[simpleParticipant@simpleJoin Date: 2006Post Count: 237]

July 20, 2012 - 7:42 am

opee wrote:

Thanks everyone..

I agree with you simple but I guess property investment is a long term game You have to hold the property atleast 10 yrs to make profit…

My theory is once I buy a property Never sell it

Opee, mate done right and there is no need to wait for 10 years. I purchased two in last 12 months that slightly positive out of the box. Both are stand alone houses in close proximity to City.
Mate, search, talk to people and learn! Keep your money on you until you see opportunity.
I never sell to, only buy and rent out

[simpleParticipant@simpleJoin Date: 2006Post Count: 237]

July 19, 2012 - 7:30 am

^^^
Quality reply that is.
I will add, if you ask this question – need to do more research (reading). Re capital growth, make sure to do you calculations… I see too many people claiming that they made money, but when all expenses inc interest repayments are considered they barley brake even. Some would be better off just saving in the bank account.

[simpleParticipant@simpleJoin Date: 2006Post Count: 237]

July 11, 2012 - 6:58 am

Who is in for bumpy ride ?
Chart by BOQ

Looking at the chart, one can think that next move will be price appreciation! Fortunately, over my life experience I well thought that events develop in there own way regardless of what we think of them

[simpleParticipant@simpleJoin Date: 2006Post Count: 237]

July 9, 2012 - 7:46 am

engelorumora wrote:

I bought my property without seeing it but have a good friend who owns over 60 properties in the US so I trusted him with his advice.

A couple thousand dollars is not a lot of money to pay to go see things for yourself and meet people you will do business with face to face.

Engelo

^^^
THIS
Buy ticket, fly over. Spend time and Learn first-hand.
Get to know people there, build relationship and do business.
You are not serious to spend some $100K and above just based on ‘trust’ ?! Few will trade ‘trust’ for a portion of this

[simpleParticipant@simpleJoin Date: 2006Post Count: 237]

July 9, 2012 - 7:18 am

I just imagined running 30 x IP’s. Makes me dizzy Got 10 tenants and it’s a handful, especially come the tax time.
Try doing it in such a way that it’s you earning money not banks, agents, solicitors! This means you need higher return properties rather than more of them. Some cash injection at the beginning helps to improve cash flow dramatically on the long therm.
I like earlier comment from “Shape”.

[simpleParticipant@simpleJoin Date: 2006Post Count: 237]

July 8, 2012 - 7:42 am

Thinking out loud:
Insurance for 6 room place, depending on options but in thousands
Vacancy, expect 1 out of 10 to be empty (on average)
Gas/electricity, will be somewhat 30% higher per person than normally. Tenants do not care much
Government compliance, can be a pain
Fire Safety, including monthly visits by fireman are $60
Few more that I miss….

They are good fun, but high maintenance. Get very good manager to run it, this is the key. Unless you do it yourself.

[simpleParticipant@simpleJoin Date: 2006Post Count: 237]

July 8, 2012 - 7:09 am

janinewool wrote:

Hi
I have been keeping my eye on a unit close to where I live and it came on the market at the price of $290,000 plus. The open day was today and it looks to be a good reno project at that price however the agent has now put it up to $339,950. Do you think it would be still ok for me to put an offer in at the lower price or will this be laughed at. I would not put an offer anything over the original price. What everyone’s thought on this price change?

Cheers
Janine

Janine,
I would come to the RE office, asked for salesmen. Looked in his eye and asked cause of the price change. Watch his body language, hands, eyes, voice. Forget the face, good one’s learned to manipulate that.
Compare the answer to what you see. Based on that make your judgement and adjust strategy.

[simpleParticipant@simpleJoin Date: 2006Post Count: 237]

June 22, 2012 - 7:03 am

bardon wrote:

simple wrote:

bardon wrote:

I love it when they moan about the lack of new housing. Its such a fantastic trend after all.

I am sure there is a shortage….. somewhere in Australia, like mining towns
But in Brisbane…. I had vacancy now for 6 weeks…

Sorry to hear this simple. Why do you think that it isn’t renting.

Hard to nail this one down accurately. But then again, out of 10 only one is vacant. So overall not too bad.

[simpleParticipant@simpleJoin Date: 2006Post Count: 237]

June 22, 2012 - 7:00 am

bardon wrote:

simple wrote:

bardon wrote:

fWord wrote:

Yeah, the world is coming to an end too.

But it's not gonna be 2012! That's my prophecy! LOL

You are most probably right there. So does that mean we should just maintain the fear indefinitely and one day we will be proven right?

Indian use to believe that you are only truly free if you live with no fear

Expectation of RE crash is hardly a fear as such. People would not share fears, they hide them. I would not think that anyone here is truly expressing any fear.

I think that a lot of us become risk averse as we grow older, chance taking is frowned upon, failure is seen as a weakness, it is hidden and buried. When In reality most success is built on failure, two sides of the same coin. I plan to have some massive failures in the future, if I don’t I probably aint living to my fullest potential.

Nice summary, well outlined,

[simpleParticipant@simpleJoin Date: 2006Post Count: 237]

June 20, 2012 - 10:53 am

bardon wrote:

fWord wrote:

Yeah, the world is coming to an end too.

But it's not gonna be 2012! That's my prophecy! LOL

You are most probably right there. So does that mean we should just maintain the fear indefinitely and one day we will be proven right?

Indian use to believe that you are only truly free if you live with no fear

Expectation of RE crash is hardly a fear as such. People would not share fears, they hide them. I would not think that anyone here is truly expressing any fear.

[simpleParticipant@simpleJoin Date: 2006Post Count: 237]

June 20, 2012 - 10:42 am

bardon wrote:

I love it when they moan about the lack of new housing. Its such a fantastic trend after all.

I am sure there is a shortage….. somewhere in Australia, like mining towns
But in Brisbane…. I had vacancy now for 6 weeks…

[simpleParticipant@simpleJoin Date: 2006Post Count: 237]

June 17, 2012 - 11:19 am

Our days, if you get residential property with return of 9% and interest in the bank is 6% you will be about break even (as a general rule).
Creating cashflow positive IP is not an easy catch even if it generates $1000/year. Many will take this opportunity if seen. As you need only 100 to create $100K profit. Easy money….

[simpleParticipant@simpleJoin Date: 2006Post Count: 237]

June 14, 2012 - 10:36 pm

Guys, correct me if I am wrong – I am just an recent import! But last time I sat to lessen to Australian law it was stated that:
– You cannot own land in Australia, you just purchase 'open ended lease'. You own the right to occupy this block of land indefinitely until it requested back by Government.
– You pay rates, that is sort of 'rent' on the land you claim you have the right to occupy?
– You cannot mine minerals/resources as you do not OWN land, it still belong to Australia

[simpleParticipant@simpleJoin Date: 2006Post Count: 237]

June 14, 2012 - 3:07 am

NHG +1
I seen 40ft boat at Noosa Heads (QLD) going for just $250K!!! Those in 2006-2007 was sold for $600K. Jetsky half the price, a Bentley recently been sold at the auction for something like $125K! If you like the toys – go and splash out NOW. Staff goes at fraction of the cost, distressed sellers.

If you been reasonable before 2008 – now are the golden times for you!

[simpleParticipant@simpleJoin Date: 2006Post Count: 237]

June 13, 2012 - 11:31 pm

JacM

Coming financial armageddon for some reasons getting extended to physical world assets destruction in the minds of some people. The fact is, that as in every past recession/depression there will be little changed for your average person on the street.
There will be some degree of shortage of money, jobs and prosperity that was in abundance just few years back. Nothing else changes.
Where it will be evident and hard is in finanace sector. Those who had large loans, heavy geared businesses, speculators and such will suffer.
But then again, if you see this coming – prepare and make some significant money out of it. Fortunes to be lost and made in very near future

Just thinking out loud, 30% australians – own there's homes, 30% rent. Both of those classes are unlikely to suffer. They have no debt, little expenses and flexible in options.  Remaining 30% have homeloans. Probably 10% are silly, overstreached. This give us aproximate figure of say 3% Australians that doing something wrong and will go down. I do not see this number as much of the issue for society as whole. It will wreck banks balance sheets, GDP and our AAA rating, but that is a little importance to your average person on the street…

 

[simpleParticipant@simpleJoin Date: 2006Post Count: 237]

June 12, 2012 - 11:03 pm

I think Freckle comment was a bit too generic, bardon.
The reality is, hazard to some is opportunity to profit for others. So, when one see hazard all around, other can see money to be made all round him. This alone can create difference in opinions whether you see trouble or 'rosy' picture.

Mine take is that markets worldwide will go thru second phase of negativity, similar to 2008. 

[simpleParticipant@simpleJoin Date: 2006Post Count: 237]

June 1, 2012 - 1:53 am

Home prices drop despite rate cut

• by: LISA ALLEN
• From: The Australian
• June 01, 2012 10:47AM

AN aggressive interest rate cut failed to halt a 1.4 per cent plunge in capital city residential values in May, according to researcher RP Data-Rismark.

For the year, residential values dropped 5.3 per cent, with Melbourne contributing the worst performance, given its property prices dropped 2.7 per cent in May. Darwin dwelling values slid 2.4 per cent.

Apartment prices fared better than houses and the premium market suffered more than most.

"Premium dwelling values have fallen by 6.1 per cent over the 12 months ending April 2012 while dwelling values at the affordable end of the spectrum are down by just 1.5 per cent,''  Tim Lawless, senior economist with RP Data, said.

"Unit values across the combined capitals increased in May and they are up 1.3 per cent over the first five months of the year."

 

Sydney property prices slumped 1.2 per cent in May to record a median dwelling price of $555,000.

Of the capitals, Adelaide was the best performer with a 1.2 per cent increase in prices to a median of $370,000.

The trend in house prices suggested there was more room for the Reserve Bank of Australia to cut interest rates, Mr Lawless said.

[simpleParticipant@simpleJoin Date: 2006Post Count: 237]

May 28, 2012 - 5:23 am

I will start with asking question: Are you good investor?
If yes – anywhere is good
If no – you gamble, then you must ask yourself: Can I afford to gamble this amount?

This may sound like I been a smart *ss, but actually trying to give best known to me answer.

[simpleParticipant@simpleJoin Date: 2006Post Count: 237]

May 20, 2012 - 8:44 am

Freckle, agree with you. I work a lot in China. Things are starting going from unpredictably bumpy to consistently negative. Many small/mid size companies doing it hard, while BIG guys are still flat out busy (talking about two speed economy).
Unless world consumption grow next 12 months, China will slow down to another level of gearing – not pretty for Aussie.

@jpcashflow, agree 100%. Many mates I was drinking with in mine 20s took different path in life and still balance family budged +/- $50/week. While I was non-educated, poor kid out there back then, I now enjoy financial freedom and little care if I still have a job next week. Nothing special, just a CHOICES I made. Exactly what you mention here. You do not really need to be brilliant, just reasonable and you will do fine.

As about today’s times, I am very excited. Great to live in turbulent world and flex your brain to see if you can make a dollar along the way

[simpleParticipant@simpleJoin Date: 2006Post Count: 237]

May 18, 2012 - 3:14 am

Well, we already have well above average levels of stock unsold (RE). I think it is highest point of 15 years?
That is mainly generated via low transaction quantities on the market. Any fresh inflow of stock for sale disproportionally increases pressure on sealers. This may trigger cascading price reductions – just another speculation.

We had GFC, did not really came out of it and going to have another GFC? Freckle, to me it sounds like one looong depression event with 'dead cat bounce' along the way
Let's not waste good recession, make a dollar along the way