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Thanks for your opinion, my only hurdle is timing. What times do the workshops run each of the days? I don’t want to book a flight at the wrong time and have to leave early.
We started off during “the recession we had to have”. Interest rates got up to 18.5% in the first few years that we bought our own home. ( Built in 1988) We survived. We then decided to build again once the interest rates dropped to 13.5%. We paid $130k(1994) and sold it for $220k 8 yrs later. In between time we have built again, just sold that one pd $160k & sold for $375, bought a townhouse, a villa, 3 house & land packages 2 apartments and a dual key. We currently have 8 rental statements coming in each month and since we haven’t built for a while we are about to do that again. We have found an area where land in a newer estate is not selling but houses are.I think people are daunted by the fact that they see a spec house for $125k and by the time they buy the land, build, and add all of the extras council expect these days the price has hit $450k by the time its finished. They think it is too much trouble and would prefer to pay someone else the extra $150k that these houses command when finished.
Thanks Rob.
Do some research around Drummoyne & Rozelle, not quite walking distance but good prospects.
Kate360k returning 540pw. About to buy 545k.
Kate[thumbsup2]Better late than never. I am going to agree with both Simon and D in some issues. Simon you are right about average mortages at that time. We borrowed $70k at the end of 1987 and it was a little higher than average at that time. As to women dealing with women only. The only real estate agent I refused to do business with was female. She directed all of her discussions, questions etc to my husband. I deal with the decisions, the finances and eventual running of the property, usually agents pick this up and I don’t have a problem. As to separate financial advice for women, isn’t this adding to sexism? It equates as well with me as “Women in leadership groups” they should be banned.
KateWe were going to build there about 4 years ago but decided against it only because building from interstate can prove difficult if you don’t have time to visit when required. At that time it seemed like a perfect opportunity and probably still is. The north end of the gold coast was becoming too expensive as was the south end o Brisbane. Check your prices for similar quality in the area and 10-15 minutes either side to properly gauge the market. Being where it is before the extra infrastructure it will follow suit with surrounding areas until it becomes a force of its own. Check your rental listings in the area for both prices and availablity. We have made quite a bit out of buying in this way.
In reply to Kevjosh about holiday rentals, yes it is true that you lose a considerable amount of money to management. In the contracts we have been under it actually states that the rent is shared, they receive 42% +GST and expenses come out of your share. Our properties are in the Gold Coast which is of course a high tourist area. It also attracts a lot of people on working visas so we have opted to go for permanent tenants who want the resort lifestyle. There is a bit of a turnover due to te nature of the area, but we have not paid letting fees for the last 2yrs alsthough there has been turnover because there is such a waiting list and vacating tenants have paid it because they have left before the end of the tenancy agreement. If you can get hold of dual key apartments in newer buildings at a reasonable price as we did they are +ve cashflow from day one. Check body coporate rates carefully before purchase as the real estate agents tend to tell you one figure and you later find out it is incorrect or they have not included the sinking fund amount in it which can sometimes be quite substantial. You also need to be aware of some issues with council to avaoid being overcahrged with rates. There is money to be made in tourist areas.
Kate[thumbsupanim][tongue]Don’t let doom & gloom get to you. We lived through 18.5% interest rates and bought 3 properties in one year during that time. (It wasn’t easy but we pulled through & have since nearly tripled our money).People are like sheep, if they are told about a suburb about to boom it will, because people go out and buy in the area and make it boom. You can also make something of an area by your wise buying. Do your homework through the internet, have a strategy in mind, pound the pavements and don’t be put off by negativity, prove them wrong. If you are cashed up you can make plenty of great deals in down times. Find out how long a place has been on the market and how much they paid for it, this gives you leverage. For people in the Illawarra, Canberra, Southern Highlands & Southern Tableland areas of NSW, a great website for free information of theis type is http://www.allhomes.com.au. Every investor has a different strategy, you may need to experiment to find out what suits you. Remember too that borrowing money to make money is not bad debt.[rolleyesanim]
Kate
