Hi Damian and Tam,

You are right in that the recent growth, and the timelag in rents increasing, has resulted in rental returns dropping. This means that in general terms ‘off the shelf’ positive cashflow properties are harder to find than they were previously.

Another option is to see if you can identify a niche or missing attribute with the…[Read more]

Hi Martine,

Correct address is http://www.somersoft.com (no au) – Kiwi’s memory was a little hazy[biggrin]

Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.

Hi John,

While the gross rental returns may look attractive the net is another matter. Rates and body corporate fees do eat into your cashflow.

You can also run into ‘tax’ issues when you use the same place as a holiday destinatioon. If it is a holiday destination you want the hire a room for your holiday.

(Upcoming holiday 10 nights $1300 a…[Read more]

Hi Steve,

Further to my earlier post (and don’t take this as a challenge to prove me wrong.

In the last ‘crash’ many of the people who got burn’t were those small time developers who came onto the scene late and expected to make mega bucks.

Hopefully Michael Yardney will pick up this thread as he will be able to add specific comment about the…[Read more]

Colorbond to match the brick work?

The Shire/City/Body Corporate/neighbours may also have a say.

Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.

Hi Zen,

With all due respect it would appear that you are suffering from analysis paralysis. A lot of your posts are of the ‘what do you think about’ type.

I would suggest you go back to your drawing board and work out what you are trying to achieve through property. Then develop a list of property ‘must haves,’ ‘desirables’ and also a list of…[Read more]

Originally posted by nowork:
I have noticed rental vacancies creeping up.

I am curious – where are vacancies increasing?

Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.

Hi Kidrock,

Your own home will be free of stamp duty and vendor tax in NSW. However should your IP be in NSW you will be up for land tax every year and if you ever sell a vendor tax of 2.25% of the value of the sale.

If however you invest interstate you may still be up for land tax depending upon the land value of your investments.

For details…[Read more]

H John,

The greater driver will determine where you invest.

If you budget is fixed at $200k then it will be one of those ‘cheaper’ suburbs. If however you really want (need) the cashflow provided by uni students then you are better off closer to the uni.

Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched…[Read more]

Ho John,

If you are intending to use the valuation for finance purposes you can always ring some of the bigger valuation firms and ask them if they are on the appropriate banks panel.

Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.

Hi Jeff/Tash,

This question gets asked fairly often and you’ll find those that like DHA property and then there are those who do not like it.

Try the ‘search’ button which is located just under the ‘forum boards’ button in the top left corner.

Ultimately it becomes a matter of free choice.

Derek
derekjones1@bigpond.com
0409 882 958
Property…[Read more]

Hi Bwendan,

Why reinvent the wheel. A MSN/Somersoft grooup get togther very regularly as it is.

http://groups.msn.com/PropertyInvestment/general.msnw?action=get_message&mview=0&ID_Message=12178&LastModified=4675509454655429675

Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations…[Read more]

Hi Steve,

With all due respect I wonder if property investment is the right thing for you.

The reason I say this is that your ‘saving effort’ as commendable as it is indicates (to me) that you have a low risk tolerance. And while I believe well researched property is relatively low risk there is still a risk.

And to consider property investment…[Read more]

Hi Jon,

Suggest you do a search of the forum. This topic and reference to Jenman comes up from time to time.

Just under the ‘forum boards’ button is the ‘search’ function.

As always in matters property investment – you need to make up your own mind.

Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property…[Read more]

Borrowing capacity is determined by gross earnings – so in essence this figure is most important when determining borrowing capacity.

Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.

Originally posted by wubbdubb:
has anyone come across these sort of investment opportunities before, and what are your thoughts. i expect that in 4 years when the lease runs out and is not renewed, and i sold, i would probably be in front by a couple of grand.

As per Kwilko’s comments – there are also a number of other comments made in the past…[Read more]

Hi Marisa,

I am not using cashbonds, but they are another bullet I have in the breach should they ever be needed.

A cashbond suits people with high equity levels but who haven’t the income to service additional borrowings.

For example an investor with $150K in unuseable equity can buy a cashbond of 5years annuity @ $30K/annum + interest.

The…[Read more]

Hi all,

A point for consideration that hasn’t yet come into discussion with respect to this ‘myth’ is the changing nature of the ‘household’.

ABS projections (and I don’t have them at my finger tips) point to a decreasing number of people per household – which in part (+ other factors) goes to show why more places (I was going to say houses) for…[Read more]

Originally posted by Brad1m:
did the sums and did the research and at the end of the day thinking that there is more money to be made using a different strategy.

If you identify your ‘different strategy’ you may get some more comments.

For me I am a firm believer in growth properties and will seek these in well researched, reliable areas. A…[Read more]

Nowork,

TRy this thread for some reading suggestions;
https://www.propertyinvesting.com/forum/topic/6845.html

Derek
derekjones1@bigpond.com

Property investment advice and researched property in quality locations available.