Scamp says,rates will rise by 0.5 percent this year, and keep going up , and up and up. There's 0% chance of them going down. Oil prices add to the pressure, as inflation is up up up, so interest must go up up up to 13% base rates minimum, which means 18% variable rates. These are interesting times, especially when you think a lot of property…[Read more]

Not sure where negative 'D' is trying to go with this one, but here is another angle on rental guarantees that may be worth considering.From my observations, the biggest problem with buying of the plan or in large Developments is the fact that the market gets temporarily flooded with rentals for a period of time and as most investors have borrowed…[Read more]

Scamp said, 'People like me who have seen house-prices crash, are more cautious. 'Instead of making statements like the one above, how about you attempt to give dates and by how much that they CRASHED and did they ever recover.   Perhaps then your comments may have some significance.It's not that I am disagreeing with your comment, although I f…[Read more]

Well done Sailesh, thank you for the response,it sounds like Caboolture Shire is a progressive council to work with.$805 per sq meter building price is still excellent in my opinion.   Unit construction cost is hovering around $3,200 per M2 and even though there is underground parking and hights to consider,the $2395 seems more than adequate to m…[Read more]

Sailesh, Can't argue with those figures as this projest is almost positive geared.I'm assuming that you built a low set duplex and I'm impressed that you could do it for $282,750.You say that the land came with a DA.   Does the Caboolture shire council differ to other councils as I thought that a DA included design plans and concept drawings for t…[Read more]

Sailesh, I can see where you are comming from and this is certainly a good way for an investor to add properties to their portfolio at the right price (wholesale).   Especially if they are holders.On the other hand I was heading in the same direction as Michael in relation to commercial development wher banks don't want to lend unless bottom l…[Read more]

SaileshC wrote – The project should have a return of at least 60% return on capital invested……   Please explain?

– land (~3000 sq m) in inner XXX suburbs is being sold for $1-3M- at the moment, townhouses in there are selling for $400K – $800K, depending on specific property- so basically, what we want is to buy a land, subdivide, build and sell (maybe keep one for ourselves)Now, let's say every townhouse would cost $250K to build; we think that 7 or more…[Read more]

"Residential housing AT LEAST 20% overpriced"If this is true (and I'm not argueing that it's not) and property averages a 10% growth each year, then all that needs to happen is for property to remain at the same price for two years in order to let the rest of the market to catch up.   Why must property fall in value?

Goodness me Scamp, did you forget to take your happy pills this morning????   I've just finished reading your last 5 posts and not a positive thought in any of them.No one here is suggesting that this is an ideal market for investing, but on the other hand there are still opportunities for some who are perhaps better structured than others.   I ca…[Read more]

If this property is in the Riverbank Apartments on Riverside Drive in West End, I would be extremly careful.   At this point in time there are in excess ov 30 Million Dollar plus apartments on the market and more being built,   Last year there was a total of 24 sales in this price range.   Speculating on this type of property can be ok but I belie…[Read more]

Badgers says…..   There is nothing that these seminars can tell you that a couple of books, a bit of research and some basic common sense can't tell you. I can't agree with this comment.   While it may be fine for some who will put in the time and effort  to READ the whole book and DO the research, from my experience many people are hard press…[Read more]

I would check with the Body Corporate records to ascertain exactly how the Body Corp gave you the storage area.   Did they change the title to show that this area was indeed a part of the lot that you owned (doubtful as this would have cost money to do0 or as I would expect a motion was passed which gave you 'Exclusive Right' to the storage a…[Read more]

There are many ways to invest in property and before you go changing tack on the way you have started your portfolio, perhaps you should read this example of one of my clients:-NOUGHT TO THREE MILLION DOLLARS IN THIRTEEN YEARS FOR AN OUTLAY OF $43,000  Have I got your attention?   Does this seem too good to be true?   Read on, it is a true stor…[Read more]

I wonder if any Agents are laughing (or crying) as many of them ponder the complete lack of commission due to the downturn in property sales.   Anyone still believe that Agents are overpaid?

While there may well be vacancies in outlying areas or outer suburbs, I don't believe that this is true of any inner city areas.   I can speak directly about Brisbane and advise that there are virtually no vacancies in my area (West  End, Highgate Hill and South Brisbane).While it may be true that some properties remain empty because the owner wa…[Read more]

Ali,   From my observations the capital gain on Townhouses is similar to that achieved on Units perhaps slightly higher, the rental return on both is higher than houses per dollar invested.While on this subject, I feel that I must point out that any figure of capital growth on Houses (in established areas) is so skewed that the figure is all but u…[Read more]

Tim, this is a very good post and one that almost all members of this site should read and consider.   While it is difficult to advise on your personal scenario as you don't mention where the property is or what the property is.   With a rent of $200 per week, I am assuming that it is a one bedroom unit in an outer suburb.The biggest mistake tha…[Read more]

Almost everyone on this site will eventually be a Buyer and a Seller and no matter how smart you all think you are the simple fact of human nature will prevail.   As a Buyer you will think that you are paying too much and as a Seller you will think that you are selling too cheap.Don't blame the Agents for the price of the property as it is a…[Read more]

Alastair,   What State or where is the Site?   Has the site got a DA?   How much land?   At first glance $180K plus per site would be top end in Brisbane.Jon