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Aman, Hasall Grove is also a 2761 postcode area. The reason I mention this is I used to live there when in Sydney. We built there in 1992 for $114,800 and sold in July 2004 for $350k. All of the services are underground in the new estates of Glendenning and Hassall Grove. Plumpton is the older section with visible powerlines throughout.
The Shopping Centre at Plumbton has 3 real estates within 50 mtrs of each other so a good cross section of properties can be reviewed with agents in one spot. There is an Anglican High School, as well as a Catholic High and Primary nearby as well as the usual public schools. There are extensive footy fields in Plumpton, walk and cycleways, service stations and local clubs and pubs all within about 7 or 8 mins drive from anywhere in the estates. The fact that there are now on and off ramps for the Motorway where the old Pace Farms used to be makes this a great location for commuters as well.
I moved to Coffs Harbour and love it here, but for me Plumpton or Hassall Grove had fewer vacant blocks between developements than in Glendenning. This would indicate a potential for quicker growth whilst Glendenning would take a while to fill in those available areas before cap gains would jump very much. Just a thought for you, and I hope it helps.
DD
Richard is right, always get the finance organised before you look. There are many deals and bargains that are missed out on because someone can supply an earlier settlement and shorter time for conditions. So many people dont know where to start, where this forum allows you to get free advice from those that have a good track record.
Whatever you decide good luck and don't tell your friends as 90% will nag you about any idea they didn't have first or aren't ina position to action on themselves. You are in a good position to jump into a deal or two but check with the bank first, or it could be a waste of time.
Happy Hunting
DD
Yeah the amazing things I get sometimes about valuers. There was one deal in North Bundaberg recently where a Westpac valuer came in $30k under valuation on each of 2 units that a couple were trying to buy out of a block of three. The valuer wouldn't talk to me regarding why he thought the value was so low. I finally reached him and he was arrogant and rude and cut me off saying he knows his job, then he hung up. Anyway they did another application with St George and wow, just 2 weeks later the exact same properties valued in at purchase price. A total difference of $60,000.00. Valuers can sometimes be very forthcoming and other times they are a closed shop.
It is quite amazing how they vary. The sad thing was that Westpac only had one valuer in Bundaberg and that this guy was it. Usually they have a panel of 3 valuers and you can ask who are their approved valuers and pay for another valuer yourself. If the second val is more favourable for you then you can ask that it be applied to the property.
Recently both St George and Westpac changed their valuer assignment system and the computer assigns a valuer per deal. I hope that in Bundaberg Westpac adopted the panel from St George and not hamstung us all with that one very particular individual.
Fingers crossed.
DD
Solicitors depend on the state of purchase I use one in Tassie for all of tassie, another for Qld work etc. I would suggest that you need to do some research to find a select area then simply target agents that deal in that area, call them about their current listings and then quiz them about infrastructure and new schools/shopping centres or possible rezonign that may affect the area.
What I usually find is that 5 agents will each give you a piece of the puzzle, and then from the accumulated data discern if the area has missed a growth cycle and is due to double in 10 years to catch up, or has had its run and even though it may look lovely with a zero crime rate, the cheapies down the road offer better cash on cash potential return for you, with or without a reno.
Its all about what is comfortable for you so dont be swayed by one source of information.
Good Luck
DD
Any buyers agent that cant do his service for you for a reasonable fee is plainly ripping you off. I charge a flat fee of $4k per property deal and I also supply building and pest contacts, discounted solicitors and rental managers that discount for my clients. A list of maintenance contacts and for those investors that want a bit extra I do their renos for them down the track. (reno's are a separate fee).
Sounds to me like this guy s rubbing his hands together. He may have 8 people in his team, and thats then easy to work out. They each get $5k and so does he for setting up the deal. Nice for them, crap for you.
I hope this helps
DD
Crusty, what a rough way to tarnish all buyers agents with a single brush. I dont get more stock for sale to my clients by making them buy at a higher price as you have stated. I get an agent that loves having pre-qualified buyers that dont tyre kick and waste his time.
What I am saying is that as I have a clientbase that seeks a certain kind of property, whenever he (the agent) gets one of those properties that meet the criteria, he lets me know prior to the internet listing. As I try to do repeat business in several blocks of units for example in a city, I usually have an indepth history of the block, sale prices and infrastructure developement information for the area already at hand. This means that he, the agent makes one phone call, I do a client email to my database. A few direct phonecalls to active buyers in the area and a quick sale is completed.
My agent does away with the hassle and annoyance for tenants of open homes and several inspections and I still negotiate on every deal. One client over 2 years has bought 4 units in an area, 3 in one block and a 4th in the block next door. All within 50 mtrs of each other. His other properties in other areas and other states balance his portfolio nicely for him so yeah we are all on different levels when it comes to the market niche we target and the approach we take.
Isn"t variety the spice of life.
DD
Whether or not you find a property positive is up to your finance % rate, your holding costs, management rates and maintenance.
If for example you can get a loan for 6.49% then a property hitting 7% rental return will be neutral depending on several other factors like depreciation and your personal tax rate.
A very broad question.
If we are looking at the ANZ 60% lodoc or any lender at 80% with LMI included we need to do all the calcs properly to see if you come out with cash at the end of each year of ownership or not. Be aware that not all states apply threshholds for land tax either so location means differing holding costs as well.
Just a thought. Hey 500 posts, only taken me 5 years, woohooo!!!!
DD
Well with electricity due to soar for us and not big business soon I am very skeptical about the longevity of this government if they dont try and curb their spending of our money whilst we cop all these higher charges for basic services.
Any Tassie investor would know they have just separated water and council rates so they can nudge the totals up over $100/yr.
Little massages like this are everywhere so watch your holding costs on IP's as they really cost more than most of us think.
Job decentralisation means finding those developements that cater to these locational changes and buying in appropriate areas nearby. Lots of research and busy times ahead.
All I can say is good luck all.
DD
Well with electricity due to soar for us and not big business soon I am very skeptical about the longevity of this government if they dont try and curb their spending of our money whilst we cop all these higher charges for basic services.
Any Tassie investor would know they have just separated water and council rates so they can nudge the totals up over $100/yr.
Little massages like this are everywhere so watch your holding costs on IP's as they really cost more than most of us think.
Job decentralisation means finding those developements that cater to these locational changes and buying in appropriate areas nearby. Lots of research and busy times ahead.
All I can say is good luck all.
DD
When I was shouting Gladstone 2 years ago several of my clients did jump in and secure property all between $100k and $130k for 2 bedroom units. I havent seen any cashflow positive there for sometime, but its always nice that my clients have all experienced $100k plus cap gains profit from each of these deals.
As the new estates are all filling up, there may now be a few bargains as that market has been quiet for a while. Good Luck everyone. Happy Hunting
DD
Great price Nathan, good to see some Sydney deals that look sharp.
Snoopy, yeah its a personal choice. Most clients use me a few times if they are new to it as they get discounted contacts for building /pest inspectors and solicitors to do the conveyancing work. Once they are comfortable they usually do it all themselves.
Having said that I have several clients who have bought 6 or more through me. The record so far is 11 of their 13 ip's for one client.
Many are just time poor and think they are better off with select deals each week and pick the eyes out of my client emails. One client bought 2 ip's one morning, 3 minutes after I had sent out the email. Both contracts done that day with everything organised for a 6 week settlement. She still holds the Tassie one and the Cairns deal she resold for a $40k profit in 2 years.
Horses for courses really.
DD
Sam Vannutini and I with the Reno Kings were the 4 main contributors for May 2005 API cover story on 50 top tips to increase your rental yield. I was also profiled in that issue.
I am a buyers agent and do renos for clients who buy property and don't want or have the skills to renovate themselves.
Happy to chat or make suggestions for you to help you get your feet wet.
DD
As the 6 are already stratad then buy it 3/3 in different names with different lenders. Then approach council once you have sucess in settling to arrange for a block discount for rates being one "couple owning the lot. You may save $$thousands on council fees.
Has the strata been enacted or just approved? It makes a big dofference if you dont have to pay a strata manager as well.
Just a thought
DD
Johnathan, hi I have been a buyers agent helping people secure property for the past 8 years. I also do renos for many of these clients once they have earned an income from their investment for a short time. I have one client where I went with her to Tassie for one last year and we did the whole house in 8 days.
That's her and I doing the prep work and painting and me coordinating all the other trades and services needed. With the house equity going from a $122500 purchase for a completely trashed house to $165k with new kitchen, updated bathroom and new toilet, new carpets and lino, new curtains and the removal of a non council approved front deck. Total reno cost $14,500.
The rent went from $145/wk to now getting $200/wk. When did you want to do some training Johnathan????
DD
I have a client whos property is in Bundaberg Qld. He rented it to a single guy. The single guy has 4 students staying there which was only found out during a recent inspection. The agent contacted the owner and they got $250/wk rent instead of the $190/wk previous if they left the tenants stay.
This was only 4 so not classed as a boarding house situation so perfectly legal.
I only wonder what the poor students are paying the single guy each to stay there.
Its a funny world sometimes. In this case the owner benefited by $60/wk and is happy.
DD
Wealth4life, you have me dead in the water then.
I have been assisting people for 8 years now to get their investments happening and I have a really crap website I haven't reviewed in over 2 years.
No this isnt another plug as I havent even got my website listed on here but more an appreciation of a fair comment you made where Im guilty of working in the business and not on the business.
I may look at it next year. *-)
DD
Yeah I cant remember how to do a private message on here anymore. Ive just come back on after 2 years. Can you PM me and we can then discuss off the radar.
Thanks
DD
The true catalyst for the interest rate rises is the performance of the aussie dollar. As the dollar strengthens, imports are so much cheaper and we tend to splurge. With interest rates jacking up higher again this is only keeping pace with our perceived worth overseas and the interest rate trend will continue as the global financial crisis continues.
Americas economy is in the loo and will stay there, and as Australias currency is traded against a weakening greenback the inevitable rate rises will continue. Im shedding a few properties now as I feel that getting down to 6 or 7 will do me for now. Reducing a further $300k in debt and taking the 100K cash into an offset account against my personal mortgage is a great move. Consolidating loans on three other properties as well means I am trimming off the fat and getting the portfolio leaner for further rate rises ahead.
They have predicted 2 more rises this year. How are we all going to fare under these conditions??
Keep smiling, it's only a game.
DD
The true catalyst for the interest rate rises is the performance of the aussie dollar. As the dollar strengthens, imports are so much cheaper and we tend to splurge. With interest rates jacking up higher again this is only keeping pace with our perceived worth overseas and the interest rate trend will continue as the global financial crisis continues.
Americas economy is in the loo and will stay there, and as Australias currency is traded against a weakening greenback the inevitable rate rises will continue. Im shedding a few properties now as I feel that getting down to 6 or 7 will do me for now. Reducing a further $300k in debt and taking the 100K cash into an offset account against my personal mortgage is a great move. Consolidating loans on three other properties as well means I am trimming off the fat and getting the portfolio leaner for further rate rises ahead.
They have predicted 2 more rises this year. How are we all going to fare under these conditions??
Keep smiling, it's only a game.
DD
Some people prefer to sell their properties through an email based system of sales, rather than have an agent trudge 50 potential buyers through your property. Many investors out there need the facts and a few basic pics to make a buying decision and a quicker if not higher sale can be achieved this way. Less interruption to existing tenants, with responses in days not weeks or months.
As a buyers agent I work for a fixed fee, this means that i try and do a great job and am not influenced by getting a higher fee if I do a worse job.(As all those on a % basis get paid more the higher the sale price). All im trying to say is shop around for what is comfortable for you.
Don't be swayed by other peoples opinions too much as in the end its your property and your sale.
Good Luck.
DD
