That's interesting. Did you buy in Springvale?

I agree. Springvale is a great area very popular with Asians and immigrants who come there being close to markets, restaurants and shops. Many come there to live so there is a high owner occupier rate. If you can get a place close to the railway station, you will have a good investment. Renters are easy to find and will pay top dollar. Yields can be 6%.  The Central shopping centre is being re-developed as is the road/rail crossing where the rail will go underneath the road. The property prices there have been going strong and there is no sign of a slow down at all. The first home owner's grant is certainly helping. Springvale appears to be a safe area and I have spent a fair amount of time there. I have family living there and they have had no "rough" people or had any trouble at all.

Tim, are you still holding onto your Springvale property and how is it going?

Reason I ask is we also have a property in Springvale but don't visit there much. Any updates on interstate and overseas migration welcome. I understand a lot of Asians are still moving into the area and there is a massive undersupply of new places for them to buy.

Yes I'm looking in Panama for investment property.

I have come across a 1 bedroom unit in Essenza, in Costa del Este – an area that is booming and is full of new developments. Under construction.

Do you have any reliable contacts to offer their opinions on the various property options in Panama?

Hope you are still active on the forum.

Not sure if you are still looking to buy in Vietnam.
I have done some research in Vietnam and have found Danang excellent value when compared to Hanoi or Ho Chi Minh.
Half the price and excellent prospects. 3rd largest city and huge development planned, including a new oil refinery not far away which is attracting lots of foreigners to work there during construction and after.

Does anyone have further thoughts on the Ipswich area? Prices seems to have gone up about 10% this year alone. They have been going up steadily since 2001.

Is the bull run over and time to look at another suburb or is this only the beginning?

Type of houses eg. worker's cottage, Colonial, queenslander – does it matter for capital appreciation?

AUSPROP, thanks for your comments. You’re probably right about the others in the area being done by builders themselves. I don’t really understand what you are saying with respect to GST. The price I would get for each townhouse is $330,000 each as this is around what other townhouses are selling for in the area. So no extra there. How about the 5k you refer to? To apply for a loan I thought it would cost about $1000 or less? Can you tell me how you got the 5k?

With the interest, I am told I qualify for standard residential rates by a mortgage broker. But I will check it out.

Anyway, if I can get the builder to come down in price to $8500 per square, remove contingency etc, the numbers look better – what do you think?

Land $260,000
Stamp duty $11,260
Building cost per square 8500 $408,000
GST 10% $40,800
Plans and Town planning $18,000
Contribution fee 4% $10,400
Driveway and landscape $10,000
Subdivision $4,000
Demolition $5,000
Legals $2,500
Loan application $1,000
Agent selling fees 3% $29,700
Interest 7.20% $57,648
Total $858,308

Townhouse – each 330000 $990,000
Profit $131,692
Margin 15.3%

LIke Giddo, the original poster, I have a block of 680 sq.m and have a builder quoting me $10000 per square to build 3 townhouses of 18 squares each. The numbers I have tell me to pass over this deal. Is it the builder’s quote that is breaking this deal? Can anyone assist here? I see others building similar townhouses on similar blocks, so it must be profitable. Where am I going wrong?

Land $260,000
stamp duty $11,260
building cost 160000×3 $480,000
GST on building cost 10% $48,000
Plans and Town planning $20,000
Local govt contribution $13,000
Drive way and landscape $20,000
Sub division $5,000
demolition $8,000
Legals $2,000
Agent’s selling fees 3% $29,700
Interest 7.20% $64,581
Contingency 2.00% $19,230.82
TOTAL $980,772

Sell 330000×3 $990,000
Profit $9,228

We find comfort among those who agree with us – growth among those who don’t. Frank A. Clark.

Hey TT man, are you still holding your property in Maidstone? Prices have been very flat recently. I am looking to buy an older house there on a large block, but am concerned as you are.

Steve, what do you mean by the profit will be taxed but not subject to CGT?

Any profit is subject to a CGT, regardless of whether you set up a trust or a company, isn’t it? If you set up as a trust or company you simply limit the CGT to 30%.

PS. Got your book as a Xmas present yesterday. Will read it over the next 2 weeks whils I’m on Leave.

We find comfort among those who agree with us – growth among those who don’t. Frank A. Clark.