I believe that the main point have been covered by the previous replys.   I am not a fan of Hotel units for the main reason that you state in your original post – which are returning apparently 7% – 8% nett return  – If rents do not go up then the value of the unit stays the same as the next buyer is going to want to buy based on the same net %r…[Read more]

this smacks of arrogance and patronism. the members of this forum are the smartest and most educated of any other forum Ive been a member of. you catch more flies with honey…….Crashy, I'm really not trying to catch anything, I am however attempring to help others who may wish to listen.   Perhaps I do come across as a little dogmatic and fo…[Read more]

Members on this site must be very carefull who they take advice from – they must also be aware of exactly what type of investment that they are looking for.   Having only been a member fior a short time, I am beginning to see that the Forum headings should perhaps be altered to reflect the different styles of investing.Are you a long term holder -…[Read more]

nothing in Bris under 300k, head out maybeThat's a rash statement.   I have just sold 2 x  two bedroom units in South Brisbane for under $275,000 and two in Toowong for under $262,000.   They are out there, but you do have to be quick.Jon

Misty, You nearly got it.   Try 10 x 13 or 20 x 6.5 or 8 x 16.25 or 15 x 8.66 etc.  (Divide 130 by any number and the answer is the other side)Jon

I have been to many an auction where either ego or emotion has resulted in massive over pricing….Agreed, but on the other hand the Jenman crowd will have you believe that you just don't bid and subsequently buy a bargin.It just depends on which side of reality you want to live on.Jon

As an agent, I am so much happier when the Buyers are working with a Broker and include us in the communication because at leat we are kept in the loop unlike most Banks and Solicitors who seem intent on treating us a mushrooms.Westpac have just completly stuffed up a deal with one of their clients and are now into penalty rates due to not being…[Read more]

Michael,   THANK YOU, THANK YOU, THANK YOU.I was beginning to believe that Neil Jenman was the Messiah and I had missed something.   Your post reminded me of several stories that I have been told by people who have experienced the other side of the Jenman Conspiracy Theory.   What do they say, if it's too good to be true. it probably is.Jon

Hi Tara,After reading your post, I am of the opinion that this is just another stir up for the Jenman cause and I am probably wasting my breath, but here goes.There are good Butchers and bad Butchers, good Bakers and bad Bakers and good Candlestick makers and bad Candlestick makers just as there are good Agents and bad Agents and good People and…[Read more]

Marc is 100% correct, however I feel that Devo may be emotionally attached to his investment. never a good thing.   Get out mate as quick as you can.   And this from a car buff.   I have seen the market on collectable cars alter very quickly the likes of E type Jags and XK 120's and 150's.Jon

Marc,Yor are quite correct in saying that the shortfall seems rather large, that is beacuse the figure that I quoted is what it would have been from day one of purchase.   I find this very difficult to explain but think of it this way.   He purchased the first unit 12 years ago when the rent return was $120 a week.   12 years on and he now gets…[Read more]

Marc, I believe that you have the combinations correct.   Buy and Hold is in my opinion the best stratergy.  An example of one of my clients.   Started Portfolio in 1995 and now has 10 units – total combined original purchase price of $2,273,000 – annual rent return $146,120.00 – annual shortfall $21,216.  After 12 years, combined property value $…[Read more]

A very interesting thread you have started here Devo76.   Very dangerous to bring Politics into the arena, so i'll leave that alone, but here is a thought that has been going around in my head lately.Labor insists that for the average Australian home buyer, affordability is almost out of reach.   I propose that this is not entirely the case.…[Read more]

Hi Crashy,With the current state of the market (Demand exceeds Supply), I am wondering why any Agent would advise their Vendor to accept a contract with a Sunset Clause.   It leads me to believe that the Property in question is not in a fast growth area.While they are not common, they are often used in conjunction with a 'Subject to sale c…[Read more]

Richard,Not sure that anyone has to be or is right, simply stating my thoughts on the investment.With a commercial loan of $600,000 at 10% and taking into account Rates, Building Insurance, Management Fees,Maintenance and working on a taxable income of $150,000, my calculator still comes up with a $625 week shortfall. on 9% it is $500 and at 8% it…[Read more]

Danish83,On the surface of things, this appears to be a reasonable deal.   At $135,000 per 80m2 2 bed unit, I am guessing that it must be in a outer or remote location or that there are problems with the Building.Showing a 6%gross return, I would want better than that.   The weekly short fall is going to be around $600 and I am thinking that the…[Read more]

Hi Else,Marc's advice here – Don't make a bid until the auctioneer is about to call "3rd and final call" for the first time. is very sound and a ploy used by many experienced bidders.   The Buyers thought process on this method is that, If I don't bid, I will not help push the price up by showing that I'm interested and i'll buy it cheaper in t…[Read more]

I’ve heard of one occasion where someone had to insure the adjoining property to get cover because the owner of the attached property wouldn’t insure it.The Body Corporate is responsible for the insurance of the total building but this cover does not include the inside of the units.   This cover should be obtained by the individual unit owner…[Read more]

 unfortunately there is a poorly positioned easement that extends across the block and down one side, limiting the number of possible dwellings that can be developed on the land.What  sort of easements are they?   Can they be moved?  In some cases drainage and sewerage easements can be built over provided that you bridge them.I mean 3 X 2 bedro…[Read more]

I am interested in developing a 1000m2 block of land with the intention of subdividing and building 3 units. Do you mean 3 units or 3 houses on separate titles?   If the answer is 3 houses, can you not just build one at a time and thus reduce your borrowing.If you mean 3 units then I am confused as to why you would not fit more on 1000m2 (…[Read more]