[DaedalusMember@daedalusJoin Date: 2007Post Count: 140]

August 16, 2008 - 6:56 am

I've heard that more than 3 units is usually considered as commercial. Sometimes you might get 4 on a residential depending on the lender.

My understanding is that commercial is almost always 30% at least, but I'm not a broker.

Daedalus

[DaedalusMember@daedalusJoin Date: 2007Post Count: 140]

August 16, 2008 - 6:53 am

Hi Pud,

I was recently surfing http://www.realcommercial.com.au and noticed a lot of 'Management Rights' for sale. Not sure if it's the same thing, but it sounds similar to what you BC could be giving away.

Check this out:
http://www.realcommercial.com.au/cgi-bin/rsearch?snf=as&searchFormSource=advanced+search&a=s&chk=0&is=1&tm=1218869486&cu=fn-realcom&t=com&s=qld&p=10&c=69226999&o=p&sl=buy&cat=3&cat=6&tenure=Vacant&tenure=Tenanted&keys=&minbuildsize=&maxbuildsize=&minlandsize=&maxlandsize=&pm=1000000&px=1500000&pa=pa&minlease=Min&maxlease=Max&return=8&parking=0

Daedalus

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August 16, 2008 - 6:37 am

Hi Chris,

Thanks for your post. I'm interested in the idea of renovating commercial property to increase the rent – therefore the value.

With residential renos there are some pretty standard items such as kitchens and bathrooms that can have big bang for the buck – are there similar areas of focus for commercial renovations?

Also, I assume that the revaluation is dependent on the actual rent increasing, which means taking advantage of the part of the lease that allows rent to be determined based on market value? How does this part of it work to release the equity?

Cheers

Daedalus

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July 19, 2008 - 7:50 am

southeastoz wrote:

Wealth Accumulator wrote:

Hi

Getting a uni degree is about providing choice in the future. I have a client with net worth over $3 million who is frustrated by the fact that he never did get a degree. It shows commitment – and helps lateral thinking.

I worked three jobs when I did my undergrad full time.

You can do it if you have the motivation – get a law degree and do your MBA and you could be earning $ 2mill a year as a CEO – go corporate not legal firm.

Think of the investment portfolio you can build with that.

Congratulations on your commitment to date and your achievements to date.

Thanks, that was the plan, I am doing law with a business degree also, then after that I want to do my MBA at Harvard or Cambridge.  How can I get into the corporate scene, sounds interesting?  Thanks bud.

The "corporate scene" is just a job like anywhere else. To reach these hieghts you just need to build your career profile by working in a number of larger organisations, honing your business acumen and recognising and seizing opportunities. You have the raw materials by the sounds of it – you just need time and practice now

Good luck

Daedalus

[DaedalusMember@daedalusJoin Date: 2007Post Count: 140]

July 16, 2008 - 10:21 am

I've heard of dual occupancies being put through as granny flats, where the full dual occ wasn't permitted, but a granny flat was.

The other thing to consider is your target market. I have an IP with a granny flat, and at first I thought that I could get 2 independent tenants in. The problem with this is those most people don't want a stranger living in their backyard – unless they own the place and the stranger is their tenant.

So my target market became a family with enough people to fill 3 BRs AND a granny flat. Not impossible.

In the end, my tenant is not such a family, but one who really just wanted to live right there, and was willing to pay the extra rent I wanted because the granny flat was there. Having said that, the extra is nowhere near my initial hopeful projections when I thought I might get 2 independents in there…

Daedalus

[DaedalusMember@daedalusJoin Date: 2007Post Count: 140]

July 13, 2008 - 5:55 am

hgwells wrote:

Daedalus,  More to the point, do you know anyone able to do a reno like that for you?  I too would like to do my two places there up a little, both are high sets one has been done downstairs several years ago and needs work, the other one is only half filled in with gaps still and a bathroom started but with only a toilet.  Can anyone recommend a good building team that does this type of renos in Dysart?

Hi,

I'd go up to do the reno's, my brother is a builder on the sunshine coast, so we'd make a road trip of it. I'm happy toexplore the idea of extending the trip and helping you out. Send me a private message if you like.

Daedalus.

[DaedalusMember@daedalusJoin Date: 2007Post Count: 140]

July 12, 2008 - 11:09 pm

With the prices on the up, I'm thinking of doing some improvements on my Dysart place. 

Probably a kitchen/bathroom/builtins + deck reno.

I'd be extending the deck – does anyone know what the local council is like to deal with for that kind of thing?

Cheers,

Daedalus

[DaedalusMember@daedalusJoin Date: 2007Post Count: 140]

July 12, 2008 - 11:05 pm

BuilderBob wrote:

If only I accepted some houses at Dysart when they were virtually giving them away ..lol
Not a hard call for API to predict with the amount of mines starting in the area and the distance to Mackay/Rocky

My hindsight is always 20/20 too

Looks like the asking prices in Dysart have jumped about 90K in the last few weeks – no doubt influenced by the jump in weekly rental. There are now property ads confirming weekly rent at the 850pw level.

Time to get the property revalued

Deadalus

[DaedalusMember@daedalusJoin Date: 2007Post Count: 140]

July 1, 2008 - 6:00 am

BuilderBob wrote:

Daedalus I was speaking with United Group and Leightons about Dysart and they stated just a few weeks ago there was a number of houses that went to auction.  The auction was for rent not sale and some houses fetched $1100 per week.
I never recalled seeing any houses that were worth $1100 or actually of any better value.
As you know they are all very similar …. if your lease is up I would consider a major increase!

Giddyup!!! Thanks for the heads up Builder Bob, my lease renews in October. i hope the pressure keeps up.

Are you still working in the area?

Daedalus.

[DaedalusMember@daedalusJoin Date: 2007Post Count: 140]

June 18, 2008 - 10:19 am

Indeed! That usually happens with speculations that I decide not to go with…

Daedalus

[DaedalusMember@daedalusJoin Date: 2007Post Count: 140]

June 18, 2008 - 9:26 am

JL wrote:

If you are after mining towns why not try south from QLD and check this out.  Iluka mining has requested expressions of interest for positions at the new mine intended to open in Northern Vic late 2008.  The two towns closest still have property at around $70k.  Maybe a bargain to be had?
http://www.iluka.com/?page=mbsexpressions
Kind regards,
JL

Good hunting, but unfortunately these are too cheap for me. Having made some enquiries, the rates, insurance and maintenance conspire to be a rather large proportion of the gross income. So even though the gross yield is quite high (70K/100pw = 7.4%) the rates are about 16% of that. So the whole thing becomes pretty cash flow negative. Rental income would need to almost double to make it stack up on cash flow. This might be possible during the mine construction phase, but I doubt it would continue after that.

If you're into speculation though, you only need a modest increase in capital gain (and a buyer of course) to get a decent return on investment. The percentages could be big, but the dollar amounts are small. e.g. you could make 20% capital gain and you only end up with 14K before costs.

It was quite enjoyable to research though – thanks for the lead!

Deadalus.

[DaedalusMember@daedalusJoin Date: 2007Post Count: 140]

June 14, 2008 - 11:23 pm

For anyone who is interested, I ran the above ad and attracted a high level of interest. I ended up selling in just under 4 weeks in a cooling market.
Ironically, even though I targeted investors, the buyer was a first home buyer and will move in when the current lease expires.

Go figure.

Daedalus.

[DaedalusMember@daedalusJoin Date: 2007Post Count: 140]

May 31, 2008 - 7:46 am

Hi Tony,

Welcome.

There's a difference between investment and speculation, although a lot of people can't really tell the difference. With an investment you are buying an income. With a speculation, you are putting some money down in the hope that it will become more money at some time in the future. This amounts to 'taking a bet'.

Whether one is better than the other is up to the individual. Think about it though, one of your options is an investment, and the other is a speculation – a bet. Which are you most comfortable with?

Both will cost you money every month, so in that sense even the Penrith unit has a bit of speculation about it, because you'd only put money into it each month if you thought it would increase in value later on, right? So, even though it's an investment, the question is whether it's a good enough investment for you to buy.

Keep in mind that you have a 3rd option, which is to keep saving and researching until you find a property that's a great investment. That's the one you should go for. You're doing great already with your savings accumulating, keep going!

In the meantime, read some books and think about whether you'd rather go for investments or speculations.

Daedalus.

[DaedalusMember@daedalusJoin Date: 2007Post Count: 140]

May 27, 2008 - 6:28 am

Hi GlenNess,

When I visited Clermont, it didn't seem as gung-ho as Dysart and Moranbah, although I've read recently that there is some new major mine activity in the area. Clermont is also a rural centre, so you are a bit diversified. Having said that, the yields were lower when I was looking about 8 months ago.

With regard to investing from a distance, I bought both my properties up there sight unseen. You really just need to do your research and make sure you get building & pest inspections. I've since been up a couple of times to inspect and do maintenance, and the properties were in line with my expectations. I'm based in Sydney BTW.

Daedalus.

[DaedalusMember@daedalusJoin Date: 2007Post Count: 140]

May 26, 2008 - 6:58 am

I don't, but I think Bob does

Daedalus.

[DaedalusMember@daedalusJoin Date: 2007Post Count: 140]

May 4, 2008 - 8:19 am

Hi MAK,

It's hard to tell, because it's a small market. However, from discussions with REAs up there, tenants will prefer properties with better facilities. In particular, entertaining areas/decks etc seem to be popular. So this would give you an edge in attracting tenants and higher rents. This would have to be an advantage, although you'd need to work out the return on investment to make sure.
There does not seem to be a big market for the quick reno and re-sell, as there's simply not a big market.
I think aircon, a good kitchen, bathroom and deck would be a winning combination in these areas.

Daedalus.

[DaedalusMember@daedalusJoin Date: 2007Post Count: 140]

May 4, 2008 - 8:06 am

Hi Steve,

Another thing I meant to ask at the conference about this stuff…

I got the impression that your marketing was based on a sale by vendor arrangement – i.e. not using an REA?

The property that I'm selling is in another state, so I can't easy arrange inspections etc, and importantly, do the selling. Therefore I'll need to use a local REA. I'm guessing this will lead to some challenges when it comes to controlling the advertising.

What is your experience with this type of scenario? Do REA's tend to be finicky about their advertising rules?

Cheers,

Daedalus.

[DaedalusMember@daedalusJoin Date: 2007Post Count: 140]

May 4, 2008 - 7:49 am

Thanks Steve,

I really appreciate your feedback. This is quite an interesting process. Here's my second draft, hopefully it has a bit more bite

Want a high-performing, low stress investment?
This one ticks ALL the boxes – it's a high growth, hassle-free investment for a smart investor to snap up fast.
The 2BR, 2-storey townhouse in a small, private development is situated in a prime position within one of the most consistent capital growth areas of Australia. Centrally located within 3mins of Sunshine Plaza, schools, Maroochydore town centre and beaches, this property will always be in demand from tenants – for you that means both capital AND rental growth.
Less than 12 months old, featuring built-ins and quality fixtures, maintenance costs are minimal. The dream tenants have been in since new, so you will earn income from day one with no addional letting fees. Weekly rental has increased in line with booming rental demand at each lease renewal, with a new 6 month lease just signed.
A full depreciation schedule has been prepared so you can maximise your tax deductions immediately and improve your cash flow straight away.
This is a smart investment, offering trouble-free returns, capital growth and excellent yield.

It's a great deal for the fast-acting investor. How great? Call now to find out!

Thanks again,
Daedalus.

[DaedalusMember@daedalusJoin Date: 2007Post Count: 140]

May 3, 2008 - 4:43 am

Hi Mel,

Congratulations on your article, by concidence it was on the table next to me when I read your post. You are off to a great start!

The Middlemount development is being built by Dale Shearer, although I don't know how it's going. It was in very early stages when I saw it in January.

You would be in a great position to understand the mining industry.

All the best,

Daedalus

[DaedalusMember@daedalusJoin Date: 2007Post Count: 140]

May 1, 2008 - 10:38 am

Moranbah is a much bigger town, around 11000 people I think. Dysart would be under 4000.

Moranbah is not as central, but yes, closer to the coast (a little). It is between 2 pretty large mines.

Dysart is further from the highway, but centrally located amongst a larger number of mines and smaller mining towns. It not only provides accomodation for the mines and works around Dysart, but also overflow accomodation for the mines and works around the nearby towns, in particular, Middlemount.

Daedalus.