Forum Replies Created
Something interesting – Dale Alcock, are boasting that building time currently is 9 months in total (Perth/regional).
Ventura Homes – approximately 12 months.
Apparently House prices in south west (WA) going up 2% per month – that is absolutely frightening. Couldn’t give me the pen quick enough.[comp]
Thanks Dazzling, these deals are not too hard to find. I usually read …….and say “I aint got the $$$$$”.
So what do you do, partner? rich father-in-law or what……!!!!! No offence intended.[biggrin]Hi There,
I could probably write a book on my experience of owning an IP with a pool.
When renting out my property, it was definately a negative if it was winter time. Some people liked the property but did not want a pool.
However, I had no problems renting in summer.I would make sure you get a pool inspection, (this is not costly) but definately could save you headaches down the track.
After many expensive maintenance bills I now have a company maintaining the pool every month, this costs $50 per month and the tenant actually makes sure the chemicals are maintained. I raised the rent to cover this.
In winter it would not be necessary to maintain the pool every month.
It would be a good idea to provide the tenant with appropriate equipment, ie creepy crawley etc. This is not cheap, approx $690 for creepy crawley.
In short, weighing the good and bad, I would definately not buy an IP with a pool. I hope I have turned you off purchasing an IP with pool, just dont want you to make the same mistake I did.
Regards, M
Hi Redwing
I agree, many people have made exceptional returns purchasing land in WA, South West has also done very well as you would know. I am in process of purchasing land in SW pocket, and will build as soon as possible.I was referring to holding land for the longer term and whether this growth would be sustainable.
There are many speculators in the market purchasing land without titles and then selling on. It will be interesting to see what happens over the next year. I personnally am hoping that it will continue to soar.
Due to the resource boom, immigration factor, Perth seems to be sitting well at present.
Regards, M
Hi Surrey, your property in Mandurah that can be sub-divided sounds very good. Where’s the location?
I am sure you are aware that Mandurah has been one of the best performing areas over recent years and still going ahead.
Unfortunately building in Perth market at present is not too crash hot – with labour shortages – building can take up to 18 months. Building costs going through the roof (increase of 1% per month).
I dont believe the timing is right, you may consider waiting until costs are reasonable before you consider developing.
Good luck, M
Hi there,
I just sold a regional property in WA which was positively geared. I got cold feet when the mining company did not proceed with expected plans, as the area would not achieve future CG.Also, Dazzling its not the bikies you need to watch out for?? You probably have a higher risk of bikies renting one of your industrial ware houses. Some do have good businesses????LOL
Unfortunately I cant actually say what you need to watch out for – not on this forum.
Back to the issue, you could look at Karratha, though costly.
Northam has experienced CG, however not sure whether you can still obtain positive.
Good Luck, M
Hi Dazzling, Congratulations, you seem to be going from strength to strength.
Keep hearing how well businesses are doing and comm/indust rents predicted to soar, about time.
We are now looking at purchasing another factory unit for our company as we have outgrown the current.
Would be interested to know who finds your properties, do you have someone out there working for you. What price range, if that’s not a rude question.
Regards, MI would not give fans a second thought, give it away.
Aircon, is the norm and it is expected these days in rental properties. Aircon can be cheap, shop around.
I would also look at whether you could put the rent up to cover this and it will be a win all around. I would not be wasting time on fans.Hi there,
I usually contact local council regarding rezoning issues.
Try – reiwa.com.au, regarding specific suburb you are interested in, you will then be able to establish council/city.They will be able to identify/advise on projects currently on the table.
I hope this makes sense.
Regards, M
Hi there, I maintain hard copy of every item and allocate specific files for each property.
I also use MYOB which is an excellent package and I reconcile every month. I have a great book keeper who set me up and now I just maintain. This has worked well to date.
It may cost upfront but well worth it.Hi Redwing, last article I read in West about 1 month ago, it was 30%, amazing what can happen in one month.
I find it hard to take any article too seriously, especially in current climate, in particular when person(s) have a vested interest in talking it up.
I personally would not buy land over (land & house) which will provide income, unless the land was unique, ie beachfront, prime city location.
Regards, M
Hi there,
I would say that it is not a good time to build. I would also look at whether there is more value in established homes.
In the first instance I would look at market value of the area where you are planning to build. Will the cost of building + interest be substantially less than established homes currently on the market? Make sure you compare apples with apples, ie size of home, location and quality. I would only build a new home if the final product was considerably cheaper than established.
If you were building for purpose of renting -tenants these days expect aircond, security system, retic this needs to be factored into the equation. Make sure this is included in the building package.
I have been researching same – Perth market and would say it is not a good time to build when there is a shortage of labour and interest rates are expected to increase.
RE agents I deal with are advising that there are too many new properties on the market and currently having a problem moving.
At the end of the day if the figures dont stack up…. dont do it.
Regards. M
[biggrin]
Hi there, JPD has commented on Esperance in recent post.
Try searching, this should help.
Cheers, MHi Michael,
Congratulations on your success.
I am also reluctant to step side of Perth.Enjoyed reading your comments “Is Now the Time to Develop” in API.
Cheers, Marisa
Hi Michael,
Sorry, this is off the subject, but I have recently received information on your company and I am a little disappointed that you do not have any projects/developments in Perth.
Will this be on the cards down the track?
Regards, Marisa
Hi there,
I wish this was the case in WA.
If you purchased land 12 months ago building new would have been the way to go, and certainly many people have made handsome profits.
Unfortunately land prices have risen 20-30% in WA over the past 12 months. It is taking 12-18 months to build a home, and from what I can see too many new homes on the market.
In WA I believe there is still more value at present in purchasing established homes.
Regards, M
Hey Woodsman
thanks for your post, you must be reading my mind.[biggrin]
Always keep an eye on the cashflow and your ability to service loans.
Hi JPD
thanks for your informative post on Esperance.
You have given me lots to think about.Cheers, Marisa[biggrin]
I believe Steve Navara also follows similar strategy
