Forum Replies Created
- Owen64 wrote:I think before you decide on either Adelaide or Brisbane you should look at what your long term goals are from property and see which locaion will be the better fit.
There are a number of people in the industry who feel Adelaide is the next hot spot and there are some very good reasons for this. South Australia is also resources rich, like Western Australia, it's biggest resource being Uranium. There is a lot of stuff in the pipeline for the Roxby Downs area that will feed property prices through out South Australia. many feel that over the next 5 years Adelaide can averaage over 10%pa.
The South Eastern Qld Golden triangle will always be an exceptional are to invest in but shouldn't be seen to be the only spot in Qld to invest in. There is another triangle in Qld that has shown consitent growth over a number of years and it is fueled by a number of industries. The area from Cairns, Townsville, Airlie Beach and out to Mt Isa is yet another Qld area showing exceptional returns for your money and you can access brand new, to renovate or what ever you want.Myself, I am watching a couple of area's around Adelaide and Far North Qld, I am talking to developers to see what they have in the pipeline for the area's and then making my decision.
Regards
Owen64, for a safe, long term, high growth investment, I still don't that you can go past South East Qld. It is the second fastest growing area in the Southern Hemisphere. Its fast growing population and enormous amounts of new infrastructure are some of the reasons why I invest ionly in this area.
Thanks for that. Yes, if the returns are high enough I might be able to just hold on to the property. Didn't realise that rentals are going up so fast.
Milly wrote:just a small point, none of these places are in Brisbane. they are all either Pine Rivers or as in north Lakes, Redclliffe shire. I think Petrie will do less well than any place close to the Gateway. All those areas are predicted as growth areas.
I have been considering whether to invest in Murrumba downs or try to get something (probably dilapidated) in Brisbane. Brisbane has one thing that these other places do not ie land scarcity.I'm not one for units but the future holds a greater percentage of aged and single people. Also younger people and couples also want to be where the action is, so I think you can't go wrong with a unit in the CBD.
As someone else mentioned, keep the unit till you have the equity to buy in north lakes or murrumba downs or somewhere you like.You're right, Kallangur is strictly not part of the Brisbane City Council. However,I like many others, still think of it as part of the greater Brisbane area. It's not just inner Brisbane that there is a land scarcity at the moment. Try buying a block of land in "outer" Brisbane at the moment. In a Caboolture estate that I was interested in, there was only one block left for investors. The rest were for owner occupiers. I've also looked at Warner and North Lakes – same story. Come in closer to places like Carseldine – nothing much under $300,000, if you can get it. In Bracken Ridge, again, virtually no land available for investors.
Regarding units, I do own one in Toowong and another in Kedron. It's a toss up as to whether to sell the Kallangur property or one of these units to ease my cash position. I've noticed that in some of the major capital cities that units close to the CBD are performing better than house and land in the outer areas. It's a hard call!!
<font color=”#000000″>What other competent professional requires just a certificate 4 to be able to operate in such a complicated area as finance? Accountants require 3 years university study plus extra study to complete their CPA or ICA. Mortgage brokers may not need to study for 5 years but as a minimum they should complete a TAFE diploma or even a university degree.
The mortgage broking industry needs a big shake up. I recently spoke to 4 mortgage brokers about doing a deal for me. Not one could work out what to do as they said it was too complicated. Two promised to get back to me but never did. What's the use learning about communications in a course but not able to apply even the most simple principle of returning a phone call? I refuse to deal with people who are so rude. In the end <font size=”3″>I had to tell a broker what to do</font> and eventually he got the deal over for me – pathetic!! I now have found a person who can deal with investors and was able to get another 2 deals for me. Unfortunately, she is so busy that she can't always give me the personal service that I want.
I've always said that finance is the most important part of property investing. If we don't get that right then the transaction will fall over. Enjoyed your comment, Richard.</font>
Petrie fits into the category of outer northern suburbs. Don't know much the suburb but feel that it is going to do well in the future.
JONCHU wrote:Hi There,
– If you sell, do you have a better place/investment where to park your profit?
– Depending on your financial “position” you could use equity from this investment to buy another property.
How’s the cash flow from this property? Is it “cramping” your style or can you sleep at night no worries?
I don’t know Kevin Turner, however I do know that areas with all the fundamentals in place hold value better. The mythical 10% growth per year quoted by the gurus has hurt a lot of people. It AVERAGES 10%, over the long term, however it doesn’t grow 10% each year. Growth in Brisbane during 06 was around the 4%.
Take Sydney for example, the 10% “rule” is not applying… at least in most areas. This is a good thing though.
Just some thoughts
Happy Investing
The prediction for outer northern suburbs is for 10% over the next few years – it is not the average over a long period. Kevin Turner is a highly respected commentator on 4BC. I listen to his program every Saturday between 10am & 12 noon; he knows what he is talking and seems very balanced. He uses a lot of different statistics to help in his predictions.
I'd like to hold onto my Kallangur property but may have to sell because of cash flow problems. I've exhausted my line of credit and have to decide whether to sell this property or others which are a lot closer to the CBD. If the outer areas are going to do well over the next few years I may be tempted to sell something else.
Yes, I can sleep most nights although I did stay up one night recently trying to work out my best options. To everyone who has replied, a big thanks.
Has anyone else got property in this area? What are your thoughts?
Nearly all the brokers that I have approached cannot handle property investors who have got multiple properties (ie over 5). In the certificate 4 course, do future mortgage brokers learn how to deal with people like myself? I find it very frustrating trying to find brokers who are firstly, competent & trustworthy and secondly, have got the skills to deal with the more complicated transactions.
To be truly educated in anything, including property investing, you should be exposed to all points of view. You should toss some of these ideas around with like-minded people who can then help steer you in the right direction. Islandgirl, I know that this is an old post but I was recently going through what you went through in August 2006. I had read books written by Jan Somers, Steve McKnight, John Fitzgerald and Dymphna Boholt. I had gone to seminars and listened to Margaret Lomas, Michael Yardney and the Reno Kings. Like others in this post, I didn't notice Margaret or anyone else bag someone who has got a different investment strategy. However, I must say that I still got very confused.
The good thing is that I meet regularly with 5/6 others who are at my stage of investing. They have no hidden agendas and have been terrific sounding board. In fact, I had breakfast with 4 of them this morning and had a great time discussing some of the ideas that we have gained from books, seminars and DVDs. Without this group, I wouldn't have had the confidence to buy the properties that I have over the last 2 years.
Cia wrote:I got the form thanks but the submission date is for May 2008 which I expect is for 2008/09 tax year. I wonder can I still do a variation for this financial year?Cheers
CiaYes, you can submit the ITVW up to May 2008. After that date you can submit an ITVW for 2008/2009 financial year.
MARKG14422 wrote:As I explained above. I would pay the mortgage insurance to get a 20/80 low doc but the mortgage insurance company wont touch me because they deem all my appartments to be "Serviced Apartments". I think this is really unfair because they all over 50sqm strat title that I can rent out to whoever I want or live in.
But I cant make them change their minds. So I can only get 60/40 low doc.
I don't have any problems getting a 70/30 no doc where you don't have to mention anything about "service apartments". Mortgage insurance is fairly low. There are some lenders who may give you even more but as Heather and I have both mentioned you need to get a decent broker. I'm sure you can do a lot better than 60/40
Markg14422, not easy to get 70% no doc line of credit without mortgage insurance at the moment. What's wrong with paying a bit of mortgage insurance to help you get another deal ? You need to look at the broader picture.
Your whole aim appears to be getting cash flow +ve positive properties. Have you questioned whether this is the right strategy? You want go cash flow positive, it appears, because you hate your job so much. If you do hate your job so much why don't you look at some other options such as retraining, getting same job but in another company. So many options out there.
I totally agree with Tracey. Don't sell, it would be better to get a line of credit and use that for further investments. Getting a line of credit is not difficult even if income is a problem. There are plenty of lenders out there who will give you one at 70% no doc.
I don't know how you got involved in investing in the USA. Unless you know what you are doing or have someone over there who does, it's crazy getting involved in such investing.
You also need to change your mindset as you appear to be frustrated, annoyed and desperate. It's not the bank's fault that you can't get loans – they have to protect themselves. There are so many property magazines, books and self help books out there that can help you. They are so cheap; tin fact, they will cost you nothing if you drop a few hints regarding presents to friends and family now that it's so close to Christmas!!.
I'm in a small property investors group which has helped me so much to get my thinking right. See if there is one close by as you'll find them invaluable and again, shouldn't cost you anything
Mark, you shouldn't get too discouraged because you are doing so well compared with the vast majority of the population. I wish that I was as cash flow positive as you are.
You definitely need a good mortgage broker. There are not that many around that deal just with investors. There are some even on this forum and on other forums such as somersoft.com.au/forums. Fortunately, I have got a good one, but she is so busy that she can't take any more people on at the moment.
Alwayslearning wrote:can i sell on during this process if i cannot settlecheers
You need to ask the developer about this. I'm pretty sure that you can on sell but not until after settlement takes place.
I recently bought some land which is in high demand. The developer told me that if I want to on sell, that she was willing to contact some of the names on the waiting list for me. In this way I could sell direct to another person without incurring any sales commission.
Alwayslearning wrote:i am due to settle on 3 apartments off plan settlement date is been brought forward 4 months with 14 days to settle what are the scenarios one settlement takes up to 3 months to settle ie coming up with deposits and funding ofpenality interest how is that determined and option can i sell on during this process if i cannot settle
cheers
Penalty interest is usually stated in the contract. I was recently threatened with 15% per annum penalty interest interest if I did not settle in time. There are some developers who are not willing to negotiate these clauses even if you give the excuse that "my solicitor is closed down during the Christmas/New Year period"
Your solicitor is the key player in all this. Get him to negotiate for you. If that fails, you'll have to push your financier to get the settlement completed as soon as possible.
trakka wrote:
I think you will certainly lose your deposit, which I hope was really minimal and that you can consider that forfeited money as an investment in your property education.The "somewhat good news" is that I suspect that unless you have lots of cash sitting in the bank – which if you were after a 100% loan I'm guessing you don't – then the vendor is almost certainly "bluffing" about suing you. Presuming the contract is binding, and I really don't know what potential "outs" there are, then the vendor certainly could sue you, either for "specific performance" (ie forcing you to buy it anyway) or for their losses as a result of your breach.
BUT – having been in the vendor's shoes in the past, where somebody was unable to complete even though their contract was unconditional – the legal advice that I had was that it would cost me far more to pursue this through the courts than to just take the deposit and try and get the property back on the market as quickly as possible. This is particularly the case where the potential purchaser, ie you, doesn't have ready funds for the vendor to access. ie If they sued you, if you don't have the money to give them anyway, then they've wasted their time and more money on suing you.
I'm almost positive that the vendor will just cut their losses and get the property back on the market.
Tracey in Brisbane
Tracey has some really good advice here. I'm fairly sure that the vendors will keep the deposit and put the house back on the market. If you give the impression that you haven't got much money in the bank, I doubt very much whether they will sue you.Let us know how things worked out/
Interesting article. I don't think that it matters whether the Labor Party or the Liberal Party is in charge because there is not much difference in their policies.
I'm with Milly. I hope that prices keep on booming, especially in Brisbane where I've got all my investments. I'm selling off properties which are more than 20 kms from the CBD and buying anything I can within 15kms because the trend is for people to move closer into "where the action is"
The title of the form is Income Tax Variation Withholding or ITV W and yes it can be obtained on the ATO website.
AngB wrote:Hi there,I have a situation and would love some suggestions/advice. I
Either way, I know she gets quite daunted at the thought of doing any of this on her own as it's a world of the unknown for her. I've mentioned a few of the above options and have suggested we go and see an accountant together but just wondered if anyone had any advice, ideas or suggestions.
Thanks for reading
For a start I wouldn't go to an accountant unless he knows understands property investing. If investing is going to stress your mother out, it's not worth even thinking about it. Maybe you need to take her to some seminars or get her to meet some successful investors who are about her age.
Nothing wrong with your strategy. Will you be able to get finance to do the deal? What about servicability? If it's already daunting for your mother, you can imagine what it's going to be like when she sees the size of your loans.
Milly wrote:I don't manage all my properties and two of three I do manage have the best tennants you could wish for. Now the other house with granny flat out back (kippa ring for those that are interested) have been a constant battle from day 1. I regularly ring the couple in the house to ask where my rent is this week. And the couple in the grannyflat…..well frankly I got dragged into their domestic and felt sorry for the woman who was punched by the bf. He got a Dvo on him but she was still too scared to go baack to flat. So now it has been about 5 weeks since I've seen rent and I've had enough.Yes yes I have sent them the appropriate forms but I still kept hoping they would all improve. I worried they wouldn't be able to get accommodation if I kicked them out. But I think they have taken advantage of me. So now I have taken all the paperwork and given it to an agent. Peace at last I hope. I have to say I was mighty embarressed to tell the property manager that 5 weeks had lapsed and I had not been paid. He told me 'not to worry , i had a woman in here this week who hadnt seen a cent of rent for the past 6 months!!"
I wonder if anyone can beat 6 months?
No, although I did have problems when I had a hopeless agent managing for me. Your example shows the danger of trying to manage your own tenants. I've had instances where good tenants turn into bad tenants and had no rent for 6 weeks but never 6 months. Do you have landlord's insurance? It's worth every cent.
The $40 a fortnight I pay my managing agent is an investment for me, not a cost. It's tax deductible and it save me postage, phone calls, time but best of all, allows me to sleep at night.
