Hi Trish,
you mentioned in your post

.

Could you expand why you feel the property is not working. Maybe your expectations are not aligned with a negatively geared investment.[blush2]

In my opinion (without knowing the full facts and your investor profile), I would hold onto the negatively geared property, provided it has the potential to show substantial capital gain. Something else you should consider — the entry and exit costs associated with property are steep[angry2] and should be factored into any decision to sell one property and buy an alternative.

Hope this helps.[blink]
Regards,
Helen

Hello Glauco,
probably your best bet is to use a buyer’s advocate to source property. Do a search on the internet for companies specialising in this type of property purchase. If you advise the area you are interested in, perhaps someone on the forum might be able to provide a recommendation. [thumbsup2]

In reviewing advocate web sites, you will get an idea of what you can expect in terms of value for your dollar. If you go down this path, make sure the company only acts for you, the buyer. If the company has a real estate arm, this suggests a possible conflict of interest — with you the loser.

One other point. These companies can be expensive.[ohno2] I believe they charge a percentage of the purchase price. What guarantees can they provide of their independence and prior success. If they throw a heap of testamonials at you, I would tread warily. A guarantee — preferably no money up front, until they have found the right property for you — suggests they are sure of their ability to meet your requirements.[worried]

As you are unable to travel, make sure they are able to communicate fully to assist you in your purchase decision. eg. digital photos.

The final thing I could recommend — and this is a long shot. Once you find your property, ask if there is anyone on this forum who would be willing to check it out for you in person. There are so many wonderful people here that I feel sure someone will step up to assist you.[angel]

Hope this helps. Lots of luck with your investment programme.

Regards,
Helen[cap]

Hi,
I agree with Depreciator. Time for legal advice. Off the plan contracts should contain floor plans including size in square metres. I know that contracts can say that size is indicative — but 20% difference — that certainly sounds rather fraudalent. I belive unit size can vary up to about 5% and you won’t have legal grounds. But as indicated in your post — a reduction of one fifth the size of the purchased unit. [ohno]

Ask your legal advisor to check the contract if wall cavities and air shafts fall within the domain of advertised unit size. This is a new one for me[blink]

You always need to confirm size in writing and you need to qualify by internal living space; balcony; garage; storage space; courtyard etc.

I guess the other thing is — know who you are dealing with. Some developers/builders have better reputations than others.[pimp].

Let us know the outcome.

Regards,
Helen

Hello Amber,

to go against the tide, I would suggest looking at Cairns.[blink]

Cairns has been bubbling along over the last 12 months or so, but I believe there is still substantial room to move in terms of capital growth. A number of indicators suggest the population of Cairns will continue to grow; coupled with a strong tourism focus — it represents an area of interest.

I agree with earlier postings in this thread — do your homework; rely on your own personal judgement rather than the advice you may receive from agents etc. Also don’t rush the process. Take your time, become familiar with property values before signing on the dotted line.

If you want to get a good handle on an area, check out the local council on the web; perhaps speak to the town planner regarding planned infrastructure etc. Order the local paper — the real estate section will provide a great deal of data “on the ground”. You will also need to spend some time physically looking at property in your selected area — don’t rely on photos as they can easily hide problems; at the same time talk to the locals — they may be able to provide some valuable insight.

If you end up purchasing a tenanted property, ask to have a look at income statements for the last 12 months; also ensure you are aware of ongoing costs such as body corporate fees; council rates; sinking fund etc.

Continue asking questions. This Forum is superb in terms of the advice available. The depth of knowledge sometimes just astounds me.

Good luck.[cap]

Regards,
Helen

Hi,
I attended a Peter Span 3 day residential seminar approximately five years ago — cost was approx $3,000. I found him to be intelligent and he seemed (in my opinion) to be an honest person, eager to impart knowledge. His strategy involved property (buy and hold — interest only) using shares and options to provide the funding for his portfolio. I went into the seminar without the slightest understanding of the share market and within half an hour he lost me. If you do a similar seminar, brush up on your shares etc, otherwise you won’t gain full value from the course. At the time his property approach seemed revolutionary to me — I was an absolute novice so anything he said resonated as expert advice. To be honest, I feel the people on this forum have a lot more to offer you — the depth of their knowledge truly astounds me. All in all, I didn’t gain as much as I had hoped from the Spann seminar — but then this could only be attributed to my lack of understanding of shares/options. If you have the latter knowledge, then you might find the Spann seminar of value. One other thing — I attended several years ago — I believe the seminar format has changed in the intervening years, so my comments may be somewhat out of date.

Regards,
Helen

Hi,
I have read that over 2 billion dollars worth of development is planned for Cairns over the next few years. While this figure may include general infrastructure, it also amounts to a heap of new units on the market. So unless you buy something really special (difficult to replicate, close to water, views cannot be built out) — I would be cautious.

Given the amount of developments planned, your idea to flick the unit on after 18 months could be problematic. Just because there may have been some substantial gain in values over the last year, doesn’t mean this trend will continue over the next 18 months. Unless you have confirmed data to support your intended plans, tread carefully.[bomb]

Just my thoughts. The final decision is yours based on sound research.

Regards[rolleyesanim]