I see people buying smsf property outright (or on very low LVRs) when they are nearing retirement quite commonly. For folk who like owning property as a pure assett class to generate rental returns for retirement income it works, as long as you target higher yielding properties. For example currently I am searching for a small block of units for an smsf and they are not intending to sell for capital gain but keep long term and use rental income to buy milk and bread during retirement.

The main difference in their mind is that the assett is tangible, the rent is reliable, the problems are quantifiable. We can all make arguments for/against shares and dividends and other income streams but each person needs to live with the risks they take on. Some people are sceptical about stock market crashes or dividends disappearing in future. For them it makes sense I guess.

As mentioned above you still need to keep SOME buffer funds because you need to cover costs, emergencies, rates/insurance when properties are vacant etc so I would proceed with caution and set aside a good amount of cash still. Also as mentioned the wisdom of using 80-90% of a fund to buy 1 property is pretty questionable, very little diversification there. So… if you have enough cash to buy several properties outright AND some shares AND some cash then I would think go for it if you are nearing retirement and just thinking about income. Choose your locations carefully as you don’t want vacant properties if you live on the rent!

If you are young and have limited funds, then this could be a bad idea and the leverage is much more attractive longer term. Not financial advice of course, get expert help before doing anything.

e) I look at it, but it is only one measure amongst many, and it is a lag indicator not a lead one. Past performance is no predictor of future performance. Sometimes the opposite in fact. Look at new trends, demographics and infrastructure then work out your lead indicators, then make an informed choice about where to buy.

Hi @red-feather I run a group buy access program to RP Data and Pricefinder which both offer listing history for properties. Email me if required.

Simon D wrote:

Recently i have good holiday in Goldcoast. We are really enjoying the time there. The apartment is relatively cheap comparing to Melbourne (where I live). I am also considering when retired, may spend the Winter there (for example 3 months) to avoid the Melbourne cold-wet weather.
However, many people said that the apartment there is not increase in value (last a few year it is acutally dropped in price.). However, the view of the apartment is fantastic and is apealing to us.
Anyone can give me an insight view of this highrise apartment (southport central for example) for investment?

Hi Simon – this sounds nice and lots of people love the idea of a cheap unit after a holiday when they live in an expensive capital city. The issue isn’t the cost. The issue is whether it is a good investment. Lots of small highrise units are low on land content, have high strata fees and below 50sqm can be very difficult to finance and may struggle to achieve capital gains. It is important to buy something in a quality market and of a fundamental property type that local people will want to live in and buy and rent it or else you will be paying inflated interstate price with no exit strategy. Keep using your head to check things and it might work but don’t buy on emotion alone. You need to check the vacancy rates and strata fees and rental returns as well as thinking about scarcity which is the thing that will drive capital appreciation. All the best!

JenniferW38 wrote:

Hi all. I am new to forums but am hoping someone here may be able to help please. I have a subdivision project on the go and have run into problems with storm water. The block slopes slightly to the rear with a house on the front top corner. Engineer advises that fill will create a pooling problem for the front block and has suggested an infiltration pit in rear block (which will take up 50m2 of a small block) or access to kerb and channel via rear neighbour. I am trying to replicate a subdivision a few houses down and asked how they managed this situation. I have been advised that had theirs approved on the basis that the proposed finish floor level for the new house will provide a positive fall to the street, giving them a “charged line”. This was approved a few years ago and a new town plan is now in effect. I do not have any building plans required to complete my project and expect this may hinder my argument for the same. Can anyone make any further suggestions as to how I can address this situation? Many thanks in advance.

This is a super common problem Im sorry to hear it has hit you too. Many people think block size is all you need to consider but drainage wrecks half the development sites I look at. Charged systems are great if you can get council to approve them. A bit of fill, an onsite detention system (rainwater tank) on a slightly raised pad, or a combo of gravel pit plus tank etc or else if the slope is too much and council not playing ball then the easement to drain out the back through neighbouring property is a must. If it makes the dev possible i wont hesitate to make offers of $5-10k to neighbours for the inconvenience of putting a drainage pipe down their side fence.

manadeep wrote:

Hi Dean,

Thanks for your response. I am going to hit up Elan Legal once I have my plan somewhat firm.

Thank you again
Mani

Best of luck Mani – also bear in mind location and growth potential plus current cash flow when investing from overseas. I often talk to expat clients plus the occasional foreign investor under FIRB rules it is a little more tricky to get a sense of the market accurately from away but despite a few extra hoops to jump through not impossible.

@peterfromsydney if the ACT peculiarities are an issue have you considered Queanbeyan? NSW rules, Canberra market exposure.

Hi,

Other than going down the complaints route that sounds interesting. How did you go with it?

PS if you want to make a complaint on gumtree
https://www.gumtree.com.au/scam-security-centre/report-issue/

For future reference if you have a good property manager ask them for a list of reputable trades in the area, this will eliminate the time wasters.

Matt

Forgot to say if its shower or bath, and going to get hot water on it make sure the product is rated for that or it will peel when heating up but kitchen cupboards and bathroom, splashback tiles not such a problem. Also I don’t use it on floors as foot traffic will wear it off.