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Pros:
* Better rental yield
* One set of rates
* Lower maintenance
* Lower land tax
* Easier and less costly to do internal renovationsCons
* Possibility to strata title and sell individually later and therefore have higher capital growth
* Lower LVR if more than 4 units
* Usually less land is allocated to each unit
* Body corporate fees
* Less capital growth
* Lower control over capital improvements/renovations externally
* All (or many) eggs in one basketHope this helps
cheers,
Sanjiv Gupta“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.†– Nelson Mandela
You can also try Suburb profiles on domain
http://www.domain.com.au/public/apm/suburbprofile/default.aspx?mode=researchcheers,
Sanjiv Gupta“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.†– Nelson Mandela
Thanks Marc for posting the article.
Its a good reminder of how reducing unnecessary expenses can lead to financial richness in the long run.
Steve talks about the 33:30 challenge.cheers,
Sanjiv Gupta“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.†– Nelson Mandela
Thanks Dom
Did the agent say why the large Perth company is buying in Carrum Downs and no where else? What is so special about Carrum Downs?cheers,
Sanjiv Gupta“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.†– Nelson Mandela
Being rich means having choices, the ability to choose to work not because you have to but because you love to; the ability to spend time doing things you love, with people you love; the ability to contribute to the society; the ability to appreciate what you have and being thankful for that; and lastly & most importantly, rich is loving and being loved.
Some people may achieve this with $5k in the bank account and others may not find it even with $1 million cash. You have to find out what’s important to you and define your own richness.
I FEEL RICH!!!cheers,
Sanjiv Gupta“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.†– Nelson Mandela
Great work, Dr Spock.
I hope you can knowck your remaining debts soon.
But it makes me wonder what kind of debt is costing you 34% interest rate?cheers,
Sanjiv Gupta“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.†– Nelson Mandela
Hi Marc,
Yeah, baby steps towards starting a business.
I intend to have something up and running by end of the year or early next year.cheers,
Sanjiv Gupta“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.†– Nelson Mandela
Hi,
You will probably get better price after strata titling the units. It will be much better if you are able to assign some land to each unit.cheers,
Sanjiv Gupta“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.†– Nelson Mandela
Hi suzieq,
Equity = Property Value – Amount Owedcheers,
Sanjiv Gupta“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.†– Nelson Mandela
Hi suzieq,
If I were you, I would borrow as much as possible against the IP (because the interest payment is a tax deduction) and invest any spare cash in investments giving me more than 8% (or whatever is your fixed intt rate).cheers,
Sanjiv Gupta“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.†– Nelson Mandela
Hi Glasco,
Welcome to the forum.
The costs can be split into two – closing costs and ongoing costs.
Closing cost includes things like stamp duty, loan establishment charges, solicitor/conveyancing charges, etc. Typically these costs are around 5-6% of the purchase price.
Ongoing costs includes things like council rates, water rates, insurance, body corporate, property manager’s fees, etc. These costs vary depending on the type of property you buy and it is very hard to give an approximate figure for these costs. For a free standing $300k property, you might be looking at around $1000 rates, ~$500 water rates, ~$500 insurance, ~7-8% property management fees, etc.
Hope this helps.cheers,
Sanjiv Gupta“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.†– Nelson Mandela
Hi rmcdonald,
Instead of putting in 5% deposit, try to negotiate 5% deposit bond. The bond will cost you few hundred dollars (may be close to a grand) but leaves your 5% equity deposit with you.cheers,
Sanjiv Gupta“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.†– Nelson Mandela
Hi Nicko,
I think SA market will continue to grow on the back of strong demand for resources specially uranium mines.cheers,
Sanjiv Gupta“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.†– Nelson Mandela
Hi benking84,
Be careful, tax avoidance is illegal. Tax minimisation is okay though.cheers,
Sanjiv Gupta“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.†– Nelson Mandela
Hi Tara,
What’s the website address?cheers,
Sanjiv Gupta“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.†– Nelson Mandela
Besides what others have mentioned, I will check the following as well:
1. Aspects – tradisionally north facing is considered better.
2. Views – water, park, reserve, golf course, etc.
3. Council zoning – this will determine whether you can build multiple dwellings on it or not
4. Housing in the neighbourhood
5. Developer caveats/design rules
6. Location – proximity to roads, hospitals, shops, schools, etc.
7. I wouldn’t be buying in an area where the developers/council is releasing lots of blocks. It will be a while before the marker picks up. Remember, scarcity pushes the price up.But I wonder why you are buying a block of land? Is it for building PPOR or for IP? If its for IP, what do you plan to build – single/multiple dwellings? Remember, there will be holding cost and no income while you are building. Why don’t you look at buying an established property?
Hope this helps
Sanjiv“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.†– Nelson Mandela
Hi Tracy,
I think houses are still doing very well in Kalgoorlie. I would certainly hold on to the houses for the time being. Units on the other hand have peaked (I believe) and it may be a good time to sell units there.“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.†– Nelson Mandela
thanks God for that.
“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.†– Nelson Mandela
Good on you, Mark.
So you are offering 26% pa return on a fixed term investment of 8-12 weeks or 18% pa return on investment over 6 months. Correct?
Are you offering any security?“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.†– Nelson Mandela
Hi Holly,
I don’t like such investments due to:
* Limited capital growth
* Low LVR (around 65%-70% and worse if the unit is less than 50 sq mts)
* You cannot do anything (in terms of adding value, increasing rents, etc) with the investment but lease it to the motel management.
* High cost – body corporate, management fees, etc.
Hope this helps.
Sanjiv“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.†– Nelson Mandela
