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would be good if they were even half correct, a balanced market would be better for everyone. unfortunately with the amount of deals still in the pipeline and yet to settle I can’t possibly see how the brakes could be applied so heavily… I dread to think how many unsettled OTP sales (and on-sales) are sitting out there. Will be interesting to see how it pans out.
I know of some Perth investors that are going to Qld for cheap deals. They may be cheap but it needs to be in relation to the strength of population movements and economic growth. I hadnt even heard of the suburbs that the guy mentioned. Sydney is looking cheap too but NSW seems to be in economic dire straits and from what I can gather is it is still not a good idea to buy there i.e. trending down? Unfortunately reigning in the growth states thru higher interest rates will punish the slower states but it may be a reality the way things are going. interetsing times, as they all are. It’s different this time, just as every new day is.
its probably more to do with the tradies milking it.
I am a bit concerned about who will build there without loading the price too much
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the Dolphin Apartments in Mandurah is an example… developer just cancelled 20 contracts there. Investors tied up 10% cash deposits for 2 years, only for the depsotis to be returned with not as much as a thanks mate. tough times on all sides.
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Yes I think they have brought their pricing in line with The Reef, plus it was a little cheap to start with I think. It also falls in line with the projection that virtually any block will be worth $200k by the end of the year – blocks this close to the waters edge have to be worth that.
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Perhaps walk us thru your calculations as it doesn’t look right on the surface of it?
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I would suggest that CGT would not be applicable as you have bought with the pure intention of selling ASAP for a profit, so the full amount of profit would be assessable in your tax assessment. CGT is more for a passive investment when you buy a place, rent it out for a wile etc etc – talk to your accountant re this.
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most agents are so busy that you will have no hope of being shown around etc but if you wander into the centruy 21 office near the roundabout there they seem to be doing a lot of business
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Mei – whats the latest up there? have you bought into this or anyone else getting in on it?
I see the Reef (http://www.thereef.net.au/) prices keep going up and are now from $205k.
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there should definitely be a price diff between a cash and non-cash offer. even a committed buyer wo has had finance approval may find their circumstances change e.g. they fall pregnant and no longer have a job, and then the bank can withdraw finance approval. In fact the bank could withdraw approval even if your circumstsnces havent changed e.g. they feel they have enough exposure in a certain town or somehting.
also a cash offer doesn’t mean you have the cash sitting in your bank account earning 2% – it just means you are committing to paying over that money
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Originally posted by asdf: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 problem with this asdf is that the tax you pay on your sales will reduce your asset base significatnly – particularly as we are looking at a market that may eventually flatten rather than ‘boom and fall’ as the prices have still not grown that much as a multiple of earnngs.
I cannot wait for the market to settle – material costs and tradies are getting out of hand. landscaping is one area that is getting ridiculous.
as the hegney report said, only supply can quench this market, yet that is unlikely to occur any time soon. actually i was looking at a map of available land from rockingham to mandurah the other day and it is interesting to note that there is very little raw land left ocean side of fremantle rd. I think it is a pointer for cap grwoth along that southern strip on the ocean side.
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Just a few initial thoughts…
– you will need a section for gST reclaimed and gST out
– you will need more fileds for development costs
– not sure I would start with rent as step 1 as that is not really related to a development… more of a secondary consideration when considering whether to retain. IMO step 3 should be step 1
– why are there 2 fields for building quotes? requires just 1 for total build quote or several to accommodate a number of buildings
– PM tends to be higher than 10%, so need to be able to go higher
– step 2 needs to feed into step 3 as a capitalised cost i.e. you won’t be servicing a development loan
Looks good tho. Question… what will it offer over and above the other off the shelf programs?
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you must dilly dally PropertyWA – I can do Subiaco to Dunsborough in 2 hrs 40m and that includes a leg stretch on the way
If I lived in somewhere like Atwell that would be 20 or 30 minutes less again.important to note that these times will come back a bit with the freeway extension to Bunbury. The north will also be opened up, so places like Yanchep and Lancelin will be a shorter travelling time as well.
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“a greater influx of investor purchases” – I read recently that investor activity isn’t particularly high. With strong migration and the change in demographic requiring a supply of about 200 homes per week I don’t think there is any immediate concern – especially as developers seem incapable of producing new land releases at an increased rate…. lot approvals from 2004 to 2005 barely changed.
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probably talking about the one that generates the wealth in this country, the one that pays our way in the world. We certainly don’t seem to be capable of much else than developing resources.
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Unfortunately a contract is a contract and if it is watertight then the settlement date won’t change without mutual agreement and you can’t just pull out. You are given 3 working days lee-way so that is pretty close. but really is 5 days penalty interest that big a deal?
your settlement agent should be able to sort this our for you without going legal. it is an interesting example though for using a settlement agent that has an in house legal team… settlements can be straight forward but when they start to go messy you need to know the cheap fee doesn’t equate to cheap service.
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In WA a put/call option will attract imediate stamp duty, but I am told just a put or just a call by itself is ok.
when flipping in WA it is probably just easier to pay the stamp duty and be done with it.
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yes be careful about the areas you get into – I was looking at picking up some blocks for flipping in a new estate up there and a friend of friend went to check it out. mentioned somehting about passing burnt out car bodies on the track on the way out there and the character of the adjoining suburb that wasn’t too flash… it didn’t sound good.
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people that start in the profession tend to do CA, where as people who start in industry tend to do CPA. it’s a load of rubbish really and they should merge them. If your plan is to move the UK it doesn’t make any difference at all. I am led to believe the CA qualification is harder to achieve, but I think that is relative to the quality of the degree that you have undertaken. talk to people who have the qualifications and been working for 10 or so years and see if it has made much difference – consider doing the CA though to cover all bases, just means a few more years locked in the study instead of enjoying your life
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You just need to ask your settlement agent to charge the penalties – very easy and no big deal. If the seller has been good to you and done all the right things then it is usually courteous to let it slide (hasn’t cost you anything after all).
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