Forum Replies Created
I’m all for seeing opportunity in this marketplace. Returns are extremely high, purchase prices have consolidated, and interest rates are stable. Holding costs are very low (in general- some areas provide higher yields).
Call the agents on prospective properties you seek interest in as the visual price 99% of the time is not the sale price.
Good luck.
Hi Dale,
Great concept and thanks for sharing your new success. Can I askBy short term are you doing 3 month leases, weekly etc.?
What does your property manager charge you for management and lease fees?I look forward to your reply
lifestylez wrote:I'm looking to buy in Brisbane next year, hopefully within about 9 months.If prices stay flat or fall a bit further, that will be great for me. However, I'm a little nervous they will shoot up in that time. From what others have been saying, they don't expect that to happen.
But if the anticipated rate cut happens on melbourne cup day, that might just be the straw that breaks and gets people buying again.
Brisbane is in the top 3 most affordable capital cities in Australia now.
Does anyone know, besides the river flooding, what is driving Brisbane's prices down? Is it simply an excess of stock…or is there some other reason why demand is soft?
A couple points to consider:
Supply and demand- these are the forces by which prices are governed.Included in this is buyer confidence/sentiment, media, interest rates, global factors. Remember some countries are on the verge of going belly up with unemployment going through the roof. Australia has done extremely well to keep our heads above the surface. Unfortunately many of these external factors are out of our control but we are safe from a crash.
Perfect time to buy.
Hi Michael,
Certainly an expert in your craft. Thank you for the comprehensive analysis and ways around financing this property. I’ll keep you in mind if I have any tricky ones.. haha.Where is your office located?
Qlds007 wrote:If i may be so bold to go back to the original post made there are a couple of lenders i can think of who would take the total income into consideration rather than an assessed income made from the local valuer.Course i can see the other side of the coin from the lenders perspective and that is when i reposess do i really want to be dealling with the 4 separate Tenants.
You cant blame them as it does happen.
Cheers
Yours in Finance
Hi Richard,
Thank you for you reply. What financiers do know that will take the full income into their valuation?Look forward to your reply.
Regards,
Matthew Frost
Free Property Buyers Agent
Andrew_A wrote:matthew.f wrote:Andrew_A wrote:matthew.f wrote:I thought I would share my frustration with some new bank lending criteria. I have sourced a property in Brisbane 2km from CBD. Returning just over $1,100 per weeks and for sale in the low to mid $800k's. Gross returns for a house @ approx 7.2% gross returns. With 10% deposit and such great returns it seemed a no brainer. This house is in immaculate condition and the floor plan has been reconfigured to accommodate for 4 bedrooms all with ensuite and own kitchenette's. 4 seperate leases (for each room) accumulates over $1,100 income. Bank criteria will not take into account the extreme returns as they deem it to be student accommodation and then decipher what the true market rent they think would be…. $600per week (rented out on one lease). True rent to me is exactly the true rent that is on the leases? Any thoughts.By sourced a property I presume you mean you found a listing from your colleague and fellow sales agent at Ray White South Brisbane, Brent Compton?
Hi Helen, Thank you for doing your homework. That is a source isn't it? Yes Brent not "Brett" is a work colleague. Moving on from this, the emphasis is on the Returns (income/expenses). Amazing. Some people don't share ideas, but rather dissect other's postings. Thank you for your comments.
I've been sharing ideas on here and other investing forums for 8 years, how about yourself?
No problem at all looking into the property, lets just be clear about who will be rewarded if this property sells.
Hi Allen,
I can see you have been here for sometime. I look forward to reading some of your ideas in the future.I am very clear of who will be rewarded when it sells. The listing and/or conjuncting agent.
It seems you have a keen interest which is great. I will post and inform you of many other great buys I have sourced. All over Australia.
Thank you for your comments Allen.
Andrew_A wrote:matthew.f wrote:I thought I would share my frustration with some new bank lending criteria. I have sourced a property in Brisbane 2km from CBD. Returning just over $1,100 per weeks and for sale in the low to mid $800k's. Gross returns for a house @ approx 7.2% gross returns. With 10% deposit and such great returns it seemed a no brainer. This house is in immaculate condition and the floor plan has been reconfigured to accommodate for 4 bedrooms all with ensuite and own kitchenette's. 4 seperate leases (for each room) accumulates over $1,100 income. Bank criteria will not take into account the extreme returns as they deem it to be student accommodation and then decipher what the true market rent they think would be…. $600per week (rented out on one lease). True rent to me is exactly the true rent that is on the leases? Any thoughts.By sourced a property I presume you mean you found a listing from your colleague and fellow sales agent at Ray White South Brisbane, Brent Compton?
Hi Helen,
Thank you for doing your homework. That is a source isn’t it? Yes Brent not “Brett” is a work colleague.Moving on from this, the emphasis is on the Returns (income/expenses).
Amazing. Some people don’t share ideas, but rather dissect other’s postings.
Thank you for your comments.
lifestylez wrote:I'm not buying right now because I plan on getting back into a PPOR in Brisbane next year.I basically do not have enough spare cash or equity to buy an IP at the moment.
Wish I did though, because there's some good buys out there.
Is that link to Logan City your site…
Great post.
Jamie M wrote:matthew.f wrote:Any thoughts.Try another bank.
If there's a broker organising the deal they should be able to make some calls to see which lender will accept it.
Cheers
Jamie
Thank you for your suggestions.
Helpful.
beedie wrote:We buying/searching inner city Brisbane development sites, however most sites that come up are either secondary sites or still overpriced or a combination of both…… so most just sit there going stale ….. seems like a lot of sellers have bought in the recent peaks of the last few years and trying to flog them off but unfortunately for them they only worth what they paid for them.
Bitter pill to shallow
Hi Beedle,
You are exactyly spot on to some extent. Many of the new (within last 4 years) developments in the riverside precinct in West End are inflated in price as most paid premium in a hot market. Many of these investments are worth, and selling far less than what they paid.The market will self-correct itself with the driving forces of supply, demand, economic conditions, world conditions, interest rates and buyer sentiment. Many of these investors are unfortunately realising that 4 years on from their purchase that is has been a poor investment and sometime time to go before they would potentially break even. The foresight of profit for these investors is slim.
Hi Garry,
Thank you for your kind words. As stated the arrangement would not be under a buyer’s agent authority. This gives the opportunity for people who are not in the financial position to employ the services of a premium buyers agent, to seek assistance.leewizza wrote:It’s about time someone said it. Well done!
I too believe it is impossible to find these CF +ve properties.
Not one so called mentor or even guru investor seems to be able to tell us newbies how to do it without maing no sense.
All I want is for someone to write a book or hold a seminar which isn’t about purely motivational talk and 1980’s investing strategies. CF +ve is something only achieved with 50% (exaggerated) deposit or with millions to invest on a development.
If these gurus were so good at it and had sooooo much wealth, why the hell are they charging drug money to listen to them hype you up?
And why are they even doing it? They surely couldnt be short of cash…If anyone can answer the common forum topic of how do I start without beating around the bush I would be happy to hear it.
I’m super keen to learn all about the world of investing and have done nothing but read books, listen to successful people and browse these forums for months and months on end.
I haven’t found a positive CF property and I’ve been looking for a good solid 6 months.
Sorry to sound so negative but like the last post, I am just frustrated that all I want to do is learn and noone is willing to give the answers. Not even if you pay for their books!
If someone can prove us wrong then please do, we’d love to share the facts not the theoretical preachings pulled out of outdated books.Thx,
Lee
Hi Lee,
I was entrigued to see this post. I know it is old, but interested to see how all your cf+ property searching has eventuated over the past few years.Is it $100k cash or equity?
If positive cashflow is your strategy or priority. 20%+ down on 3 cashflow properties. Minimal ongoing contribution and low risk high yield returns in a marketplace where rental demand is assured as apposed to uncertain short term capital growth.
I thought I would share my frustration with some new bank lending criteria. I have sourced a property in Brisbane 2km from CBD. Returning just over $1,100 per weeks and for sale in the low to mid $800k’s. Gross returns for a house @ approx 7.2% gross returns. With 10% deposit and such great returns it seemed a no brainer. This house is in immaculate condition and the floor plan has been reconfigured to accommodate for 4 bedrooms all with ensuite and own kitchenette’s. 4 seperate leases (for each room) accumulates over $1,100 income. Bank criteria will not take into account the extreme returns as they deem it to be student accommodation and then decipher what the true market rent they think would be…. $600per week (rented out on one lease).
True rent to me is exactly the true rent that is on the leases?
Any thoughts.
Hi Garry,
Thank you for your question… As the conjuncting agent their is no conflict of interest. I provide all the services that a buyers agent does, without the fee.Regards,
Matthew Frost
Hi Amy,
Identify first what your target market is. Investor, renovator or owner occupier.Things to consider:
– If it is best sold as an investment, then it is best to have a lease in place at least periodic (not vacant).- Investors want to know the exact dollars coming in, and not have the initial hassle of finding tenants or being fooled by an inflated potential rent price when it is being sold vacant
– In terms of presentation you can give incentive to current tenants to have the place looking immaculate for your open homes (for student, cash discounts on rent or beer work well- and only given if each week presentation is of great satisfaction
-So the lease income stays the same (to show the investor) but a rebate is given on a week-to-basis pending your satisfaction.
– High presentation and slick furniture do not certainly guarantee a better price. What is does guarantee is that if their is a better price in the marketplace then if will come from this.-Furniture packages are a great investment into the promotion of your property for owner-occupiers. Especially if your property is in a competitive marketplace.
If your property would best be suited to potential investors then structure your selling campaign first to them. Win – win (you continue to receive income and create locked in cash returns for investors.
If for owner occupier, then give the tenants notice to leave and get your place styled and looking immaculate.
If you are not sure what target market it would suit, get your agent to advise you.
Alternatively you can run an extended campaign… In short
Run a 3 week campaign with property as is (positioning it to investors)- Your agent can easily run a very cost effective campaign in this time frame. Within 3 weeks you will certainly know the level of interest involved in your property. If there is no interest at all, then after the 3 weeks give a notice to vacate (if lease is periodic). The tenants legally will have 60 days to then move out. During this time the property can continue to be marketed or withdrawn. And then prepare for the 2nd campaign.
Regards,
Matthew Frost
Kaylah wrote:It really depends on what type of strategy you are going to use, eg, development, cash flow, renovating, flipping etc. Until you have a clear goal and objective then your just going to go around in circles. What type of strategy where you thinking of?Absolutely spot on here. Don’t jump the gun and steam role forward without knowing the destination.
If you are keen to get the ball rolling fast. Don’t delay. Read a few books on different strategies… Start with Steve Mcknights. Get an understanding of what interests you and relates to your succession plan.
Plenty of Googling for you.
When you know your strategy I will be happy to source property for free thats suits your criteria. For free.
Regards,
Matthew Frost
Hello there,
10% is extremely high. Understandable if your investment is in a hotel letting pool where much more service is required. In this circumstance 10-12% is the norm. In your circumstance absolutely not.8.0% + GST or 8.5% + GST is all that is required.
You want to ensure that you are putting a competent agent in control of your most important investment.
Remember it is your property and all affairs associated with it will be dealt through you. Take control.
It comes down to your needs. If you need less fees to ease the squeeze then do so.
Tip: If you find an agent @ 5.5 or 6.0% + GST amend the appointment of agency agreement so that any cancellations or terminations of this agreement are not dragged out of ver 60 or 90 days from written notice. The standard agreement or default agencies put in place is that when you give them a termination notice in writing that you either wait 3 months until you can move on, or pay them out 3 months management fee.
Ask for this to be amended to 14 or 21 days. You can try for 7 days if you like. This way if they don’t performed, you are not financially committed to a property manager who is not competent.
Upon signing agreement, if they challenge, all you need to state is that provided their professionalism is maintained that this clause will never have to be exercised. You then can say “You are confident in maintaining a high service aren’t you?” …”Great, we won’t have any issues”
Good luck… Hope this helps.
More than happy to make a few phone calls on your behalf. Free of course.
Regards,
Matthew FrostHi Simone, Whether you think you are right or wrong… your right. Although the prospect of purchasing next door to your mothers sounds great, investing requires no emotion. Have you read Steve McKnights books? Great concept. Talk about bullet proofing or recession proofing your portfolio. Great read.
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Regards, Matthew Frost
Hi there,
$1,300 invested into further enhancing your knowledge is money well spent. People spend far more on toys etc that do nothing in building wealth but don’t 2nd guess themselves.Presenters or wealth creators who are renowned and charge for their services will have a great book with all the content and for $30bucks usually.
Hope that helps.
Regards,
Matthew Frost
