nominal terms you mean?

if you put $100 in the bank and 1 year later you have $100, it has fallen in real terms. But it is still $100 and hopefully you have $5 interest to kick in. same as property, except we are talking about rent. so a property that achieves rent in line with inflation rates is not going backwards in value.

gearing is the next…[Read more]

my regret of late is that I didn’t buy more properties over the last couple of years.

I have just thought of a person that would benefit from a house price crash – DMICHIE ! oh and another – my mate that sold 2 years ago when someone told him prices would crash (he sold his house for $240k, now worth $360k, spent 2 years on rent and the equity…[Read more]

diasgree… if a property crash were to occur the ramifications would be far greater than this simplistic analysis. negative equity, people walking away from mortgages, tightened lending policies, employment (as a result of falling expenditure) etc.

take the group that wants to trade up – I am sure you would be full of confidence trading up as…[Read more]

Originally posted by Sailesh C:
Hi

Around $1200 per sqm for townhouses these days so $180 to $200k is about right. Construction costs will vary between types of dwellings.

Your simplest type of dwelling is a low set brick and tile home and here you will pay under $800 per sqm for a decent turn key product. Prices increase as you go to a double…[Read more]

Getting a tradeperson in WA is near on impossible – they can’t be bothered turning up for small repairs when there are thousands of houses to build. Would suggest getting hold of an asset maintenance company that may have their own handymen. Otherwise somewhere like Hire-a-hubby could do the trick.

The PM offers a lot more though than just…[Read more]

Depends where you are and the design, size and finish. I would use a ball park figure of $180 to $200k these days. 1 thing to look out for – talk to some local agents and see if the townhouses are in demand. Remember oldies don’t want stairs, so if it is an area with large blocks and full of oldies looking for low maintenance homes, you will miss…[Read more]

I think Michael Yardney was advocating 20% equity, i.e. the profit component of the development, so there’s none of your own cash left in the deal.

http://www.megainvestments.com.au

Extensive list of ‘Off The Plan’ property available for sale in Perth.

John – 0419 198 856

Originally posted by redwing:
Hi Marisa..went to http://www.whereis.com and had to keep zoooominng out to see where the heck it was…[biggrin]

Ausprop or anyone..have you heard anything about developing the area near Henderson?

John Roberts VALE looks to be doing well in the Swan Valley..

Lot’s happening in WA..hmm where to buy next???

“Money is a…[Read more]

sometimes I wonder… villa prices in Cannington seem to have jumped another 10% overnight. I think there may be a lagged response from increased building and land costs now filtering through. This really must slow down…. when I don’t know. And I want to buy everywhere!!

http://www.megainvestments.com.au

Extensive list of ‘Off The Plan’ property…[Read more]

ooh interesting Marisa – heard nothing of it! sometimes you can be so busy on the current stock you miss the new things on the horizon. will dig around

http://www.megainvestments.com.au

Extensive list of ‘Off The Plan’ property available for sale in Perth.

John – 0419 198 856

https://www.propertyinvesting.com/forum/topic/16349.html

my understanding of the streategy is, in a nutshell, build a complex of units, use the 20% profit as your equity component, so refinance the whole lot and move to your next one. they will still be neg geared but you use your capital growth i.e. redraw equity, to live on and fund your living…[Read more]

this project will be HUGE and is the only new city planned for Australia. expect to hear a lot more about this.

http://www.megainvestments.com.au

Extensive list of ‘Off The Plan’ property available for sale in Perth.

John – 0419 198 856

Rob, I don’t recall you being so critical against Michael Yardney’s use of this approach in the developing Forum. I will go and have a look but it would be interesting to hear his comments as he has stuck it all on the line for this method.

http://www.megainvestments.com.au

Extensive list of ‘Off The Plan’ property available for sale in Perth.

John…[Read more]

“The only thing keeping the AUD strong is record high commodity prices and a weak greenback.”

Yes it is a common misperception that Australian exports are primarily commodities. The currency does tend to trade in line with that sentiment though, demonstrated by the embarassingly low levels we saw a few years back when commodities were out of…[Read more]

“Lemme see, the housing industry gets the first home owners grant, negative gearing, capital gains tax concessions, generous depreciation allowances etc etc. At least the poor bloody farmers are earning this country some export income!”

Actually that is all directed to the general public – mainly first home owners and the over taxed hard working…[Read more]

what good is a trade surplus??? it means you have produced a whole heap of products and you havent been paid for them.

of course a floating exchange rate eliminates the problem anyway

http://www.megainvestments.com.au

Extensive list of ‘Off The Plan’ property available for sale in Perth.

John – 0419 198 856

caught a minute or two of a morning tv program this morning where someone was going on about the budget having no special goodies in it for farmers… gets my back up! the rest of the comunity doesn’t get special treatment, so if you can’t operate within the boundaries of the economy, sell up and turn the land over to someone else who can produce…[Read more]

dmitchie – is that tongue in cheek or are you serious? his position seems quite different to yours that’s all i.e. correction is a long way off (read: never)

http://www.megainvestments.com.au

Extensive list of ‘Off The Plan’ property available for sale in Perth.

John – 0419 198 856

but to summarise: the key point is leverage/gearing though right? so you are still betting on prices rises on average? and if prices don’t rise for say 7 years you are stuck, as you will need to draw equity from somewhere to cover your losses. I think this strategy would be fine in Perth, but judging from comments about the eastern states it…[Read more]

“For tourists,it was so cheap to holiday here.
Yanks and pommies doubled and tripled their currency on arrival.”

you guys keep going on about the glory days of how cheap it use to be for foreigners… seriously most americans cannot get their head around how they end up with more AUD than USD anyway. The only benefit it seemed to have was for the…[Read more]