Hi Anne-Marie,

I would get the get the plans and permits prepared and lodged as soon as possible because it can take quite some time to get approval. 

As you do your due diligence, be sure to ask the local council how long you have (once the plans are approved) before you have to start building.

That way you can add value before committing, and have potentially some years up your sleeve before you have to decide whether to build or not.

For instance, you may have as long as three years after plans are approved before you need to start construction (or the permit lapses). Every area is different though so do your homework.

– Steve

Hi,

There are a number of options. Lots of organisations run 'free' seminars, but these are usually fronts to sell property.

Other organisations, including PropertyInvesting.com, offer paid seminars that cover a variety of topics.

Then you can acquire books and how-to products (which might be recordings of seminars) that you can study at home.

– Steve

Hi Brendon,

You could do this, but just be aware of the following issues:

a) I'm assuming that you would be borrowing in AUS and AUD?
b) I'm also assuming you would be using the rent in the US to repay your AUD loan?

If that's the case I'm a little worried you may be hit with transaction fees bringing the money back every month, plus maybe at the mercy of changes in the exchange rate.

You'd also want to make a decent margin on the personal loan interest rate vs. net rent return to make it worth your while.

Still, it's the sort of thing I would have done to get started. Just keep your head and don't bite off more than you can chew.

Cheers,

– Steve

Hi,

The fund concept is moving ahead. At the moment I am sorting out the ASIC licensing requirements.

Stay tuned though as hopefully this will be sorted soon, at which point I’ll move on to preparing the Product Disclosure Statement.

If you’re coming to the market updates then you’ll find out a little more information. Otherwise I will make an announcement to the database when I have more details.

Cheers,

– Steve

Still waiting to hear back.
 
Will follow up again when I can. Have hurt my back though and am resting up for a few days. Sitting is super painful.

– Steve

Stephen,

Perhaps if you asked a few specific questions you might get some more answers. The more general the question, the harder it is to answer.

– Steve

Hi,

Derek has put forward some really sensible tips, and I echo them.

Student accom is often shunned because it is seen as more cumbersome in management and because the property depreciates with the higher density use.

The return looks okay on the numbers you have presented. How much are you planning on borrowing. It's hard to be exact with the numbers you gave. $5,500 is close to $100 per week, so that's a lot better than the negative gearing returns many investors get.

I would want to compare the return with what you could get leaving your money in the bank though. That is, how much more rent will you get for taking the risk vs. interest you get by leaving the money in the bank (given it seems there is no/low growth prospects).

The usual reason that there is low growth on student accom is that it is typically sold to investors, and therefore there is not the 'emotion value' home buyers are prepared to pay. There is also more and more student accom coming on the market, and so the new supply tends to undercut the existing second hand market (that is, discounting for new properties undercuts the value of existing properties).

I would encourage you to do a fair bit of due diliegnce on the assumptions. In particualr:

a) In regards to the tenants:

i) Can you get three people who all want to live together
ii) Check the advertised rent has been achieved
iii) Check vacancy periods
iv) Check how tenants are attracted to the property
v) Length of the lease (are they all rolling 1 year leases)

b) In regards to the management:

i) Who does it?
ii) How is the rent collected?
iii) What about during school holidays?
iv) Are any furnishings needed?
v) What are the costs (management and other)
vi) Documentation: lease, condition report, bond, etc. Who does it?

c) In regards to expenses

i) Body corporate?
ii) Land tax?
iii) Repairs and maintenance allowance
iv) Other

d) Resale
i) Process
ii) Are you free to use your own agent
iii) Likely marketing channels

e) Other
i) Other student accom in the same area
ii) Other student accom in the same building
iii) Risk free return comparison

Finally, I think you are just the person who would get a lot from the seminar series I'm about to run. Check out the link below and book in if you can make it.

– Steve

Okay okay… I've seen the post and will put it on the wish list!