Although the laws of Supply and Demand will ultimately dictate the level of rent that can be achieved on investment properties. With the current trend in rising interest rates, now more than ever, Investors should be mindful of passing on the higher costs by increasing rents whenever the opportunity arises.   I believe that Tenants have been g…[Read more]

Hi Chris,   I believe that you are getting Median Price mixed up with Average Price.   The Median Price is the middle of a range of values and it is for this reason that the Median Price has been adopted due to its more realistic value.Due to the number of Australian residents attempting to enter the housing market, I believe that the lower end…[Read more]

Some people see the glass as half full, some see it as half empty and some don't see the glass at all.Statistically, I agree with both Jason Anderson and Matusik and I am happy to see them talk it up, however, untill public confidence is restored, I feel that the market will stay slow.   If housing interest rates are indeed lifted again in May, i…[Read more]

From my experience, student accommodation units usually provide higher than average income returns but lack capital growth.Jon

Booms and Busts are just an integral part of investing (be it housing or shares).  I can't help wondering how many investors will recognise a good deal when it stares them in the face or will they be the same people who wait too long and miss the boat.I also find this part of the report particularly interesting.   While house prices declined, th…[Read more]

The correct answer to this question is not as simple as it would seem.   All of the variables need to be considered.If you were comparing new houses 30k from the CBD to new units in the same area, I would place my money on the houses.However if you were comparing New units within 10K CBD to old houses in the same area, then I would place my m…[Read more]

I am also not sure about Vic, however I assume that most states will be the same as regards the deposit.   If a deposit of more than 10% of the purchase price is accepted by the seller/agent, the contract becomes a term contract and would not realy be in the interest of the seller.On the issue of an agent telling you what the other offer is – T…[Read more]

A very well thought out response Mr Chan, it makes me want to search out your book and read it.   It would appear that Wealth4life is not big enough to apologise for her hearsay comments and all I can say to that is, beware when pointing the finger at other people as there are three fingers pointing back at you.   She has lost credability at lea…[Read more]

Tracey, Thank you for taking my words with the spirit that they were intended.   As I said previously while I don't agree with your feelings in relation to Auctions, I do respect your right to have them.It's funny that in life – we don't know what we don't know and sometimes we think that we know, but we don't.   It's the nature of the beast I gue…[Read more]

Trakka, there are many people on this site who I respect for their thoughts and sense of fair play and you are one of them.  I don't wish to create an arguement here and respect your position on Auctions, however I would like to clarify my thoughts as to this method of sale.There are times when it is a Sellers market and times when it is a B…[Read more]

Firstly, Carlin, my sympathy for the treatment you received during this transaction.   Disappointment is always a hard pill to swallow.It is interesting from my point of view as an agent to read all of the different suggestions that people have offered, so I tend this reply in order to cover some of them.The reality of your situation is that you f…[Read more]

Yep, there are a million ways to skin a cat or spend your money.   I believe that Michaels advice above is sound provided that you want to give yourself another job or pay someone with experience to assist with the many pitfalls associated with attempting a development project – no matter how small.   The reality is that there are real ben…[Read more]

Caden,   Think of it this way.   Let's say the block of land is 1000m2 and GFA is 50% then that means that you can allow 500m2for living space.  On the other hand if the site cover is 35% then you can only fit those 5002m of building on 350 m2 of land which would mean that you will have to build two stories of 250meters each, or 1 at 350 mete…[Read more]

Cadan,While I am not totally familia with Melbourne Council requirements, there are usually two issues with respect to cover.   One part referrs to site cover (which is as you mention, the amount of land that can be built upon – in residential, it is usually 35%.   The other half of the equation is GFA (gross floor area), this can be anywhere fro…[Read more]

Sorry to hear that you missed out Kris as you obviously liked this property.   The question is, in hindsight, was it worth $215K?   would you have been prepared to pay that amount?   If the truthfull answer to both questions is yes, then learn from the experience.   Perhaps not all agents are full of s!!t and you have to learn to trust your in…[Read more]

Hi SNM,Funnily enough, I was thinking of you when I wrote the post script.Jon

Hi Tam,I have put the information that you supplied into a Property Investment Analysis program and it appears to show a $9 a week posative gear result.   On the face of it this looks good, however from my experiences the capital growth on this style of property will be poor and I would want to see examples of past sales (second hand properties) i…[Read more]

A Real Estate Agent will tell you what you house would be likely to sell for now taking into current market activity (that is Supply over Demand).   This figure is highly likely to be more than a Valuers opinion which will be solely based on past sales records.JonPS.   Not meaning to place any doubt on the exacting job done by Valuers whose job…[Read more]

Hi Thomas,Obviously the $450k would give an agent a much better commision than would a $150k unit.    That point's not in doubt.Where did that come from?   Commission is not an issue here.   I think that you missed my point which was, at the same time as Investors were being convinced about the good deals in Shafston Mansions (2001) for $160K to…[Read more]

Kris07.If I put a two bedroom unit up for sale 7klm from Brisbane CBD with a list price of $200K, I would literally be killed in the rush.   There is no such animal up here.   I recently sold a two bedroom unit in Toowong for $260,000 and had over 400 enquiries of the internet.All that doesn't help you, but it sure blows me away.   Now as to your…[Read more]