[Da ManMember@da-manJoin Date: 2004Post Count: 37]

November 6, 2007 - 11:30 pm

The building is about 8 years old, so I will go with a QS.  Many thanks for your suggestions.

[Da ManMember@da-manJoin Date: 2004Post Count: 37]

September 19, 2007 - 8:56 am

Thanks for your comments.  The place is heading for a mortgagee auction and has essentially been stripped bare.  No filtration or other associated equipment – just an empty concrete pool, with cracks. 

From an IP perspective, I assumed (perhaps erroneously) that having a swimming pool in a tenanted property would be more trouble than it is worth (in terms of mainatenance etc).  What do people think?

[Da ManMember@da-manJoin Date: 2004Post Count: 37]

November 9, 2006 - 4:08 am

Did you buy it 7 years ago directly from the builder? Sounds like you did.
You will really need to look at the terms of the contract and form a view on whether home building insurance or legislation is of assistance to you.
In the first instance, I would seek recourse directly from the builder, but from previous experience I don’t like your chances. If you do not get a satisfactory solution from the builder you might need to seek some legal advice.
What can you do in the interim to protect yourself if you need to take it further?
From a risk mitigation perspective, I would strongly advocate taking some photographs immediately to give you a contemporaneous record of what has happened. It might also be worth having a structural engineer take a look at it to ascertain whether the crack is merely cosmetic or a more serious structural issue. Sounds like it is a tenanted property? If so, the person that heard the crack might be worth getting a written signed statement from them saying what they saw, heard, when etc.
I hope you can sort it out as it sounds a nasty problem.
Keep on the builder. Their tactic will more than likely be to seek to deny liability and frustrate you into giving up. Most people do. Keep at their heels and don’t let go.

[Da ManMember@da-manJoin Date: 2004Post Count: 37]

May 4, 2006 - 1:29 pm

An update!

Same agent calls me to change the booking time for another property he is showing me later this week.

He then talks about the one I’m interested in (with no prompting from me). I feigned to forget which property it was as I have seen so many. [biggrin] Anyways, so he tells me that there has ben “an update on that one”. He said “the tenants have given their notice to vacate and will be out of there by June. No would be a good time to make an offer if you want to move in now, otherwise we are going to have to put it up for rent soon.” he then said we have had a few offers “In the low y’s” – when last week he told me there was an offer in the mid y’s which was rejected.

The way I read this – the owner is committed elsewhere and needs to sell by 30 June ideally. The mid “y” offers are a nonsense.

I am going to get a copy of the contract and a building inspection report and then likely make an offer of low y.

Would be grateful for any tips on what I can read into this or possibel tactics.

[Da ManMember@da-manJoin Date: 2004Post Count: 37]

May 2, 2006 - 12:45 pm

Having read the OSR website, I read the eligibility requirments as being we qualify for the Grant, but not stamp duty relief.

[Da ManMember@da-manJoin Date: 2004Post Count: 37]

May 2, 2006 - 7:04 am

Alistair, no she has not resided in the IP. Many thanks.

[Da ManMember@da-manJoin Date: 2004Post Count: 37]

October 23, 2005 - 9:20 am

Cheers for that.

What do you mean by “sophisticated” investors.

And if IO – then how does one develop equity in the property?

[Da ManMember@da-manJoin Date: 2004Post Count: 37]

November 5, 2004 - 1:16 am

I appreciate your forthright thoughts Derek. You may well be right on the over extending part and no, I don’t have anythign up my sleeve.

I will of course, be going over the figures in more detail when I get back home and get a loan approval, work out a new montlhy budget etc – but I guess I just wanted some gut reactions from people with more experience than me.

Thank you very much.

[Da ManMember@da-manJoin Date: 2004Post Count: 37]

July 2, 2004 - 1:45 pm

DD – yes you’re right – the original poster (moi) IS a novice.

Hence my initial question. This looks like a great forum for the sharing ideas – and I wanted to gauge the opinions of others. Not see the thread degenerate as it did.

[Da ManMember@da-manJoin Date: 2004Post Count: 37]

July 1, 2004 - 10:52 am

Thanks for all those thoughts guys.

I have my own views but am always keen to get other views.

[Da ManMember@da-manJoin Date: 2004Post Count: 37]

June 30, 2004 - 5:16 pm

Thanks for those thoughts – I really appreciate it.

I pretty much agree with everything you say. It seems to me there are a few people who have “over extended” on a 2nd or 3rd investment property in the last few years to try and “cash in” big time in Sydney and even the slightest interest rate movement is hurting these people. This is mainly based on anecdotal evidence. Clearly if a slight interest rate movement hurts you and forces to sell – you couldn’t really afford it in the first place.

I know where I want to buy already. My strategy is to walk in, with my healthy deposit and buy…..come back to the UK again …….keep saving for a little while to bump up my stake in the property……then borrow against that equity….buy a 2nd property……and then live in one of them when I move back to Oz. I am praying that the Aussie dollar dives and dives and dives during this period.

It is a pretty simple and obvious strategy I know – but as I am in no rush to buy, I want to try and buy in when the market is a close to bottoming out as possible and this is where I would like to hear what people think about what Sydney will do in the next say 12 months. I think I’m in a strong position and if I can buy an IP at unders through somebody elses misery – this would please me no end. My thoughts are that there could be some more pain until early 2005. Then might be the time to pounce.

[Da ManMember@da-manJoin Date: 2004Post Count: 37]

June 30, 2004 - 4:07 pm

Originally posted by kay henry:

Da Man,

I think there are heaps of positive greared properties around. Well, cheap properties with rental potential of 10.4% So you buy a property in a rural location, for 50k, and rent it for $105 a week. It’s not hard to find them. It’s whether you WANT that kind of property or not, that is the question- and it seems you don’t, so there’s the answer

Develop your own strategy, and then stick to it if it’s working for you. I haven’t gone down the rural property road, but I bet could still fine 40 properties on the net within a half hour that could have rental potential of 10.4%. As I said, it’s whether you want to go there or not.

But just because I don’t go there either, doesn’t mean that they don’t exist. How many towns are there on realestate.com.au? thousands and thousands. You can find those kinds of properties in an instant. A spotter will check out the properties for you, if you want to pay someone, but any person can find them themselves, independently.

kay henry

Probably a fair comment there.

I am developing my own strategy and hope to get it into action within the next 6-12 months, depending on movements in the market.

I guess my point is – I do like Steve’s book, but it has not convinced me that buying cf+ properties (if I can find them) is the right thing for me.

[Da ManMember@da-manJoin Date: 2004Post Count: 37]

June 30, 2004 - 3:59 pm

What is a bora?

When was the roof built?

When were the subsequent repairs done?

I would get a report done by an expert which outlines a) the cause of the problem b) the possible methods of rectification and their cost.

If total reconstruction is the only way – I would consider taking the report along with you and going to a solicitor experienced in construction law.

[Da ManMember@da-manJoin Date: 2004Post Count: 37]

June 30, 2004 - 3:55 pm

Originally posted by Da Man:

I’ve been tracking a particular Sydney beach side suburb for 4 months and keeping a “dossier” of prices in streets am interested in in that suburb. It is a suburb that I have always liked and I plan to buy an IP, build up my equity, then buy a 2nd IP and move into one of them.

I’ve found that some places in this suburb have been on the market for 6-8 weeks and some places are now being advertised between $20,000 and $40,000 less than they were say 2 months ago. I suspect, you could haggle down a fair way more from these prices.

I am looking in the 1-2 bedroom unit market (possibly art deco style).

I am living abroad and am earning good brass. I plan on building a “war chest” so I have a nice big deposit. I should have around A$60,000 in the kitty by December and more into 2005.

I think I’m in a good position in the sense that it apears to be a “buyers market” in Sydney at the moment (at least where I’m looking). I would like to canvass forum members views on the Sydney market. I am planning on buying and holding. But I am always wary of buying in a down cycle. There are bargians to be had I feel with lots of folks over committed – but my concern is that if I buy into the market in say 6 months time and there is a lot more pain – I might be able to pick up more of a bargain in 2005. I am in no rush so time is on my side. Any opinions on “when to time my run”? I have my own views, but would like to hear from others.

32 people have read this post – but nobody has responded! Come on boys and girls – share an opinion!

[Da ManMember@da-manJoin Date: 2004Post Count: 37]

June 30, 2004 - 3:53 pm

Originally posted by lil_man:

hey guys [cap],

what is the price these days of a cheap house, im tallking something one bedroom one bathroom, nothing special.

i thought it should be about 50k at least but it seems a bit cheap to me. if you can be of help, that’d be great.

thanks![biggrin]

Pretty impossible to answer unless we know which city you are talking about!

[Da ManMember@da-manJoin Date: 2004Post Count: 37]

June 30, 2004 - 11:59 am

Originally posted by The Mortgage Adviser:

You joined the forum today. How interesting.

If you don’t want to discard the 11 second rule altogether, ask for some of the spotters out and about who can help you find the properties you want for a fee.

Concentrating on what I do best… Investment & Finance!!!

© 2004 Mortgage Packaging Pty Ltd

They are probably out there, but it seems to me a whole lot of effort. I just don’t know that the “positive gearing” ethos is for me. Steve had to work hard to find 100 odd properties that give him only $200,000 per annum in income. When I say “only” I realise that’s not anything to sneeze at – but you need a lot fo time on your side to do that – clearly it was wast Steve wanted because he wanted to have that replace the income he earned as an accountant.

I’m making good money and I like what I do. The income I make per annum is almost the same as what Steve makes form his property empire – and I like what I do. So I want to buy an IP for the purpose of having good capital growth over say 5-10 years. I’m under 30 and figure this is a better strategy for my personal circumstances.

I’m not rubbishing the theory – I just think the effort that is required to do it and the stratgey – do not fit in with my personal aims and circumstances.

[Da ManMember@da-manJoin Date: 2004Post Count: 37]

June 30, 2004 - 11:50 am

By the way – I think the free sharing of ideas is marvellous on this forum!