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I live in Melbourne but have bought, renovated and sold property in the affordable North Geelong area (postcode 3214).
These posts seem to ignore the signifcant on-costs: transfer (stamp) duty, registration, legal, insurance, holding costs, etc.
These on-costs preoccupy me as they are significant and add no value.For example, in Victoria, on a $350k property:
– Transfer duty alone is $16,070 ($10,675 in Qld, $11,240 in NSW).
– Registration, legal, insurance add another $2,000.
– Finance cost? Depends on your setup costs and interest cost you need to pay until property is rented or sold but not trivial.So, in Victoria,allow around $20k on-costs if you keep the property as a rental investment. If you sell for $450k+ you have the additional cost of Agent and ads, around $10k.
So how do you take on-costs into account?
A useful transfer/stamp duty and registration calculatorfor all States is at http://stampduty.calculatorsaustralia.com.au
I know transfer duty is reduced for a first home buyer and PPOR but thta is more a one-time opportunity and not regular investment.I also believe you need funds to cover a deposit of 20%, the on-costs and reno costs. You may source this from another property or your home if you have that flexibility.
I began looking in Norlane around 2000 and decided an unrenovated 2 bedder on 600 sqM land (ie the lower quartile) at $60k was too expensive.
I revisited in 2007 and prices were then around $115k and bought a few, renovated around $10k and rented $120 pw. I should have bought in 2000!
I have since bought a few more and sold some in Norlane. Tenants have ranged from good (one bought the house) to not good (evicted and lost around $1000 in rent and repairs).
Currently an unrenovated 2 bedder costs around $170k and 3 bedder $180k. Stamp duty is a pain but it is a progressive tax so relatively cheaper on cheap homes. For investors SD is $2870 on 1st $130k +6% thereafter reducing to 5.5% after $960k. So $4670 on $160k + another $512 for registration.
Invest a further $10-15k renovating bathroom, kitchen, repainting, polish floors, landscaping, etc but no structural renovations and avoid asbestos roofs ($9+k to remove and replace with colorbond) and rent for $230-$240 pw (extra $10 for 3 bedder). Rates and water around $1600 pa.
Not sure what NewNorlane will do (google it) but I think it is positive to help gentrify Norlane in the medium term.
As for growth: prices have been stagnant with a median around $195-200k for past 2 years …… but Melbourne has been stagnant too (possibly down 5%). But Norlane is the cheapest suburb in Melbourne and/or major Victorian cities. It is close to the bay, 8k from Geelong and 50k from Melbourne. It is somewhat an industrial area and at the lower socio-economic range …….. but 35 years ago I lived in South Melbourne and looked across to Port Melbourne and though "who would want to live there?".
Like many others I have followed this forum topic with interest and have commenced my own research.
I note Miami-Dade does around 60 online auctions/day at http://www.miamidade.realforeclose.com/index.cfm. You need to register but it is free.
Many of the auctions are cancelled or “won” by plaintiff but a number each day are won by third parties. A prepaid 5% deposit is required and balance must be settled by noon next business day!
The information available is quite extensive. It provides historic, current and future auction detail.
I am surprised no one has mentioned this site in this forum as it would seem to be a primary source for Miami buyers. Is anyone actively using it? If so have you made any bids, successful or otherwise? I like specific examples and this site provides them.
As an example I am looking at (not an active buyer for it) a property that seems similar to BB’s target. It is for auction today (overnight Melbourne time).
Property had Final Judgment Amount: $1,745,019.98 Wow!
Property Address: 8070 HAWTHORNE AVE MIAMI BEACH, FL 33141
Assessed Value: $362,364.00
Zillow Zestimate®: $516,500 Value Range: $346K – $547K.. It last sold on 12/06/2005 for $1,700,000
It is on land 7500 sq ft. It is a 2061 square foot single family home and has 4 bedrooms and 2.0 bathrooms.
It has water access to the ocean. A nearby property is on the market for $525k.
I am interested to see how this sells but there are many more each day.
