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I see people buying smsf property outright (or on very low LVRs) when they are nearing retirement quite commonly. For folk who like owning property as a pure assett class to generate rental returns for retirement income it works, as long as you target higher yielding properties. For example currently I am searching for a small block of units for an smsf and they are not intending to sell for capital gain but keep long term and use rental income to buy milk and bread during retirement.
The main difference in their mind is that the assett is tangible, the rent is reliable, the problems are quantifiable. We can all make arguments for/against shares and dividends and other income streams but each person needs to live with the risks they take on. Some people are sceptical about stock market crashes or dividends disappearing in future. For them it makes sense I guess.
As mentioned above you still need to keep SOME buffer funds because you need to cover costs, emergencies, rates/insurance when properties are vacant etc so I would proceed with caution and set aside a good amount of cash still. Also as mentioned the wisdom of using 80-90% of a fund to buy 1 property is pretty questionable, very little diversification there. So… if you have enough cash to buy several properties outright AND some shares AND some cash then I would think go for it if you are nearing retirement and just thinking about income. Choose your locations carefully as you don’t want vacant properties if you live on the rent!
If you are young and have limited funds, then this could be a bad idea and the leverage is much more attractive longer term. Not financial advice of course, get expert help before doing anything.
BuyersAgent | Precium
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Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
“is it worth giving up an amazing view as a result?”
Yes, yes it is. If you are going to be uncomfortable all year the view will lose its appeal fairly quickly. Resale will be more focussed on confort and NE aspect too in many cases. I agree with Benny that OTP is really risky right now, please be careful.
BuyersAgent | Precium
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Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
e) I look at it, but it is only one measure amongst many, and it is a lag indicator not a lead one. Past performance is no predictor of future performance. Sometimes the opposite in fact. Look at new trends, demographics and infrastructure then work out your lead indicators, then make an informed choice about where to buy.
BuyersAgent | Precium
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Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
I would ask to see a copy of the valuation.
BuyersAgent | Precium
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Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
Hi @red-feather I run a group buy access program to RP Data and Pricefinder which both offer listing history for properties. Email me if required.
BuyersAgent | Precium
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Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
Just bumping this old thread. I run groups with authorised nationwide access to Pricefinder and RP Data currently. Email or call me if required.
BuyersAgent | Precium
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Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
Just bumping this old thread. I run groups with authorised nationwide access to Pricefinder and RP Data currently. Email or call me if required.
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
Pricefinder and RP Data are the best tools for this job. You get current days on market and historical price changes which are invaluable for heavy negotiating. Yes there is a cost but 1 good deal can easily pay for the data 20-40 times over. I coordinate national group access for both (fully authorised – each user gets own login and no shared logins, blackout times, usage limits or shady deals) cheapest in the country that I know of.
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
Recently i have good holiday in Goldcoast. We are really enjoying the time there. The apartment is relatively cheap comparing to Melbourne (where I live). I am also considering when retired, may spend the Winter there (for example 3 months) to avoid the Melbourne cold-wet weather.
However, many people said that the apartment there is not increase in value (last a few year it is acutally dropped in price.). However, the view of the apartment is fantastic and is apealing to us.
Anyone can give me an insight view of this highrise apartment (southport central for example) for investment?Hi Simon – this sounds nice and lots of people love the idea of a cheap unit after a holiday when they live in an expensive capital city. The issue isn’t the cost. The issue is whether it is a good investment. Lots of small highrise units are low on land content, have high strata fees and below 50sqm can be very difficult to finance and may struggle to achieve capital gains. It is important to buy something in a quality market and of a fundamental property type that local people will want to live in and buy and rent it or else you will be paying inflated interstate price with no exit strategy. Keep using your head to check things and it might work but don’t buy on emotion alone. You need to check the vacancy rates and strata fees and rental returns as well as thinking about scarcity which is the thing that will drive capital appreciation. All the best!
BuyersAgent | Precium
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Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
Not many +cf options sub 400k unless you go a bit rougher and further out, even then its a struggle. What about house in Logan council for circa 300k plus reno or gf to get the returns up?
BuyersAgent | Precium
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Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
Hi all. I am new to forums but am hoping someone here may be able to help please. I have a subdivision project on the go and have run into problems with storm water. The block slopes slightly to the rear with a house on the front top corner. Engineer advises that fill will create a pooling problem for the front block and has suggested an infiltration pit in rear block (which will take up 50m2 of a small block) or access to kerb and channel via rear neighbour. I am trying to replicate a subdivision a few houses down and asked how they managed this situation. I have been advised that had theirs approved on the basis that the proposed finish floor level for the new house will provide a positive fall to the street, giving them a “charged line”. This was approved a few years ago and a new town plan is now in effect. I do not have any building plans required to complete my project and expect this may hinder my argument for the same. Can anyone make any further suggestions as to how I can address this situation? Many thanks in advance.
This is a super common problem Im sorry to hear it has hit you too. Many people think block size is all you need to consider but drainage wrecks half the development sites I look at. Charged systems are great if you can get council to approve them. A bit of fill, an onsite detention system (rainwater tank) on a slightly raised pad, or a combo of gravel pit plus tank etc or else if the slope is too much and council not playing ball then the easement to drain out the back through neighbouring property is a must. If it makes the dev possible i wont hesitate to make offers of $5-10k to neighbours for the inconvenience of putting a drainage pipe down their side fence.
BuyersAgent | Precium
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Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
Hi all,
I am looking for positive cashflow areas with capital growth potential – I’ve traditionally invested in properties in NSW (where I live), however I am open to looking in other areas. I’d be most comfortable with East Coast states – i.e. Qld, Vic, but open to other areas if the numbers stack up.
Assume 5% bank interest rate for the figures.. I just need to know which areas you all think would be worth exploring. I did look at Logan in Qld a few years ago and was close to buying a townhouse but the building inspection didn’t check out.
I’m also OK if the property breaks even, and if it has excellent growth prospects I’m happy to consider something that makes a very minor loss each year.
Look forward to your thoughts. Thanks all.
Best regards,
AjayHi Ajay,
There are a few properties fitting this description down south and up the coast too – its more about finding the right property so sometimes when a client of mine has a positive cash flow brief we will highlight 2 or 3 areas with some growth potential and then hunt for the right deal. Do you just want to cover your mortgage or do you want genuine positive cash flow assuming the deal is fully funded with debt? The second is much harder than the first.
BuyersAgent | Precium
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Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
Hi Dean,
Thanks for your response. I am going to hit up Elan Legal once I have my plan somewhat firm.
Thank you again
ManiBest of luck Mani – also bear in mind location and growth potential plus current cash flow when investing from overseas. I often talk to expat clients plus the occasional foreign investor under FIRB rules it is a little more tricky to get a sense of the market accurately from away but despite a few extra hoops to jump through not impossible.
BuyersAgent | Precium
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Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
I understand it is required so they can represent me in auctions ?
It’s one way of doing it but there are others. You could just sign the contract yourself, appoint them as your agent or they could act as your nominee.
Terry is right there are other options. Some Sydney BA’s might do this as they do so many and things move quickly enough to justify, I prefer not to as a general rule (nearly did once with an overseas client but bought private treaty instead in the end and used mighty express post) As long as contracts can be signed and sent and deposits paid from offsite you can often get around it. The other reason might be concealing of identity if for some reason the vendor would be influenced by who the buyer is and wont sell or would inflate the price.
BuyersAgent | Precium
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Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
@peterfromsydney if the ACT peculiarities are an issue have you considered Queanbeyan? NSW rules, Canberra market exposure.
BuyersAgent | Precium
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Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
It’s interesting to see now post budget that no wholesale changes were made but the nibble at the entitlements is there for sure. They appear to be cherry picking the things that will give the most political reward (from the non investing angry hoards) by choosing to target travel entitlements after so much media on politicians travel last yr. For those of us who own property interstate, it’s a bit rude but I guess it’s not going to influence my purchase or selling decisions realistically anyway at this point.
BuyersAgent | Precium
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Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
Hi,
Other than going down the complaints route that sounds interesting. How did you go with it?
PS if you want to make a complaint on gumtree
https://www.gumtree.com.au/scam-security-centre/report-issue/For future reference if you have a good property manager ask them for a list of reputable trades in the area, this will eliminate the time wasters.
Matt
BuyersAgent | Precium
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Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
If those changes did come in and a herd of not so committed property investors left, this will reduce supply. Serious investors will win from any short term corrections in overpriced locations, other locations will just stagnate for a yr or two but rents will rise due to the structural changes in the market metrics. Yields will go up and property owners will win eventually (the owners of the assets usually do in the long run). Make sure you don’t overstretch your debt on low yields. Make sure you have some buffers. Buy for value and profit not tax. These things have always been and will remain true.
As a side note there are also still many markets in this country and I am seeing a number of them just getting started after 10+ yrs of zero growth. The ripple of capital out of Melbourne and Sydney into lifestyle destinations for baby boomers to spend $ in is an established trend and doesn’t rely on debt or tax rules. It will continue as long as boomers are at the correct age to make a decision to relocate their lives and their money. Younger families are becoming more mobile thanks to the internet (and improvements such as NBN) and are often no longer tied to CBD jobs. This trend will also continue as long as internet based commerce continues.
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This reply was modified 6 years, 11 months ago by
BuyersAgent.
BuyersAgent | Precium
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Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
Forgot to say if its shower or bath, and going to get hot water on it make sure the product is rated for that or it will peel when heating up but kitchen cupboards and bathroom, splashback tiles not such a problem. Also I don’t use it on floors as foot traffic will wear it off.
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
Hi Benny
What experience does anyone have with resurfacing kitchens & bathrooms? does it last if done well?
Thanks
SHi,
Sounds like a plan. I love ugly ducklings. I have done a few resurfacing jobs back in the day. It works to save $ and buy time before a proper reno (I would never bother with resurfacing for resale, the market knows so just do things properly) but to make gaudy colours white for a few yrs its totally fine. Prep is everything. Zinzer oil based or white knight are both good products, just clean soap and grease off surfaces obsessively, then sand with fine wet and dry sandpaper. How much time you put into this will determine whether it comes off or not. White Knight, tub n tile or any decent oil based gloss over the undercoat hold up well if given care and time. Tell your tenants not to scrub, just spray and wipe to clean it.BuyersAgent | Precium
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Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
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This reply was modified 6 years, 11 months ago by
