jspri,

It’s hard to know if the property would be a good investment without knowing more details. 5% net means it yields 5% after management (body corporate and possibly onsite property manager if applicable) costs are taken out, presumably. Gross, the property might yield 7%- but we really don’t have many details.

If you are looking for what might be considered a “growth” property, then you might be looking at the following for the property:

* location: views? near water? (ocean is better, river/lake is good too)
* unique qualities of unit?
* small block is better (below 35 units in block)
* size of unit
* garage or designated parking
* architect or corporate designed
etc etc etc

The unit could be a studio like many others… or it could be a 3-bedroom apartment in a beautiful part of australia. As we don’t have details, it’s hard to say.

Westan is talking about property that puts money in your hand per week. I am referring to property that may have longer-term capital gain, but probably costs you money per week. It just depends on your strategy and what you’re looking for.

kay henry

Marisa,

I think the best place that I find all that info in one collection, is the API mags. Rental info on all states and all suburbs- great for a comparison (and now out monthly! hehe)

kay henry

jhighlo,

Neil Jenman runs a service for people who feel like they’ve been unfairly done by in real estate. It’s free to you as a consumer, and paid for by his RE agencies. try jenman.com.au and send him an email. He may be able to help.

As for a unit being worth 15% less than when it was built… well, the market has changed, I believe, from 2 years ago, and I think a 15% price drop is probably common in areas that are heavily-supplied. Not sure what you can do about that- whether it was over-valued in the first place, or is now just reflecting the current state of the market. It is often said that OTP’s have questionable value until they are actually resold after completion, and then a more “true” market figure is formed.

kay henry

That’s ok, kp. I am not sure what the distinction between “real” investing is and other forms of investing. I enjoy discussing the numbers, but I don’t find it useful to make those kinds of distinctions.

kay-wit,

I am definitely in the 98% of non-knowers. I went to Chan’s link which only made me more confused. Even the answer confused me. In fact, two protagonists and houses and pets probably still would have confused me. I can only cope with the “a guy in a house has a pet that is a fish. Does he have a fish?” hehe.

kay henry

Dear Gats,

Margaret Pomeranz and David whatshisname just gave Farenheit 9/11 a VERY good review and 4 stars. How come you got to see it before its general release Gats?

Hey Mister Gatsby, have you read any Naomi Klein? She’s considered the “new Marx”. Her book is No Logo (sorry if you know all about her- not trying to patronise). If you haven’t read it, I think you’d enjoy it. She writes well too- very plain grassroots english.

kay henry

bennido,

Just look up “blahtown flood” in google.com.au and see what comes up. Remember, the area that hasn’t flooded for 100 years might be due (or might not be).

kay henry

skippy, I disagree. elinitha’s assumption was that:

“Ive always been under the impression (and please do correct me if i’m wrong) that the role of a real estate agent it to be the mediator and negotiator between client and potential buyer.”

elinitha, the Agent is paid for by the vendor- if the agent was a mere negotiator between you and the buyer, then you would probably both pay halves. But if a buyer doesn’t want to hear offers below his or her range (and that can be written on the contract between agent and venfor) then the agent is entitled not to take those offers to the vendor.

On my sales contract, a price under which the property was not to be sold, was written. My agent was working for me, and didn’t want to insult me with lowball bids. That’s my right as a seller.

A buyer’s agent acts for a buyer. A RE agent acts for a seller- not as an impartial mediator.

kay henry

Tony Robbins’ gigantism is kind of a turn-off for me. I prefer the greg norman type. Slim and elegant. Oh, I loved watching him play golf in the Open- he’s fabulous!

kay henry

vicgirl,

It’s a really broad question. I think there’s a few reasons to invest in Qld. As del said- cheaper stamp duty; the weather is also very nice usually; it’s lovely and green and tropical; prices are still on the up in places in Qld (although it’s debatable on whether to buy in a rising market); it’s having huge immigration- internal and external; it’s cheaper than Sydney and Melbourne.

But one could use those reasons to purchase in many places. If you want a piece of Australia, you could do worse than Qld. Of course, it depends on where you buy- 500k gives you lots of choices.

kay henry