Forum Replies Created
yes $1,000 a metre is pretty much where its at now. allow 1% price increase per month for the next 12 months.
http://www.megainvestments.com.auExtensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
have a tenant that put down lawn and similar little projects. sounds like a great idea to me.
http://www.megainvestments.com.auExtensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
is a pity these records can’t go back further. UK housing records also provide interesting reading.
it is interesting the different conclusions you can reach. I would have concluded that over time capital gains are pretty consistent and whilst these adjusted figures indicate a little higher than the long term trend, that property is still a very safe investment vehicle – particularly in light of the alternatives. It would seem that except in the worst of years, there is some growth even though it may not be as high as the long term trend. Picking the top and bottom of a market is very very difficult – not many people manage to do it. The peak has been called many times over the last few years by many experts, so I think there is more to it than basic Investment 101. Hence the previous mantra that it is all about time in the market, not timing the market. I would suggest investors buy well in todays market and leave the guess work to chat rooms.
Macro factors to consider: increasing immigration rates, stable/declining interest rates, increasing interest rates, booming resources sector, prolonged economic growth, collapse of US dollar, surge in the USD, war in Iraq, Chinese economic growth, domestic politics, the push for tax cuts
http://www.megainvestments.com.auExtensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
personally I would save the money and use excel.If you dont know how to use it just ask another property investor who would probably give you a copy of their own spreadsheet.
then put the money saved towards a deposit.
http://www.megainvestments.com.auExtensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
I believe the upward spiral in prices is not a post WWII phenomena and that it actually goes back pretty much to the beginning of record keeping.
I may get hit by a bus tomorrow, yet I continue to invest in the hope I do not
http://www.megainvestments.com.auExtensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
I can’t see it slowing down – I think it is an excellent target selection. Would be hard to go wrong with any of these locations.
http://www.megainvestments.com.auExtensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
well the CGT will only apply on the increase in value from when you subdivide the blocks, so you could so something like subdivide off a couple of small blocks and sell them… tax free, then live in your bigger one for a while unitl you get more cash to subdivide the lot?
with a project as big as 20 lots you should definitely get professional advice. if you own this land with little owing on it you should be able to easily get a development loan to do the subdivision in one hit – assuming the deal stacks up which you would want it to anyway.
http://www.megainvestments.com.auExtensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
I think the intention would be transparent and you would run into difficulties on this.Thats just my opinion, you may want to speak to an accountant. As Byronent said, you need to consider your opportunity cost as well. CGT is taxed favourably anyway. Best way to avoid CGT would be not to make a capital gain. Taxes and death….
http://www.megainvestments.com.auExtensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
as there is no real benefit to trading vs selling for cash you will often find that both parties in a trade either have unrealistic expectations of the properties value or the market generally doesn’t like what they have to sell. I have seen people trade only to find their problem perpetuated. often you are better just clearing the books and selling the property at its market value. But I have sene some effective trades conducted where the 2 parties do generally move into stock that is more suited to their portfolio. Think hard though about gems and barter card points.
http://www.megainvestments.com.auExtensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
there’s probably truth in it but as always you have to look at the numbers and see if they are a symptom or a cause… new house prices have gone up so much that established housing is looking very cheap. The large home builders have also been closing display centres to try reduce the back log of orders and this would also deter new orders. I know of one builder that was seriously looking at standing down the majority of its sales staff – why have sales staff if you can’t build what they are selling? This was one reason why one of my contacts just took 6 months holiday – he couldn’t get his orders processed so thought he would come back when things had settled down (looks like he needs to book a new holdiay!). I think a cooling in new home orders is excellent news for creating a balanced market… unfortunately it will take 18 months to clear out what we have. It also means we may escape the doom and gloom forecast of BIS Shrapnel which suggested demand pull inflation from this excessive demand will lead to interst rate hikes and eventually a serious recession – interesting what a few months of actual data can do to a forecast!
http://www.megainvestments.com.auExtensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
someone is a little paranoid hey?
thankfully we live in an energy rich country, tho i doubt our ability to defend it in such circumstances. No wonder xtrata want their hands on the WMC uranium
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
but January API has been out for about 2 weeks?
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
very interesting post!
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
I should think you would be struggling to get a builder to take it on if it’s not their normal contract. Try asking a couple of the builders you have used to see if they would use it… would be interesting to hear their comments. I suspect – particularly in the current building climate – that they would pass you up as a customer.
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
“-ve geared for CG at the moment is far more speculative than +ve geared that can be sat on during a price fall”
I am for both CF+ and CF- property, but don’t understand why you would say serviceability would be variable for CF- as opposed to stable for CF+ ? CF+ investments yield higher because they are higher risk investments. I think now would be an excellent time to be looking for a property with CG potential i.e. don’t follow the herd and go against the trend.
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
bearer of bad news here…sounds like you need to retype it
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
property trusts…urghhh. the trouble is the refinancing/credit/consumer boom is funding retail sales which is boosting LPT’s and the economy generally (well so some commentators say). I worry that people trying to diversify by covering negative gearing with property trust income are just playing double or nothing – its all linked in to what many are referring to as the ‘property boom’ (which sort of implies a subsequent ‘property bust’).
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
6 months is very quick to construct – I would be very happy with that. some are taking up to 18 months from delivery of site to the builder. this was highligfhted in that recent Sunday Times article which commented people are paying a $50k premium in Meadow Springs just to buy houses that people have managed to get constructed.
some smaller builders are slower than bigger builders as they can’t compete for the goods and trades. If they are quicker than the larger companies they are usually a fair bit dearer as they are paying their trades above market rates. its not necessarily a bad thing… at the end of the day you may just want your house built, where as others may be happier for it to take longer when they have a fixed price building contract anyway.
Port Kennedy – excellent selection of locality, it is really racing ahead down there. I get the feeling this will be a very big year in real estate, the market seems buzzing already
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
illegal in WA? no way, it’s a free country (pretty much). you can’t flip without paying stamp duty though… the solution is to flip land (lower value)
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
“I worry that this CF+ mantra is a stick your head in the sand proposition”
yes a small surplus of cash on a weekly basis does seem to dazzle people. just because its CF+ doesn’t mean you should buy it. the investment needs to be considered overall. CF+ just means it helps you with the holding costs, but if you go to sell it and you lose money (when you add up your weekly cashflows and change in capital values) then it has quickly been confirmed as CF-
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
