Forum Replies Created
- amandaj wrote:camjanice wrote:Yes, very happy with mine, new property completed in December with great corporate tenant, 12% gross yield in furnished house.
That's good!
Yep! Rents are really starting to climb in Emerald! I have two now in Emerald. Just purchased a new build and very happy with my investment decision to go again in Emerald.
I think the market is starting to shift and gather momentum. I’ve seen good CG on my first property in a relatively short period of time and great increase in the CF!
moxi10 wrote:Jack, I would appreciate a private message with details about your mortgage broker, if you don't mind sharing that information.
Done mate!
crazya wrote:Also here's a tip for those looking to invest in the mining towns, after speaking to a mortgage broker (Mortage Choice in G), unless you have 20% deposit, you won't be able to leverage into these places. The LMI originators won't go near them and they do not take into consideration the high rent return. Effectively its a risk profile attached to these places in the view of the banks/LMI companies. (Any mortgage brokers/bankers on this forum that can confirm this advice?)If this is the case shame really, as there are some good positive cashflow deals in Blackwater from my reseach!!
Don’t know about this one crazya I’ve been getting finance through MB on this forum at 90%LVR + in mining town.
Might just be an issue with retail MB’s like Mortgage Choice. I think 90%LVR in towns like even Moranbah isn’t such an issue.
Jack
sporty1 wrote:Hi Josh,
Thanks for that. Yes looking at going to Emerald very shortly to have a good look around.
Cheers
Sporty1I think Emerald is on the move. I've experianced some good results recently on some property in Emerald and rents are starting to rise considerably.
Be very interesting once the Galilee Basin begins major operations and expansion. I think we'll see some spin-offs such as increased business activity in Emerald for mining industry based services to support what's going to happen out there in the Galilee Basin but also the expansion and development of the Kestral mine which when I last looked at the figures was in the vacinity of 1.3 billion.
There is also major mining activity planned for Springsure just south of Emerald. The rental market is extremely tight at the moment and pushing rents up after which values will surely increase.
I think that at the moment Emerald has flown under the radar, so to speak, but it's going to be interesting next 3-5 years.
Jack
Thanks for your advice and input fellas.
I’ll certainly have a chat to my solicitor and get some clarification on this one before I jump in.
Cheers,
Jack
Yep similar story crusty so I think it’s worth a punt.
If the vendors are motivated like I suspect they are then they should be receptive to a serious buyer with the added bonus of no commission to an agent…it makes good sense in my book and a win win for both parties.
I might run it past my solicitor first and make sure I’m protected then give it a run.
Stacey Surveying wrote:Hi Jack,Forgot to add I’ve got a subdivision flowchart also uploaded for free download. It’s useful for typical projects in VIC.
http://www.mediafire.com/?ad2pbd2cerbk6l7
Cheers,
AshleyThanks Ashley!
Great tools mate.
Jack
Scott No Mates wrote:Are you prepared to lose the deal because you want to wait out the exclusivity period? Also, if you don't like dealing with the agent, get a hired gun to do the negotiation, that way you have an expert on your side, you reduce your risk by not waiting out the exclusivity period & you don't deal with the agent.Yep. All good points Scott No Mates.
The property itself looks like a distressed sale. It was purchased July 2011 at $247k in a falling market and now is back on the market at $255k five months later! Dreaming!
It’s a slow market, 90 days on, with plenty of stock on the market so I thought that if approached the vendor directly we could cut out the deceptive agent and create a win win for both parties.
I’ll have to weigh up the benefits and draw up a battle plan.
PaulDobson wrote:H JackJust be aware that, even after a listing agreement has expired, an Agent may be successful with a claim for his/her commission, if s/he introduced you to the property during a period when s/he had an 'exclusive' listing agreement on the property. That's one of the reasons Agents nearly always get your name and address when they first talk with you.
Cheers, Paul
Thanks Paul for the heads up I wasn’t aware of that one. Thankfully I’ve not made any direct inquiries with the agent on this one but I’ll tread carefully none-the-less.
Cheers mate,
Jack
thecrest wrote:Ask the vendor, who needs to be not only willing, but legally able.
Cheers
thecrestYep sounds like a plan.
Thanks for the help guys.
Jack
blocka wrote:wait for the for sale contract to end, (usually 3 months) and then the vendor can do what they like.Thanks blocka.
Is there anyway the vendor can exit the sales contract early of his own volition?
Jack
Hi Ashley,
That’s a big help mate.
Seems so complicated starting out. My idea was looking to buy something with sub-division potential with an older style property on it just to pay the way until sometime in the future (10 years) and I return, knock down and develop the property.
I’ll keep reading there’s some great information in here.
Thanks again for tackling my questions it’s much appreciated.
Jack
Hi Stacey,
That’s an excellent stencil to refer to when considering sub-division especially those of us who don’t have a lot of experience in developing and would like to start or at least look at purchasing something now for future development.
A couple of questions Stacey if you don’t mind.
Once you’ve found a suitable site, how do you calculate whether the development would be worthwhile or not? It just appears there is a heck of a lot of things to consider it’s confusing. How do you know the end product will give you the desired result ie. profit?
I may have located a suitable site on a large block but there is a sewer running east to west along the block…is this a normal occurrence? Or should you be looking for a site without a sewer pipe running down the guts?
Jack
Hi Eddie,
Just to add my two cents worth….
I think there has been some excellent answers to your questions. ‘Self Education’ is the key don’t rely on someone else to tell you where to put your money. Your first investment has the ability to set you up and leverage you into the next so take your time, the property market isn’t going anywhere and there will always be somewhere in Australia to invest in so why not take the time to learn a bit….it will pay off in spades later.
We purchased our first property 4.5 years ago in Western Sydney and it’s just slid sideways since. It’ll do okay in the long run but I haven’t been able to leverage off it yet. With a lot of dedication, self learning, and self motivation we’re managed to purchase further IP’s in promising markets around Australia since then.
You want to be able to recognise what type of property you are looking for to compliment your portfolio. As already mentioned, do you need capital growth or cashflow or both. There are markets in Australia that will provide you these options depending on your risk strategy.
Educating myself, which is a continuing journey, has enabled me to understand my investments and become the master of my finances. I use professionals like a mortgage broker, accountant etc but at the end of the day the buck stops with me when deciding where to put my money.
Hope this helps. Stay on the forum, read books, magazines, newspapers and go to free seminars.
Jack
Hi Richard,
Just emailed you mate. Off work today so on hotmail address.
talk soon,
Jack
Happy Days Richard!
It was well worth us holding out those extra couple of days before considering those mid term fixed rates!
Jack
All good Josh I'm just lining all my ducks up now with my finance etc.
I still really like those strong regional hubs so I'll stick to my formula.
As you mentioned I think we've seen a bit of a kick in Emerald over the past 12 months. Perhaps we'll see some movement in Mackay over the following 12-18 months once things start really ticking along. I've heard some engineering businesses in Mackay are starting to ramp it up lately with all the impending activity.
Portfolio PI wrote:sporty1 wrote:Hi everyone,Does anyone have an update on the ULDA land release in Blackwater?
I have tried calling them several times re the time frame and size of the land release announced earlier this year.I have given up on trying to follow the progress of the ULDA! sorry I am of no help!
You've been a bit quiet as of late Josh, how goes it up in the Bowen Basin?
Jack
Hi Lizzie,
for what its worth, and I certainly don't profess to be an expert, I would seriously consider the advice Richard has given you in relation to buying OTP at the moment in this environment. He comes from a finance background and has intimate knowledge of the Brisbane market having a sizable portfolio there himself.
There will always be someone spruiking doom and gloom in the market place and its your responsibility as an investor to separate the good from the chaff. Some might suggest that a spike in stock on the market and drop in prices as suggested is taking place in Townsville at the moment represents a really attractive buying opportunity. I for one believe there are some real opportunities in regional Queensland and am extremely confident about its future prognosis so much so that I intend on my next purchase being in regional Queensland.
It's great you are seeking guidance on your journey, just be careful who you take advice from and make sure the advice you are receiving isn't to the benefit of that particular party. I always get nervous for people when they say they've been recommended a property by in an investment group especially OTP. I think you must have an intimate knowledge of that particular market when purchasing OTP and perhaps not the avenue for the new investor.
If you are new to property investing perhaps it may be really beneficial for you to just take a breath, stop and learn for a while. Get some books, read some magazines, talk to people, get involved in forums and go to some free seminars just to see what other people are doing out there and develop a strategy. You'll be able to then take control of your own decisions and know exactly where your money is going and be responsible for those decisions.
Remember, your first property purchase has the potential to set up your whole portfolio so don't waste this opportunity or hand the responsibility over to someone else who at the end of the day will take no responsibility if the property turns out to be a poor performer.
Best of luck,
Jack
Just be careful not to sucked in to those seminar’s hyping it all up and pushing property onto you, not saying the PRE does however I have been along to a free 2 day work shop here in Sydney some time ago with them. They had some interesting presentations mixed in with loud pumping music which had the desired affect of exciting the ordinance into a frenzy. I took a couple of good ideas away from the weekend for free and was happy to leave it at that.
Reading forums is a great way to get some fantastic information but as already suggested there are many great books out there as well.
Don’t jump straight in, take your time and develop your strategy because you may find yourself stuck after your first foray into the market. Your strategy may depend on many things such as your income, debt, children, future plans, age, travel plans etc. Do you need higher cashflow in the deal…etc. Lots to learn but with high motivation and an end goal you will achieve it.
Jack
