[munjyMember@munjyJoin Date: 2005Post Count: 129]

August 31, 2005 - 3:15 am

I’m thinking the italian MC won’t be finding new business among the greek guests at this wedding.

[munjyMember@munjyJoin Date: 2005Post Count: 129]

August 31, 2005 - 3:12 am

This is a sad state of affairs, but is the reality of the world today.

I’d be interested how you got the vendor’s number? I’m amazed at how calmly it seems the vendor is taking this. If you were prepared to pay an extra 10k, maybe the other buyer would have payed even more? He’ll never know.

Sometimes, the REA doesn’t even present the offer and makes to the vendor like there are no other offers.

I sympathise with you NATS12.

Munjy

[munjyMember@munjyJoin Date: 2005Post Count: 129]

August 31, 2005 - 1:38 am

Originally posted by pete r:

I had a few small retail shops rented by butcher which then converted to sandwich shop, hairdresser, dry cleaning (Spotless), and an electrician premises.

Do you mind telling us how long each lease was, the time between leases and how much it cost to refubish between tenants?

Do you recommend staying away from small local strip shops after this?

Munjy

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August 30, 2005 - 12:49 pm

I’m going to sit on the fence on this one.

I feel like both Dazz and F have valid points. One is looking at the trends, and the other looking at individual positions within the trend. Both are of value. Especially if the market has alot of imperfections, like the property market.

Munjy

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August 30, 2005 - 12:38 pm

I’m not so sure if talking ONLY to people who are rich/successful is the right thing to do. Often when talking to people who may not be rich/successful, you see where they have attempted and failed. This can also be a lesson in itself. Or where they have had regrets in the past.

It’s all about filtering what you receive. If your nearest and dearest have never invested in property, don’t listen. If they’ve lost/made money in property, consider and digest what experience they do have.

Not sure how many people have my philosophy, but I’m sticking to it!

Munjy

[munjyMember@munjyJoin Date: 2005Post Count: 129]

August 30, 2005 - 12:16 pm

JTW,

Looks like you need to find out how likely it is that the pizza guy is going to stay. Has he been there for the last 15-20yrs?

What are the comparable rents around the area? And how easily do you feel this property will rent out if they were to leave in May next year?

I’d love to know your interest rate! If I calculate 100% finance, you’re getting 7.1%??? Or 70% you’re getting 10%???

Mate, if you’ve done what you’ve done by accident, the world better watch out now that you’re all focused!

Munjy

[munjyMember@munjyJoin Date: 2005Post Count: 129]

August 28, 2005 - 10:47 am

Yasmina,

It’s always hard when you mix in personal preferences with investment decisions.

Sounds like you like where you live, but you want to be less dependent on Mr Bank for his loan. Remember that when you sell and buy again, you’ll incur alot of costs.

If in doubt, you could always trial the rental options (rent out a few rooms- sounds like you have a big house! or move out and rent). At least, the option to move back and live as you are now is still open.

Personally, if it’s near a golf course I just don’t see the confusion

Munjy

[munjyMember@munjyJoin Date: 2005Post Count: 129]

August 28, 2005 - 10:38 am

Thanks Hellman.

Anyone else have an opinion?

Munjy

[munjyMember@munjyJoin Date: 2005Post Count: 129]

August 28, 2005 - 10:24 am

There is every possibility that I may be wrong as I have not done any “real” maths for a long time. But I think the formula for compound interest is:

n
P(1 + r)

Hard to write it on a post actually. I’ll try writing it out.

Get the rate and add 1. Put the entire amount to the power of n (which is the time unit). Multiply the whole amount with the principal.

So, on a 5% interest(p.a), 2yrs, 100,000. My calculations give me 110250. Make sure your interest rate is the same time unit as your “n”

Hope this helps and doesn’t confuse!

Munjy

[munjyMember@munjyJoin Date: 2005Post Count: 129]

August 28, 2005 - 10:04 am

Hi Yasmina,

Seems to me like you have plenty of options – it’s all in what you want to do. Personally, I would move out of the house, and rent something. This allows your house to be tax-deductible debt. And rent something for less than you can rent your current home. i.e. rent for $300/wk, if you can rent your house for $500/wk.

Or, if you have spare rooms, you could rent them out to help with your repayments.

If neither of these appeal, then, if the renovations you have done are substantial, you can get your house re-valued – giving you more equity to invest with.

How much more capital appreciation is your house likely to have? If you’re in a great spot, stay. If not, sell up. I know everyone has their own angle on the buy-hold-forever vs sell-if-necessary, but that’s my opinion.

Like I said, so many options!

Munjy

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August 27, 2005 - 5:32 am

After looking further into the deal, it turns out that I have found the “catch”.

It is a residential zone, but with commercial office allowances. Basically, even though the whole place looks like a small shopping centre, only offices/professionals, etc are allowed in the complex, according to council.

This means that after the lease runs out, my pool of tenants is limited than otherwise would be.

How do people feel this affects the investment?

Munjy

[munjyMember@munjyJoin Date: 2005Post Count: 129]

August 27, 2005 - 4:44 am

Originally posted by foundation:

What? >100 views and nobody has a comment?

Armmm. My only comment is I’m not going to argue those statistics!

I’d love to have those graphs, etc though. I’m sure everyone would! What is your position in the market at the moment F? Are you buying/selling/staying the hell away?

Munjy

[munjyMember@munjyJoin Date: 2005Post Count: 129]

August 27, 2005 - 4:35 am

Originally posted by Dr.X:

Don’t flatter yourselves guys, if she wanted to ask you out, she probably wouldn’t have much of a challenge! Men never are!!!!!!

So true! We really are the weaker sex.

MissK,

My philosophy with investing is that you have to find something you’re comfortable with, can/will understand, and must be able to afford.

It seems you have narrowed it down to property (as opposed to say shares), you just have to focus a little more.

Btw, have you seen the tips thread? Full of one-liners if that’s what you’re looking for.

Munjy

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August 27, 2005 - 4:21 am

Maybe even talk to the local PM to see what rents easily/well/consistently in the area? Then decide what kind of development you need.

You know the usual, don’t put in 1-bedders if there are all large families in the area.

For your second investment, sounds like you’re going big! Go hard!

Munjy

[munjyMember@munjyJoin Date: 2005Post Count: 129]

August 27, 2005 - 4:14 am

nazzy,

This is really only my 2cents worth. May only really be worth 1 cent, but here goes anyway.

You want to take advantage of the stamp duty and CGT concessions – understandably. The issue of whether to buy/rent has been covered quite well already, so I’ll leave that to you.

However, my feeling of the market today, is that there is better buying away from the 500k area. The reason being, around the 500k mark, there is a ceiling people are willing to pay, due to the FHOG/SD issues. Meaning, everyone wants to maximise the concessions they get and think, “I’m saving $X in stamp duty!” But that means that there is more demand in the sub $500k region. If you go above this, you will find less people are willing to spend, because every $1 increase in price will bring more stamp duty, etc. This means that you will have more bargaining power, and more likely to find a better deal.

To qualify my statements, this is only in the areas that I have researched in Sydney, and is highly unlikely to be applicable to all areas of Australia.

Regards,

Munjy

[munjyMember@munjyJoin Date: 2005Post Count: 129]

August 24, 2005 - 10:19 am

Thanks asdf,

Yeah, I thought about what you were saying. But I just wanted to have a good base from which to negotiate first. Not wait until valuation, then renegotiate based on valuation coming in LOWER than expected. I’m definitely going to make sure I see the valuation.

Agree with your assessment. No way I can add value.

GST: should be sale of going concern – as tenant already in place. Will need registration as rent will be >$50,000. That right?

Munjy

[munjyMember@munjyJoin Date: 2005Post Count: 129]

August 23, 2005 - 10:49 am

I really have to thank you all for your responses.

Just to clarify, the yield is higher than other properties in the area (and that’s based on the asking price!!!), the lease is 10×10 and the tenant is responsible for all outgoings.

I must say that it looks great. That’s why I’m looking at it in such detail.

It’s been on the market for >2months now and I suppose I feel like there’s something I’m not seeing, because if this deal is as good as I think, then it should have been snapped up already.

I actually have thought of an exit strategy, if I feel that the property isn’t worth the amount that I pay. And that is, in 5yrs time, when the rent has gone up 3% for the past 5yrs, to sell it at that time. A bit of the ol’ bigger fool theory

Thanks all.

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August 16, 2005 - 3:42 pm

Great thread Dazz,

I’m sure everyone is in general agreement on this. Especially on a forum such as this, there should be no need for every post to contain “this is general info, seek prof adv, etc, etc”

The problem is that people look for the easy way and love to point and blame others. On the other hand, occasionally there is merit in some complaints.

For better or for worse, that is the way it is.

Don’t hate the player, hate the game!

Munjy

[munjyMember@munjyJoin Date: 2005Post Count: 129]

August 15, 2005 - 1:55 pm

I think your dog must also help you fertilise and tend to your garden.

This thread really appeals to my twisted mind.

Munjy

[munjyMember@munjyJoin Date: 2005Post Count: 129]

August 11, 2005 - 2:13 pm

Is he still leading the forum in posts? Maybe he’s just taking a much needed breather