Forum Replies Created
Leswon,
I think the trend of pozz cashflow houses has meant that people refuse to get less than 10% rent for houses. Also the RE boom has meant that zields are so low, people have to up rents to justifz the investment.
As for me, I am a renter. The last place I lived in… the rent was only raised $10 in the eight years I was living there, and it looks like a similar situation is going to occur in my current house- it´s very reasonable rent. If rents rose in line with property prices, I´d have to buy a PPOR, I guess, but never under a wrap scheme.
kay henry
`Gorgeous White Female`comes with the house?
kay henry
alf,
I agree. I wince at those kind of posts too. Remember though, there´s all kinds of people involved in property investing- not all of us feed off other people´s ´pain´.
kay henry
I remember working on the south coast of new south wales, and hearing about the manz people who bought down there as a cheaper alternative to living in sydney (this was before the RE boom). Problem was, there was not the infrastructure to support people. All the doctors didn´t bulk-bill (a monopoly agreement) and there was barely a corner store, let alone a community centre etc… I doubt this has much changed. There was also no public transport, and the rail line ended in nowra, leaving areas further south isolated.
The boom may have flooded coastal areas, but what are people buying into?
River views might be the next big thing. I reckon aussies have a love affair with the river too, particularly those of us from the country. Check this out:
http://www.thesundaymail.news.com.au/common/story_page/0,5936,8818031%255E2765,00.html
kay henry
tjal, zou can find info on the state of the market all over the net. Try the RBA website, or just look up ´real estate australia´ in google.com or in the news section of google…
I believe it is *always* a good time to buy real estate, depending on what you want to pay etc… I´m 37, and if I don´t continue to buy, I´ll run out of time… none of this `wait two years´stuff for me!
kay henry
Tony,
I think it´s a really bad idea to buy into a floodzone. Your tenants may get flooded and then there goes your pozz cashflow… You´ll have to gut the property and how many tenants want to lose all their stuff in a flood? It truly sounds like a nightmare. I have read of stories on here and somersoft where tenants refuse to pay rent due to mixups by owners and the insurers, and really, how tolerant do you expect tenants to be when they´re covered in water, and so is all their stuff?
Re you developing a good relationship with a RE agent.. well, of course RE agents all want our business. They particularly want out-of-towner business- perhaps the locals wouldn´t touch the flood properties with a barge pole.
kay henry
hehe… I see aussierogue has a Sadistic streak in him… leaving all of us here in great agony… shame on you, Marquis De Rogue! [}
]kay henry
Funny the way these dudes tell you how crap it was the way you were socialised to think and then they tell you there is another way… to think just like them!
When I met a few of the lovely sydney lads, one of the things I enjoyed about it was that they were all so different from each other- I really like that in people. We don´t all wanna be Stepford wives, do we? Why lose your own uniqueness and sound like a copy of someone else?
kay henry
Ahhh, the Great Aussie Guarantee:
`the agent reckons will pull $160 a week “no probs, mate”.
hehe… you godda laugh :
Strider, generally rural properties will yield less than regional or citz properties. Check out the RE sites and go to their rental sections online or check the local rag in the town. Improvements swuch as aircon (SE QLD is hot), a carport etc, might just be considered de rigeur and not increase the rental much at all. Remewmber, the RE guy wants to sell you the property, so the ´she´ll be right mate´attitude will be a prominent part of his sales talk.Then again, 87k is a good price these days :o)
kay henry
Redwing,
Interesting comment about keeping existing customers, or tenants. On the other hand though, I recently bought an IP with tenants with a few months left on their lease. Nice stable tenants whom I met. The rent was pretty cheap but I was happy with it… kind of… Then they say they´re moving out. So I get new tenants in at market rental and my place becomes almost pozz geared!
A few notes here… (1) Had my place been at market rental to begin with, I am sure I would have paid more for my property.
(2) I feel very uncomfortable about raising rents for existing tenants- it´s a hard thing for me to do- particularly to raise them by 25% to bring it up to the market rate.
(3) My new tenant has no qualms about paying this higher rate- it´s still bloody cheap compared to what I´m paying in sydney … sob…
The best thing that could have happened was my old tenant moving.
Still in Austria folks- and my euro keyboard is a bitch. Forgive me :Ö)
kay henry
I also seem to recall that Jesus was not a rich guz, but that he loved all people- remember Zacheus, the tax collector? Well, Jesus loved him too, plus mary magdalene etc. Jesus was a humble guy- of humble beginnings- Joseph a carpenter and Mary, Jesus´mother, was a housewife. I do not see the bible as a get-rich quick book, and Jesus didn´t charge for his proselytising- he just spoke to people because he loved them.
Now, the above might sound unusual for an atheist to write, but please don´t assume that because someone doesn´t believe in God, that they don´t know the topic. Mzself and pretty much everyone I know was raised a Christian, has a deep memorz of the Bible, but chose not to be Christians for all our different reasons. And you can´t just conjure up a God- you either believe or you don´t, and I don´t.
To say God wants us rich is similar to saying Marx wants us rich. And we can all quote selectively… how about ít is harder for a camel to pass through the eye of a needle than it is for a rich man to enter into the gates of heaven`?
If you have made wealth through property, be happy. But I don´t know why people have to say poor people are not living out God´s will because they are poor´I think that is verý mean-spirited.
I am much poorer than many of you- so what? I think the Bible is a manifesto of equality and communal living than it is of climbing over one another for elusive wealth. But go figure, each of us will read a book and receive a totally different meaning from it than another person.
Oh, and folks, if you think that people who have less than you are merely ´jealous´well, that is not the case – perhaps for some it is, but for others, like myself, I don´t want your money- i want to learn how to live life well. So please don´t discount comments which differ to your own as ´jealousy´. It might simply be independent thinking. Money isn´t everything.
kay henryI think auctions have been a recent thing in terms of popularity. 15-20-odd years ago, they weren´t particularly used. I think the new regulations will put them back in the closet for a while, and private treaty sales will pick up the pace. I was alwazs under the impression that auctions were more for boom times where the market was rising, or for unusual houses where there was no real market indication based upon previous sales etc.
As far as prices go… people have been saying vendors need to be more ´realistic´when selling our houses… but really, are we gonna chop 20% off curent prices? I think we´d rather chop our limbs off.
I think a lot of people will still be selling up to get capital gains. But the 1% increase in IR´s did the job in slowing us down buying (or at least mum and dad investors). Seems that will lead to more supply than demand, and that´s a good thing for buyers, right?
kay henry
Thanks for your replies folks :o)
I would think that all houses would be on the website too. Given that Rick is meant to be the ´wrap king´ it surprises me that he only has 5 old-stock houses for sale.
kay henry
I think a decent person, whether Christian or not, would care for all people, and not have to put down poor people.
kay henry
sis, even as a non-mortgage broker, i think i can answer this quite simply.
Each time you go for anz loan- be it credit card, personal loan for a car etc, or a mortgage, it is recorded by a central credit agency. The provider zou go for a lona with will run a credit check on you when you apply for a loan, so disclosure is not really an issue- they will have all the info in front of them- that´s been my experience anyway- they will know everything about you. It´s why, for example, it´s so important to keep up with phone bills etc, or the credit check wil have a black mark against your name if telstra has cut you off due to non-payment.
If a person is bankrupt, it will show up on on the check- everything does. Non-disclosure when asked on forms can be a bad thing- ya don´t wanna be done for fraud.
kay henry
lee,
With deposit bonds, just be sure you have enough money to pay for the joint in case you can´t onsell. You´ll be up for at least the full deposit and lose a whole lot of money with legals etc if you pull out of the deal before the due date.
OTP apartments can be a good thing if you buy into an A-grade block, with some distinguishing features. But buzing into a block where everyone will be selling at settlement can only devalue your property.. supply and demand… look up ´docklands melbourne´in google to see what oversupply of OTP´s has done in that area.
kay henry
Well, Í´m an atheist, so Christian arguments are irreleveant to me. But don´t forget, we atheists also have a sense of what some people call ´morality´which i call living by certain ´principles´. I am more interested in the practices people use to make money- not in how much money they make. Onserving the practices of others helps me to develop my own sense of right and wrong, but I don´t have a belief system behind it- just a belief in myself.
kay henry
ísn´t mel´s answer correct? i would have thought so!
kay henry
Tools,
I am afraid that the open market will mean people will charge rents at whatever they wish, and i am not sure that´s disloyal to other vendors. Think of our units in an apartment block for rents- we set our own price- it is not centrally set. Some vendors would obviously prefer to get less rent for more weeks per year. In fact, rental projections are only that- it´s probablz why some people are so fond of rental guarantees- at least it´s something. The free market economy is not always a fair one.
I agree with Bears- you´re going to have to invest some capital into your investment- maybe put in some aircon, or fully furnish it… something to distinguish it from the general mass of the rest of them. Generic office suites are progbably like generic apartment blocks- they really need that distinguishing quality- that´s if zou wanna keep the rents up. Otherwise you might have to play the open market game- lower rents for a more competitive market.
kay henry
Young Investor,
I think the percentage ýou´re referring to is the amount they presume for living expenses. And even if you could produce a stat dec from your parents saying you´d stay with them for a few years, banks and credit providers will only take into account your situation now- they don´t work on projections for the future… they´re more likely to work on the assumption that we all spend about 30% of our income on bills etc etc wherever we live…
kay henry
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