doing so well they moved out to much larger pemises some to 15 th st which is booming so much it is becoming the main retail area . If buisiness is so bad why would Mc Donalds open a third shop. Any way keep looking through your foggy rearveiw mirror, I will be looking through a clear windscreen
