Richmond,

A couple of questions…

Is it zoned for commercial use?

Would the rent be equivalent if it became residential use instead of having your current tenant? I ask this because if the tenant’s business fails or there’s some other contingency, and it results in a protracted legal battle… you may end up with a mere IP, rather than what is…[Read more]

jhighlo,

Whilst the contract may be long- 100 pages or whatever, that’s what your solicitor is paid to do- check it out thoroughly and find any problems in it. If you were unduly influenced to not get your own legal advice, then you may have a case against them.

Once a contract is signed (and given that you had independent legal advice), an out…[Read more]

jhighlo,

Neil Jenman’s a helpful man, and a nice one to boot, I think. I am not sure what the mechanisms/process is that they’ll be using to assist you, but as you probably know, the wheels of the legal system can be slooow. I would suggest keeping in touch with Jenman, and asking for some kind of time indication as to how long it might take.

I…[Read more]

Greg,

I didn’t attend the seminar, but I hope you don’t mind if I make a contribution.

If you think your properties are performing and have not yet achieved maximum growth/income… then you’d be happy to keep them, as you seem to be doing. But in another post, you’ve said you’re not getting the income required, and hence you have to get a baaa…[Read more]

Manic,

Here’s a post I put in another thread about inspections on strata title properties. It might be useful to you. It was in reference to someone asking ought a PBI be undertaken for bank loan purposes, so the content reflects that. As your unit is new, the info below may not be relevant either- hehe. You might wonder why I’m posting it at…[Read more]

I think one of the problems with buying IP’s in places with a “stigma”, is that the rental yields are lower. An example was an IP in cabramatta sydney… 125k for a 1-bedder, old 60’s-70’s red-brick apartment. The rental yield was $115. If you double the price for thre cabramatta unit, you can buy a new apartment closer to the city- so you pay…[Read more]

People might have seen this article, but I’ll post it anyway.

http://www.jenman.com.au/NewsArticles1.php?id=100

There’s some other articles on Jenman.com.au on mezzanine finance. Just type “mezzanine” into his search website and they come up. Does anyone have any comments on the article? I am sure developers would be more interested in…[Read more]

I don’t mean to interfere here, calron and Derek- just a few thoughts.

calron, by all means, advertise services within your signature. People have “OTP Sales” or “Join my databse for CF+ properties” or some such thing. If you wanted to, you could put “investors welcome for developments” or something… advertising in signatures is…[Read more]

So is it “buy at the bottom of the market and sell at the top of the market”? Is that what Steve’s been discussing at the seminar?

I remember when I read multiplication by division and I thought, doesn’t that just mean “buy at the bottom of the market and sell at the top of the market”? I find it interesting when old concepts are given new names…[Read more]

Acey,

People are entitled to challenge me about any comments that I make, as they are about any forum member. As a Moderator, I speak my mind as does any other member. The only difference is that I remove advertising or comments that I assess to be abusive.

I would hardly have become a Moderator if the expectation was that I was to become a…[Read more]

Pepper “baby” I’m late X-gen- 37, so I’m probably still of the steak knife generation I dunno about what’s been done for marketing RE… but I know that free things work for retail giants like Harvey Norman (buy a fridge and we’ll give you a toaster) and for other merchants (buty a stereo and we’ll give you a cabinet, DVD, whatever).

Marketing…[Read more]

Maybe, Pepper… but I think of it this way… I am going to check out some newish apartments- each have very little point of differentiation in terms of size, location, views, and no differentiation in price. So I am going to go and see Leigh’s first. Then check out others, but if they are really all the same, and price can be negotiated to the…[Read more]

hehe Leigh, and just to think you were gonna sell it to me before *without* any incentives. Well, now, of course, I am gonna wait. You’ll say “I’ll throw in a holiday…” and I’ll say “and then…?” and you’ll say “shopping voucher?” and I’ll say “AND THEN??” and you’ll say “plasma TV?” hehe…

I can wait, Leigh, I’m patient

kay henry

yack,

I really think it depends on who is buying in the market. It’s also a tool of marketing- and I would enjoy using that tool. All else things being equal (and that is the salient point), I would be happy to take the holiday. “Bonuses” can work- carsellers can add stuff onto a car and people buy it. It might not help, but it can’t harm.

kay henry

sedraash,

Try ebay to see what’s around on the 2nd-hand market. There’s lots of real estate books and stuff for sale second-hand on ebay, and other products too.

kay henry

Leigh,

There are some new apartments being sold in redfern that have a $6k furniture package with them. If your place is fully furnished though, that kills off that notion. If it were not furnished, I reckon it would be good to give a voucher instead of furnishings.

If you wanted to be a bit more “novel”, you could think that if you wanted to…[Read more]

Sorry for being off topic here for a minute folks… [offtopic] but…

Leigh, I think having an incentive for buyers is a good thing. I’ve been thinking about this for a while. I remember wondering why people didn’t chuck in a holiday or something, as a point of differentiation for their sale. I dunno if you’ve thought about a holiday instead,…[Read more]

Leigh,

What were the special levies for?

For any new investors who are thinking of buying an apartment, special levies can be [thumbsdownanim It is said that particularly with apartments with a pool and a gym, that special levies can be made upon owners to renew equipment etc.

For all things strata, people might find this website…[Read more]

Jet, you said:

“If there is no capital growth then should you use your money to invest somewhere else…”

Yeah, you’re right Jet. However, given that I also owe $$$ to the Bank, then I intend to pay some off. I just bought an IP, mate, and I still have that old-fashioned idea of paying property off (a la Bell). The aim is to reduce the LVR, and…[Read more]

Lisabellan,

Just to add something here… many serviced apartment firms have a provision for annual rent rises. You might want to check out if your company has that, too.

kay henry