Forum Replies Created
Hey Crashy
wonder what percentage increase the new owner will sell it for…with allowance for CPI of course!
wonder what the final profit will be if the new owner is a positively geared ‘hold’ investor…
…don’t mind me, I’m still sulking I missed out on a profit with shares 3 years ago (boring story!)…those of us with long memories seem to have better patience with property than shares!
Of course I’m also hopeful that negatively geared investors have long enough memories that they may panic sell in an anticipation of interest rates returning to >15%smiles, Kerri
[happy][buz2][build]Hi Phorsha
I agree with Todds advice that wherever you look you must do your ‘factual due dilligence’ but also remember that your future tenants will be living in the area you choose.
I spent six years driving an extra 200ks to get to the maccas in Karratha rather than subject my kids to the interesting Port Hedland! and the eldest had lived in Kal. No-one looking solely at the figures could understand the Pilbarra mentality, thats why so many of the ‘fly-in/fly-out’ kids are lucky to last one tour!
However, what I really mean to say is that you will need local ‘Human” input wherever you choose to look and travelling interstate is expensive. Perhaps you have trusted friends interstate who can get the ‘street goss’ for you but remember you can’t really blame them if they miss something (unless you have paid them according to a contract or made them a partner in the investment). The only way to get a feel for a place is to physically visit it, an agent won’t tell you if the current owners are leaving because of the people two doors down holding all night parties.
As a ‘hold’ property the potential rental in rural WA is (subject to due dilligence & dumb luck) often enough to outweigh the smaller & potentially non-existant capital gain. It really depends on what type of investment property you are after.
Funny how GWN shows major takeaway ads followed by ads for Perth motels…
Wishing you well, Kerri
[happy][buz2][build]Hi Steve
be very careful when you do your due diligence for the area you are looking in.
Especially check with council if there are plans for further developments in the area.
Talk to the tenants that are there but also talk to people in adjoining or nearby offices/shops…Cleaners and maintenance guys are great scources of info, they tend to know if tenants are happy, planning on selling(& not told landlord!) or unhappy and facing a divorce sale of their assets!Follow the advice in this sites books to look outside the square to scource the needed (potential) tenants prior to purchase.
Don’t be tricked into paying as per a fully tenanted building! and also check the clauses in the current tenants leases. They may have an option to leave if the premises are sold.
Our uncle invested in an industrial complex, didn’t check enough on his tenants needs and lost alot of money when half of them didn’t renew their leases!
Don’t make the mistake of thinking that business people won’t pay to relocate! I was unhappy with my first (business) landlord and at some expense relocated my entire shop to the complex next door. Conversely, you may be able to attract neighbours to you!I am now in SE Qld and there are an awful lot of empty retail buildings around here.
smiles,Kerri
[happy][buz2][build]Hi, before you give up on WA totally you may want to check out the forum entitled mining towns (afew days back)
I used to live in WA and it’s only 6 hours drive to Kalgoolie and maybe another 45 mins to Boulder…just make sure u do the speed limit through the little towns as they pick on city plates!
I wouldn’t recommend Mt Magnet! and Karratha is about 16 hours drive (very pretty!) from Perth. I would avoid Port Hedland no matter how good a deal sounded!
Good Luck, Kerri
[happy][buz2][build]I ‘ve read the books mentioned and found them great but in answer to your fears I would also recommend another two books! (hope u like reading, although these two are very short-just deep!)
ok,first recommendation is Susan Jeffers book ‘Feel the fear and do it anyway’ warning, I opened a (successful!) shop after reading it two years ago.
2nd recommendation is ‘The richest man in Babylon’ uncertain of author as my copy is out on loan in exchange for ‘the cashflow quadrant!’
Good Luck with your journey,Kerri
[happy][buz2][build]
Good point, I hadn’t considered this. Does anyone know?
I hitched with an aussie so ‘we’ don’t have a problem buying in oz or nz but this could effect if I decide to put a property in only my name.
They sell alot of property to Japan here though so I don’t beleive there are any restrictions.
smiles, Kerri
[happy][buz2][build]Wow, interesting replies!
I will consider myself materially ‘rich’ when I can close great opportunities/deals without having to work out how to raise the deposit/settlement costs on buy&hold.
Fortunately I’m already doing good with ‘health & happiness!
[happy3][buz][build]
