Forum Replies Created
JG
It is possible to achieve both positive cashflow and capital growth from regional areas… I know I have.
Cheers
David U
Hi
Who really cares what part of the property cycle we’re in.?
Isn’t it really about making sure that the numbers makes sense (ie we make money) and that we manage our risks for any change in the market?
Why worry or hypothesise about what MAY happen, just deal with the here and now. That’s what I think
Cheers
David U
Hi Peter
I think it was/is just the case of buying under value and the market catching up.
Cheers
David U
Hi
Ask the selling agent what thse costs will be.
BTW what will these properties rent for?
Cheers
David U
Sooshie
I agree
Cheers
David U
Hi
Fullout: No renovations; great condition as is. Both are 3 bedroom.
Property Investor: Overseas as in NZ… Still researching
Cheers
David U
Hi Gordon
I only have 2 properties in the LaTrobe Valley, 1 in Morwell, purchase price $65k, rent $135pw. and 1 in Traralgon purchase price $80k rent $160p.w
Both purchases in Sept 02, both are worth approx $20k more than I bought for them. Have been tenanted from day 1 and are cash flow positive.
I no longer purchase in the Valley although there are still some good buys if you look thoroughly enough.
Local real estate agent in Morwell have a block of units with a 17% return; so deals are still out there. I haven’t looked into this particular property as the area is no longer of interest and I’m looking across the seas for much better returns.
The uni you refer to is perhaps in Churchill, next suburb to Morwell.
Definitely worth looking at the Valley as an entry point.
Morwell still has properties for $60-70k renting for approx. $130+pw. Traralgon entry price $85k + (if you’re lucky) renting for $140 pw +
Hope this tiny bit of info helps
Regards
David U
Yes
What would you like to know?
David U
Hi
Just thought of one:
The government are looking at regulating wrapping and you will need to be accredited to do so in a business capacity in the future.
Fact or fiction?
David U
Hi
I just insure the property for twice the amount that I paid for it
Cheers
David U
Michael
Excellent. Thnaks for sharing.
BTW I’m a great cook! and have done pretty good renovations in the past… Only individual rooms though. Looking at doing the whole hog as soon as I can find a suitable house.
Cheers
David U
Mini Mogul
I think we’re on the same page re: NZ
Maybe we can discuss
My details are [email protected]
Cheers
David UMichael.
Excellent! Sound advice.
One more question: What experience did you have of renovating before hand?
Thanks
David U
Hi Fullout
The bank will have a registered first mortgage over the property and you will have an ‘equity’ interest in the property; ie your deposit + any amount paid off the principle.
The loan will continue to be your ‘liabilty’ until you have completely paid out the loan.
Cheers
David U
Hi Michael
Sounds great.
How long did the renovations take? Any tips/lessons learnt?
Cheers
David U
Yes Fullout
That’s correct
David U
Hi
Nothing wrong with ‘taking shortcuts’ as you put it, I would actually call it leveraging your time.
Our due dilligence is as follows
i) Rental history – Speak to last 2 landlords about payment history
ii) Employment History – Verify employment and salary details; ie call employer, check pay slips. You also may like to check that the company does exist and that it’s not a sham or their best friend pretending to be their employer – Been there… Not good!
iii) Credit check – Wrappees do this at their own expense; it costs $19.95 from Baycorp which they receive in a day or two and then forward on to us.
We return once it has been checked. Technically, we’re not allowed to keep a copy due to Privacy laws
iv) Another thing you may like to do is to visit them at their current residence to see how they live. Because how their house looks like now is how yours will look in 6 months time!!
That’s about it really… Also finally best form of due dilligence is gut feeling…
Forget about the tempting cash deposit and follow that and it’s hard to go wrong.
Cheers
David U
Thanks Terry
My mortgage company are already on the case… and the valuation will be ordered in the next few days.
Does anybody have any pointers about how to get the best possible valuation figure; the growth in my area (as in almost everywhere else) has been great 25% in last 6 months $80k props now selling for $100k.
I was thinking of preparing a list of ‘similar’ properties recently sold and also a curent list of properties for sale to show that the growth is real and not perceived.
Can anybody else think of another data/presentatin material I can supply to the valuer in order to maximise price.?
Thanks
David U
I guess the question is ‘How many can you buy at 90%?’
David U
Hi Terry
What are the steps with just asking the lending institution with an increase? And what’s the ‘normal’ time frame in getting this approved?
Thanks
David U
