PropertyInvesting.com | thomson | Activity

thomson replied to the topic QLD Property Development - Due Diligence Checklist in the forum Help Needed!

Wed, 08 Dec 2010 05:14:42 +0000

agreed, I'd be interested and would be happy to add my two cents

thomson replied to the topic Excessive house prices and the ridiculous supply myth, another spruiker myth busted. in the forum General Property

Fri, 03 Dec 2010 02:04:32 +0000

my takeaway from this is that supply does indeed follow demand but obviously at a significant lag (permits/building etc.) so therefore lack of short term supply helps support prices.The article is a bit schizpphrenic. It say on one hand that supply has nothing to do with price and then the article author goes on to say that thank goodness we…[Read more]

thomson replied to the topic Property lessons from UKs busted boom and Sydney house prices falling in the forum General Property

Thu, 02 Dec 2010 00:23:22 +0000

All I'm saying is I don't consider a 10% drop a massive bubble crash. If it happens here it won't worry me that much and I'm sick of all the scaremongering end of the world stuff.Obviously property goes in cycles like all assets, however I do think that the down swing of prices in Australia will be modified by the generally strong economy -…[Read more]

thomson replied to the topic Six unit site Frankston Vic in the forum Help Needed!

Wed, 01 Dec 2010 01:50:17 +0000

my experience in Geelong at the moment is that everyone is at 100% in the lead up to Christmas. hopefully will ease off in the new year.thommo

thomson replied to the topic Property lessons from UKs busted boom and Sydney house prices falling in the forum General Property

Tue, 30 Nov 2010 03:34:14 +0000

OK, I'm kind of thinking so what? Two points – the UK economy is totally scre*ed so while I will happily admit I'm no expert, I would have thought a 10% fall isn't that surprising given the curcumstances. Considering that prices in the south east of england we're going up by 10% per year for year after year after year, just pulling back 10% ove…[Read more]

thomson replied to the topic Australian Property Bubble (article on Associated Press) in the forum General Property

Thu, 25 Nov 2010 06:17:42 +0000

Without getting too depressing, I agree with casanovawa to the extent that there is obviously a limit of human population. Thinking back to my biology, there is a pretty strong model of species population growth that shows definite charactersitics of a bubble…Human population will, in the end, be self-regulating and will prob come down with a…[Read more]

thomson replied to the topic Australian Property Bubble (article on Associated Press) in the forum General Property

Thu, 25 Nov 2010 03:52:51 +0000

Let's take a step back and think on the macro scale for a bit. The population of our planet is increasing at a truly massive rate at the moment, and while it took 120 yrs to go from a population of 1 to 2 billion (from 1800 t o1920), it now increases by a billion every 12 yrs or so. Now that's ridiculous and will result in severe pressure for…[Read more]

thomson replied to the topic Australian Property Bubble (article on Associated Press) in the forum General Property

Sun, 21 Nov 2010 22:17:58 +0000

I grew up in the UK in a regional town called Colchester, just over an hours commute from London, actually scarily similar to Geelong, where I live now. About the same size, commute in to the city, strong but lower house prices (than london/melbourne) etc.Just yesterday I wa schecking house prices in Colchester and comparing 3 bed houses in si…[Read more]

thomson replied to the topic Australian Property Bubble (article on Associated Press) in the forum that bubble historian isn't

Thu, 18 Nov 2010 20:29:23 +0000

that bubble historian isn't Robert Langdon is it?

thomson replied to the topic Calculating Gross/Net Margin of Investment Property in the forum Help Needed!

Wed, 17 Nov 2010 22:44:29 +0000

I think what IP Freely is saying applies to comparing investments. Work out whether the investment is a good one or not (and compare to others) first and then work out whether it works for you personally regarding holding costs and cash flow.For example a large propoerty in South Hedland may return 10% ROI and is therefore a good investment but…[Read more]

thomson replied to the topic Building Pocket? - Muti-unit development in the forum General Property

Wed, 17 Nov 2010 07:44:36 +0000

Our local council requires 300m2 size lot per dwelling in our area as standard, that may be what he's referring to. There's also obv all of the other requirements like spacing, setback, overlook etc. but the council or a local town planner or a licenced surveyor should be able to tell you this pretty quickly.Depends on the zoning set be the…[Read more]

thomson replied to the topic house or investment in the forum Help Needed!

Wed, 17 Nov 2010 07:31:25 +0000

mate, I'm sure wiser heads than mine will be able to offer some good advice but I just wanted to say well done for saving that kind of money – I wish I had done that at your age. Sounds like you're in the right place mentally and I'm sure you'll do fine.thommo

thomson replied to the topic Home Loans - Whose Best? - Big Banks? Or Building Societies/Credit Unions???? in the forum Help Needed!

Wed, 17 Nov 2010 07:22:11 +0000

Spot on there Banker, at least from my personal experience. I have everything with one of the big4 and they really seem to be offering me excellent unsecured credit, high LVR as well as good customer service.thommo

thomson replied to the topic Australian Property Bubble (article on Associated Press) in the forum General Property

Tue, 16 Nov 2010 20:27:16 +0000

The first couple of posters are so transparent with their real motives that I actually laughed out loud when I read them, good stuff fellas.However, I suppose that doesn't by default make them wrong, they may have it right, even if only by accident. I personally would like to see a soft or even a flat period for a while. I think that would he…[Read more]

thomson replied to the topic Sub dividing advice please in the forum oh yeah - don't forget your

Fri, 12 Nov 2010 07:40:02 +0000

oh yeah – don't forget your market research determining what you actually need to build – if the main market is families you're prob going to want gardens as opposed to retirement living low maintenancethommo

thomson replied to the topic Sub dividing advice please in the forum General Property

Fri, 12 Nov 2010 07:37:15 +0000

Hi aferns,I don't know the answers but I can maybe point you to some more questions…1. Talk to your bank straight away and determine your borrowing capacity2. Talk directly to the council or a qualified town planner or licenced surveyor in the area to determine what you can actually fit on the block. I don't mean get a survey at the moment bu…[Read more]

thomson replied to the topic New owner developer in the forum Westpac are going above 80%

Thu, 11 Nov 2010 07:46:23 +0000

Westpac are going above 80% for me but then it is all going to be done by commercial builders and it is my own PPOR.thommo

thomson replied to the topic Tell Me How You Got Started :) in the forum Help Needed!

Tue, 09 Nov 2010 21:59:13 +0000

From my persepctive (as a beginner also) there's basically four stages:1. Somehow get the money together to fund your first property (prob as PPOR but maybe IP)2. Wait (hope) the value goes up in a rising market (various strategies to manufacture equitty can be used as well i.e. reno or subdivision)3. Use the equity gained either as a re-d…[Read more]

thomson replied to the topic Downside of Cross Collateralised Loan in the forum General Property

Fri, 05 Nov 2010 06:00:49 +0000

thanks Bill, I'll keep my eye out for that. To be honest I've always felt more comfortable with my cash with one bank and loans with another thommo

thomson replied to the topic Downside of Cross Collateralised Loan in the forum General Property

Fri, 05 Nov 2010 04:03:49 +0000

coretex – what's the 'all monies clause' mate?

thomson replied to the topic Downside of Cross Collateralised Loan in the forum General Property

Thu, 04 Nov 2010 21:01:10 +0000

As I understand it the issue is that if you run into difficulties with the new investment then the property that you have the loan secured over is then subject to being sold by the bank to get it's money back. So I guess the real danger would be if you used you own PPOR to cross collatorise, if you defaulted on the investment or development then…[Read more]

thomson replied to the topic First time subdivider in the forum Value Adding

Wed, 03 Nov 2010 07:46:58 +0000

I'm just using a local surveyor in Victoria for the survey (he will also put the paperwork together for the application to the council), and my wife and I are managing the rest (site works etc.). I'm not using a 'subdivision company' as such.We are just dividing the block into two and building single story houses. Starting off as simply as po…[Read more]

thomson replied to the topic First time subdivider in the forum Value Adding

Wed, 03 Nov 2010 07:21:39 +0000

hi clint, I'm in a very similar position, although a little further ahead as we have bought the lot and have had a survey completed on it. I don't have any rules as such that I've noticed, but we have done a fair amount of research and I am expecting the following:land bought for 280K, subdivide into 2 lots (easier for the first time although we…[Read more]

thomson replied to the topic ROI Formula clarification in the forum Help Needed!

Wed, 03 Nov 2010 07:07:31 +0000

No worries. I have read both of Ron Forlee's books on property development which I thought were quite good, maybe they would help.Here's how I see it working in an example:Buy house for 200K (sales price). After 1 year (or any amount of time) the value is now 300K so there has been a capital gain of 100K. If you divide 100K profit by the ori…[Read more]

thomson replied to the topic ROI Formula clarification in the forum Help Needed!

Wed, 03 Nov 2010 06:26:08 +0000

Hi WB,I think the answer to your question is simply which one do you want the answer for? Do you want to measure the performance of the property as an asset or the profit you've made after purchase costs such as deposit and finance etc?I personally would use the formula here http://www.investopedia.com/terms/r/returnoninvestment.asp and use the f…[Read more]

thomson replied to the topic costs involved in selling a home? in the forum Help Needed!

Mon, 01 Nov 2010 22:33:19 +0000

I would personally recommend splitting this problem up into two seperate stages.Firstly focus on collecting the actual costs and informaiton needed for your situation as outlined by the above posts. This is information you will need regardless of whether you use the back of a ciggie packet or purchase software. Get this down on paper first, yo…[Read more]

thomson replied to the topic 1st home dual zone resi/comm. Need advice. in the forum Commercial Property

Fri, 29 Oct 2010 06:43:28 +0000

A few years ago I took a lease on a commercial building to run my small business. The building was not currently lease when I took it over and had been empty for some months prior. In addition it took a while to negotiate mtually acceptable terms of the lease before I signed.I guess I'm just agreeing with luke and saying be careful with v…[Read more]

thomson replied to the topic Maximum Construction Loan LVR? in the forum Finance

Tue, 26 Oct 2010 06:05:16 +0000

Thanks Richard,Against the trend I got 97% LVR for the property in the first place, in July this year, so you never know..FYI – This is my PPOR. Finance with Westpac. Property purchase price was $280K. Thommo

thomson replied to the topic Maximum Construction Loan LVR? in the forum Finance

Tue, 26 Oct 2010 01:47:45 +0000

Thanks guys – I prob have enough cash to finance the build of one (but not three) unit at 80% LVR after I complete the subdivision so perhaps I can try this:1. Build one unit and either sell or rent and hope for equity increase2. From point 1, obtain enough equity/cash to complete the buildI'd prefer not to try to sell off the plan as at the mo…[Read more]

thomson replied to the topic Builder in Geelong? in the forum Help Needed!

Wed, 20 Oct 2010 23:13:03 +0000

hi fatboy,I'm not going to be super helpful with this one but just thought I'd introduce myself as my wife and I have just bought a block in geelong and are getting it surveyed this week with a view to do a subdivision, which will be our first. Good luck,Thommo