Darjovu
I have sold a house or two and I have been in your exact situation when I felt money was tight. I really wished I had hung onto a particular house, and regret selling the others. At the moment you may not get the Capital gain to recoup your 40K change over in a hurry. If you can rent out your PPOR for a few years (I think 5 or 6 years and…[Read more]

Hi Gross Realisation,
You are right about it from the prospective that I haven’t considered rents etc, Because I haven’t been experienced enough to become a profesional investor. I guess that I put forward my laymans view of average wages to shine a different light on this arguement of “It’s all doom and gloom” -Vs- “We will just buy real estate…[Read more]

Hey Batts,
There is a pretty set amount of commission. I have never had an agent vary it for me. The good agents earn thier money. The best way to work out the recommended commission rate for QLD is 2.5% plus $450. This is because the first $18 000 is rated at 5% balance at 2.5%. The best I manage to squeeze out of an agent is free advertising…[Read more]

My reply to:
Dear JTW,

1. Interesting post and theory.

2. Can your please further clarify on your hypothesis regarding the 4.1 average earnings limit as the recommended market exit price and its correlation with the banks’present l;ending criteria of 30% income.

3. Are there sufficient statistical data to confirm/disconfirm your hypothesis to…[Read more]

Batts71,
You probably need to jump on the internet and order a couple of very important Govt documents.

1. South East regional plan (state govt, Dept Natural resources)

2. Gold Coast City Councils Strategic development plan.

Both Documents will cost about $250 AUD each. The come with maps and lengthy written explanations. After reading them you…[Read more]

I am going to the Gold Coast over the weekend and I will check it out for you. I believe that a definite cooling effect has been felt over the coast and it wasn’t winter. A bit of bad press recently about Gold Coast units, sharks selling off the plan making false predictions on returns etc. This always seems to be the indicator of the market…[Read more]

Folks,
Here is another way to look at the current state of play. The major factor is that we have had a good run over the last few years. Hopefully you made some capital gain too. The underlying factors that push the market upwards are :
1. Supply and demand
2. affordability
3. confidence
There are other factor that help or hinder the market…[Read more]

I was going to do some more research of this tennant thing, I would hate to buy it then have it sit idle for ages.

In reply to Munji, yer I was planning on financing 100% and based my assumption on 7%pa interest only. I already have a line of credit to cover that amount. I am not sure what i need to do to ensure tax compliance. Commercial seems…[Read more]

sorry but that is about as much as I know. He has had it about 3-4 years. paid about $400k for 39spaces varying in size, included some crap looking land(125k?). he nets 30-35k after all expenses. He told me his net was about 60% after everything he can legally and questionably claim.
Unit rent varies from area to area so I don’t know how much this…[Read more]

Luke,
my friend is an independent. He runs the rental through a normal RE property manager. The facility is up at Redcliffe in QLD. Has a very high rental occupancy.If he needs to fill a space he just runs a 1 liner in the local rag. He had them built and that is why I know about the Tilt up construction part. I believe the big factor is location.…[Read more]

I don’t know much about self storage my self but a good friend owns one and reckons it is the best investment he ever made. Apparently they need to be built from concrete tilt up construction for fire and pest risks. I am amazed there is a self storage association and I’ll be checking it out myself.
jtw

I had a look at the commercial premises this morning and it seems OK. I want to check the market out a bit more before I commit, you know the story, buy the right thing not the first thing you see.

This place was as the agent described, it is a retail shop with a national pizza chain tennant. In a set of 10 drive up, strate titled, 80 sqm site. a…[Read more]

Thanks for getting back to me so quick.I guess that I have been an accidental property investor up until now. I needed more focus on my deals but didn’t or probably still don’t know how to fully evaluate a deal.Steve’s book hit the spot, as if it was written for me. I feel like a sponge at the moment just sucking in the info.

I’d like a comment…[Read more]