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I agree with the oversees angle.
Was wanting at least $515K for our house and was told we could start with a $529K listing and work down. We needed extra due to having offered a bit more the property we were buying and so listed it for $539K.
Well it went for $535K for a cashed up overseas buyer on the first day to the first people through the door, $20K more than we originally needed and $6K more than the listing would have been originally. [laughing]
Real happy about that outcome, but I pity the FHO’s in this market.[glum]
All things are possible to the person who believes they are possible.
Whateve the mind of man can conceive and believe, the mind can achieve.
Napoleon HillOriginally posted by AUSPROP:Curtin Uni is loking to bring in an extra 30000 or so students into the area so it will be safe to say you will never be short of a tenant. Vic Park is tipped as undervalued and with the cafe strip now evolving it does seem very cheap. St James villas also appear under valued IMO at $250k – around replacement cost, and also adjacent to the uni, if not closer than vic park in fact. with prices on the rise so fast it is hard to pick the quality – doesnt make it any less important though
http://www.megainvestments.com.auJohn Carroll
I think the Bentley area and surrounds has been very undervalued over recent years. Check the figures over the past years and you’ll see that Bentley has been lagging for a few years and adjacent suburbs leaping ahead. Add 30,000 students (lots from overseas) and where do they need to live?[blink] I’m a firm believer that properties have five year cycles, two growth, two neutral and one decline, not nessesarily in that order.
The rental yields are also prety good and can be up to 9%. It just costs a bit more to get something at this yield level.
Later………..
The yields
All things are possible to the person who believes they are possible.
Whateve the mind of man can conceive and believe, the mind can achieve.
Napoleon HillOriginally posted by redwing:“Is now a good time to buy, sell or hold?â€
YES
My sentiments exactly!!!
Later………
All things are possible to the person who believes they are possible.
Whateve the mind of man can conceive and believe, the mind can achieve.
Napoleon HillOriginally posted by TMA:Everyone is cashing in on the hype. Remember what happened in Tasmania people!!!
All that interbreeding.[lmao]
Seriously, WA has the resources boom with growth twice the national average.
There are skills shortages here in Perth and regionally with silly money being offered. Staff poaching all sorts of fun and games.[party]
Whilst there are still people coming to Perth there is still upside.
Hey, make hay I say![biggrin]
All things are possible to the person who believes they are possible.
Whateve the mind of man can conceive and believe, the mind can achieve.
Napoleon HillMy sympathies also.
Being a very emotive time I would caution against doing anything too brash. Make sure of all your facts and gets details aviable from the hospital and people’s names.
Having no will drawn up the distributuion of the estate would probably be according to what is set out in law. With the will drawn up well, that dictates what goes where.
The question reamins I guess if your father was fit to sign the thing. That’s where the details will come in use when you contest (IF you want to as you might receive more under the “will” than set out in statute).
Now changing tack a little. It always amazes me when people die the descendants always think they have something due to them. That’s where the ugliness of people get drawn out. Just be mindful that contending a will would put you in the same boat as the people who might have had input to it or manipulated the deceased.
Personally, I would rather take the view that I will never inherit any money. That way if something bad does happen to a relative that I could get an inheritance from then I’m not put out should I get nothing.
I would rather live with a clear conscience and not be drawn into the gutter at a level of money grubbing grave diggers. Apologies if this offends. I would rather stand the moral high ground and meet my maker (and relative) one day on good terms as an eternity is a looooong time.
Later…………
All things are possible to the person who believes they are possible.
Whateve the mind of man can conceive and believe, the mind can achieve.
Napoleon HillStill legal.
If you only do say 1 or 2 you are pretty much ok as far as licensing.
If you do more (and can be seen as making a business out of it) you will need a credit providor’s licence which will entail a cost upfront and then for each loan.
Later………..
All things are possible to the person who believes they are possible.
Whateve the mind of man can conceive and believe, the mind can achieve.
Napoleon HillUnfortunately (or maybe unfortunately) I had totally forgotten about this and spent yesterday going over another deal.
So I reckon I saved my dough and then some!
Maybe I’ll get along to the next one if in town.
Later………
All things are possible to the person who believes they are possible.
Whateve the mind of man can conceive and believe, the mind can achieve.
Napoleon HillHere’s some sketchy details of my deals:
1 $186K yield 13%
2 $196K yield 13% loan of $405K for the 2
3 $78K yield (15% now 23%) loan of $82K
4 $330K (valued by bank at $353K!) yield (8.6%) loan of $346KThe first 3 were regional WA the last was just purchased in Perth.
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All things are possible to the person who believes they are possible.
Whateve the mind of man can conceive and believe, the mind can achieve.
Napoleon HillOriginally posted by The Mortgage Adviser:But Dream, there is just dust further North. It is the last city and there are certainly no major regional areas further North.
There’s plenty of regional centres further north and thus plenty of places to invest.
On a trip up to Port Hedland a few years ago in the winter I was amazed at how many grey liners where parked on the banks of the de Grey river north of Port Hedland.
They spend 3-4 months just camped by the river and then head south.
They also head all over the great north west, I was amazed how many there were in the one place!
Later………
All things are possible to the person who believes they are possible.
Whateve the mind of man can conceive and believe, the mind can achieve.
Napoleon HillOriginally posted by The Mortgage Adviser:There is only one place to look at in WA…
GERALDTON, GERALDTON, GERALDTON!!!
Has anyone even bothered taking a look yet?
OK, I’ll bite.[biggrin]
I must admit Geraldton has spurted along the last 12 months: after being pretty much flat:
All 2 B/R 3 B/R
2001 $110 $84 $94
2002 $132 $85 $126
2003 $135 $87 $132
2004 $138 $96 $146
2005 $180 $123 $156Compare those prices with what you’d be paying in Mandurah. You’d get 2 in G compared to M.
But what is the upside for investing in G as opposed to M? How much more upside has G got over M?[blink]
Me feels the G rise is more investor related compared to M which is more lifestyle related.
I would think M would be more sustainable the G due to the lifestyle.
However, there is the expanded port and talks of iron ore shipped into a new port north of G (Oakajee???) as possibly the main speculative drivers. M essentially has the rail and lifestyle and that is it.
Maybe toss a coin and go with that?[tired]
Later………..
All things are possible to the person who believes they are possible.
Whateve the mind of man can conceive and believe, the mind can achieve.
Napoleon HillOriginally posted by JKM:Hi Dazzling. Finally a post that might help me analyse as you would. I am struggling to grasp how people are analysing deals compared to myself. If I look at this one as you have posted it & assumed the loan you obtained of $2.39m is at 7%, the rent of $158K still leaves you as negative $9300. Am I missing something? Please don’t take this incorrectly as I am trying to learn as I go. Any help would be appreciated.
I had the very same thought. I think there might be a pack load of deductables somewhere tied up in the deal. But still, if you were to live off the income, you couldn’t because deducting from -$9300 is still negative and the last time I checked, you can’t eat bricks and mortar.
Later……….
All things are possible to the person who believes they are possible.
Whateve the mind of man can conceive and believe, the mind can achieve.
Napoleon Hillmmm
I’d be worried too if I was 345 years old and still not getting a good return after all that time.[agro3]
I think I would have kept my money in tulips and then waited for the dot com boom![bomb]
Later………
All things are possible to the person who believes they are possible.
Whateve the mind of man can conceive and believe, the mind can achieve.
Napoleon HillDear Rigby,
Have you checked the past growth rate for Armadale? I was told that one can easily go backwards investing in this suburb, despite its present +CF. Your present +CF rental yield can quickly turn neutral or -CF if the house prices will be gone up soon, as one can expect given all the expected development work there.regards,
Kenneth KOHI don’t quite follow?
If it is +CF and the property appreciates it will still be +CF. Only extra holding costs could turn it -CF. So if there is no CG, so what you are still making money.
When you sell you have had the +CF and the CG as a bonus. The next owner may not have a +CF property but they have probably then bought based on the CG and is seeking more CG upside.
But each to their own.
Make money now and possibly make/lose money later.
Lose money now and possibly make/lose money later.It’s your choice.
All things are possible to the person who believes they are possible.
Whateve the mind of man can conceive and believe, the mind can achieve.
Napoleon HillOriginally posted by The Mortgage Adviser:People always put down what they cannot do themselves.
I do hope that wasn’t addressed to me.
I thought I was not putting down and I so do myself.
Always interesting to see how the market can be moved along by investors and a lick of paint.
But if the numbers work out, well there’s no reason not to invest.
All things are possible to the person who believes they are possible.
Whateve the mind of man can conceive and believe, the mind can achieve.
Napoleon HillI’ve got NO problems with buying there myself.
There are some real opportunities.
But going by the old adage “make your money when you buy” I think people need to be careful to make sure that they aren’t taken for a ride when they buy (it just appears that way with the converstaion I over heard)
Later…………..
All things are possible to the person who believes they are possible.
Whateve the mind of man can conceive and believe, the mind can achieve.
Napoleon HillI’ve been there lots and have a pretty good idea of the place.
Speaking to locals, contractors in town, hotel staff and agents they just can’t believe what non locals are willing to pay even for some real dogs of places in dodgy suburbs.
You know when the locals start talking about real estate the boom and making money it’s time to look elsewhere.
Later………
All things are possible to the person who believes they are possible.
Whateve the mind of man can conceive and believe, the mind can achieve.
Napoleon HillNegative gearing is a rort that’s unique to Australia and should have been abolished years ago.That is at least one thing I agree with.
It would surely sort out the real investors from the speculators even if it would probably drop a lot of lower income earners into state housing and the market would crash.
There’s always bad with the good.
All things are possible to the person who believes they are possible.
Whateve the mind of man can conceive and believe, the mind can achieve.
Napoleon HillBoy these topics get funnier as they evolve.
Reading what the last couple of posts have been it appears that what this site and its subscribers are trying to do are work less and earn more through RE and then to enjoy life.
Seems that there is another view here that you have to work hard to then enjoy the fruits of your labours.
That’s two totally different things and poles apart.
For me I have chosen the former, others have chosen the latter. That’s everybody’s choice.
For people to have such entrenched views to see the other side of the fence requires a paradigm shift. I had mine after working like a dog and getting nowhere fast.
I discovered a new may to makes ends meet without killing myself and at the same time getting oh so close to doing what I want and when I want by the time I’m in my mid 40’s.
My personal view is that people who are doomsayers and complain about the rich getting rucher and the poor getting poorer and that the world is contrived against them will stay like that until one day they have a light bulb moment. Sometimes it just happens and other times it takes a tragedy.
This has probaly now gone OT so my apologies.
All things are possible to the person who believes they are possible.
Whateve the mind of man can conceive and believe, the mind can achieve.
Napoleon HillIf your going to use P&I to build up equity in a property that you will need to top up every year to cover costs in an area that is flat in growth, whay bother?
Why not find a nice managed fund and put money into that. AT least there’s no outgoings and if you choose a good one it will give you a cash flow and your investment will go up.
I can’t understand why you want to risk all your money on this just so you wont miss the boom.
Here’s news, I think you have missed it.
All things are possible to the person who believes they are possible.
Whateve the mind of man can conceive and believe, the mind can achieve.
Napoleon HillWhy do you say “forget the tribunal”?
All things are possible to the person who believes they are possible.
Whateve the mind of man can conceive and believe, the mind can achieve.
Napoleon Hill
