Forum Replies Created

Viewing 20 posts - 1 through 20 (of 32 total)
1 2
  • Profile photo of maggiemaggie
    Member
    @maggie
    Join Date: 2003
    Post Count: 34
    February 1, 2004 - 8:08 am

    Thank you Richmond

    I did. Still not clear to me if they invest in positive cash flow properties or develop or …

    Maggie

    Profile photo of maggiemaggie
    Member
    @maggie
    Join Date: 2003
    Post Count: 34
    January 6, 2004 - 11:14 pm

    I am sorry[:I]
    I guess you mean to borrow most of the money.
    It looks like I am still sleeping, just came to work.

    Profile photo of maggiemaggie
    Member
    @maggie
    Join Date: 2003
    Post Count: 34
    January 6, 2004 - 11:03 pm

    It sounds good but keep in mind that $1000000 even
    in the bank will bring $50000 with 5% interest (what is at the moment)

    Profile photo of maggiemaggie
    Member
    @maggie
    Join Date: 2003
    Post Count: 34
    October 25, 2003 - 2:22 am

    Thank you Michael,

    You are very helpful.
    Yes, we do intend to draw a plans and go to the council and talk to them first before we do more detailed plans. We know the regulations and the Res Code. Usually the Res Code is not that strict that’s why some people after they have knock back from council go to tribunal and very often they win.
    We have done this twice before using builders this time around we will manage the project as we have the knowledge we need and my husband is capable to do a lot of things on the project. We have not been able to do that with builders, as they usually want to do the whole project.
    We are both draftsman, ironically we don’t have enough time to actually sit down and do it, and we still keep our jobs from 8 to 5 sometimes I wonder why[;)]

    Michael, my understanding is that you don’t subcontract the work yourself but hire a builder to do it for you. What sorts of builders do you us?
    Big establish ones (very often they don’t do subdivisions) or small once?

    Kind regards
    Maggie

    Profile photo of maggiemaggie
    Member
    @maggie
    Join Date: 2003
    Post Count: 34
    October 24, 2003 - 9:25 am

    Michael,

    I have checked out the web site.
    Impressive, it looks like you have built a lot of projects.

    Can you tell if all of them are subdivisions or you do both (single homes one on block and subdivisions)

    Do you work only with investors’ money or the company has projects that are finance by the company and at the end sell them to investors?

    Thank you

    Profile photo of maggiemaggie
    Member
    @maggie
    Join Date: 2003
    Post Count: 34
    October 24, 2003 - 9:18 am

    Pebbles,

    You scared me, we have bought a corner block with 60 years old house on it (which we are thinking to demolish, still exploring the options). The thing is that the area is very good close to shops and train station and guess what a lot of old people live around us we know for a fact that one of our neighbors will be trouble but I think that if we apply with the regulations there is little they can do.(we want to put two double story)

    Tell me how did you manage to build even two on that block if they have objected and won, I would have thought that you have to go back to the council and start from the beginning to approve the two units.

    Profile photo of maggiemaggie
    Member
    @maggie
    Join Date: 2003
    Post Count: 34
    October 23, 2003 - 6:33 am

    Very good info!!!

    Can you please tell us, when you do calculations to see if a project is worth doing how much profit you are seeking to achieve per unit?

    Profile photo of maggiemaggie
    Member
    @maggie
    Join Date: 2003
    Post Count: 34
    October 20, 2003 - 11:22 pm

    Hi Paul,

    There is no doubt that if you subdivide yourself you will make much more money.
    We do subdivide blocks in Melbourne.
    It is very long road though it takes time could be easily a couple of years by the time you get it through the council then find a builder or if you decide to subcontract the work yourself. If you have not done this before I would say don’t do it alone get your dad on board a lot of things you need to know and a lot of things could and usually do go wrong.
    In your case my advice is to subdivide it get it through the council and then sell it with the permits and plans.
    The most money is made when you subdivide the block not when you are building on it. Very often is not worth the hassle.

    Maggie

    Profile photo of maggiemaggie
    Member
    @maggie
    Join Date: 2003
    Post Count: 34
    October 16, 2003 - 6:00 am

    Terrific!!! Thank you all again.

    For some reason I am a bit scared to buy in Frankston although I rather do that then go in the regional area. This is just me.
    We have been in the subdivision business for a while and I think would be good for us to buy something for investment but I am much more confidant in what we have been doing.

    Kevman, that property that you have bought back in March is it in Frankston?
    Very good deal!!!

    Would you agree guys that there is a chance in Frankston if the house need renovation may be so buy something like that renovate it and then put it up for lease?

    Any particular reason why we should be aware of Frankston North?

    Profile photo of maggiemaggie
    Member
    @maggie
    Join Date: 2003
    Post Count: 34
    October 15, 2003 - 11:33 am

    Thank you guys,

    Unfortunately I have not found positive cash flow properties in Frankston but I will be happy even if it only pays for it self after of course when I pay the 20% deposit.
    I am getting close to that figure.
    It is just the fact that I am hearing from a lot of places that the prices in Frankston are yet to go up but I am also aware of the all bad guys that live there.

    These apartments sound very attractive with good return.
    I am thinking of buying house with land rather then apartments, I have got more fate in the land (that the value will go up) I might be wrong of course[8D]

    Profile photo of maggiemaggie
    Member
    @maggie
    Join Date: 2003
    Post Count: 34
    September 15, 2003 - 3:12 am

    Hi Arty,

    Tell us why they think that they don’t own you the deposit.
    What is their part of the story?

    We had to deal with agencies just few weeks back and I still feel bitter and disapointed.
    I live in Melbourne as well.

    Maggie

    Profile photo of maggiemaggie
    Member
    @maggie
    Join Date: 2003
    Post Count: 34
    September 1, 2003 - 8:25 am

    I just read all your responses and just felt to quickly answer.
    I did say that at the moment positive cash flow won’t be at any benefit to us is simply because our income is already too high so let’s say we have 1 IP cash positive bringing us 50 a week we will only see 25 of it with no or little chance of bringing us any capital growth in the future.
    In the other hand if we have negative one we will benefit in terms of cash just about the same but with the chance of that property to have capital growth in the future.
    So my thought are that while we are full time workers not very beneficial having cash + properties. I guess if we start buying such properties we should really think of cutting our hours at work.
    Yes, I know everyone is saying about the market crush but when you buy property and it is for a long term this is not an issue.
    I might be wrong, guys but I feel much more insecure buying property in those little regional town where could be simply impossible to sell if you need to and with no potential.

    Today an agent call me about a flat in the city and said that the return on it is 7.5% of course did not tell me about the hidden cost that I have to pay after that.

    This is all very interesting and I am learning about cash + IP’s everyday and it does not mean that if I find something suitable I won’t buy it. I will keep my eyes open and keep reading this forum.

    wish you all luck
    Cheers

    Profile photo of maggiemaggie
    Member
    @maggie
    Join Date: 2003
    Post Count: 34
    August 31, 2003 - 10:11 am

    Thank you all guys,

    I did check it and it turn out to be more like a hotel accommodation and the corp. fees are high so it is not for me.

    Regina,
    In regards of subdivisions, we do the same. I just thought that would be good not to put all eggs in one bucket.
    As you know it is very difficult and time consuming with council and thinks but the dollar is there.

    What do you think about these hotel accommodations? Are they worth it?
    This is something you buy and forget about it, at least this is the idea.

    Maggie

    Profile photo of maggiemaggie
    Member
    @maggie
    Join Date: 2003
    Post Count: 34
    August 31, 2003 - 2:05 am

    I will investigate this further.
    Just today I really thought of buying something like that in the city.
    Everyone is saying that apartments in the city are not good investment at the moment as the prices are expecting to fall.
    Is that really the case, not sure? I don’t think especially with the cheap once.
    What are your thoughts on that?

    Maggie

    Profile photo of maggiemaggie
    Member
    @maggie
    Join Date: 2003
    Post Count: 34
    August 31, 2003 - 1:33 am

    Thanks,

    The property is studio apartment.
    The price is $115 000/$120 000.
    Rent $184 per week.

    Maggie

    Profile photo of maggiemaggie
    Member
    @maggie
    Join Date: 2003
    Post Count: 34
    August 31, 2003 - 12:24 am

    Forgot to add:

    Do you take into account the stamp duty, solicitor’s fees insurance rates and so on, when you calculate.

    Maggie

    Profile photo of maggiemaggie
    Member
    @maggie
    Join Date: 2003
    Post Count: 34
    August 31, 2003 - 12:17 am

    Hi Richmond,

    Thank you for your input.
    I know that return is good by looking on the price and compare it with the rent. If the rent is enough to cover the interest and all associated cost I am happy with it.
    It was not clear to me if the yield % is before you pay tax or after.

    Thank you anyway

    Profile photo of maggiemaggie
    Member
    @maggie
    Join Date: 2003
    Post Count: 34
    August 23, 2003 - 3:07 am

    I don’t believe the brokers are aware of all possible loans out there, and think that they push and recommend only the banks that they are accredited to work for.

    In our case the broker even misled us about the ANZ package told us wrong details.
    I think like in everything else they are good and bad once operating.

    Good luck
    Maggie

    Profile photo of maggiemaggie
    Member
    @maggie
    Join Date: 2003
    Post Count: 34
    August 23, 2003 - 2:49 am

    Hi all,

    Well it is over!!! I am exhausted and I am nerve wreck but glad that it is over and the price well I think if we had passed in (the unit) we would not have gotten better price later.
    Initially the agent said he will try to sell it for $370 000/380 000. No one else told us they can get such a price we ended up selling for $359 000 which was the amount that other agencies said they would get.
    I did confront the agent today after the sell that this is bellow his evaluation and that he did over evaluate the property just to get the business and he did not deny that and said that he still gets better prizes then others, which is not the point anyway.

    We did have the finance to settle for the other house but every week delay would have cost us in interest $350 and we did not wanted to keep the unit and negative geared it.

    Anyway for now we will be just looking and not buying, as I believe that a slow down and down turn is coming up

    Profile photo of maggiemaggie
    Member
    @maggie
    Join Date: 2003
    Post Count: 34
    August 22, 2003 - 9:09 pm

    Thank you everyone,

    I will definitely explore all possible way of at list speaking out about it.
    It is an unethical and unmoral the way all agencies operate. What a terrible way to make a living.
    What upsets me more is his ignorance he does not care not a bit if we a happy about his service or not.
    I feel he simply walked all over us without any consideration what we think.
    Well now is 7:10 in the morning and our auction is at 10 am so wish me luck I will need it.
    I will pop in later to let you know how the auction went.

    Thank you again guys, this site is great and so are you all.

    Maggie

Viewing 20 posts - 1 through 20 (of 32 total)
1 2