Forum Replies Created
hi debtdogg,
try this:
http://www.objective.comThanks dazz and mike,
Rental estimates from agents in the area for each unit once reno. are probably more like $300-350 p/w. Which still only takes us up to the 128-145k p/a (giving only 3.8-4.6% yield range).
So yes, we would definetley banking on strong CG in the area, which has always demonstrated well above Melb’s average gains.
I had a sneaking suspicion that all the numbers were not as sugar coated as it seemed on the surface.
That’s why I asked for this opinions because the heat is going to be on tonight when we all meet. And I want to present all the option scenarios to them clearly and without prejudice.
By the way currently the units un-renovated rent out for about $180 p/w per unit. Initial purchase price was 900k (current yield 8%). But are startingto spend more on repairs ever year.
So we will be going backwards in yield, but hope to make it back in CG (or selling a couple of units) and retaining a family asset for the next generation (kids) coming through.
Thanks again for your all your opinions.
PS for numbers sake, if we treat the full Reno as a complete new purchase.
The approx. numbers would be thus:
$700k reno (p/p)
$124k p/a rent
= 17% yield!??hi debtdogg,
to answer your question.i have done it several times in outer Melb (30 kms approx) and my smallest block approved is 290m/2. (With a 3br single storey house and small yard).
iam far from an expert in this area. but iam learning alot from my excellent draftsmen with each subdiv. in fact as ‘thebuilding surveyor’ pointed out. i probably fall into the catergory of the “people with no experience whatsoever…”
cheers
hutchHI GAV,
I HEAR YOU…FRUSTRATING AS ALL HELL. I DON’T HAVE ANY ANSWERS AT THE MOMENT. BUT BELOW IS A COPY OF MY POST 21/03/05. (TO WHICH THERE WERE NO REPLYS). IF THERE WAS AN AVENUE WE COULD TAKE. WHERE WE CAN MAKE SOME NOISE ABOUT THIS, REGARDLESS OF WHICH STATE IN AUSTRALIA YOU LIVE IN, IT WOULD BE BENIFICIAL FOR ALL PROP. INVESTORS. ALL GOVERNING BODIES NEED TO KNOW THAT WE ARE NOT TRYING TO AVIOD PAYING LAND TAX, JUST DEMANDING A FAIRER WAY TO VALUATE THE PERCEIVED “POTENTIAL” OF OUR LAND ON PAPER.
CHEERS, HUTCH.***FAIRIER LAND TAX- PROTEST WEBSITE?***
hi all,
i heard in several media outlets, that there is a wesbite put together by the Fairer Land Tax association(?) and they are looking for people to log on and express their protest at the current Land Tax rates of scaling in VICTORIA.The more expressions of protest they get the better, as they plan to take it to Bracksy and shake the tree. I have goggeled and yahooed for it but just cant find it. does anyone have the website link?? or does it it exist??
hi leo,
in simple terms.
P&I pays off the intrest owed on the loan as well a portion of your principle (or original cost of property).IO is exactly that. You are only paying the interest on your loan. So at the end of term (ie 25 years..) you WON’T own the property outright.
Each to their own.But…
P&I repayments are more per instalment but you get to own the prop at the end of term.
does this help?
hi bom, i dont anyhting about NZ IPs, but John and Rhonda have a few stories and may help. You can email them direct from their website.
cwireach.comin addition to minimoguls thread
hope this helps you [blush2]Wow arni!
When was your accountant going to tell you that?
That is a huge oversight in my opinion. Or did you only tell your accountant after signing the docs?Anyway… try and do everything in your power to get that extension. Even if you have to offer a small cash incentive (to the other parties).
Otherwise you will have to just put it down to an experience in your IP journey.
yeah well done richmond!
good to hear success stories.I had the same warm and fuzzy CG feeling from local media articles after I bought in Yarraville, Victoria some six years ago.
cheers
[biggrin]thanks for the new grin Brent,
i hope that was sutbly aimed at dazzling?[chill]
hi melc,
i was at the same class so i can only assume you mean John and Rhonda maybe?if so email them from their website
cwireach.com.auhope this helps?
good luck![biggrin]
agree dazz!
Neo, you need a strict back up plan. Make sure the unexpected drama of extra costs….is expected by you. As far a contact details.My tentants have my email first (for minor queries only) and my mobile for any major dramas that may occur. But I am ready (financially) in a hearbeat to outsource it to a tradesmen, PMs etc.., should this occur. Touch wood I have been bleesed so far that they havent need to call me. Just be contactable and approacable to your tenants.By the way I don’t have any good or bad opinions on PMs, because I dont use them. (This may change over the next few months).
cheers.[biggrin]hi turbo,
i agree with GGG and others. If you unnerve with firm, loud and confident bidding, it can put you in the box seat. Even though it is for you PPR, dont buy emotion. Buy on the facts. This will also help calm some nerves on the day, as an auction can become bit daunting, if you let it.(ps; A rule of thumb seems to be the Trustee props.go to auction, so your agent may be correct.)
good luck. interested to see how you go.hi salla,
I have used “Sydney Bluegum” floor boards on several IPs and it works a treat, look good and has so far been hard wearing. It has the deeper mahogoney richer tones than others. You may pay a slightly higher price per sq m. But I think its worth it.Bought it from a timber yard in Dandenong (VIC) but I am sure you can get it anywhere in oz states.
profitman,
did attend on Sat. in Melb.Great day, learnt alot in short time. Brent also talked about NZ and he was an eye opener.Two Mappers got up spoke of there journey. Mark Unwin was good re; accounting, trust, CGT etc..
Well worth the ticket price. I will go again in August 05, but i will get a ticket for wife aswell, since she is paying for half of all our investments.
I think she get alot out it and you will too!
PS: handy tip, get lots of sleep the night before. Go into the class alert and with some energy. Because by the end of the day (8.30am to 6pm) you mind and body is nicely exhausted.
good luck!
C’mon there must be some WESTERN BULLDOGS supporters who are into Property investing??!![blush2]
Go Doggies
Woof, Woof, Woof!!
Hi markeddy,
Having a done a few subdivisions in the western suburbs, on corner blocks, but the general rule of process should be the same. The process I have followed was:*Find an licensed Land Surveyor first. To draw up your land/block measurements. Try and find one that is experienced in that council/region/area which is important.
*They usually can also recommend a draftsman (for the plans etc.). Or again try and find one that has done a few in your council. Usually they are on a first name basis with the people in the front line of the right council departments. This can save you a lot heart ache down the track.
*The Draftsman will guide with you through all the planning and permit stages. So be sure use their knowledge and experience once your have engaged their services.
*Each time I have done this the overall for me cost for these processes is approx $3-4k. This gets me to the final plan and permit approval stage and ready for sale of the land (if you don’t want to build on it yourself, I sell every time). Timeline for this process for me is usually approx 4-6months assuming all goes to plan. (This timeline includes objections from neighbours, VCAT mediations etc..)
*I find my worst case scenario is if I choose my location/suburb well then the existing dwelling will return me some decent amount of rent (5-6% yield at the moment) all the while the plans are going through.
Of course all this is only my opinion based on my personal experiences. It’s all hard work but is can be very rewarding if you follow the right process and use the qualified or licensed people’s advice.
Sorry to waffle on. I Hope this answers your original question and helps you out.
Good luck with it.[biggrin]
Melb masterclass was well worth it!
good to see some of us doing their allocated “homework” (I am a bit late)from the Melb masterclass on Sat. Had a great day. Learnt copius amount of info. The only negative thing for me to come out of the day?……I didn’t buy a ticket for my wife. I will have to wait until the August class. Now I have alot of great info to pass on to her over our Easter holiday! Cheers [biggrin]I agree guys, Melb masterclass was well worth it!
good to see some of us doing their allocated “homework” (Iam a bit late)from the Melb masterclass on Sat. Had a great day. Learnt copius amount of info. The only negative thing for me to come out of the day?……I didn’t buy a ticket for my wife. I will have to wait until the August class. Now I have alot of great info to pass on to her over our Easter holiday! Cheers[biggrin]ok ok,
try this tenby,
you pay for this service but well worth doing the research. i have constantly found myself refering to this site when looking for medians, growth areas etc…http://www.propertyvalue.com.au
[cap]
hi tenby,
nice try!!!!i think i like the way you think….
all i can say is that after all busting my gut and enduring many sleepless days and nights doing research and self educationg myself on property locations. i would feel deflated if i had to give it all up to you just because you are new to this and want the lastest inside news on growth suburbs!
get on your bike and do the hard yards. beleive me its much more rewarding …..Just Do It!
gotta be cruel to be kind..[biggrin]
