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June 13, 2007 - 12:39 pm

Well, have you read the latest book "Secret" then ??!!!

It says, if you visualise your development HARD enough, it will magically appear !!! ..

June 13, 2007 - 12:33 pm

johann22 wrote:

Hi Bennido,

Thanks for your input. The only issue i have in mind is that most houses look a like which makes it even more competitive to sell in a later stage. Areas like caroline springs atm have alot of supply in terms of houses and the demand for these areas have been a bit quiet. 

What area are you leaving in atm if you dont mind me asking?

cheers and thanks for the advice

If you are investing for the long term (>3-5 years), it shouldn't be an issue. For example, land in Caroline Springs is limited and once its gone its gone.

And while there are new land releases, they are getting deeper into the estate (i.e. further from the city). So you'll find the demand for houses in the earlier releases is quite high. On my street alone in the past 4 months, there were 3 sales and all were sold in less than a month of putting up for sale !

June 11, 2007 - 1:13 pm

Hi Johann,

Firstly, congrats on your purchase. I live in the area so I know the market quite well.

While the outer suburbs don't appear much in the news when it comes to property hype (most prob becoz most writers live in inner melbourne!), there is much growth in the outer burbs as well. 

Especially when people get priced out of the inner melbourne market, they will start looking further out for value.

For example, my property has doubled in value in about 4 years !

April 13, 2007 - 3:26 pm

Yes I agree you can find some great deals in Victoria. Some investors have panicked (due to the drought crisis) and I have seen some properties go for way below their true value. So have a look around and you'll amazed at what you can find.

I recently bought a cashflow positive property in the Winmera region without really "solving any problem" (like Steve says) other than a fresh coat of paint. Not exactly "11 second" stuff but good enough returns nonetheless for lazy people like me who like to find solutions ..

October 31, 2006 - 2:33 pm

Originally posted by ogilvy:

No. I dont want you to steal all the commerical properties before I get to buy them all. [strum]

LOL ! .. Don’t worry, I seriously doubt if I’ll come close to stealing any from you ..

October 25, 2006 - 11:23 am

Originally posted by ogilvy:

Resi sucks…….commercial all the way.

hi ogilvy .. do you want to share what are the main points that cause you to favour commercial so strongly over residential ? .. thanks ! [blink]

October 24, 2006 - 12:45 pm

Originally posted by MichaelYardney:

The rules for commercial real estate investment are very diffeernt to those for residential investment.

Commercial properties are yield driven and yileds also drive their values.

This article may explain some of the differences:

http://www.propertyupdate.com.au/articles/49/1/Residential-Or-Commercial—Which-is-right-for-you%3F

There is also a good book by Chris Lang call “How Commercial Proprety Works”

Michael Yardney
METROPOLE PROPERTIES
Publisher of Australia’s leading property e-magazine.
Join over 17,000 readers.
FREE subscription http://www.PropertyUpdate.com.au

Thanks Michael, great article. [specool]

And I’ll look out for that book too. Went down to Borders today and they had tons of book on residential property. But NONE on commercial property. [grrr]

October 17, 2006 - 12:25 pm

Like Andrew said, a house wirth 400K renting out for 200 seems way below market rate without knowing too many details.

Is there any way to increase the rent ? In most cases, the rent should be much closer to 300-400 pw for a place of that value.

October 17, 2006 - 12:20 pm

Used to live in Avoca St so I know the area quite well.

Like the others said, its very blue chips. That means, lower risk but lower returns as well. Over the long term, you should experience stable but moderate capital growth.

And the properties there are definitely -ve geared so take that into account.

October 5, 2006 - 2:17 am

Originally posted by freeman cooper:

Hey bennido

I had a similar problem with pigions, about 100 of them, they pooed everywhere and were didrty.
The answer is a can of whiskas and Fenitrothian.
That will stop them.
Or you might want to try chilli, that will burn their bum and give them a rash.

What is “Fenitrothian” and what does it do ? Does it make them go away ?

By the way people, don’t get me wrong. I’m not a cat hater or anything like that. I just can’t stand the nuisance they are causing at my property.

I can’t believe how irresponsible some cat owners are who let their pets roam around the neighbourhood uncontrolled. They should be forced to keep their cats within the boundaries of their properties or take them outside under controlled circumstances like with dogs.

September 16, 2006 - 2:10 pm

Well, what you have stated above is really all about negative gearing.

You’re 100% right about the huge shortfall between interest and repayments. The tax benefits will lessen the pain somewhat, maybe even up to 40%+.

But the real gain is when there is an improvement of capital value. There are countless cases in the last boom cycle where the property values has doubled.

So let’s say you bought a house for $300K and 3 years later, let’s say its now worth $500K. Would the gain offset the interest+costs(less tax benefits) that you have paid ? Most likely.

But at the same time, prices could remain stagnant (or even drop).

April 3, 2006 - 12:24 am

Don’t get me wrong, I neither against or for the trust structure. Frankly I don’t know enough to have an opinion either way.

Thought I would just raise another view on trusts from an experienced and respected property investor for consideration and discussion.

April 1, 2006 - 1:23 pm

Was out shopping today and passed by a bookstore so I double checked the title.

Its called The Truth About Positive Cashflow Property and there’s a whole chapter on structures (e.g. trusts). Basically, her opinion is that they fail in their intended purposes.

March 29, 2006 - 4:35 am

I was just going through one of her books at Borders yesterday when I came across the part where she expresses her opinions on structures like trusts.

Naturally, it stumped me coz it kinda goes against general opinion here. I’ll pop by Borders tomorrow and see if I can find it again so I can post the book title here ..

March 29, 2006 - 4:31 am

Doh ! … what an important detail I left out … [upsidedown]

Both properties are in Victoria … [rolleyesanim]

March 29, 2006 - 2:26 am

I was flipping through a Margaret Lomas book and she says that trusts are a waste of time and do not really offer any protection.

What do you guys think of her statements ?

June 29, 2005 - 6:53 am

When applying for investment property loans, I notice that there is a question asking about whether the loan applicant is an individual or a trust.

Does this mean that loans are harder to get approved when applying as a trust ? Does it affect the interest rates as well ?

April 20, 2005 - 5:07 am

Hi Nehal,

I am extremely impressed by your interest in investing as a 15 yo. God knows what I was doing at your age, probably more like hanging around the mall staring at chicks !

I would strongly recommend you start off by reading the book “Rich Dad Poor Dad” by Robert Kiyosaki.

It is written in a manner that is easily understood and portrays the investment philosophys and lessons that Robert acquired when he was not too far off your age.

Good luck and remember – NO question is a stupid question !

February 22, 2005 - 4:26 am

How do I check the value of the land (without the house I presume) ?

This will help to decide on IPs if I want to avoid / delay Land Tax bracket creep.

February 22, 2005 - 4:08 am

I not sure I agree with you Kiwi.

For example, I buy a new house and move from my current PPOR into the new house. Then I rent out the old PPOR. I believe the interest would then be tax-deductible although the loan was originally taken out as a PPOR loan.