[Von KrummParticipant@von-krummJoin Date: 2011Post Count: 23]

July 19, 2012 - 3:15 am

The Affordable Portables look horrible.

The reason I thought it would be a good idea is that shipping containers are so bloody cheap. Second hand you can find a 40' (30 square meters) container for $2k.

Will have to do a few numbers and wait to here back from my mate whos a chippie, but I think there might be a market there considering the large number of second hand shipping containers.

These guys seem to think otherwise:
http://www.smartplanet.com/blog/design-architecture/eco-pak-the-house-with-shipping-included/7679

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July 12, 2012 - 11:48 am

Buying locally and thinking you “know the market” is the biggest load of crap out there.

So what if you spent the last 20 years in one suburb, to me that’s a disadvantage. Yes it can be handy livig close to an IP for keeping on top of renos or babysitting tennants but thats about all the advantage you will get.

Do your homework, chances are you arnt living in a suburb with 10% pa CG, so go out and find one. Don’t be afraid of buying an IP outside your area. I would reinforce this remark if you live in Adelaide as SA is flatter than other states. The 10km rule is a good one but that will limit you.

Also if you have the cash, stick to a LVR of 80%. If you really think you are gunna get big CG then the extra leverage might be worth it. But by the sound of things you might compromise location for less risk being a first IP, so if you don’t get a decent CG then the mortgage insurance might eat into the earnings.

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July 12, 2012 - 9:23 am

It seems that there are already a few. Companies that do this. I am going to look into zoning and engineers reports for any modifications. AFAIK you don’t need footings and as they are structurally sound @ sea, they are find on land.

And cheap too

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February 10, 2012 - 11:40 am

IMO you can't go wrong with the bowen basin and surrounding areas. All this doom and gloom of property bubble bust cannot apply to these mining areas, can it?. Some guy said it before… "lots of people with massive salarys trying to rent/buy properties that don't even exist yet".

Dispite key demand/supply data that is available now, you still have to look at the macro-economic outlook for the long term. I know this is speculation and I am indeed no guru on this topic but I will try to explain what I heard on the radio the otherday.

Basically it's a question of comodity price + demand. China has had a minor reduction in *growth* which has caused a massive overload of "the sky is falling" chatter. But the key word here is growth, i.e. it still has it.

From recolection it has been 10% p.a. for the last 3 years and now back down to 7%, which is still huge.
As growth slows, demand slows and as China is one of our biggest customers it will have an impact.

But when will we start to see a slow down in the energy/mining sector? Basically not any time soon.

If you have a look at the dollars spent investing it's rediculous. Something like energy up 40% from last year, mining up 20%.
Really if the big guys like BHP and rio + the AUS government were worried, it aint showing yet.

Check out mining atlas Australia and you'll see the main area for development is the bowen basin.
This also tells you where planned and potential sites are.
Then all you have to do is pin point where all this money is going…

Most of the towns suggested have seen growth in the last ten years at some point in time.
If you can afford the risk I would look at Chinchilla/Emerald/Bowen over Mackay/Gladstone.

But then again, missing 10% last year on gladstone was a worry of mine that has been and gone. Still looks good and if you try to time the market at the bottom all the time you usually miss (apparently).

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February 10, 2012 - 8:54 am

How have the floods affected the town?
Apparently cotton farms like lots of water so perhaps not too bad…

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January 15, 2012 - 6:41 am

Moree still has high yeilds and can see this discussion is almost a year old and perhaps a good time for a recap?
Anything developing?

Myrp data has 9.45% Qtr and 9.02% Yr growth… Seems like a good area for a first IP?

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January 15, 2012 - 5:10 am

fWord wrote:

For me, the period of acquisition is over for now.

This is what has me worried. With all the bears in the market at the moment I am not sure what to start investing in?

I have finally finished uni and got a decent salary but not sure if I should go back and get  an Economics degree just to decipher all the information in the current volatile climate.

Australia’s house prices are ridiculous, 7x average personal income. Now I know there's no reason why they can't climb further but surely it would be easier investing in other markets…

I understand there is money to be made in a falling market but it seems even more unlikely for a first time buyer. How are we supposed to compete?

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January 14, 2012 - 1:05 pm

Interest paid on a loan for an investment property can be claimed as an expense which results in a tax deduction on your personal income if you are making a loss on the property (cash flow negative).

There are positives for both types of property but the thing with negativly geared property is that it must appreciate in capital value to make the investment worth while.

Note: I would say the same is true for CF+ properties also after some more reading  

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January 13, 2012 - 10:45 am

Daedalus wrote:

mining towns in the Bowen Basin in QLD.

I was excited when I read this then realised the thread was made almost 4 years ago…. has the ship already sailed?

I saw Dysart at the top of a national list for rental yield back in Jan when I got serious about investing.
But I can't afford $600k as a first IP and not really set on risking it all for one industry anyway.

Sure there are multiple mines near most towns, but I thought somewhere like MacKay or Rockhampton would be a safer bet for a first IP in case china craps itself…. also Margaret Lomas is always banging on about Gladstone…?

My question is, how much are these areas affected by future mining developments? Can you reap the rewards in the larger, further away towns, or is it best to go straight into the actual mining town?

Also any news on the Galilee basin… all I can see is people screaming hippy apocalypse?
And Abbot point? Why is Bowen the proposed port and not MacKay?

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January 9, 2012 - 7:11 am

Derek wrote:

RP Dats's latest Blog on mining activity

A must read!

Fantastic article mate cheers for sharing. With that ammount of money being pumped in I'm not sure doom and gloom talk of the property bubble burst applies in these areas.

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January 9, 2012 - 6:58 am

worldinvestor wrote:

It has now been leased and achieved $100 per month over the estimated rental return.

This naturally changes my figures  –
Gross reutrn 25.93%  net return of over 17%

Wow great work. Hope the rent keeps coming in.

I'm curious of your figures… by my calulations you are recieving $250 a week gross return.
$100 over the estimate you say? Thats almost 70% extra, how is this possible…
 
For all the praise of this USA property mob, surely they could have gotten your rental appraisal a bit closer?

P.S. You couldn't build these homes for $50k could you? Seems pretty good to me.

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January 8, 2012 - 1:42 pm

Old but relevent: http://australianpropertyforum.com/topic/8965098/1/

Also couldn't find the thread subscription button

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January 8, 2012 - 1:35 pm

Would love some info as well.

Thinking about making a trip up to the bowen basin soon as it seems the place to invest.

Can see most areas have seen substantial growth (+20% p.a) in the last ten years at one point or another. Mackay early 2000's, Chinchilla a few years after, Dysart around 2008 then Morranbah last year.

I guess it's picking the right time. I have stumbled upon this site that shows current mines and potential infrastructure projects.
http://www.australianminesatlas.gov.au/?site=atlas

Still looking for potential mining projects maps but if deposits are anything to go buy the Morranbah region looks pretty good.
http://www.moxy.com.au/Wiki/images/c/cf/BowenBasinQDME.PNG

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January 6, 2012 - 3:53 am

Mining towns… $$$
But be carefull, one person says something, does another…

TRADEEBA wrote:

Unlike Gladstone, Chinchilla market is still warming up and the ship hasnt sailed yet. 

Wrong!
Aparently Chinchilla's ship has already sailed… 8 rears ago!
http://www.hotspotting.com.au/index.php?act=viewArticle&productId=27

Also I've heard great things on Gladstone, what depicts the ship sailing?

Bottom line is search for tips, then do your own research.

Portfolio PI wrote:

Coal mining is a lot more stable employment than Coal Seam Gas

Is this  because it lasts longer? Wouldn't it depend on the size of the deposit?

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January 4, 2012 - 1:11 pm

Qlds007 wrote:

Assuming of course security is in an acceptable post code region

I recently inquired about a loan and the max LVR I could obtain, the lender didn't give me anything.
If the suburb has a population of +10,000 is it safe to say it would be max LVR?

Also what's the rules for IP's?  …. lower LVR right?

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December 23, 2011 - 6:55 am

quickchick wrote:

The trick is, how secure is your rent?

Yeah this keeps coming back when doing my research and is probably one of the most important things to consider.

I have been reading one of Margaret Lomas' books and she says:
"Capital gain must take a back seat to cash flow", when buying for CF+.

The abundance of units for sale (potentially turned into rental properties) is concerning, but a stagnation or even deflation in unit prices should be a second priority, according to the expert not me.

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December 22, 2011 - 9:21 am

Want to know where CF+ properties exist?

CAIRNS!
 
I have been doing some research and cairns has properties (1-2 bedroom units) that are CF+ straight out the blocks.
But there are many properties on the market, often cheaper than 2+ years ago and what's not to keep them from falling further…

I am lucky enough to have APM data nation wide and there is one property id like to discuss…

1 Bedroom apartment in cairns suburbs

Heres the price history:
1993: $83,000
2003: $49,000
2004: $87,500
2005: $106,000
Then it went on the market for $130,000 in 2009

Dropped in 2010 then again this year…
On the market for 2 years it finnaly sold private treaty for around $75,000

This has to be the time to buy something right?

My only concern is when it went back to $49k in 2003. Wow that's insane.

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December 20, 2011 - 5:21 am

Kiwi Property Guy wrote:

 I tend to disagree sorry Von.

Yeah leverage is a powerful weapon. Interest rate rises are always a risk.

I guess then LVR and liqidity are more important if things go to shiet.

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December 19, 2011 - 2:00 pm

quickchick wrote:

The rental price in the same market depends on the rental vacancy rate, and how many investors are buying in that area.
eg an area with lots of rental units,

Yes this is I guess the big one. Thanks for your words of wisdom.
And thanks graeme and clint, you've helped me quite a bit.

Thing is with interest rates going the way they are, you're probably better off putting money in the bank than aiming for a +15% yeild on a CF+ IP.

If you still haven't found the "top yeilding suburbs in australia", try google again?

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December 15, 2011 - 9:54 am

Thanks for your words clint, I believe you have summed up the crux of CF properties vs neg. geared very well.

Kiwi Property Guy wrote:

considering the growth potential of an investment is of course important.

How important is this? If I'm not mistaken housing prices could drop say 10% for instance while rental returns remain the same or even rise…. hmmmm.

I asked in my previous post but seems it will get missed, "How much corelation exists between rental return and capital value"?