Forum Replies Created
Major builders will charge you more as well, my guess 12k per dwelling on top of normal price, local builder over there will be much higher than normal cbd prices
Average in Adelaide is 20k, 1 block onto 2, so you will probably pay more for travel expenses etc
Hi
Adelaide is flat like a lot of the country
A lot of student acc units are very small and banks do not like that as they are one purpose only, so also slower in capital growth
Have you checked management fees etc are generally high
If you could afford a 2 bed unit, rent it to students or anyone and have a much broader market when selling, as to owner occ, investors etcYou can watch a video on the bhp/olympic dam site, it shows how the town will be expanded, mine etc. So basically they are looking a doubling the town size
Bhp have already begun to spend, without the official board approval next march, the main thing they want is it to pass parliament in the next mth and then they will begin to place orders for trucks etcBarry
I am supprised, when BHP are going to spend 30 billion on an expansion of an existing mine no one seems to be doing the research or asking questions.
I understand some out there are not keen on minning areas at all, however this will be the largest open cut mine in the world, I just thought at least people would be talking about it and doing their research
Barry
Hi
I run this type of accommodation in Adelaide, would rather talk then type, so PM me and happy to help will all your questions
Barry
Hi Dada
No is answering so I thought I would throw my thoughts in.
Mining towns, yes its timing, however mining towns are where I have made the largest gains, realised and unrealised.
I own a house in Newman and settle on one in Karratha in 2 weeks. Karratha has come back a bit in price since the height of the Gorgan announcement, my reason for buying there is iron ore will have its ups and downs, however I see gas as a much more stable commodity as in it is all presold
Port Hedland still has a lot more $$$ being put into it, BHP announced 1mth ago another 6.5 bill to be spent on the area. Will these areas see much more capital growth, who knows I thought I paid a lot in Newman when I brougt and yet up it goes. Rental returns are good however there are ways of increasing this, if you go ahead please feel free to contact me to discuss
I do believe in going to look at the properties and the area, I am from Adelaide and comming from here we find it hard to comprhend the amount of $$$ being spent on these areas.
I also own properties in capital cities etc so these purchases are part of a overall statergie
Have Fun
Barry
Hi
I purchased one in Darwin 9 yrs ago, it was already a DHA when I brought it. The lease had a further 4yrs to run, no problems.
The management fees are high, however you have no advertising, re-let fees etc. When lease was finished they repainted/ carpeted etc. In those days the returns were a lot better.
I do not see any difference with a DHA verses the house next door as far as capital gains, renos, well they are basically new homes so why would you want too.
You need to work out the figures etc and if it does what you want and you want a set and forget, go for itBarry
Hi
If you want some help with getting it underway, PM me and I will contact you to see what needs to be done.
Barry
Hi
If you have equity in your home why not use that to buy an investment property that suits your circumstances and then you will have the buisness, your home and your investment all growingBarry
So if it was worth 350k in 1 yr, thats a 25% increase, thats a big jump on current prices in Adelaide
Barry
As far as OS students the ones I have had rarely gone home etc, if they do and want the room still they get 30% off rent if they are away for more than 14 days, I have had international students for more than 3 yrs stay. I advertise on RE.com under share acc, 50 per mth, if I have a room at the start of the year I will put it on the Uni sites.
The only company I know of that insures this type is GIO, do not believe your broker if they say another, get them to speak to the company not just online. If you get general landlords insurance and something happens you will not be coveredHi
I run share houses in Adelaide so, make sure you have included all costs in your figures, electricity, internet, water, cleaning etc. They take more time than the normal rental house as you have 5 tenants not one. If you use a insurance broker make sure they talk to the insurance company, not just tick boxes online, as most will not insure this type, I can help if you buy one.
AND, are the houses council approved as a 1b dwelling, if not and there is ever a fire etc, no insurance company will pay out, if someone injures themself no cover either
The good part, better return.
Have funBarry
Hi
I currently hold property in Roxby and have made very good returns and gains out of the town, sold 1.
South Australia does not know what is coming when the mine expansion happens, it will be hugh and on par with a lot of the Pilbara sitesThese areas are all about timing, at the moment Roxby prices are 50-75k down from there peak so there is some goodish buys there at the moment. The expansion is still some time off and it will be when all that talk starts up again that it normally takes off, its all the speculation not the event that creates the hype
I believe in Port Augusta as a future investment, as PA West is earmarked for a lot of new housing development, PA West on the water side is the pick
Whyalla needs more industry then One Steel and hopefully the rare earth plant goes ahead, still will be a couple of years away, the desal plant may be there or could be put at Streaky Bay, open ocean. There has been and is a lot of new development land available so this can have an effect on returns if there. There is 100 places for rent in Whyalla at the moment and 1 in Roxby
Whatever your decision I believe you would need to hold for a couple of years to see capital values increase so look at your rental returns
You can advertise on RE.com through this company based in Adelaide, http://www.savvypropertypeople.com.au
$275 for 3 mths
Barry
Hi
I run student accomodation, I had problems with insurance too, ring Ross @ TCB 08 8376 2299 he found a company for me.
Is yours student acc, or boarding house as I think this makes a difference
Barry
Hi
Darwin has gone up150% in the last 7 yrs and now appears to be slowing. If you brought there it would be very negative geared so as long as that is your strategy. The positive for now is rental demand is still very strong.
To give you an idea I brought in Fairway Waters in Palmerston in DEC 2002 for 227,000, now 550,000, so does it have more growth?Have fun working it out
Barry
Hi
I own property in both these towns and totally agree its all timing.
The returns in Newman are fantastic, the entry price is a lot higher. If you become serious on Newman there are a couple of streets you should not buy in, so either go there to understand or ask me more.Blackwater, Morranbha, Dysart etc are all about timing as well, better entry price still a good returns, just do your homework and as part of a portfolio I don't mind some mining town properties
Have fun
Barry
I brought in Darwin 02, paid 227k, now 550k, rent is 550p/w, it was great then however has its growth peaked, who knows
Yields are not what they use to be as capital growth has outstripped rental growth.
Now it finding another opportunity
Have fun
Barry
