There is a mixed message to be given when the property is newish areas with a high rental return.
First, it SOUNDS very attractive .. as in melton .. returns of 6-7% are actually possible.
But it falls short in a couple of necessary areas.
One of the main factors for keeping and holding a property is its placement in convenience.
xdrew replied to the topic 2 bedroom in bad suburb or 1 bedroom in good suburb? in the forum Help Needed! 5 years, 9 months ago
Always extend to where the value lies and dont limit yourself to just what you feel inherently comfortable with.
The longer term answer will be that the house sits upon a larger area of land and the land in time should increase around the base value of the house.
HOWEVER this may not either be the best way for you to invest nor your best return.…[Read more]
Liam .. in one of my most vulnerable times .. and when I was most highly geared .. I nearly threw my hopes away …
Because of a newspaper headline.
It was 2006 .. and I was earning well .. and reaping my rewards .. and making my investment judgements. I remember it very well because in August 2006 a very well known broadsheet .. not mentioning…[Read more]
Assess your market.
How are things going in XXXTOWNXXX (insert burb name here)?
Are the properties flying off the shelf at your level of interest or are they hanging there for a couple of weeks?
You see .. this is where a top Property Manager (you know those guys that NEVER get respect for what they do .. even WHEN they do it right) who is…[Read more]
Settlement time is often a key factor in making a better judgement between two competing offers.
You should have kept times reasonable so you had cash in hand to work with.
30, 60, 90 days and thats it. You want the money that you get in the current market .. not the next.
And thats your current problem .. in a reasonably safe country where…[Read more]
Heck … two years ago I invested in Detroit and walked away with a significant gain in a city where most people are swallowing their pride and walking away from their properties.
So you may ask .. with outrageous rates .. lousy infrastructure and a high crime rate .. where do you invest in a tough town?
Well for me .. it was still the same game…[Read more]
I agree Corey that the $1200 figure proposed wont do much increase in financial pressure. But as with most govt taxation schemes .. the first time its handed out its nice and small .. and when things get bad .. oh .. lets raise that tax …..
And to the idea of the costs being absorbed into a rental increase .. just remember regardless of the…[Read more]
Its interesting to see this happening in South Australia.
When I worked as a Sales Representative in Melbourne, the interesting thing was seeing the number of people who were basically seeking the value of their place PLUS THE STAMP DUTY AMOUNT as the price they would be trying to settle for.
So in Victoria at least .. the minimal increment of…[Read more]
Most of it happened about 15-20 years ago. There was also the great ‘push’ towards Newport as a possible new close to city hub, but there still remains the two defeating factors for the area.
Firstly, the attraction of the area is really Williamstown more than either Yarraville or Newport. Both Newport and Yarraville are banked up with heavy…[Read more]
Historically the bounce back from a long period of little growth or no growth has been a rapid spiral back up of inflationary pressure. Unless historical bookmarks of previous events cant be relied on .. it looks very much like something similar is about to happen soon. This is why the 1972 inflation is so important .. its very similar conditions…[Read more]
Now I know I have a lot of experience in property but as you might guess there are some scenarios I have never seen in my experience.
One of those is a rapid period of higher inflation.
Is there anyone on the forums who is old enough to remember what the 1972 inflation was like .. and how fast it happened?
My gut feeling at the moment…[Read more]
Ok this is an easy one.
You have reached your ceiling because your existing folio is totally dependant on growth and better rents before it takes off into a situation where your debts are outweighed by your potential to support them.
Thats cool .. thats how longer term property deals hold together. Presumptively on the basis that the markets…[Read more]
The framework for your investment strategy should be considered dynamic and fluctuational AT ALL TIMES.
For Steve to say the way he worked things, they dont work like that anymore is fine.
Because no matter what ‘framework’ of litigation and banking practise you come across to start with .. it will be moderately different as your investment…[Read more]
I totally agree with the understanding of lender rate not being the chief concern.
In my early days (this is how to date yourself guys .. you use phrases like .. IN MY DAY) I would be ok with taking on any lender at any rate as long as it was cheap and the broker was ‘honest’ (go on .. laugh now). Having had one particular loan company that was…[Read more]
OK .. sounds like a hardworker with a self-made ultraconservative scenario.
Lets delve into why anyone wouldnt approach leverage.
Lending from the banks is only either warranted or necessary when you cant make the difference by yourself or you want to gear to a level which would provide you with a larger holding or rental income from more…[Read more]
xdrew replied to the topic What Commercial Rental Yields should I aim to achieve? in the forum Commercial Property 8 years ago
Liz I would suggest a wider understanding of commercial property before you head into it.
The rules aren’t residential rules .. and my overall suggestion is to own multiples to offset vacancies in a single investment.
The lending criteria is different .. all purchases include GST, the overheads are usually picked up by the tenant .. and the…[Read more]
Jenman system pretends to take out the hard yards .. but it doesnt.
It requires a minimum quota or thats it.
Now if you are an established agent or an agent with a reasonable level of contacts to start with it can provide a reasonable degree of remuneration.
If you are a starter agent with none of the skills and no real means to acquire them ..…[Read more]
Is an apartment a good investment and why?
Well .. an apartment has reduced costs on the maintainence front .. due to the fact .. you dont have a garden or surrounds to deal with. It doesnt have the land component for real long term extended growth .. but land growth is not always a given on an investment.
What will work for an apartment…[Read more]
xdrew replied to the topic Family guarantee and 0% deposit or go solo and pay 10% ? in the forum Help Needed! 8 years ago
Having tried the ‘friends’ arrangement before with a loan transaction .. I’m always of the mind to keep friends (and relatives) and monetary situations separate unless absolutely necessary.
I would swing with Terry’s suggestion of getting a ‘family’ loan of the remainder rather than allowing the banks to take a mortgage over her property on your…[Read more]
Having done all the investigation of the FNQ / Port Douglas / Cairns area
.. the answer comes back …
… and its not pleasant.
Cairns .. Port Douglas .. Palm Cove
.. are weighted down with large body corp charges
.. are weighted down with expensive rates proportionate to the property value.
.. are in a zone which suffers from frequent…[Read more]
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