Forum Replies Created
- sasharif wrote:Hi Guys! I need your help in understanding the quoted sell price. If a house is quoted as "suites buyers over $265K", does it mean that the offer has be to in access of $265K? Does it mean offer of less than $265K will automatically be knocked down? On the other hand if it is quoted as "price $260K – $275K". Does it mean that my offer has to be in access of $260K to have a reasonable prospect of success?
As said before it doesnt mean anything.
What do you think its worth?
Start making offers of 10% under what you think its worth.L.A Aussie wrote:So why then isn't every property simply valued by a registered and qualified valuer, based on recent comparable sales, and then advertised at the highest price the owner can realistically expect, based on the comparables, and wait for the offers?Because vendors are rarely 'realistic'
L.A Aussie wrote:All the different price ranges, terms such as "offers above" are basically to entice the buyers who can't afford to buy the house to make an enquiry, the agent then works on them to get the price up, and use the low offers to get the sellers to lower the selling price.It covers an agents backside when they start to get lowballs.
It makes a vendor feel happier becasue they think there's a chance they're going to get the top price.
Maybe an agent has no idea what its going to sell for.
In a sellers market it can be a useful sale tactic. Not so much in a buyers market.I was thinking to myself how in hell are you getting a H&L in Blacktown for under $200k. I'll have a dozen thanks
Then I saw the initial thread was posted in 2003
I'd suggest a unit either in Northern Beaches – Manly/Fairlight/Harboard or a unit in Concord close to canada bay and as far away from strathfield as you can.
For $300k you can still buy a clad 3 bed room house in Merrylands. Even though the area is a not the best, it ticks a lot of boxs in terms of what/where to look.
You should be able to find a unit for $400k in the upper north shore area like Chatswood/Northbridge/Cammeray .
Look for all the normal things ,transport,cafe's bla bla bla.
I'd be inclined to look at the suburbs that haven't done so well in recent years as opposed to those that have shown 10% growth for the last few years running.Thanks Jeff, I found that thread but am still none the wiser.
There's some good info you posted on Ingham other than that there's no real hints on ow to pick an area or what to look for.
I posted in that thread regarding interpreting RP Data.Thanks again
Now this seems a little better.
Ingham
-Only a 19% population decline ( maybe the cyclone/sunami wasn't that bad here)– 65% of homes are owner occupied
-Average age is 10-19, so plenty of families in the area.
-Highest % income bracket is $26k-$41k about 21-22% but still about 18% on $41-$62k bracket.– Only 30% of households are rented
There's not much on Recent unit prices but I dare say that there not real usefull anyways as there's probably not enough sales to get a good idea of whats happening.
Am I interpreting this data correctly or is it pretty much useless without knowing that facts behind the figures?
Cheers
Just taking a look at Townsville stats from RP Data and wanted a bit of help interpreting.
From the data it looks as though-
-A population delcine of 53%??? holy moly! I'm sure there's a reason for this, maybe a Cyclone or sunami wiped out half the population LOL (I'm sorry, I know thats bad taste but….)
-Majoirty of people dont have kids. Average age is 30-39 in Townsville. Average age in my area is 0-9 meaning most people have a couple of kids or more.
Not sure if this figure alone means anything from an investment point of view. Maybe means that 4 bed home might not be the best IP.-Average household income is $41k-62k pa, that seems rather low but considering that a large % are aged over 50 maybe their super/pension is either low or nt included in household income. Still not sure what this could mean in terms of IP.
-38% of households are single parents compared to only 14% couples with children with parents. The largest % of households by nearly 15% are single parent households, next largest is childless couples 22%. Maybe this is the reason why 42% of households are rented. I dont want to sterotype the single parent not being able to afford to buy it seems to be the case.
Does 42% of households being rented represent too large of a chunk? I wouldnt think that's a good indicator for an IP.
Maybe this figure includes holiday houses/apartments. One would think that it does not include resorts or motel/hotels.-Median Capital Growth for Townsville LGA
2004 +27.7%
2005 +20.1%
2006 +7.4%
2007 +20.3%
2008 +8.9%
Seems like its had a very good run over the last 5 years. Is it likely to keep going? Not sure if this data includes any new apartment blocks that may have been built selling million dollar penthouses that skew the figures wildly.Not really sure how to interpret these figures into anything meaningful for IP purchases.
Anyone able to shed some light.
Cheers
I'm almost positive you do not have to wait until the end of a lease to up the rent. At the same time I pretty sure you wont be able to get away with a 50% increase, maybe 10-20% every 6-12 months. I'm sure there would be many rulings/examples of landlords trying to do this. Once your tenant is out, charge what ever you like.
Building Inspector => John Worthington & Associates
Very highly recommended.
I dare say if you buy right, then anything can be viable.
A good mate of mine has done a few small developments (knockdown andbuild 3 townhouses) and both times it's been the holding costs that make or break the profitability of the project.
When its costing you $4000-$6000 or more per month in interest, your profits can be eaten away very quickly.
I know his last development was sitting stagnant for 3 months because the builder had 'internal' issues. I wont be building with Huxley homes, 12 months on a 26 week building contract.I've done this twice now and done pretty well. I have done both as PPoR and both times its taken about 24months from to find/build/move in/landscape/unload. I'm just about to unload my second and from recent sales in our immediate area for the same type of house we're looking at about tax free profit of over $100k. Its not great compared to some others and considering that its coming off an $660k investment the % return aint fantastic, but an extra $50kpa tax free is not to be sneezed at.
Land value increased by about $40k in the time we've had the current propertyIts pretty hard to find land in sydney for <$300k
I've already started looking for the next one……5 acres on the Hawkesbury River mmmm I can see it now.llosis wrote:……. digging around will reveal PLENTY with cash flow positive potential. …..Guys, cash flow positive properties are all over the country it just depends on 1) what your budget is 2) where you want to buy 3) if you know what you are looking for.Ok I'll bite! Where abouts are they?
I've read thru this whole thread and since it was started back in 2003 most of the info is a bit out dated but I dare say the principles are still the same.
I've been looking for CF+ IP but where to start? Trolling thru RE.com.au and Domain.com.au and there are just too many properties for sale in too many locations around Australia.
Rather than try and find a needle in a haystack, I thought it best to pick a couple of regions or towns and just stick to them. I'm in no hurry to buy so biding my time until the right property comes along is fine.So….How should I go about picking a few areas to look at? I don't have a budget as such, but would like to start small..<$200k.
I live in Sydney and doubt I can find anything that would come close to CF+ in that price range so any state would be fine.
The 3 areas I have been looking at is NE TAS ( Launceston/Davenport/Burnie), N QLD coast and Adelaide +surrounding areas.
Am I on the right track with these areas? I still think this is too large an area to find my 'needle' so I would like to narrow it down further. What criteria should I have for an area? or what criteria do you have for picking an area to invest? and where do I find the information to base my decision?I have no problem with renovating a property to increase rent, in fact I'd probably prefer it.
I don't mind commercial property but I think it's a bit too much to start off with $ wise.Hope thats not too many questions.
CheersTerryw wrote:Capital gains without a doubt!+1
Without capital gains your better off putting your money in a fixed term deposit that pays 5% or 6% interest.
In some cases people get too caught up in the romance of property investing without doing the sums and considering the opportunity cost.
Gday Tracey,
Did I just read about your story in the April issue of Australian Property Investor? Somoething about a combined drain?Glad to hear you came out the other end stronger…and wealthier.
I use Bob Stevens from Stevens & Stendall in campbelltown. Although it takes me about 40 mins to drive to campbeltown its well worth it.Compared to my 2 previous accountants, Bob's a wealth of knowledge and invests himslef.
Hi all,
First post here so sorry if my questions have been asked before (I have searched through the forums)
I hoping someone may be able to point me in the right direction.
I am after some further information on the pros/cons of the different structures mentioned here. Pty Ltd companies/UT/DT.
Its been a while since I studied them at uni and could use a freshen up.
Specifically the-
-Ability / Inablilty to distribute profit/losses
-CGT concessions (from what I understand only individuals are able to claim the 50% CGT concession)
All pertaining to investment property (long term income and short term renovating and capital gain)
I am currently self employed and hold the business in a company and my wife is on maternity leave for a few years.
