Plenty of CF+ properties in regional areas for under 200k. If you are looking at 4 years + you should see a decent capital gain on a house in that time. Plus as Richard has said a million times you can leverage a lot higher on a house than one of these duds.

D

Hm! Good to know. If Carl door knocks someone, even if he has used RP data to source the property, to try and get options etc is that still a breach? Or are we bordering on a criminal gray area?

D

Hi good plan. Melbourne is rife with the pay anything mentality. I am at the stage of door knocking, the only thing I think is that dragging my two screaming kids around with me may work against me !

Will the local council give you postal details for the company names etc? When we where developing our block our company name was on the planning sign, council gave next door neighbors our address (just happened to be home address wont do that again) and they turned up on our doorstep to complain about plumbing. Ps not my problem. If they are giving out our details maybe they will give out others.

I think this would be a way more productive way to get property, it will involve time and hard work and you should document it so others can learn from it when you nail it. (probably charge for the privilege )

Let us know how you go.

D

Could be just the fact that most people who work for Westpuke are there just to collect a pay check. Everyone has their own agenda and people and products they want you to use or buy. It is just funny from a people watching point of view to see the agenda at work by some one guiding someone toward a poorer performing investment!

D

Here's what i got emailed today (sorry don't know source). Re Melbourne market.

Melbourne still soaring with 84% clearance

NATALIE PUCHALSKI

April 19, 2010

MELBOURNE'S property market continued its incredible run at the weekend and because of strong demand, shows no signs of slowing.

This weekend, 739 out of a reported 875 auctions resulted in a sale, producing another high clearance rate of 84 per cent.

Though it's usually the weakest quarter, the first three months of 2010 were at their strongest since 2003, according to the REIV.

Melbourne's median house price dropped just 2 per cent to $524,500, while unit and apartment prices grew by 2 per cent to a record $450,000.

The median price of houses sold at auction rose by 4.4 per cent to $720,000 and apartments increased by 3.5 per cent, putting more stress on buyers.

REIV chief executive Enzo Raimondo said the most demand and the greatest price increases were being felt in some of the most expensive suburbs.

"The largest increases in median prices were recorded in Malvern East, Brighton, Frankston South, Footscray West, Ascot Vale, Glen Iris, Kew, Camberwell, Surrey Hills and Blackburn – six of which have a median in excess of a million.''

This weekend, almost 100 properties sold for more than $1 million, with another 10 selling for more than $2 million. Two subdivided blocks of land in Toorak at 4 Trawalla Avenue fetched more than $5 million each at auction.

There were seven bidders for 5 Ross Street, Kew, which went under the hammer for $2.26 million, $260,000 above its reserve.

Noel Jones group chairman Adrian Jones said the house was going to be demolished; part of an increasing trend towards viewing inner suburban property ''purely in terms of land value''.

Ruth Roberts, of Woodards, said one of their properties at 21 Manchester Grove in Glen Huntly was on the market for private sale for three weeks without getting an offer.

It was then put to auction and attracted six bidders, selling for $917,000, above its $860,000 reserve.

JPP Buyer Advocate Catherine Cashmore said the only way to cool the market was to increase supply, and this would take time.

Malcolm's Real Estate chief executive Frank Hellier said 1 Maude Street, Cheltenham, had five competitive bidders, who pushed the price to $778,500, past a $630,000 reserve.

''I think if the interest rates continue to increase, it might take the edge off the market in the next six months,'' he said.

If I had a million I know where I would be buying……

D

Hi,

This is where you need to really do your homework. What state are you in? Are you close to this area? If not it will make it harder for you to check the facts and figures without going there. I would make a heap of phone calls before anything else. Ring several realestate offices in town. Is the price about right for that sort of thing in that area? Is the rent the right price? Are the figure projected or real figures for today? Check the demographics, is there a large population, is the town growing, what else is there, big brand shops, high schools, jobs? The list goes on. 

Ring your accountant and ring a separate bank etc regarding the finance options.

If they will not give you any info to take away be wary. If they want to you sign right there and then be wary, if they suggest negative gearing as a great option for you be wary. There are plenty of ways to invest directly in property and any one who is giving you advice should not be trying to sell you something. I smell a spruik (please anyone correct me if I am wrong).

I would be more inclined to hang around here for a while (especially if you have no investment properties as yet) speak to the great mortgage brokers who practically live here they really know their stuff. Look at some properties on realestate.com and post some of them and ask for opinions. These opinions are free and most people here are not trying to sell anything.

There is plenty of property in the country and there may be better options than dipping into your pocket every week. Grab a copy of Steve McKnights book and have a really good read as he is all about positive cash flow property rather than negative. Another good read is any of Margaret Lomas' books (she also is on pay tv on Monday nites).

Good luck feel free to post questions and someone will try to answer them

D

I personally like the fact (apart from the fact that he wanted you to get a lower return) that he said you should go for negative gearing because it would be better for you. Umm running at a loss isn't really good for anyone……?! Must be less paperwork or easy for him to get paid for or something…….

D