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That’s if you can afford the bargain properties, if interest rates go up a percentage, they stated that the borrowers would feel a pinch worse than when the rate was at 18%, you must have your properties freehold, or very good tenants, do you think of what would happen if you couldn’t rent out you property for months, interest rates have gone up too do you have the capital to survive. Thats what I’m question people who are borrowing at a fast rate, but are they looking at the what if’s!Please don’t tell me your living in a fairyland where the house prices will keep going up and interest rates will come down. I’m not having a go I’m just trying to warn people, to be careful it would be awful to hear how people lost everything because they got to cocky,c a know it all and it all backfired. Listen to reports there’s more and more coming out that its going to end. As for the RENO & diy shows, come in spinner, people are making more of a mess then if they didn’t renovate and left it as it is. Money wasted. Unless your renovating for profit!!!!
Sorry aussieroque
Hi Bbruham, no my names not Nancy or Karma. Sorry if you felt uncomfortable talking to letters. I’m not buying at the moment decided to hold off for a while to see what the market place is going to do. I’m going to pay off as much of my existing loans as possible, so if the dreaded percentage rise does occur I won’t be hit as hard, compared to people owing 7 – 8 figures to the banks. Don’t think that selling will get you out of a tough situation, because when things tighten up people stop buying thats when the nasty chain reaction starts to happen. Booms don’t last forever, be prepared!!!!
I’ve heard country towns of Bendigo, Shepparton, Ballarat is good, also Murray Bridge in SA I know of a farmer who sold his pig farm and now owns 11 houses in the main street of Heathcote VIC.with a population of about 3500 where his wife every thursday goes around in the mercedes and collects the rent for the 11 properties.
You may think its hot hot hot, but a boom has to end sometime that was costello’s words, I just hope that the boom stays for awhile for the sake of people being indebt with the 7 to 8 figure sum, its just so conflicting, people who have made great profits with this boom say oh its going to be here for a long time, nothings going to change and there’s people who have been very cautious and have been doing this all there life 50 years plus saying its going to bust, and they don’t want to get caught out its being going for two years. Well I just talked myself into it I’m going to hold back buying for at least 6 months pay off as much of my existing properties as possible, so if anything does or does not occur, I won’t be in a huge hole trying to get out!!!!!
Michael & Kaye good luck with your move to the country, I hope it works for you, we didn’t have so much luck, we purchased 40 acres 40 klms south of Bendigo, for the intention to grow organic crops, a whole new lifesyle from the corporate world, it didn’t work, water supply was down, cost of everything from soil to gravel was nearly double of what you’d pay in the city, then the machinery broke down and it cost us $ 5,000 to fix mind you it took 2 months to fix the machine and the thing is there’s no one else around for aleast 30 klms,NO COMPETITION food was more expensive, but luckily we made friends with the farmer around the corner who produces his own meat. Look I’m not trying to discourage you, just warn you that the country’s not always greener,we still have our property but we ended back in the big smoke, actually saving alot more money. But good luck and I hope your venture alot easy than ours!!!!
PS: be ready if your going to a small town, they seem to know more about you than you do, and funny you haven’t even met them. Also, they won’t classify you as one of them for at least 20 years. Strange but funny!!!Bbruham, jolly good idea stay in sydney, the rest of australia couldn’t tolerate your narrow minded thinking, you silly silly actually stupid person!!! By the way how durrrrr are you telling everyone that you don’t pay taxes, sorry where you from!!!!!and to finish off I’m not from the country brought up in the city and I’m not a single mum, but I don’t go around ridiculing people who are. Don’t forget Karma!
Hi,
I know that storm water is looked after by the local council, to get a true perspective, you might have to door knock to a few houses in the area and ask them the same questions, there not going to lie if there is a problem with the storm water.Good luck!!
Section 32 are very important when purchasing a property. It gives you statements from the council giving any clauses against the property, if there are easements on the property which cannot be built over & rate notices. Water Rate & Encumbrance certificates, Rates advised water usuage and what need to be paid out in settlement, Encumbrance certificate advised the purchaser if there any concerns with the property or indemnities. For example no reflux valve was put in, meaning any blockages in the street sewerage will come up through there property internally, toilet, sinks etc. the owners have had plumbing work done but was never completed, a plan to show if the owners have buit over any easements where a copy of the consent will be given, or not if no consent was given, you will also be advise of flooding in the area and if the property is on mains water or truck service. As I’ve worked with the Water industry, actually running the area that produced these certificates, I have had people crying on the phone because they didn’t know that the property didn’t have a reflux valve, and there house is destroyed with sewerage, I actually saw a photo of a old character home that had been restored and renovated to the dismay of the owner who went away and came back to a semi dried brown sewerage floor, her furniture, bedding cupboard were all destroyed. She did state that her solicitor didn’t get a certificate, the only thing we could advise her to do is contact her solicitor and find out why he didn’t get a certificate and get a reflux valve put in by contacting your plumber. What I’m trying to say is that the small cost of getting a section 32 is basically a saviour of heatbreak & headaches that can occur in the future.. Be safe not sorry!!! The real estate not going to tell you the major prolems the house or unit has, the legal documents will!!1
Thanks Weston, I’ve taken your comments on board,
As for the snobbery thing here in Adelaide, I’ve tried to tell my friends, Hello, its an investment were not living there, like you stated but for some reason it doesn’t jell with them, you can see the horrified looks on there face. Anyway I think if I listen to them I’ll end up no where. So tally ho I go!!!my venture begin!!!Lee anne if you go to the ninemsn then to aca you’ll find the story plus the competition
Good luck!Thanks Mini
Yep! I saw her on ACA or Today tonight I was green with envy, she was doing what I’ve wanted to do for a long time but just didn’t know how to get started, she’d be an excellent mentor. Funny thing though the home that she bought in Medindie was actually own by Mr Martin, part of the John Martin Store Family, how I know this is because I went to school very close to where she lives and we use to swim in the pool there, Mr martin use to watch from his bedroom window, we thought creepy when we were younger, but now I look back and this old man in this huge mansion all by himself how lonley would he be. Anyway back on to the subject, I’ll go and have a look at the website.
Thanks for your help!!!Thanks Weston,
The next five years we want to renovate & sell hopefully if all goes to plan were hoping to do 5 properties a year. Not being orginally from S.A. we’ve had a look at area which we feel as up & coming. But when talking to friends and workmates there horrifed in area that we’ve chosen, eg: salibury, enfield, morphett vale, hackham, can you tell me is it just a snobbery thing here or are they right about not short term investing in these area, Also, when looking at the median price and the selling price of a home (renovation required) profits not huge but at least 30,000 to 40,000 could be made, Do you have any advise????Great job Weston,
So your saying purchasing property eg, salisbury,elizabeth isn’t to bad, was there much in the renovating of the property!!!!
I’ve lived in Croydon for 20 years, my father has just completed the Palm court Estate on bayswater Road, Croydon, homes 5 years ago were in the $120,000 to 220,000 mark now there 220,00 upwards, my sister just got her home valuated in Croydon South at 480,000, Crime we never had a problem, schooling, great private & public schhols in the area, Croydon has the main street, train station, parks, walking trails, 2 x shopping centre, and you’ve also got Eastlands shopping centre 10 mins up the road, also your at the foot of the Mt Dandenongs, 15 minute drive to Olinda great devonshire teas, Bayswater is very much more industrial, I personally don’t like the bayswater area it always seemed a bit rougher, but there could be someone else on the forum who could think Bayswater fantastic. But Croydon was always that more elite than Bayswater hope this helps
Hi Xenia,
Great to hear from another SA Investor, my husband and I wanted to know the same thing about Salisbury, as were originally from Melbourne, moved over here about 18 months ago with our 2 year old daughter. We hear from work collegues that Salisbury, Elizabeth, basically keep away from northern & southern (reynella onwards) suburbs. Its just fustrating due to the houses down or up that way are so cheap and need renovating . I just don’t understand, theres all the facilites there, shopping centre, schools, but the only downfall is the trip to the city.
What do people think about Seaford, Maslins Beach & Aldinga Beach is it worth investing or is the market capped. Help! By the way our little girl loves the car and also has anyone ever done a mailbox drop to houses which they were interested in purchasing but the property wasn’t for sale!!!!
