Hi! My Partner and I are in the process of reading Steve’s book (aren’t we all?) I have a question in relation to starting investing in the Norther Territory. Are there any HOT SPOTS anyone is willing to share or sources of information, it is very difficult to get information from realestate.com.au on this region. Thanks[
]Hi,
Sorry, I’m not aware of any, but I haven’t done the research.
Remember that location isn’t as important as finding problems, and problems exist at all price points in all markets.
Wishing you all the best,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
This is your lucky day!! i have just finished purchasing my first IP property in darwin.
there are good area’s and bad, its pretty hard to explain unless you’ve been there.
Plenty of high cashflow properties as long as you stick to the 11s rule.
be aware though that management fees are 10 to 12 percent. I tried negotiating it lower with little luck.
for depreciation contact Rider Hunt (in Darwin) on 08 89412262
Be aware that these real estate agents and businesses run things a little slow so it can be annoying. so expect it.
Alot of houses are being sold as people are moving out of the CBD area, out to the outer suburbs. i offered around 10% below what they were asking with quite a few abusive phone calls but eventually prevailed. I bought a place in Larrakeyah which is a block from the main street, block from the University and a golf course across the road. the problem is now that developers have gotten in there, there is alot of high rise development in the area. It is being rented at 265 a week and the agent that manages it, has told me due to the wet season (now in place) to up the rent would leave the place vacant till feb next year.
any questions, just drop a line.
leave your email and i will send you all the links i have on darwinHi Shaunwalker, Can you clear something up for me please? You have just bought a place in Larrakeyah 1 block from the uni. I thought the uni was demolished there about 5-7 Years ago. There are real estate agents offering 8-10% for management fees aswell. I’m also curious about who gave you abusive phone calls, RE’s or owners?
Em and Roo, there have been some previous posts about Investing in the NT on this forum. If you look back a few pages you will find it.
C2
“Is it true the more you owe the more you grow until the bank steps in?”
The agents werent abusive, they were just less than polite about the offer’s i had put in. This was mostly LJ hooker up there, by the sounds of her she was some old lady having a bad day.
as for the Uni heres their web page
http://www.ntu.edu.au/
So yes there still is a Uni up there!
As for management fees, what agents were offering them? I couldnt find one that would offer that low, although after putting the guilt trip on the agent i did buy from, he lowered his fee to 8.25Hi everyone
Shaunwalker maybe you should look on the NTU’s site they only give casuarina and Palmerston campuses. I worked at the uni when it was at Larrakeyah and to my Knowledge it moved to casuarina. It used to be the hospital before that.
I also own a rental up there and payless than 10% commission I think it is 7.5% off the top of my head.
You are right about rental returns much better in Jan than Oct so try and have your leases fall due at this time.
Good suburbs anything near the water as for housing commission houses they are spread throughout most suburbs.
ErikaWow… Shaunwalker – I hear you!!!
As said previously, I lived in Darwin for 7 years and have twice dealt with LJ Hooker (Darwin Branch) from a rental point of view and also had the unfortunate experience of working in the same building on Mitchell Street.
Not only were they (yes! collectively) the most disrespectful agents to tenants but even as fellow-building dwellers they were the rudest and most conceited bunch of prats I have ever come across.[
!]I have rented and bought in several states since and have never been able to bring myself to deal with an LJ Hooker office since.
Tragic I know but grudges are one thing in which I excel.[^]
Hi Erika, thanks for supporting what I wrote. I read one of Shaunwalkers other posts and I think he meant he was finishing payment on his IP. Where in the Uni did you work? I’ve been involved with NTU since 1990.
Em and Roo, like Erika wrote anywhere near the water is good but it will come at a price. Darwin was a little bit of a social experiment after (74 Tracy) and each new suburb was allocated a % of HCH. Also the NT, I believe has the highest ratio of Govt workers per person and the highest rate of Indigenous people aswell If you are thinking of buying into an area you will read on other posts about contacting the local police. I’ll give you one better, contact the local 24 Hr service stations and talk to any console operator that works at night. They get to know all the ins and outs of the area including the local gangs. Which is starting to become a big headache in Darwin and the reason behind NT having or had mandatory sentencing.
Some areas I would stay clear of now but would have invested in 5Y’s ago are Karama, Malak, Driver, Gray, Moulden, parts of Nightcliffe, Tiwi Alawa and Casuarina. Unless you like mosquitos then Leanyer is a good area for IP’s. Please remember this is my opinion only and I’m sure some will agree and disagree. Also some of the new upmarket surburbs that are being developed are short of services and this decrease the number of suitable tenants. Also Darwin has one of the highest or highest ratio of short term residents mainly due to the amount of public servants who do a 2-3Y stint and then leave again. You definitely need to have a good rental manager if you’re not going to do this yourself.
C2
“Is it true the more you owe the more you grow until the bank steps in?”
Hi C2
I worked for NTU from 90-93 in the science dept. I was a Lab tech in a previous life and for the NTU set up prac classes for Biology and Chemistry.
How are you involved with the uni?
My Hubby Built one of those upmarket suburbs Cullen Bay that was one of the reasons we were up there.
Having lived in various places over the last 10 yrs it has made me realise how hard it is to walk into a town and know which is a good area and which isnt.
ErikaGod i hope you’re wrong about the Uni!
here is a web page (whereis.com.au)
which shows houston St (where i bought)as for area’s i’d not go near, i agree with erika.
though i would add ludmilla to the list as there is an aborginal camp right next to it. No offence meant to any one on this but you would have to see this camp to believe it.Quote:God i hope you’re wrong about the Uni!
here is a web page (whereis.com.au)
which shows houston St (where i bought)as for area’s i’d not go near, i agree with erika.
though i would add ludmilla to the list as there is an aborginal camp right next to it. No offence meant to any one on this but you would have to see this camp to believe it.Sorry but she is correct.
The uni is at Casuarina with a campus at Palmerslum. However you shouldnt have too many problems tenanting in Houston St as a lot of the Hospitality workers live in that area as it is so close to town, they dont need a car.whoops ( edited )
all the bestBrent
Hi Erika, I did my degree there. Two of my lecturers were Dean W (A&P1,A&P2, Pathophysiology, Pharmacology and Sharon E ( Microbiology) I also do some representations for them O/seas.
Brent1, There’s actually 3 places in Ludmilla. 2 official (Bagot and Dickward) and 1 unofficial (Bagot). The one on Bagot rd is going through a major maintenance program and the other is on Dickward Dve. Tent city is located in the reserve at the back of McDonalds. Also well put about Palmerslum (Palmerston).
Shaunwalker, please believe us (C2, Erika and Brent 1) NTU is no longer at Mylily point (Larakeyah). Actually there is no NTU anymore. The new name is Charles Darwin University and came into effect this year.
I haven’t noticed any replies from Em and Roo.
Hi JoC, I don’t have any properties with LJH, but have delt with them on a few occassions and the service has been good. One thing about Darwin is that if you do the dirty on people or treat them badly most people find out and it’s a quick way to go out of business or lose your job. I’ve met most of the agents over the years and 90% of them have been pretty straight down the line. I can give you some contact names and numbers of agents from different agencies including LJH if your interested in investing further.
C2
“Is it true the more you owe the more you grow until the bank steps in?”
Damn! the map I used must be out of date! dont you hate that.
Thanks for everything guys, i do believe you when you say the uni’s not there anymore. Its my own fault for not doing further due diligence, rather than relying on a online map!
I rang Elder’s up there today to find out whats happening with the house market, and they told me its gone up around 7% last quarter. I was also told that my place is in the right area but on the wrong side of the street to justify a higher rent return. will just have to wait it out. I’m expecting once the train and oil line start operating the media will get on to it, hence more exposure, which should drive the prices up.
what do you guys think?IMHO,
i THINK that this place will take off. The RE agents are doing there best, they are advertising places at higher prices, even if they havent sold after 6 months!!!! Un-bloody-believable.
Also when the Southerners see the cheaper prices up here they may buy up here, but remember if you do TRANSIENT population
Our super fund bought one up here no problems so far.
Regards,
brent1
Hi C2
I Worked for Sharon E as one of the lab Techs when were you at the NTU?
ErikaHi Erika, 90-94/5 with the science dept. Erika do you think Cullen Bay has been a successful project overall?
Brent1, A Transient population at it’s best, the highest in OZ. I hope Darwin does take off as I have IP’s there, but I’m a little more confident into the long term growth than the next 18 months. So is a US military base going to increase or decrease prices. A lot of long term residents (LTR) are moving out rural and this has put quite a few properties on the market. These are being bought by interstate buyers and the off shoot of this is that there has been an increase in the number of rental properties and the rents in Darwin for houses have dropped a little. ( this information came from a RE who offered me an executive home to rent at nearly 200/month less than at the beginning of the year, a vacancy of nearly 9 months).
Hi Shaunwalker, You will find another thread where the NT has been discussed a fair bit. This has included the hype behind a few govt and private projects that are occurring at the moment. I think the real estate agencies are getting cautious about a slow down on property so they are really trying to push these projects and advising sellers to hold out for higher prices. Thus the market is overinflated at the moment. I’m very surprised at the number of properties that have been sold to interstate investors at nearly 20% above market value. There have been a few projects over the years that were meant to create additional industries and growth in Darwin but have failed. A good example is the Trade Development Zone (TDZ).
Em and Roo are you still with us?
C2
“Is it true the more you owe the more you grow until the bank steps in?”
Quote:Hi Erika, 90-94/5 with the science dept. Erika do you think Cullen Bay has been a successful project overall?Brent1, A Transient population at it’s best, the highest in OZ. I hope Darwin does take off as I have IP’s there, but I’m a little more confident into the long term growth than the next 18 months. So is a US military base going to increase or decrease prices. A lot of long term residents (LTR) are moving out rural and this has put quite a few properties on the market. These are being bought by interstate buyers and the off shoot of this is that there has been an increase in the number of rental properties and the rents in Darwin for houses have dropped a little. ( this information came from a RE who offered me an executive home to rent at nearly 200/month less than at the beginning of the year, a vacancy of nearly 9 months).
Hi Shaunwalker, You will find another thread where the NT has been discussed a fair bit. This has included the hype behind a few govt and private projects that are occurring at the moment. I think the real estate agencies are getting cautious about a slow down on property so they are really trying to push these projects and advising sellers to hold out for higher prices. Thus the market is overinflated at the moment. I’m very surprised at the number of properties that have been sold to interstate investors at nearly 20% above market value. There have been a few projects over the years that were meant to create additional industries and growth in Darwin but have failed. A good example is the Trade Development Zone (TDZ).
Em and Roo are you still with us?
C2
“Is it true the more you owe the more you grow until the bank steps in?”
US base??
I think that that was knocked on the head months ago. There was some talk and then I think that I heard that the Yanks changed their mind. The company, Bechtel, that got the Gas plant project, are employing a lot of southerners for their plant, they will need places to stay. But I have heard from a lot of friends who have IP’s that they never have problems renting out their places up here.
” A lot of long term residents (LTR) are moving out rural and this has put quite a few properties on the market.”
Whom/where did you hear that from. Dont know of anyone doing that, people are looking to buy into the Northern Suburbs and Darwin fringe, if people are looking to move, then it is generally down south. Declining population last two years, but influx from the jobs created by the projects should stop that this year.Regards,
Brent1
Hi Brent, I was back in D during July and spent 2 weeks catching up with friends and associates. Most of these people are in the upper echolon of P/Service. The US contingent is still on the cards. I’m not going to say the base is definitely coming but it is highly more likely than not. I believe the problem has to do with security arrangements at D /Airport and the port, although it is an international airport it is still a military base which a lot of people don’t realise. It is the only landing strip that can accommodate the shuttle in the southern hemisphere and Tindal is too far out from the port. Also the land around the hospital heading towards Leanyer is earmarked for DHA development. It would be interesting to see the proposed 2006-2010 defence budget earmarked for the NT. When I mentioned rural I was refering to areas the other side of Palmerston in Humpty Doo, Howard springs, Acacia and Berry springs. In the last 2Ys about 30 of my friends have moved out to these areas. At least a third of them have IP’s in Darwin suburbs. I also have a good rapport with a number of real estate agents in D and don’t get fed all the hype they generally dish out.
Finally, I can’t say for sure what will happen and what won’t happen and a lot of what I get told is hearsay, but this hearsay has generally been pretty acurate in the past. Like I have said before I hope D does take off as I have IP’s there, but I’m still checking out other areas.
C2
“Is it true the more you owe the more you grow until the bank steps in?”
Hi All
I have never had a problem with renting our property but I do know of people who have. What is the vacancy rate at the moment?
C2 yes I think they view Cullen Bay as a success,From an engineering point of view it was a wonderful project and it has provided Darwin with a 24hr safe mariner.
Remember with Darwin that not only are people transient but so are companies.
Erika
]
!]
The topic ‘Investing in the NT’ is closed to new replies.
