Forum Replies Created
I remember reading that Margaret Lomas was investing in Mildura for some reason. I can’t remember why but she’s a fairly savvy investor so there must be something to it.
Todd Burns
http://www.freepropertyhelp.com.auIf you can get newish,high capital growth properties that are slightly neg. geared or neutral after tax, they will eventually become CFP because of rent rises and then you have the best of both worlds. This is what I have done and my wage is a fair bit under $100K.
My properties have been through their respective capital growth cycles and they are now benefiting from rent rises because of low vacancy rates. Because my properties are near new there is minimal maintenance and the average equity that builds up each year is significant.
Todd Burns
http://www.freepropertyhelp.com.auI have a property in Mango Hill (Northlakes estate). I bought the land and got a builder to contruct a 4x bedder for me. I also use to own a property in Deception Bay.
I think you will do well out of Morayfield because the ripple effect of price rises is pushing up from Brisbane and down from Caloundra/Maroochydore.
I would not discount areas close to Northlakes eg: Halpine Lakes- They are slightly lagging behind in price but are still close to the new Westfields and all of the other infrastructure of Northlakes such as, Golf course, Recreation Centre, new Schools etc.
All the best, I hope you find something that you like.
Todd Burns
http://www.freepropertyhelp.com.auIf you want to know if it is legal, why not just ring up the ATO. They make rulings on these sorts of things and sometimes it is in the taxpayers favour.
Todd Burns
http://www.freepropertyhelp.com.auA helpful tool for checking out remote locations is http://www.earth.google.com. I don’t blame you for looking outside of Perth the yields are generally VERY low. Prices have risen fast and it will take quite while for rents to catch up.
Go to the reports page of my website to get the latest information on the micro property cycles for each major city and regional area in Australia. Base your decision on real data analysis.
Todd Burns
http://www.freepropertyhelp.com.auIsn’t everything we read in the media the truth?
Show me the professionally analysed data from Residex and then I will believe what you’re saying.
Todd Burns
http://www.freepropertyhelp.com.auTry ‘Margaret Lomas’ books. They are very good. Don’t limit yourself to just her strategies though.
You can also get a very affordable property investing course from http://www.untoldwealth.com.au/index.html
Also check out my own website and blog which I hope will help you as well.
Todd Burns
http://www.freepropertyhelp.com.auCheck the tax page of my website for a recommended property accountant that specializes in companies etc.
Todd Burns
http://www.freepropertyhelp.com.auThis most often means that the agent owns, or is related to, the owner of the property that they are selling.
Todd Burns
http://www.freepropertyhelp.com.auHi Stuart,
Here is the valuation industry definition of market value-
“Market Value is the estimated amount for which an asset should exchange at the date of valuation between a willing buyer and willing seller in an arms length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion.â€
Now there can be a big difference in what is defined, how it is interpreted and what is actually done.
The likely accuracy of each valuation will depend on if it was done as a ‘short form’ valuation (property inspection), ‘desktop’ (no property inspection) or ‘kerbside’ (outside viewing only) valuation.
Your $4K over purchase price valuation may have been a result of a well negotiated purchase on your behalf and your valuer may be one of the few that are willing to quote fair market value rather than being conservative and using the contract price as the valuation if it is lower than what they would normally consider the valuation to be.
All I can say is congratulations.[biggrin]
Todd Burns
http://www.freepropertyhelp.com.auHi TK,
An article by Terry Ryder in the July ‘Money’ magazine states that “Mt Morgan has Queenslands highest unemployment rate and has shrunk to one quarter of the numbers that lived there during it’s mining heyday.” The article also states “Mt Morgan these days tries to get by on its meatworks, an egg farm and tourism based on its mining heritage.”
In the same article Bunbury, Geraldton and Karratha are mentioned as having had recent outstanding price growth driven by the resource boom.
I have personally had some good cashflow and growth from property in Kalgoorlie.
Todd Burns
http://www.freepropertyhelp.com.auSkyh,
Check out the resources and links on my website. I am sure that you will find them helpful. You will find some very useful information in the ‘reports page’ area. I will be publishing more information on it soon.
Todd Burns
http://www.freepropertyhelp.com.auKitty,
Here is something you could try if you find out that you are contractually obliged to pay the $6K. You could ask if the homebuyers centre would take a credit card payment and then apply for a 0% interest credit card for 6 months. This card gives you interest free on transfers AND PURCHASES!! http://www.citibank.com.au/cardsoffer/offers/goldzero_B.htm
If you want to get your credit rating fixed get in touch with Baycorp Advantage and explain the situation because they have the capacity to clear you http://www.mycreditfile.com.au/home/home_default.aspx
Obviously it would be best to do this before applying for the credit card.I hope this helps.
Todd Burns
http://www.freepropertyhelp.com.auHi Sar,
You will find some good resources to get you started on my website @ http://www.freepropertyhelp.com.au
Todd Burns
http://www.freepropertyhelp.com.auHi Carl,
It may seem odd but a rise in petrol prices actually strenghtens the case for a interest rate rise because it forces increased spending which in turn puts more pressure on inflation. The last rise was a perfect example-petrol prices had just risen and the RBA then put rates up (on a line ball decision).
The RBA tries to keep inflation in the 2 to 3% range and at the moment it’s pushing outside the 3%. Record spending on property is occuring now (bigger than in the 2003 boom) so there are very strong reasons to raise rates again.
The 1st of August will be when the next decision is made on rates. It will be very interesting to see what happens. You can sometimes get a hint by watching what the major lenders do with the fixed interest rates in the weeks preceding the RBA decision.
Todd Burns
http://www.freepropertyhelp.com.auHi All,
Interesting little propaganda site against Neil Jenman. I notice that there is no mention at all of who the publisher of the website is. At least Neil has the guts to identify himself to those he is critical of.
People usually love or hate Neil but I know that he has campaigned strongly for many battlers and those that have been ripped off by unscrupulous agents.
In my early days of investing Neil helped me out with an agent that tried to rip me off and for this I am very grateful.
I studied the Jenman system because I was going to become an RE agent. I was offered a job but I decided that I did not want to commit to do the sort of hours that RE agents do.
Simon, have you studied the Jenman system in depth? ‘Smoothing the path’ is an interesting way of putting what many RE agents do. I know that many RE agents are taught to condition the vendor down in price to get a quick sale and quick commission and a host of other tactics that are not in the best interests of the vendor. I’ve had nearly every trick in the book tried on me in my dealings with agents.
If “the house is advertised and the buyers will come”. Then why does the vendor need an agent at all. Just take out an ad in the newspaper, sell to the highest offer and save a lot on commissions.
I say don’t “just go with who you think” but educate yourself thoroughly first. Read Neils information and make up your own mind. See for yourself if what he says is true as you go through the selling process.
Todd Burns
http://www.freepropertyhelp.com.auI recommend that you contact Neil Jenman and ask him for a trusted and reliable agent in your area.
A relative of mine used an agent that adhered to the Jenman system and when she got tired of waiting and was willing to sell quickly the agent said “No, I will get you $10,000 more” He worked harder and longer and got her the $10,000 extra. You don’t see much of that anymore!! Most agents would be ecstatic to get a quick sale and quick commission.
Todd Burns
http://www.freepropertyhelp.com.auHi Aldie,
The data from ‘Herron Todd White’ independant valuers points to the Brisbane market bottoming out. From recent anecdotal evidence I believe it’s now starting to rise (and this is the logical progression in the cycle). Rents have recently risen dramatically (especially for houses) and now yields are more attractive for the investor so demand is higher and supply is drying up again.
Vacancy rates are very low and I had recently had people willing to pay $30 more per week to rent my house in Mango Hill (Brisbane suburb).
I believe that some suburbs of Brisbane are experiencing a mini-boom. This could soon be dampened by an interest rate rise (and there a strong reasons for this to happen). Just looking at ‘Todays Tip’ on the sidebar says- “Variable home loan interest rates peaked at 17% in March 1990” So if I was buying something now I would lock in for 5 years because rates are still historically low around the 7% mark.
So all in all my personal belief is that it is a good time to invest in Brisbane. You can play around for ages trying to find the right time to get in the market but the reality is ‘you have to BE IN the market to be able to make anything out of the market’ and if you get paralysis by analysis you will may never get IN the market.
Todd Burns
http://www.freepropertyhelp.com.auHi Magellan,
Look at it this way- Michael Yardney has organised for 600 like minded people to come and network with you. I am a bit of a seminar junky and the great people I have met, friendships I have made and opportunities that I have uncovered at every event has all been worth the time, money and effort spent.
I am looking forward to the seminar. I hope to see you there. I look like this [handlebars]- and if you don’t like the seminar, you can get twice your thingie back [biggrin]
Todd Burns
http://www.freepropertyhelp.com.auHi FF,
Good to see you took my previous reply in the way it was intended. [biggrin]
The thing about market price is that a valuer may value a house @ $200K, then he/she sees the that the price you have negotiated to purchase it for is $180K. Guess what, the market price is now $180K. $20K straight off the valuation -just like that, just because you were a good negoatiater or were quick enough to get a deal that was going for under the average market selling price.
So to summarise-Market price is usually the valuers market estimate (based on similar recent sales) or the purchase price on the contract that you have negotiated, whichever is the LOWEST.
I think what you said about focussing on a couple of areas at a time is a smart move. Before purchasing, I put a lot of time and effort into researching an area and all of the drivers that influence growth. If I was looking at too many areas at once I would spread my time too thin and probably start missing critical pieces of information and this can lead to making serious mistakes.
Todd Burns
http://www.freepropertyhelp.com.au
