Forum Replies Created

Viewing 16 posts - 1 through 16 (of 16 total)
  • Profile photo of mrdenn1smrdenn1s
    Member
    @mrdenn1s
    Join Date: 2007
    Post Count: 18

    be careful on how much you pay. The prices quoted in Aus are inflated by 30% – 50%.

    A decent townhouse on or near water and near Manilla or any other major city will return around 10% RR. Capital growth will not be anywhere near the 7 – 10 yr doubling like here in Aus unless you have teh right land.

    If you want to buy there, make sure you visit. The legal system works just fine.

    D

    Profile photo of mrdenn1smrdenn1s
    Member
    @mrdenn1s
    Join Date: 2007
    Post Count: 18

    Try Loiuse Vale at CBBR
    0448 047 365
    [email protected]

    Profile photo of mrdenn1smrdenn1s
    Member
    @mrdenn1s
    Join Date: 2007
    Post Count: 18
    michaelparis wrote:
    Why pay others for their efforts by buying their new units?

    What a silly thing to say!

    It comes down to:

    1) What is your strategy
    2) What are the numbers

    Example, I prefer passive IP's. I have no desire to redevelop sites, etc. I am not that aggressive and I dont have the interest. I buy primarily OTP units / appartments so I dont have to worry about any maintenance (usually), I get full depreciation allowance and they are easily tennanted. Furthermore, I get capital growth over the time of the build for the cost of a deposit bond (virtually nothing)

    To further illustrate, my last purchase was an OTP 2 bed 2 bath unit in Cairns. Bought in June 07 for $289k. Settles in 2 weeks from now. 2 other vendors in the 18 unit complex have already flipped at $335k and $340k for the same floorplan. $320/week tennant already confirmed.

    Now, if i sell today (which i wont), I have made a 17% return in 6 months approx on a deposit bond, I have a 5.5% RR approx, I have no maintenance issues and I have full depreciation allowance

    Why is this a bad strategy?

    Profile photo of mrdenn1smrdenn1s
    Member
    @mrdenn1s
    Join Date: 2007
    Post Count: 18

    Chan and Naylor seems to be aligned via referral to Metropole. I know of at least 3 metropole clients who where referred to them.

    If you read the C&N website, it is strongly worded IMO as to why you should pay them, rather than "what is the value to me".

    I dont like this type of approach personally

    Profile photo of mrdenn1smrdenn1s
    Member
    @mrdenn1s
    Join Date: 2007
    Post Count: 18

    Should have woken up and developed the land himself….or held onto the block as the developer would have bought a similar block eventually, as others would…gentrificating the area and driving prices up across the area

    What suburb?

    Profile photo of mrdenn1smrdenn1s
    Member
    @mrdenn1s
    Join Date: 2007
    Post Count: 18

    Go see a financial planner….in fact go see a few of them

    Get the info from experts and then decide.

    If it was me, I would Buy a place if you are not a good invester as this will force savings and earn you capital gains over time.

    If you are a good invester, keep renting and use your $40k to buy an investment property and rent it out. Top up the negatively geared difference and pay interest only. Then in 3 years, assuming there is a capital gain of 10% compounding, rip out the equity and go again.

    Profile photo of mrdenn1smrdenn1s
    Member
    @mrdenn1s
    Join Date: 2007
    Post Count: 18
    Profile photo of mrdenn1smrdenn1s
    Member
    @mrdenn1s
    Join Date: 2007
    Post Count: 18

    Hi tracey,

    Can you post the link for all? I would also like to see it

    Thanks

    Mr D

    Profile photo of mrdenn1smrdenn1s
    Member
    @mrdenn1s
    Join Date: 2007
    Post Count: 18

    F may have a point …

    F, how does it work in Europe / UK where more density in population and older money therefore longer times to build wealth? How does the market work there? what are prices versus income? Is Neg Gearing allowed?

    Maybe this will allow us to peak into the future?

    Profile photo of mrdenn1smrdenn1s
    Member
    @mrdenn1s
    Join Date: 2007
    Post Count: 18
    foundation wrote:

    Hey Mr D.

    I'm thinking about your comment algebraically. If I can establish a limit for what is possible at a national level, and you can identify a small minority of properties that will exceed this limit of possibility, then the remaining majority of properties must perform below and not at this limit, right?

    And flowing from this, if property investors are best at identifying these properties, every additional property purchased by an investor will dilute the overall performance of investment property, right?

    Cheers, F.

    Bad assumption my argumentative friend.

    There are thousands of good investments around Aus. Just like there are good and bad shares to buy.

    Anyhow, pointless debate. If everyone did and believed the same things given their exposure to the world and how they interpret it, then what a boring place it would be.

    Profile photo of mrdenn1smrdenn1s
    Member
    @mrdenn1s
    Join Date: 2007
    Post Count: 18

    Foundation,

    Good analysis…maybe even brilliant. But I can't commit to an analysis rating as your graphs are way beyond me

    However, there is a major issue I have with your thoughts that buy and hold is not preferred. I think you may have used the term "wishful thinking"???

    Australia is a big bloody place…..god knows how many towns and cities, further disected into suburbs and streets with different attributes.

    This is the beauty of long term property investment.

    Maybe most of Melbourne cant keep up 10% CAGR. But I bet i can find at least 50 properties in the whole of Melbourne that can. I also reckon i could find another 50 in Adelaide, Brisbane…hell ….even the Cairns Northern beaches  My favourite new suburb is Footscray. Its a hole of a place, but there are a few little nooks and crannies that offer city views that cant be built out….quality asset.

    Its about what you buy and the drivers that push its growth.

    To take blanket stats and apply them to all properties is a nice sell….but not a good enough sell 

    Now go back to your figures and write a thesis with full bibliography on why I am wrong. I look forward to it Mr Generalisation

    Regards

    Mr D

    Profile photo of mrdenn1smrdenn1s
    Member
    @mrdenn1s
    Join Date: 2007
    Post Count: 18

    Clayton Brown Architects

    Nicholson St Carlton

    Gold!!!

    Profile photo of mrdenn1smrdenn1s
    Member
    @mrdenn1s
    Join Date: 2007
    Post Count: 18

    Fair point re: Alaistair.

    As a newby to these forums, I am loving the depth of knowedge.

    If anyone want details to my broker, please ask. He is in Melbourne and a gun.

    Mr D

    Profile photo of mrdenn1smrdenn1s
    Member
    @mrdenn1s
    Join Date: 2007
    Post Count: 18

    EDIT..settles FEB 08, not 07

    Profile photo of mrdenn1smrdenn1s
    Member
    @mrdenn1s
    Join Date: 2007
    Post Count: 18

    I bought in Parramatta Park (Cairns) off the plan without seeing it also. $279k. 2 bed, 2 bath. Settles in Feb 07 and people are reselling on realestate.com.au for $335k.

    I paid $11k commission (part of the $279k).

    I have no issues with this as the sales team that showed me the place had done losts of groundwork (2 x independant valuations, 2 x independant rental appraisals, city market driver stats, etc). Also hooked me up with a local property management firm (who i flew up to meet after paying my 10%….would do deposit bond next time now i know of them)

    End of that day, my strategy is hold for long term capital gain. Who cares about $10k commission in 15 years when the place is worth $750k plus?

    Profile photo of mrdenn1smrdenn1s
    Member
    @mrdenn1s
    Join Date: 2007
    Post Count: 18

    I think you need to find a broker who understands your investment philosphy

    I am a "capatialise the interest" kinda guy. My broker does the same thing, so the relationship works well

    Most brokers i met before him didnt get this type of investing and just sold me on low interest rates, etc. This was the exact opposite of what i was looking for. I wanted an expert, not a salesman

Viewing 16 posts - 1 through 16 (of 16 total)