Forum Replies Created
- Shape wrote:Portfolio PI wrote:I’m going to pose a question to brokers here…would buying a property with some of the 500k outright work which you would then receive rent from. Question is, would the rent then be counted as income given employment? In my situation i know it is so I would assume that would be the case here.
So depending on Caleb’s strategy that he chooses and should it be a property portfolio, can he then use rent received from properties as serviceability for more properties later on?
Yep- rent= income…
But speding $500k to achieve a rent of say $600pw-isn’t the best “structure” financially i have to say;
1. Risk
2. A huge lump sum into one investment
3. $600pw= $30,000 gross PA- can’t afford much for the next purchase + cash for deposit and stamp duty
4. Next purchase needs to be under 80%….LMI do not like “unemployment”Regards
MichaelThanks Michael,
Even a smaller purchase – $350k range could land good rent (500 pw) and maybe he goes for a high rental yield area first to build up income, obviously coupled by good capital growth. This might not be a good strategy but thought I would pose the option.
JT7 wrote:Hi Josh,I will follow your travels and on-the-ground research with interest. I’d be very interested to see what’s happening out near Alpha regarding building of properties geared towards the investor if your heading out that way…?
Just off the cuff Josh, I’m thinking of installing new air conditioning units in a property in Emerald. Are you able to recommend a reliable brand, advise of the cost of the unit and cost to instal, and perhaps someone trusted you have experience in dealing with who could supply and instal for me?
Appreciate your help.
Jack
Hi Jack,
Alpha is on the map, especially with so much about to happen out there with 3 potential mega mines, i really want to find out where that will impact as its up in the air still with local councils. I’ll get on the ground out there and see what’s really happening.
In regards to aircons…in emerald Fujitsu are the best for that climate however they are twice the price as what I have used a lot which is Kelvinator…very good brand, no problems and cost effective. However I am building 4 units in Emerald at the moment and the builders electrician is using a different brand which comes out of the Kelvinator factory called TECO. A bit better on the hip pocket again but very smooth running and reliable. Being a bit cold there now i would imagine you aren’t in a hurry to get this installed? I can ask the electrician and plumber that will be doing mine if they can do yours while they are there if you would like? If the timing suits and they are happy to I’ll pass their details on to you.
Cheers,
I’m going to pose a question to brokers here…would buying a property with some of the 500k outright work which you would then receive rent from. Question is, would the rent then be counted as income given employment? In my situation i know it is so I would assume that would be the case here.
So depending on Caleb’s strategy that he chooses and should it be a property portfolio, can he then use rent received from properties as serviceability for more properties later on?
Also…as I said i will be looking for development opportunities, however I will not be able to do EVERY project I find so JV partners / Syndication partners are welcome to have a look at what I find as well.
mattnz wrote:Portfolio PI wrote:From what I can discover without going there yet and talking to builders who have done feasibility studies lately on Gladstone it is a bit of a hard situation.I am looking at an estate where the land is selling for mid 200’s, when you add regional build costs at $1500 sqm you are looking at $550,000 before costs (stamp duty, construction interest etc). So far it seems that valuations sometimes won’t stack up at this. Rent for this will be $600 approx – the same you can get in emerald for $450k ( you’ll find I’ll always make reference to emerald as I love it as an investment!!)
Only going there and doing my due diligence and due diligance for my clients will confirm what’s going on here.
I will start a thread for up to date regional Qld investments and the economy there as I work my way through every town and visit every mine as we roll out an accommodation project for regional Qld. Keep an eye out for it as it may help anyone with questions
Josh
A hint: Don’t just look at standard standalone houses. That’s not where the money is.
Don’t worry I’ll be looking at all opportunities, that was just one example
Hi carlin,
I only know 1 buyers agent in Adelaide who tried to help a client purchase a property from me last year. I’m not recommending him, infact I’m letting you know to not use him! Simon Swift was his name. I’m not one to bag people but I have no qualms doing it in this case. He caused nothing but trouble. Sorry I don’t know any good ones.
They usually charge you an amount to do all the work, not 100% sure about the cost but if you get a good one I’m sure it will be worth the cost. There’s some buyers agents on the forum which will be able to help more than me
Good luck! Josh
From what I can discover without going there yet and talking to builders who have done feasibility studies lately on Gladstone it is a bit of a hard situation.
I am looking at an estate where the land is selling for mid 200’s, when you add regional build costs at $1500 sqm you are looking at $550,000 before costs (stamp duty, construction interest etc). So far it seems that valuations sometimes won’t stack up at this. Rent for this will be $600 approx – the same you can get in emerald for $450k ( you’ll find I’ll always make reference to emerald as I love it as an investment!!)
Only going there and doing my due diligence and due diligance for my clients will confirm what’s going on here.
I will start a thread for up to date regional Qld investments and the economy there as I work my way through every town and visit every mine as we roll out an accommodation project for regional Qld. Keep an eye out for it as it may help anyone with questions
Josh
Hmmm I’ve received other emails through it today. Otherwise [email protected]
Hi Banz,
I will be going to Gladstone late this week or early next week to scout it out. I understand the window of opportunity is closing. I am looking at doing some developments there shortly and will be taking my builder with me to get a grasp on whats happening ie costs, areas, rents etc. I will also be looking for properties to sell to my investors through Portfolio Property Investments if this is of interest to you I am happy to let help out.
Josh
Shooshoo…
This is in direct reference to the coal production affected by floods at the start of this year. It does not reflect any long term positions by coal mining and isnt really an article that would affect property investment either negatively or positively really.
The coal mines are still catching up to lost production during and post floods which is hindering bottom line profits obviously, however it is nothing to be concerned about. Albeit lost money, it is not even an issue for these companies in terms of finances etc.
Hope this helps
Hi,
First thing here is to confirm with council (maybe a phone call to the town planning department) about the allowed site coverage/density etc. This should satisfy your initial due-diligence to a certain extent i would assume. If you are then happy to go further then yes you will have to fork out money that you may never see (welcome to property development).
You could put any offers forward to the owner, however if the agent or the agents marketing has introduced you to the property then it may be an ethical issue (up to you i guess). also the agent will most likely have the property listed exclusively especially post auction for a number of weeks.
its great the tenants are there to pay rent which will help your bottom dollar whilst getting approvals etc. Also try private town planners (depending on your state)
Best of luck
JoshCameron,
Some investment agencies pay lead fees for recommending them to people they may know. However this is mainly done when someone is already a client of such an agency.
This may help you but it may not
if you can find something new in Qld and commit to purchase by 31st of January 2012 you will get the Qld Government $10,000 grant for buying new. You have chosen well to identify Qld for capital growth due to the unprecedented mining investment that we are about to see roll out over the next 36 months.
Consumer sentiment is low as there is so much economic change however the reality is that Australia (especially WA & QLD) are in an unprecedented and fortunate economic position, now is a good time to buy if you are in a position to (as has already been established a broker will help you get to that point).
Josh
North lakes is possible to creep under the 400k mark with a 4 x 2 x 2 and rent for $400-$420 brand new…giving you less stamp duty, added interest however tax deductible immediately as well as $10,000 grant.
North lakes will fair quite well is my thought as it is close to the airport which will also come into play over the next few years as we see a phenomenal fly in fly out workforce for regional QLD’s mining boom. as well as lifestyle from the sunshine coast only a stones throw away. North lakes i believe will see good growth over the medium to long term.
Josh
i understand an agents underlying motive…but legally an agents job is to do the best by their vendor.
thegcamp wrote:We are being encouraged to buy off the plan in brisbane, what are your thoughts pleaseWhy are you being encouraged to buy off the plan? from the developer? The above comment is correct. In a unit deal you should not pay more than valuation…and infact buying off the plan in very early stages should land you an incentive like below market valuation.
Why a unit also? have you considered H&L with a larger land ratio to your investment?
Agents in Qld (and everywhere I would assume) are governed by law to work in the best interests of the vendor. By not accepting or dealing with multiple offers in the best way for the vendor is illegal and the vendor can in fact sue the agent for monies perceived to be lost because of the agents negligence. Also the PAMD act states that all activity must be reported to the vendor unless the vendor has instructed otherwise. It is then the agents responsibility to receive instructions from the vendor and act according to the vendors instructions as long as it is in line with the PAMD act.
Why do agents continue to do their job in a counter-productive way? If you do the best for your vendor you will in turn get more vendors am i right? And if you have more vendors you have more properties to market so as an agent you have more exposure and will generate a higher amount of buyers calling you!
Funny how a lot of agents don’t do their job in the best interests of the vendor or themselves.
there is a lot of development happening within emerald currently, woolworths are spending $120m on the largest shopping centre for the town, Harvey norman have confirmed a site, bunnings still shopping etc.
Do you have property there Jack?
Josh
JT7 wrote:Portfolio PI wrote:moxi10 wrote:Rents in Blackwater are quite high already, you will see demand increase in Emerald more so as three of the largest coal mines in emerald plan to get into gear just 150km west of Emerald. I am an ex local to the area, am in the area every two weeks for my clients and have 15 IP’s in central Qld.If you need any more info feel free to PM me.
Josh
Future development in the Galilee Basin could potentially result in some big upside to not only the whole region but Emerald in particular. It’s going to be an interesting ride I’m sure. In relation to rental yields, Emerald is some ways behind Blackwater and certainly those towns further north such as Dysart and Moranbah. Any thoughts from the forum on just how rents could go in Emerald given the huge investment to the west?
Jack
You Wont see an immediate influx I believe from the Galilee Basin developments however it is always the case that fly in fly out workers make a shift to moving to the closest regional centre. This will be Emerald for these projects. You will see solid long term growth. Also a lot of the infrastructure will come from Emerald (ie contractors etc).
As for rents…well we will see as only time will tell. They have risen about 10% so far this year
To touch on Catalysts’ point….make sure you are dealing with the agent who has the listing advertised. If there are 5 agents in the firm, one lists it and you go to your preferred contact in that firm they may not have listed it therefore they do not have the relationship or trust with the vendor to get an offer through at a lower price. I know this may get the agents upset but if this has been the structure in the past that has caused such an outcome then you have good reasons to go to a different agent in that firm.
What town are you buying in may i ask? I’m intrigued about such incompetence
