Sounds like renting is the way to do it in Syd at the mo. However a friend I know has taken advantage of the biggest tax loophole ever. He has made over $2.5M over only 3 PPORs in <10 years (net of transaction and reno costs). Not a bad effort at zero % tax!

Thought I’d bring this up again. Yanchep Stage 4 – Lindsay Beach side released this week.

http://www.capricornproject.com.au

Apparently some blocks have ocean views. You guys who picked up in Stage 1 and 2, I think you got a very good buy on the traditional blocks. At least $40K pick up there. Prices had not moved between the first 2 stages. I was wondering when the developers were going to load up. Again shows the importance of getting in early at the initial stages. Blasted conditions! In hindsight, would’ve been worth a first class flight over there to reserve a block!!

Now these cottage ones are going for low to mid $200s, a bit too pricey for me so good luck folks.

Yeah nice one Derek. I know what you mean by getting an offer you can’t refuse. Sell and start again with two or three x the number of properties at the start of another cycle perhaps. I know there are a few investors in the process of completing house and lands at the moment. Just be careful if you enter the market too late that by the time ur place is built in 18 mths time, the bull run has already past (if John Edwards’ & others predictions are correct). There are a few homes in Upper Coomera, Qld, Kellyville, Nth West areas that are selling below replacement value. Remember theres a lot of land they can sub-divide in WA so buy well.

The figures are trailing indicators and seeing the amount of growth we’ve seen again between Sept 05 and Mar 06, I’d say it has now tipped above Melb.

Well done guys! I recall passing on Release 4 or 5 thinking who would want to live in this estate when blocks were so “cheap”.

An interesting scenario I thought I’d throw out for you Perthites currently hoarding land. I have just had 2 of my IPs completed and tenanted to folks building round the corner. I have been lucky that I got in the initial stages and theres plenty more building to go. Now whats going to happen in 12 months after their place is built? I’ll be competing with possibly 5 other investors who has just built a similar product, looking for tenants who would again possibly be building round the corner. As the back log of construction catches up in 18 months time and a greater influx of investor purchases, will we see a flood of new empty homes? Add to the mix the possibility of a slow down in resource sector by 2008?

Curious if anybody out there thinks that pop growth will be able to soak up the excess supply caused by the speed at which blocks of dirt are currently being cut up?

You related to the bloke from Melb who won that WPT? Better sign up for a job – even if at Maccas or else the tax man may want some of those winnings. How about you show me some poker tips and I’ll get you started in IPs? Always seem to get out muscled by the boys…

You should’ve been able to claim something on the land too. Most developers sell their land under the margin scheme so that should flow on to you too but not really sure how you apply it. From what I gather, you are out of pocket by the profits. ie. Paid $100K for land and $100K for house – $20K is GST credit and when you sell for $300K, you remit $30K to govt. I suppose if you keep making profits, GST will cut into ur margins.

Check out Julia’s articles: http://www.bantacs.com.au/booklets.php

A bit mind boggling really. Can you afford to hold and just rent out for 5 years? And cream all the depreciation off it too…

Don’t you just love the red bricks?

http://www.realestate.com.au/cgi-bin/rsearch?a=o&s=nsw&c=20219373&tm=1140070050&id=102812679&f=20&p=10&t=res&ty=&snf=rbs&ag=&cu=&fmt=&header=

Given the choice, Dee Why would be one of the last suburbs most Northern Beaches folks would choose to live. Have always been and will continue to be pitsville, no matter how much they try to gentrify it. But only my biased opinion.

Good luck finding a 4×2 in Syd for under $350K. Even homes up in Avalon, Newport and Palm Beach which is > an hour from CBD will go for >$800K with NO ocean views. $350K might buy you a 30 wait, maybe 40 year old 2 bed unit in the 7-20km CBD radius. Might be LUCKY to get $280p/wk rent for them with minimum $400 p/wk strata rates and yes, these are old buildings so expect the outgoings to increase more than CPI. A new development is selling OTP in Cammeray – just north of bridge. A couple of 2 bed townhomes are going for $800k+ and are only around the 70m2 mark. The highest 3 bedder was over $1.5M. Now, this is only a townhouse! No ocean views, nothing. The main attraction – 10mins into town. Big deal.

The properties you mentioned with harbour views for under $300K are probably studios. Good luck with the lender. No 2 bed apartment with decent harbour views go for less than $500K. In 03/04, I used to rent a nice apartment that had full view of the Harbour Bridge in Neutral Bay. Nice pad but small 2 bedder, only 75m2 but convenient to shops, buses to town, the Oaks..etc.. . We were paying $360p/wk. Two floors up, same condition sold for $680K in 04. This was a >30 yr old building. Probably worth the $620K mark now but hows ur rent return. Existing stock you see out there is pretty much cra*. The good ones will get snapped up and people will pay up for it too. SImply too many FHO to compete with. Since X’mas, they are out in hordes! In short, I live in Syd and do not own an IPs here…. yet.

I live in the Northside and grown up in the HIlls area so my views are biased. There are shi*ty areas of Syd I wouldn’t want to live in. Yes, you can probably get a piece of dirt with a house on it for <$500K about 15-20kms out of CBD but I prefer to not have morons and uneducated imbiciles roaming my streets at night.

You’ll definitely get a fair bit of depreciation back – maybe up to 2% worth in yield but whats the outgoings? The council rates will be fairly high and are the tenants contributing to the admin or sinking fun? You need maintain garden, paint building, fences and all you need is one big problem like electrical through building or burst pipe..etc.. and the landlord will have to wear the whole cost cos you own the strata. 6.1% is not much when you could probably only get 7% loan at best on 60-70% LVR hence ur cash on cash return is pretty poor unless you can do no money down like vendor financing or something. Good luck!