Forum Replies Created
Hi Engelo, that seems like a lot of reno work for $14,000.
Are you using local tradesmen or are they from out of town?
Great video and also looking forward to the end product.
Hi Emma,
I have just PMd you the contact details of some more tradies to add to your list.
May I also have a copy of your list, Thanks.renel wrote:I was thinking of using a buyers agent through a company that i have attended some investing seminars with. what has stopped me so far it the cost. I believe it is 1% of the purchase price.1% of the purchase price seems reasonable to me.
A buyers agent here in Perth quoted me a fee of about 3% of the purchase price.
If possible could you PM me the name of your buyers agent.Sent you a private message with the draftsman’s details.
Fremantle Builders restore and renovate heritage buildings in the Fremantle area.
Fremantle Builders
Phone: 9314 5595
Shop 5, 279 South Street Hilton
Fremantle WA 6163 AustraliaThanks for the reply Derek.
The webinar was very informative.Further to Bob1’s comments …
This type of investing interests me , Karratha and North Perth investments seem to tick all the right boxes, good location, rental returns and capital appreciation.
This way of investing is very new to me and hope people here can answer the following questions.
(Derek hope you don’t mind me asking these questions, this is all very new to me and just doing my due diligence).What are the pitfalls in these type of investments? And how can you protect your money should something go wrong?
As these type of developments rely on something like 8 or 10 separate investors, what happens if one of these investors quits before the development is completed? Things that may happen …
Losing their job.
Going bankrupt.
Divorce.
Becoming ill (or death).
100 + other reasons.Also there may be council approval delays, or construction delays which would result in extra holding (interest) costs.
Any way that I can add a clause to contract, i.e. get a refund of money if development goes over time, over budget?
Or if the development goes belly-up?EOS and the Bird Property Group seem to have a good track record, but what happens if for whatever reason they go under? Anyway of protecting your self?
Obviously I would have to run the contract and numbers with my own lawyer and accountant.
And ask local real-estate agents what the expected rental returns and value on completion might be.Is there anything else anyone could add to help me with making right decision in regards to this type of investing?
Cheers
SHi Ninder
As Freckle mentioned people nearing retirement age might get into a bit of a panic and rush into property investment.
And yet as that link posted by Derek shows … Australia is a nation of loss-making Landlords.“The Age”
“The Australian Taxation Office (ATO) has released its Taxation Statistics for the 2009-10 financial year,
which once again revealed that Australia is a nation of loss-making landlords.”As mentioned above, capital growth and negative gearing may not be the right strategy for you, maybe better to go for a cheaper property with a good rental yield.
A few years back a work colleague aged 58, mentioned that he did not have enough savings for his retirement age.
He went to a Buyers Agent here in Perth who suggested that he buy in a blue chip suburb with good growth prospects. Maybe a good idea if he was in his 20’s or 30’s and didn’t mind being negative geared for the next decade (+).He did not follow the B.Agents’s advice … and instead ended up buying a cheaply priced villa in Armadale (27 kms from Perth CBD) a “non blue chip area” … but … at his age a low cost villa with high rental yield made more sense than being stuck with an over priced, negatively geared blue-chip property.
Also you may be able to salary sacrifice more money into super.
Whatever you decide run your ideas through with a qualified accountant and/or financial planner.
Hi worldinvestor
I have investment property in both Balga and Westminster areas.
The PM I use is Diem Whiteman of Ray White Real Estate
Office located at 29 Yirrigan Drive, Mirrabooka. (Next to Westminster)
Her telephone number: (08) 9344 1322Too bad that I’m so far away (Perth), otherwise I would be attending.
Hi property_scout and thanks for sharing this US contact list,
as far as I know you are the first person here to share this info.I have just noticed that Terry Ryder of Hotspotting, has the following article on his Facebook page;
The State Government will lease land in Gladstone free of charge so the Gladstone City Council can build a workers camp for 1,000.
The land reportedly has a market value above $5 million but the Government is providing the nine hectares at no cost so that Gladstone can start preparing for the influx of people working on the multiple CSG-to-LNG projects planned for the Queensland city.
Three projects, the smallest of which entails investment of $15 billion, have all the necessary approvals to go ahead. Each will create at least 5,000 construction jobs over 2-3 years, so there will be considerable pressure on rents and prices in the Gladstone market. The workers camp is just one response to upcoming influx.
Original Article here ….. http://www.facebook.com/note.php?note_id=206228316076122
Hi Marie123
I have done rather well with renovating existing homes / subdividing blocks, in both Balga and neighbouring Westminster.Although Balga / Westminster properties are triplex blocks, if possible I prefer to retain and renovate the front home and build one new home at the back.
Obviously there is more profit with a triplex development but the holding costs are significant.
Triplex development including siteworks, finished to turnkey is about $480K to $520K.
Renovating front home, building one new home at the back (site works and turnkey finish) cost me about $260K.
Try not to spend more than $15k – $20k renovating the existing home.
Another option is to renovate the front home and just subdivide the back block, creating two titles.
