Forum Replies Created
Hi Paterson,
I have to say I disagree and do not think Mandurah will out perform.
The train line has been in place for a while and so any gains made because of that new infrastructure has already occurred. However the main reason why I do not think Mandurah will outperform is the supply- there are lots of new estates around Mandurah and so there is no restrictions on supply. No matter where you are there will be a brand new estate with brand new houses only 10-15 minutes drive away, and I think this will put a cap on prices.
My opinion is the best areas for residential property in WA are areas close to the city- Mount Lawley, North Perth, any of the western suburbs, Victoria Park, South Perth etc. These are areas where there is lots of demand (very popular with < 30 yrs) and limits on supply.
Cheers,
Luke
If the big banks are not willing to lend on the property then I would definitely not touch it.
What happens if the tenant decides to move out? If there are no houses to rent in this town, then there is probably not much demand for rental accommodation and you will be left with a house that is worth essentially nothing. If the only selling point of this house is rental yield, and you are in a position in a few years where you cant find a tenant to rent it, what would the house be worth?
Cheers,
Luke
I have had one built for about $100 000 which is what Joe85 has indicated.
But this would not include driveway, fence, landscaping etc (if required).
Cheers
Luke
No this is not true.
If you hold a property for longer than 12 months you get a 50% discount on the capital gains tax.
Cheers,
Luke
I would also be wary as if the bank is preparing to sell the properties for less than what you will pay for them, maybe you are paying above market value.
Luke
Can your friend provide vendor finance for some/all of the properties?
AVS wrote:Any feedback for Thorline, cloverdale, high wycombe? Cheers AVS
Thornlie and High Wycombe are mortgage belt suburbs.
Cloverdale is in a relatively rough area- high crime, close to the airport and aircraft noise (which is a big issue for people living in Perth).
Why not look in Victoria Park, East Vic Park, Lathlain area? You shoud find detached units or houses on small blocks there for $400 – $500k.
Cheers,
LukeRing your council and ask for a copy of the occupation certificate, that will have the date on it. Its free.
Cheers,
LukeBuy one or a few of the books Duckster listed- that should cover the different costs.
Cheers,
LukeI would personally not buy property in either area.
There is far too much developable land nearby for my liking and so not really a scarcity factor around houses. You just have to drive about 10 minutes out of Armadale and you are in the open fields of Byford.
Just my thoughts.
Luke
vsdabhi wrote:Hi,
I have bought a prop in Perth (SOR) and there are many visible cracks in the ceiling of one room. Room size about 3X4m. Can anybody give a rough idea how much will it cost to remove old one and replace a new ceiling? We can do painting on it because we need to paint house.
ThanksI wouldnt worry about cracks unless they are major- just paint over them and get the painter to patch them with whatever they recommend. I cant see a tenant caring that there a few minor cracks in a ceiling.
I would also get up into the ceiling to have a look at what is causing it to see if there is a major problem.
Cheers,
LukeYou could sell the property, take a hit and move on with a lesson learned?
If you can't afford to sell the property and take a $50k hit then you are probably not in a position to invest in an additional property so I wouldnt think that this would negatively affect your ability to purchase more properties.
Cheers,
LukeYou will probably find that shipping containers are not used for construction camps because they are much more expensive than sandwich panel type donga's to build due to the large amount of steel compared to the dongas typically used.
And I agree, the footings aren't needed to hold the container up but rather to hold it down during storms and high winds. You will need to get a engineers certification for the footings to get an occupation certificate but this is not a big cost as Noob has said, but I think the big thing would be getting the council to approve the use of sea containers as dwellings as it would be hard to meet insulation and space requirements.
Luke.
Yes you will certainly need some kind of footings or tie downs to prevent the container tipping in a strong wind. Or at least a certificate from an engineer saying that the building complies with the building codes in order to get an occupation certificate.
Cheers,
LukeYes I have had a low valuation on a property that I was interested in. I made an offer of $335k subject to an acceptable valuation. The valuation came back at $315k. I went back to the vendor and said that the valuation was low and I would not be able to get finance approved, and submitted a new offer for $315k as this was what the valuation was and what other buyers would probably get as a valuation. The vendor was not happy and said that they would be able to give me the details of their bank manager who had a valuation done for $340k, an offer which I politely declined. A week later I got a call from the agent saying that the vendors really needed to sell and would take my offer of $315k.
As John said, it paid to be unemotional.
Cheers,
LukeTheFinanceShop wrote:Also re off the plan purchases please be careful and make sure you invest the money and have a good solictor review the terms and conditions of the contract, e.g. the last thing you want is to get to Q3 2014 and be advised that the construction has been delayed for another year or more.
Or even worse get to Q3 2014 and find out from the bank that the property is valued at $450k, not the $499k contract price. This would make it very hard to settle if you have already borrowed $50k for the deposit somehow and have no equity in your current properties.
Cheers,
LukeWhatever you do don't cross securitise. Do yourself a favour and give a mortgage broker who knows what he is talking about a call- Jamie who has posted on this thread certainly does.
Cheers,
LukeYes I did mean town planners who work at the council. You can go and see them in person but they may or may not be much help.
Luke.
You can speak to the town planner however they may or may not be of much use. I have found that the council town planners only respond to questions if you go there in person- they do not talk to people over the phone or respond to emails.
Cheers,
LukeAsk for the insurance policy details from the Strata committee. I think typically the strata insurance covers the building and loss of rent associated with any major damage, but does not cover fixtures or fittings within the individual units. You can get contents insurance to cover this if you want to.
Cheers,
Luke
