Bought block in Mandurah WA for $17,000 cash when 17 in father’s name (his name, my dough)and transferred title when 18 and built first house for $55,000. My first home loan.
Best Move – Investing in property from the age of 17 even though I didn’t really know what I was doing and made a lot of mistakes.
Worst Mistake – Not understanding the huge difference location makes to capital growth.
Key advice – Do your research, work out the worst case then go ahead and do something.
Best book – Noel Whittaker’s…[Read more]
Regarding this Waroona property
Located in fast growing community of Waroona is this great investment. Currently tenanted as commercial laundry depot @ appox: $1800.00 per month. Leased until 2006, with 5 year option over 400sqm of floor space.
This place is a commercial laundry that is very positive cashflow. 11 second rule:
$415 /…[Read more]
Personally I use Devfeas 5.0 (now superseded by Devfeas 6.0) to carry out my feasibility studies.
The software is created by the Andrews chaps in South Australia. I don’t remember the website, maybe http://www.devfeas.com.au?
It is not cheap, mine cost $500 but new version is probably more, but a good package.
As with all software, it is…[Read more]
I used to dislike Bunbury. It was a town planning disaster but I have changed my opinion now.
The town centre is alive and vibrant and there are some really nice older houses in the back streets on large blocks.
It’s handy to the wine region also.
I think you could do much worse.
Yes it stinks here in Mandurah, it’s horrid, it’s awful, whatever you do don’t come here!
Seriously though the only smell these days is the smell of car fumes when the traffic gridlocks.
Mandurah has had astonishing growth in the last 4 years. I believe that it is grossly overvalued however I have been saying that for 2 years so what would I…[Read more]
Yes Dale Alcock is one of the Directors of the group that comprises APG, Webb Brown etc.
When I finally parted company with APG I was then faced with the dilemma you described, get plans drawn up, get approvals, find another builder etc. I decided at the time that with the additional delays that the risk of being caught in a down market…[Read more]
I couldn’t agree with you more. It becomes a major burden as it increases exponentially. I was bitching about paying 10K last year but 36K is murder.
The solution you mentioned is one, or else you get into setting up a Trust for every property (expensive and a lot of paperwork) or spreading your investments across different…[Read more]
I am assuming you are self managing?
Your Lease Agreement should spell out the notice period required to be given by either party prior to expiry of 3 year term and the details pertaining to renewal as well.
I have been through a similar situation last year. I had engaged APG to design 3 townhouses for a lot I wished to develop. Based on their conceptual drawings (after $1000 deposit) I paid another $3000 per unit for PPA. They estimated 160K each for construction but later came back at between 180K and 200K.
I signed building contracts but…[Read more]
The situation you refer to can occur when you have a negatively geared property before taking into account the non – cash deductions (ie depreciation) which in new shiny apartments with all the trimmings can be quite substantial in the early years. This is how some marketing groups sell apartments as “cashflow positive”.
It is important to…[Read more]
Based on your numbers you would be better off spending your deposit on shares in a large Australian telecommunications company or bank.
Not that I am recommending any shares but it pays to compare what else you can get for your money.
If both partners work and are in the top tax bracket, how does a discretionary family trust improve the tax position?
We are in that position. We have a Trust but I really set that up to provide another entity in which to hold property because of Land Tax. Our income tax situation has not changed.
We do own commercial property but do not profess to know everything about it.
1. Yield – there is no “norm”. The rate of return will almost always reflect the risk involved. For example a building with McDonalds in a premium location could yield only 6% because investors are prepared to pay more for the security of a tenant like that. On…[Read more]
I would not have the confidence to buy property sight unseen.
In the last fortnight I have looked at 2 properties in my hometown and both times the agents had made serious mistakes with the property details.
First one the agent says that block can be subdivided into 4 green title street front lots hence the 299K price. I think hang on I am…[Read more]
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