Forum Replies Created
Yep, Wayne.
Marc, you’ll find it ebbs and flows around here. I asked the same question some months ago. On the good side, a lot of the old regulars have shifted back! [strum] People come, people go, on every forum. And new people sign up every day, so it balances
kay henry
Also, you don’t actually own the land on a townhouse. It’s split up between you all- but because there’s no seperate title, units don;t really have land value as such. Same rules apply though for views and stuff. Depending on how big your townhouse is, dandan, you get “units of entitlement. So they add up all the square metres of space, and then they divide that up. Generally, if you have a 50sq metre apartment, and someone else has 100 square metres, then that person might pay double what you pay- or at least a bit more.
As Celivia said, you don’t have your own separate title. Hencew, you pay body corporate fees. These will pay to fix up any common areas- be it roof, grounds, pipes etc. Some people don’t like paying this BC fee- I don’t mind, because it means problems get fixed, and everyone contributes. Beware buying into a place where you have to pay “special levies” though- you might have to pay 5-15k for repairs or for new gym equipment for the gym or whatever [glum] Get a Body Corporate minutes check done before you purchase to check for special levies or any building problems etc.
In addition to paying BC fees, you’ll also be subject to water rates, and council rates. In some areas, council rates on units are capped.
I won’t pay BC fees over 1200 per annum, but they can go up to 4500 per annum for the cost of maintaining a pool, gym etc etc that a lot of the new complexes have- too much for me
kay henry
a) Whether your first porperty was a PPOR or an IP,
Investment property
b) What made you think about buying a first property
Somers’ book, plus my father had a passion for RE as did my grandfather
c)When you found the one you bought, why do that one suit?
It wea the cheapest me and my ex could find
d) Was the first purchase emotive or done under proper due diligence.
Emotion (absolute excitement!) We also had some savvy about location and kept an eye on the market. As to the property, we were as clueless as Mel – hehe, Mel
kay henry
Karl and Rita
Something i think of when i’m looking at yields… I’m happy with 6% innercity capital city; 8% regional; and 10% country.
It’s a different way of looking at things. It’s like a standard inversion of how I see rental yield and it’s relation to potential capital growth.
This is for me in 2004- not in the boom days. If I bought properties in 2004, those are the yields which would act as a guideline for me.
kay henry
Gatsby,
Check out rentcover.com.au as an initial look as to what LPI covers. The website covers what their pamphlet covers. I haven’t got LPI at the moment- when I did need it, I didn’t have it
) Then of course I got it, and didn’t need it anymore- hehe. I look at my IP’s and at the moment, I consider them fairly “low risk” in terms of my tenants. I could be wrong, of course. But you can always find out what the entitlements are, see if you think it is worth it, and then do a risk assessment on your own IP’s to see if some of them or one of them might fit into what you consider is “risky”.There are some great photos on their pamphlet of the damage an 8 year old did when her “play went too far”. hehe- holes in the walls etc- must have been some wild kid- quite the tantrummer! [angry2] So “accidental damage” is covered too, as well as malicious damage etc.
Check out the “premiums” section- interesting to see that Tassie has the cheapest prices and NT has the highest! Second highest is- you guessed it- NSW.
Caveat emptor with that coy- I don’t know them and can’t recommend them, but it’s a good read on what’s available.
kay henry
Well done elves!! Look forward to meeting up soon and discussing all your $$$ squillions
)kay henry
ezy
Yes, I’m glad you didn’t raise the rent on the pensioner- they only et 200 bucks a week, and it must be hard to spread that around. Good on you for doing the right thing
I have to say exy, that a rise from 85k to 600k is quite substantial! Did you buy this place a long time ago? If it is 600k for a bit of land in country nsw, with a population of only 400, then it must be one of those “boutique” places (like Berry, or Lorne in Vic). Most places of small populations that I know in rural nsw, have land values of a few hundred per block, so you’re doing well!!
I think if one wishes to sell, and you have already made almost a 1/2 million on your purchase of 85k, cute your profits, and run off and put your successes somewhere else [thumbsupanim]
kay henry
) Then of course I got it, and didn’t need it anymore- hehe. I look at my IP’s and at the moment, I consider them fairly “low risk” in terms of my tenants. I could be wrong, of course. But you can always find out what the entitlements are, see if you think it is worth it, and then do a risk assessment on your own IP’s to see if some of them or one of them might fit into what you consider is “risky”.
