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OK, good to know you are looking for EXISTING properties.
From before then :-
But take a look at the values of second hand housing in/around Coomera
… and add Ormeau to that list. Ormeau indeed could be worthwhile as its developments started nearly 30 years ago. I always did like the area – back then, it was the place to buy new houses on larger blocks.
That means there could be some older houses for sale on large blocks that could be ripe for re-development (but note, I haven’t checked re local Council rulings in that regard). Ormeau is quite settled, though it hasn’t grown overly in the last 25 years either, with smallish shopping centres even today.
Room for growth? For sure. Will it? Hmmm, pass !! Worth a look though.
Benny
Hi SM,
I have just twigged – this thread started with Guarav talking of House & Land packages in Coomera. These are what I was warning against.On checking, I haven’t seen where you were talking H&L – so maybe your Buyers Agent was looking for existing rather than new – is he? And what about you? Are you also talking existing houses? If so, let’s start again….. ;)
Benny
Hi Harv,
So, had they provided numbers on “expected rents” or “Expected holiday letting returns”? Costs for body Corp? Costs for Holiday Let mgmt? etc?A quick look at apartments in Broadbeach (out of interest, after reading your post) saw a range of rents from $400 to well over $600 a week. Prices of apartments had a huge range of values from $350k to $900k+.
The Median Value for Broadbeach 2Br apartments was something like $420k with a 4.9% return (so, median rents of about $395/week). Are they similar to the numbers you were given? Of course, the yield is Gross – so all expenses yet to come out.
Benny
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Benny.
Hi Peta,
…. if I do it at my expense and to a professional standard I am welcome to do it myself, but the screens have to stay there when I leave.
If these were to be a fixture, then I believe the above may be correct. i.e. if you have to drill holes and use screws to affix them, then they become a “fixture”. Also, the landlord would not want (and shouldn’t have to) fill up any holes that you leave if taking them with you.
But, why not make temporary screens – no screws necessary – and take them with you when you go. Depending on the age of the casement window, there may be a way for you to hold them in place without the need for screws – totally removable and leaving no “damage” once removed.
Benny
Hi Richard,
Did a loan for a forum member this week in a similar situation and we managed to squeeze out another 300k of borrowing compared to her original bank.
That is a very useful “aside” Richard. Amazing that a different lender could make such a large difference. Those little snippets are worth gold !!
Hi Sammy,
I hope the thoughts from Richard and Jamie are helping you to come to some conclusions. Certainly, when it comes to finance, these are the blokes to listen to,
BennyHi Harv,
Have you looked at the differences in incomes between long-term lease and holiday letting? If the latter, is there a property manager who will look after the renting of these, or is that up to you?Have you looked at the likely percentage of “filled weeks” versus “unfilled weeks” if holiday letting? Though it is nice to perhaps make twice the rental via a holiday let, it pales somewhat if only let for 50% of the time. Still, that does leave time for YOU to enjoy it, if that were a likelihood.
Broadbeach is part of that Surfers area – personally, I prefer the more outlying beaches (e.g. Burleigh Heads). It being in Broadbeach should make it desirable to those who are working in the Surfers area, as it is far enough away so that they leave the hustle and bustle behind them after work. It is also near to the Casino – could THAT be a drawcard for your place?
One reason I have never gone into that area is that your apartment will be “just one of hundreds” – like a Taxi, you can never get enough of them in peak times (same with apartments during School Holidays) but what about the rest of the time? What is it about your apartment that would make it desirable outside of School Holidays? If you struggle to find an answer, maybe a long-term lease is the way to go.
Good luck with your choice, Harv – I hope the final days all work out and you soon have your apartment,
Benny
Hi Mim,
Since you mentioned this:-I have not even seen this builder work as he was recommended by my bank manager..
… is it worth a trip, or phone call, to the Bank Manager. They could be friends, or the BM could have used this group previously for his own purposes. If the former, maybe you can glean a little more (and maybe the BM can lean on this bloke for you). If the latter, perhaps the BM can show you what work the bloke has done, so at least you know if he is worth waiting for.
Not to put heat on the BM, but perhaps he (as the referee for the builder) might WANT to help you out…. Food for thought.
Benny
Hi all,
Some might think my “big picture” has been formed backwards – this post should perhaps be #1. Ah well, like Topsy, this thread has been “just growing” as thoughts pop up and get added. I hope it is of value to YOU !!Tonight, Corey posted a thread on a VERY important subject for all investors – but especially for NEW ones. And it has to do with “Where are you wanting to go” so you can then plan “How you can get there”. Corey goes into discussion on setting goals – here:-
And WHY set goals? Well, if you don’t know where it is you are heading, how will you know “how much further to go”? Or, as my reply to Corey states “If you don’t know where you are going, any road will get you there”.
But you don’t want to take “ANY road” if you are wanting to invest successfully – hence you should check out Corey’s thread.
Benny
Hi Corey,
Awesome subject !! As I read your thoughts, an old favourite saying came to mind :-“If you don’t know where you are going, any road will get you there!”
Puts a smile on the face thinking about something so silly e.g. how often do we back the car out of the garage to go “somewhere, but I don’t really know where…”? Not too often, I hope.
It is very common for us to get into the car, knowing exactly where we are going to go. But when it comes to investing, it is almost like the goal (or destination) is SO far out of reach that we can’t visualise ever getting there? So instead, we liken it to getting into the car and driving to the first set of lights – at THAT point we will decide which way to turn (still not sure though….).
It is far from unusual to read of those just wanting to start, without really knowing where to go, or why. Anyway, your post (above) looks like being a great help for newer investors who are “looking for the path”. Here’s hoping we can direct them here !!
Well done – and THANKS !!
Benny
I do know who the vendor is as I was able to track down their company details down,
Cool – then approach him and let him know of your offer. If he asks why you haven’t put it to contract, mention the RE agent’s reluctance, and that you wanted HIM to know of your offer at least. After that, it is up to him, but at least you have tried.
We actually won out in similar circumstances – way back, we were bidding for a property – the RE agent had two offers already, and didn’t want to compound things by adding ours. Fortunately, we knew that RE agents must submit all offers, but just in case, we contacted the vendor too to let him know we wanted to be in the game (with an offer amount above the other two).
Knowing what the Agent should be doing was a huge help. It allowed us to convince him that we knew it, and that REIQ would have been our next step if needed. Didn’t have to happen, and our contract won – woohoo.
Benny
Hi KA010,
I have had this experience before where they try and delay, but the fact he told me to walk away is really odd…
I am sure the REIQ would be interested to hear about this – though what they can actually do about it is beyond me. Certainly this agent is a disgrace, and should be called out. I agree, something does sound sinister.
Is there another RE agent who has the same listing? Maybe a call to them might help?
Benny
Hi SiteManager,
The way you are talking it up, I am wondering if you HAVE bought there already? :pSo there finally is to be a big mall development? Cool – that may help with values down the track. As of right now (and for the last 15 years) all I have seen is agents pushing the area trying to get things happening. For sure, one day it will happen.
For my money though, buying new in a new development is paying top $$ so a developer and his marketing team can keep themselves in champagne. Especially as any “growth” is the uplift in value that each new stage brings is added BY THE DEVELOPER.
But take a look at the values of second hand housing in/around Coomera – that area may well contain some value (they were building there from 15 years ago, so some might now be For Sale). I haven’t looked, by the way – but THERE is where I would start if wanting to buy in the area.
Benny
Hi Corey,
Hmm, I kinda like that – I think I would qualify the statement in a different way though…..
“Just Do It – after taking counsel”
Thanks for your thoughts,
BennyHi Mccormack,
Just be aware – in Qld I think the cooling-off period is just FIVE days, not 14. Anyway, DON’T sit on your hands if you want to be out of this deal. Have your solicitor drive it – tell him you want it stopped, and have him tell you HOW !!Benny
Hi Simang,
Check out Terry’s webpage (link in his signature). Seems to me like he is ALL of the things you are looking for right now, including Lawyer, Financial Planning and Mortgage Broking too.Why not give him a call?
Benny
Hi Cartman,
Considering worst case.. should the banks decide to recover the house for the mortgages (default), I’d rather they take the IP, then the PPOR any-day / any-time.
All the more reason to NOT cross-coll. A Bank with several properties crossed will likely go for the one most likely to provide them their money back – and, in most cases, it is our PPOR’s that have been diligently paid off, NOT the IPs. So more equity available in the PPOR.
In my case, we chose to have our PPOR loans (used as deposits/costs for IPs) with one lender, and IP loans with other lenders. Just our way of keeping the PPOR as safe as possible.
Benny
Hi Jo,
…. perhaps it is time to see a financial advisor, Hard to put trust in one though with all the stories you hear.
Last one I saw years ago was just interested in selling me over to their super fund and flogging insurances.I quite understand that, Jo – like many professions, its members can choose to operate within a specialised area. I recall Jan Somers in particular warning of the exact thing you mentioned above. Be mindful too, that some professionals “buy themselves a job” by purchasing a franchise (Mortgage Choice is one I know – there could be many others…).
Now, I am sure there are many Mortgage Choice Brokers who are fantastic at what they do, but there can also be some who simply leverage off the brand with a skillset that limits what they can do for their clients. As always, caveat emptor (buyer, beware). I like to use referrals from people I know/trust when sourcing any help – include tradies in that, along with brokers, accountants, etc. So call on your network to get referrals – and they can include this forum too.
Last one I saw years ago was just interested in selling me over to their super fund and flogging insurances.
Me too – fortunately, the bloke in question negated himself quickly – he had set up an after-hours appointment for me, but must have had a whiskey bottle in his bottom drawer. In short, he stank of it. As I already had investment properties at that time, I also had a reasonable idea of “where I wanted to go” – conversely, he had a good idea of where HE wanted to steer ME. Didn’t work out though….. funny that !!
Benny
Hi Jo,
Sounds to me like you and yours have done really well to get yourselves into that equity situation. Big congrats for that.The next thing is “Where do you WANT to be?” What is your goal? e.g. Do you want an income stream from the rental stream of a number of freehold properties? Or do you want to continue to grow your portfolio? Do you have a timeframe for “consolidating into your next phase of life” whatever that happens to be?
It is good that you are here and asking questions. Because we don’t know how much we don’t know, now is the time for you to take your thoughts about “What is next” to an adviser who is well versed in finance in all of its forms (including Super and Trusts). If more borrowings are what you want, I am sure that can be engineered. Just how, I don’t know – but the likes of Jamie, Terry,Richard, Corey, and a host of others on here WOULD know.
Main thing is to become Henry Ford – and press the button on your desk that brings the guru of “your financial future” into the room. Who knows – maybe just by reading around on here, one particular poster/adviser will just seem right to you, and you can then ask offline for their help.
Anyway, well done thus far – let’s see what is “Next!!” :p
BennyHmm, so if all of the big 4 do this, is it MORE likely that the RBA can do another rate CUT on Melbourne Cup day?
As I had heard, it was only the “bubble in real estate” (Syd and Mel) that was stopping them cutting the Cash Rate more. Now, with the APRA changes, and the corresponding changes at the Lenders’ offices, the RBA can now be happy that the “bubble is being addressed” and can act accordingly. Sound right?
Benny
Ah, that sounds better !! No dramas after all. So, if selling your buy-n-hold properties, is this to be “as a business” from here on, or are these just clearing the decks to start a business?
Benny
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