[skippygirlMember@skippygirlJoin Date: 2003Post Count: 127]

September 24, 2007 - 10:09 am

Hi Emma,

I've had property in Broken Hill now for almost 4 years.  With any market you have to separate fact from opinion.  I bought a property there originally as a tactic to offset a negatively geared Sydney unit.  My research showed values had moved up slightly, yields were well over 10% (at one stage I was actually on a 48% yield), Centro was redeveloping the shopping centre etc. and the town had not in fact died at all.  I researched and formed relationships with people in the town whom I needed as my team on the ground. I went up there for a week and had a great time, it is actually a unique place.

Last year quite a few pieces of market data were made public. A community forum was held in which 3 mining companies outlined the fact that they were employing at least 1500 new workers over the ensuing 18 months (this was last Oct-Nov). A stock exchange announcement was made by Perilya.  They were opening 2 new seams from the existing known reserves because they are now economically viable with the price of commodities being so good.  They did not want to do fly-in/fly-out.  Think about it.   The housing stock in Broken Hill is 10,000 dwellings.  Alot of which are so delapidated you could not put a dog in them.   1500 new workers means something like 3000+ people coming into a town of 22,000 people (let's say half of the new workers are married and no children) who will need housing. 

I bought another house straight away. If I had more time to devote to that market I would have bought 10.  Since then, the new workers have steadily been coming in, and in actual fact alot of them bought homes to live in rather than rent (confidence in their long term future?).  This was great for 3 reasons, (a) values went up sharply and (b) rents went up sharply as expected but also (c) the quantity of good quality rental stock is reducing.

My properties doubled-tripled, and I am just having them revalued again as the rents and values have both gone up since the last revals. 

Now, South Broken Hill used to be a pretty undesirable place.  In reality there are some quite nice homes there, the Flying Doctor, airport and golf course, but a few lousy ones that brought the place down.  There has been a noticable shift of less desirable tenants out of the south,  but you would still need to be careful in checking out the street etc. before buying.

Email me if you want a recommendation of the agent to speak with about the rent potential, street, etc.

Cheers
skippygirl

[skippygirlMember@skippygirlJoin Date: 2003Post Count: 127]

May 15, 2006 - 11:25 am

Aahh! A subject close to my heart. We bought a PPOR in a very upmarket suburb but being one of Melbourne’s older suburbs from the 1920’s it has an excellent railway line right through it. 22 mins to the MCG in fact.

The house is opposite the railway line so no houses across the road, just the railway reserve, and luckily the railway line itself at this point is dipping downwards into a cutting up the line.

Most people back in 1999 would have turned up their noses at living across from the railway line even though this is blue blood territory. The solution was very simple.

The local council gives out 10 free indigenous trees per year per household. We collected ours, as little tube stock plants, and instead of making a donation to charity that quarter a few years back we developed a little environmental project for our kids to be included in. We engaged a guy with a dingo digger to come and dig up the grass in the reserve for about a 20 metre length, ($180) and break up the heavy clay soil. We bought another 220 plants ($700 cost) from the local indigenous plant nursery, and we spent 1 weekend planting the whole lot.

The plants were a combination of tall trees, mid size trees, shrubs and low-level strap leaf plants, all perfectly designed for the local soil and conditions, and put together they form a solid green screen from the ground up. The trees are now 5 metres+ high. On the day we planted several neighbours from all around came down to ask us “who gave us the plants”, “what did the council say”, “who gave us permission” etc. We said we just decided to do it and pay for it all by ourselves and our kids planted half of them so it was a learning experience – after all who was going to argue with revegetation with local indigenous plants? Nobody. And nobody ever has. In fact people thougth the council had done it, it was such a great job.

Today this solid green wall has added $30K+ to the value of the property as we have no visibility of trains as they go by. Several neighbours up and down the road have copied us and put in plantings opposite their home as well, so now the whole street is developing a wall of green. They take no water or maintenance (the beauty of indigenous) and man the sense of pride and satisfaction for all of us everytime we look out the front window is fantastic. Every Sat and Sun morning when I go for a power walk I spend 10 mins inspecting our little forest and picking up rubbish etc to keep it clean but that’s it.

The local council guys who do the rise-on lawnmowing every 1-2 months simply drive around our big long forest because we left enough room around it for them to drive.

To cut the long story short, go see the local council’s indigenous, revegetations or wildlife corridor/environmental officer and see if they will give you free indigenous plants to use.

Cheers

skippygirl [strum]

[skippygirlMember@skippygirlJoin Date: 2003Post Count: 127]

May 8, 2006 - 10:07 am

Well how rude is that! They now want $59.95 to access the software – wonder if I caused a stampede.

When I registered there was a free guest login – sorry everyone, I thought it was a good free resource but maybe lots of people registered and now they are charging so forget it.

skippygirl

[skippygirlMember@skippygirlJoin Date: 2003Post Count: 127]

May 1, 2006 - 12:17 pm

Lisa,

Have you tried Lewis O’Brien – he is in Balwyn, but he does vendor terms contracts for properties everywhere, it doesnt matter.

Details below.

Cheers
skippygirl

Lewis O’Brien

Commercial Lawyer

Ph (03) 8801 0111

Fax: (03) 9878 4906

[skippygirlMember@skippygirlJoin Date: 2003Post Count: 127]

April 7, 2006 - 7:19 am

I look at the cash-on-cash return (ie. the after tax income you will receive/the $ you had to put in) in order to see if it’s worth it as opposed to some other investment.

Cheers
skippygirl

[skippygirlMember@skippygirlJoin Date: 2003Post Count: 127]

February 21, 2006 - 2:48 pm

Got mine too – thanks very much Martin.

skippygirl[bonjour]

[skippygirlMember@skippygirlJoin Date: 2003Post Count: 127]

January 30, 2006 - 5:43 am

Sorry – I’m an idiot. He’s over at somersoft.com forum.

skippygirl [blush2]

[skippygirlMember@skippygirlJoin Date: 2003Post Count: 127]

January 25, 2006 - 4:42 am

I think AlmostBob is in Nova Scotia you could try him.

If you are going to Nova Scotia I am interested in the investment market there too if you come across any usefule tips pls.

cheers
skippygirl

[skippygirlMember@skippygirlJoin Date: 2003Post Count: 127]

January 24, 2006 - 6:38 am

Thanks heaps Terry.

God info on the correct notices etc.
Don’t know about trying to apply for a hearing from i/state, though. Hope it doesn’t get to that.

Cheers
skippygirl

[skippygirlMember@skippygirlJoin Date: 2003Post Count: 127]

January 2, 2006 - 12:00 pm

Fantastic Jaffasoft, thanks.

A couple of spelling errors e.g. expenses, usually.

skippygirl [blink]

[skippygirlMember@skippygirlJoin Date: 2003Post Count: 127]

January 2, 2006 - 11:51 am

Thanks Matt

I’m beginning to form an idea to investigate – that maybe we can buy the land from him on the layby basis (taking title but with separate loan agreement to pay $xx per week so he has an income) and lease the land out for something (maybe horse agistment) whilst we then see if we can subdivide the land and build enviornmentally sustainable houses targetted at a niche of hobby farmers and environmentally conscious tree-changers.

Anyway, I’ll see what I come up with.

skippygirl

[skippygirlMember@skippygirlJoin Date: 2003Post Count: 127]

December 31, 2005 - 5:10 am

Yes we have to research what the land can be leased for. Good ide to fence off the sensitive areas first.
Thanks again all.

skippygirl

[skippygirlMember@skippygirlJoin Date: 2003Post Count: 127]

December 30, 2005 - 7:07 am

Thanks guys!!! I knew someone would have the creative answer.

Pud I’l check out the link.

Terry do you know what sort of loan product Pud is referring to i.e. an IO loan to someone in their 80’s with no income, secured against vacant land, no repayments (capitalising the interest I guess)?

When he passes away can the 10 nieces and nephews assume or rollover the loan to them as the beneficiaries?

Off to do more research but if you did have any info that would be great.

Thanks again

Skippygirl [cap]

[skippygirlMember@skippygirlJoin Date: 2003Post Count: 127]

December 29, 2005 - 8:43 am

Thanks so much Terry – I guess the best place to start would be Centrelink itself to learn the rules.

The problem is not the life tenancy in the house – that’s oK, and lucky for him in that he can live rent free.

The problem is the large block of (now valuable )land he owns, which he bought 60 years ago intending to become a hobby farmer but family circumstances meant he could never move there and he never got to farm it.

It was a rural block very cheap 60 years ago but now sits on the fringe of suburbia and is now valuable so it way exceeds the asset test for a pension from Centrelink. He can’t bring himself to sell it (and couldn’t deal with it emotionally) but has no income and the rates and land tax are now very high.

This is where I am trying to think of a creative solution that helps him, helps his 10 nieces and nephews help him, etc

Cheers
Skippygirl

[skippygirlMember@skippygirlJoin Date: 2003Post Count: 127]

November 27, 2005 - 12:41 pm

OOh and I just LURV Harry, (sigh!).
I could watch him all day.

skippygirl

[skippygirlMember@skippygirlJoin Date: 2003Post Count: 127]

November 8, 2005 - 2:38 pm

Thanks Benny I’ll see what the propertyvalue service comes up with.

Fernfurn I do have to check the covenants an dany heritage overalys, but on the face of it the house is an original 1940’s and supposedly once was AV Jennings’ home, so I am anticipating demolition etc will be out.

Melmac it is blue chip residential so backpackers etc wouldn’t work here, good idea though.

Am stuck at a conference for next 2 days so will keep researching in spurts.

Thanks
Skippygirl

[skippygirlMember@skippygirlJoin Date: 2003Post Count: 127]

November 6, 2005 - 11:50 am

Wow! Nathan you are a brianiac.

The area is chockers with families and the local child care centres have waiting lists. It is a high income area and the local primary is full to capacity.

I will have to check the zoning – is a child care centre a permissible use under a residential zoning usually?

I gather they are valued by the number of places they can earn income from, so I will do some research.

I guess is has to stack up as more valuable alternative use than a prestige home huh?

Thanks for the poke in the ribs.

Skippygirl

[skippygirlMember@skippygirlJoin Date: 2003Post Count: 127]

November 5, 2005 - 7:40 am

Thank you all for your comments and ideas.
Ben I think you read my mind – you are pretty close to what I was thinking.

Being Melbourne Cup week and being away interstate for work I haven’t been able to go see the agent and check 32’s etc. or find out the vendor’s situation. Once I see the zoning I can research what is permitted. All I know is it’s empty.

It is not being advertised by the agent/vendor, it is now down to just having the board up.

As I mentioned it is on a hill with a busy road below, but the driveway is off the side street. The house is very big, and sits at the back of the block (highest part) with a large expanse of front yard. Oddly, because the driveway is off the side street the front entrance is useless as you would never go in the house that way.

Ben supposedly AV Jennings built it or lived there, I have no idea if that is true.

There is a uni within 5 km, train is 2km away so no real PT other than local buses. Great local shopping village. This is an upmarket suburb so everyone drives.

There are some strong covenants in the old estates. One developer was routed by the local residents when he tried to sneak a dual occ in a couple of years ago.

The block has to be at least 1500 sqm. I’ll find out. Probably makes the land value around $800K.
There is 180cm old paling fence above the retaining wall to block out the busy road, it needs replacing and I would plant a whole row of screening trees to increase the screening effect as well.

I will do some more research on the sales of renovated big homes in the area and work back from there. It is a low turnover area so homes tend to go quite easily when they are sold, which makes it strange that this one hasn’t gone, it must be the too much land factor.

Cheers
skippygirl

[skippygirlMember@skippygirlJoin Date: 2003Post Count: 127]

October 11, 2005 - 11:38 pm

Richard,

Can I just ask for a little more step-bystep info about how you did this?

Sounds like you bought the block of 6 units on one title.
You said you converted to strata and then did you transfer 3 titles into the Trust and keep the 3 titles for othe ones you refurbed?
After the refurb did you have the refurbed 3 units revalued and pull out the extra equity and place longer term finance on each individual title at that point – just not sure of the mechanics of how that would have worked.

Thanks,
skippygirl

[skippygirlMember@skippygirlJoin Date: 2003Post Count: 127]

June 8, 2005 - 10:24 am

Sorry, I meant for COCR I use the cash amount you tipped into the property when you bought it, and show the annual positive cash flow as a ratio or return on that..

Then you need to also look at the final back end profit made when he refinances and pays you out and your total return will be sizable.

skippygirl