Forum Replies Created
cjbarnaby
There is a facinating book by Kieran Trass, “Grow Rich with the Property Cycle”. He is a successful property investor.This book provides extensive information on how to recognise cycles, recovery, boom, slump, market influences, key drivers, and when is a good time to buy. Its an excellent tool, and just one of those books I pick up all the time.
I can not recommend it enough.There may be other formites that have read this book and can also comment on it.
Also, check out other forums as I think there has been alot said about his books.
Cheers
(Hard work never killed anyone, buy hey why take a chance)
Hi Agile
I am from Perth and an investor.
The Hegney Property group, which are the largest valuers in WA also act as buyers agents. They also have offices in the South West, they also source commercial and industrial properties.
I have spoken to their valuers who have helped me in the past.
I have not used them specifically to find a property , but I believe they have a very good reputation over here and are large organisation.You can phone: (08) 0489 9489
Cheers
PS
Your friend needs to make sure he/she gets the right people looking after him/her, as WA market has cooled.(Hard work never killed anyone, buy hey why take a chance)
The boom started a fews years ago now, with Bunbury recording around 40% growth over the last 12 months.
This market has now changed and I dont think it will be too long before it becomes a buyers market.
Agents that I am in contact with have also confirmed that the market has cooled off as investors have pulled out.
I have a couple of properties in this area but dont plan to purchase anymore at the moment.
If you are interested in the area keep in contact with a couple of agents.
If you live in Perth purchase the South West local paper as this will guide you in regards to various pockets within Bunbury. I think you probably need to get to know at least 10.
On a positive note – in the paper this morning Government has confirmed finally that the $511M Perth to Bunbury Highway (Southern Gateway) has been approved and about to commence. Great news for anyone who has purchased in the area.
Good luck
(Hard work never killed anyone, buy hey why take a chance)
Yes, after re-reading $300K to $600K.
Seems like we are all thinking along the lines that renting is the way to go.
Could rent out $500K home for around $270 per week, where you would be paying over $700 per week on interest alone.
(Hard work never killed anyone, buy hey why take a chance)
Hi Munchwood
I also think it is initially a good idea to rent in Perth especially with the market cooling. In 12 months time you may find Perth better value.
Also, looking at purchasing around $300K-600K, not sure what u could purchase for $300K , as median is over $430K, maybe a 1 or 2 bedroom unit?? I think u would possibly need closer to $400K for a home in suburbs.
Depending on where u want to live u can rent a largish brand new 4×2 for as little as $270 per week in beachside location.
Can rent beachfront in some southern coastal areas for around $350 per week, these are properties worth $1M+.
(Hard work never killed anyone, buy hey why take a chance)
Hi TraceyL
Look at the numbers and the facts and what can realistically be achieved, ie – sales figures for the relevant pocket, how many houses on market, how is the upper end moving at present and talk to as many people who either sell or know this market. At least this way you can make an informed decision.
I had a quick look at homes selling in new Peninsula Estate on approx 400 sqmtre block with river views, seems around $1.1M-$1.3M. Building could be a little tight.
Property u mentioned that sold for $2M sounds unique I am guessing due to development potential, probably can not compare these figures to what u are looking at.
If you are planning to onsell the block, you would need to check the contract to make sure developers allow this.
Unfortunately GST is a killer selling prior to 12 months.Have u looked closely at figures if u hold the block for 12 months, I am not an expert as far as GST goes, but I believe there would be 50% reduction, though u will have holding costs, but u may actually be better off due to CG during this 12 month period, as river side blocks are rare and sought after.
If you were looking at building and holding for the long term I would say it would be an absolute winner, it just gets harder when you have a shorter timeframe.
(Hard work never killed anyone, buy hey why take a chance)
Hi TraceyL
You would be looking at $225,000 for the block and around $250,000 for the house (approx 250-280sqm2 home), is this about right $475,000 and it will take approx 12-18 month build, would turnkey be around $530,000 (including holding costs), is this about right??
Before I signed on the dotted line I would be looking at what is currently on the market and comparing like for like. I would be wanting at least 20% margin.
The WA market may go up another 10-12% next 12 months, if not can u hold the property, this is what I would be asking??
As far as purchasing land and holding, I am not in favour of this strategy as there is no income to offset.
Just my thoughts.
At the end of the day it comes down to doing the research, I can provide some basic figures but it is up to u to get into the nitty gritty to make sure you are making a wise decision.
As far as Maylands goes this is a great area, close to city and river, however there are also many undesirable pockets, lots of highrise units/flats, I am sure u know exactly what I am talking about.
M
(Hard work never killed anyone, buy hey why take a chance)
Hi Tracy L
Just need a couple more detailsIs block green title?
What size is the block?
How far away from river?
What is the price of block with a view, and can u be built out?Cheers, Marisa
(Hard work never killed anyone, buy hey why take a chance)
crashy,
I think many people will run a mile when it comes to structural damage, so this could be a great opportunity to negotiate and purchase a bargain. Just need to make sure you are purchasing a real bargain.We purchased a property with structural damage some years ago and basically picked it up for land value. I have to say though this scenario did cause me personally quite alot of stress, and sleepless nights.
We got rid of the problem which was water running on footing, repaired brickwork, repointed and the place is now worth over $1M.
I agree with LA if the house does not get sold within a couple of weeks u will be getting a phone call, perfect opportunity to re-negotiate and make sure you know exactly what your up for.
(Hard work never killed anyone, buy hey why take a chance)
Hi all
thanks for a great post Gross.Everything is going very well, probably better than expected.
Finally resigned from my part time job in April 2006 to concentrate on enjoying life, having fun, have also taken up some personal development courses which has been great, also gives me lots of spare time to research deals etc.
Completed 2 house and land packages both now rented out. Another L&H due for completion in February 2007.
Just signed another L&H with Ventura Homes, purchased the block in March 2006 and it has pretty much doubled, thanks to WA market.
I have started using different strategies in terms of servicing loans. Have also set up LOC using equity from my IPs for ongoing deals and also changed Mortgage Broker which has been a good move.
My partner is currently expanding business and turnover in last 12 months has now doubled, only problem is finding skilled workers, currently sponsoring someone from UK.
Have registered interest in industrial land with a view of building factory unit/s business will lease one, this will happen in 2007.
I think one of my challenges for 2007 is to start setting up trust structures, as I have been avoiding this one, but looks like I just gotta do it now.
Good to read what others doing and good luck.
Marisa
(Hard work never killed anyone, buy hey why take a chance)
Hey Redwing,
Its been an amazing ride – 5 years and still going strong.
For those who have enjoyed the journey…… congratulations.
As far as investing in WA I would not be giving it away just yet, I believe it still provides more opportunities for CG than East at this point in time.
(Hard work never killed anyone, buy hey why take a chance)
Just a couple more questions……
I am seeing a shift in WA market, what if security comes in under 70%LVR???
Can I top it up I have a couple of LOC?
Do most lenders allow this?I do have concerns when it comes to getting properties valued as sometimes they come in way under. I imagine many have had similar scenario.
I had another property last year come in at $100,000 below market value, it was frustrating as at the time had to accept this due to urgency of contract. Also the broker I was then dealing with at the time also said I would do nothing about this.
I would be interested on experiences regarding this.
Cheers, Marisa
(Hard work never killed anyone, buy hey why take a chance)
Hi jamessprunny
I have 2 properties in Dalyellup and agents have confirmed that the market has softened. I notice that currently in Daly there are about 100 homes on the market and buyers now have many choices.
The RE agent mentioned that Bunbury and surrounding areas have flattened, however I was told that Worsely were looking at upgrading which would involve an additional 3,000 jobs.
I feel very positive about this area and personnally am happy to hold on to my properties. Also when Bunbury bypass is completed this will also help this south west corridor.
One area which I was interested in was Carey Park, lower end of the market and that there are many houses in this pocket sitting on triplex/duplex sites.
Just some of my thoughts.
(Hard work never killed anyone, buy hey why take a chance)
Thank u Richard and JohnSmith
I initially contacted the bank and spoke to 3 different people and got 3 different answers. I was hoping to get an idea but gave up at the end.
I appreciate your help.
Great to have all this expertise on this forum.
Cheers, Marisa
(Hard work never killed anyone, buy hey why take a chance)
bruham
congratulations on your Curl Curl property, I have heard this is a great spot.Mickey P
I was listening to Gavin Hegney on ABC last week where he mentioned there were only 2 States he would invest in for future growth – WA and QLD.
He spoke about the fundamentals which would continue to drive these markets upward, ie pop growth, employment.Marisa
(Hard work never killed anyone, buy hey why take a chance)
Hi Redwing
I dont think I will be doing much more in Mandurah for a while just too expensive. Damn investors.I am actually looking for blocks around inner city areas and its surprising but I think I have discovered a couple of pockets that represent better value than new developments.
Cheers, Marisa
(Hard work never killed anyone, buy hey why take a chance)
Not sure whether this is relevant, but I always wander why people cant sell, or why a particular property stays on the market too long and it always seems to come down to asking price. Is this realistic, are you asking too much?
As Terry mentioned what are similar blocks going for in this area, I would be looking at this?
(Hard work never killed anyone, buy hey why take a chance)
Hi kp
Thanks for that information/tip, still doing all the homework, I have at least 12 months before things really start happening.I plan to get an architect to design so not sure whether this would be something that builders would look at in Perth, especially in current climate. But this is worth a shot, I will investigate.
Also some good news I had 2 valuers look at Singleton, one came in at $520,000 and the other at $530,000. My own valuer came in at $530,000.
Hi Nathan D
Thanx.
Famous Rock star came out with this one on the radio, and also just loved it.(Hard work never killed anyone, buy hey why take a chance)
Ownahome,
interesting points, something I will watch for in future.Hi Celeste
One example that I can point out is development of new Madora Bay, I noticed that prices in old Madora Bay went through the roof.
It also helped that the new Madora Bay development was what I would say a small development.Do you know much land will be developed, as I would say this may effect long term growth etc.
Marisa
(Hard work never killed anyone, buy hey why take a chance)
Hi Terry
I am going to contact a girlfriend who has found this brilliant accounant and lawyer and hopefully they can help with this.Thanks, will keep everyone posted.
(Hard work never killed anyone, buy hey why take a chance)
