I think residental property investors should focus on the growth potential rather than cashflow.
If cashflow is what you are after then commercial properties, property trusts or even shares will offer you good positive cashflow.
You can add value to properties by developing or renovating to create equity to improve your cashflow but you will…[Read more]
I somehow dont think this rough guide works with this type of development. I have heard people using this method for land development.
If this method was true for this unit then $800k for the site would be a bargain.
Depending on the type of units you are building your construction costs will start at around $1200 persqm. If it is a walk up type…[Read more]
You will need to define your investment goals in order to determine why you are investing in the first place.
For most it is to achieve financial independance. The you will need to define what financial independance means to you. For some it could mean an income of $40kpa and for others it could be $200k or more.
For an income of $40k…[Read more]
The MBA contract is the better one to go for. However the builder can legally ask for extensions for things such as wet days, delays due to unavalibility of materials, etc
You may want to put in market rent as a clause if the builder goes over time then he pays market rent
Personally, I dont understand how it is in the best interest of the…[Read more]
Before you decide to sell and then purchase a cheaper property think about the cost involved in such a transaction.
Some of the costs will be agents commission on the sale of your property, legal fees for sale and purchase of new, bank fees and charges for set up of new loan, stamp duty on the purchase of a new property, etc.
Once you add this…[Read more]
Originally posted by Qlds007:
We have 3/4 medium to large developments around the city which we will phase in over the next 18 months depending on other work and business but at those rate would get your builder to construct them rather than my partner build them.
If you are interested in a referral fee to provide us with his details I…[Read more]
Do a quick search on http://www.realestate.com.au to get an idea on local prices.
IMHO though, you need to be careful investing in an area where there is very little constraint on future supply. This part of the Gold Coast has a lot of land available for future development.
Remember, you generally get price growth if there is a shortage of a…[Read more]
The builder is mid 40 and has building for a while now. He has also been working for medium sized developers who have a large land bank and are creating house and land packages. The majority of the homes are 4 bedroom low rise with the occassional duplexes.
These developers have been in this game for many years and have build hundreds of homes.…[Read more]
The Builder I am using is a medium sized builder. He only works for developers and only builds low rise brick and tile houses.
This way he is able to turn over many homes in a short time. He is also on site supervising the work himself.
I have seen his work and it is of a high quality. In fact his completed homes sell faster when compared to…[Read more]
You also have to consider the suitability of the development based on the dempgraphic demand.
One of the key factors of a successful development is ensuring the development is appropriate. Therefore careful research is required before plans are drawn.
Architects and developers are known to come up with expensive and inappropriate…[Read more]
If there is a mark up in prices then it is evem more worrying. I have witnessed marketing companies mark up properties by around $40 000. Defence housing does spend a lot of money in marketing. They even attended a little known property expo in Hong Kong last year to promote properties.
So Ajay if you are paying more than it is worth it…[Read more]
This is a great strategy and many have made excellent profits.
These profits were largely due to rising land prices during the construction phase. Now that the market has normalised it will be harder to duplicate these results.
Currently you will find that due to increased land and construction costs you would barely make a profit. As…[Read more]
I would also like to caution you on this investment. From the photo it looks like a double storey duplex in a group titled community.
Remember that from day 1 of your purchase you will have negative equity 9Once you factor in purchase costs) The market will have to rise around 5% for you to break even. Then you have compounding losses every…[Read more]
Sailesh, not all Landlords pay for PM fees, insurances, rates and maintenance.
Yeah, Commercial properties are a great investment for this reason. However investors have to start building equity in residental before they can move onto bigger investments.
Care should be exersiced. The council may approve the development but may put conditions that may make developing the property unviable.
There are many such traps when considering a development. Therefore it is importand to consult with a professional advisor who can help you explore all the scenarios.
The next step is to conduct a…[Read more]
With rising interest rates how long will a property stay cash flow positive?
Your actual yield will need to be 10% or greater as you will heve expenses such as property managment fees, insurances, maintenance, interest, etc.
I think over time your property will be cash flow positive as rents rise but to expect positive cashflow from the start is…[Read more]
Duplexes are great for cashflow and that is why we are involved in developing these ourselves.
Your options for getting a cheap quote may be a bit limited due to your location however, keep looking.
I recieved another quote today from a builder and his price was $1120 per sqm.
Most builders will give you quotes around this range.
I guess I got…[Read more]
Where is your block located?
The council will be able to let you know what your building requirements are. You will also need to enquire about council contributions and strata title costs.
I am currently involved in building 10 duplexes in Redcliffe and my builder is charging $730 per sqm to build…this is a turn key price.
I spent months…[Read more]
I am currently involved in a duplex construction in Redcliffe…a beach side suburb 20km north of Brisbane.
The cost of land and construction comes to $430 000. The duplexes are worth $550 000 and will rent for $500 per week.
Once you take depreciations into account this property will pay for itself.
Therefore you do not need to put large…[Read more]
Yield is calculated using the following formula.
Current Rental Yield %= annual rent recieved divide by cost of property
You should not put in higher deposits just to make a property cash flow positive as you could be using that money to purchase other properties.
It is also important to remember that the main reason to…[Read more]
- Load More