Thx for that BG. I had read those articles……..
 
This Westfield development has been promoted (spruiked) since 2004. Prices have since softened in the new house and land stock there. I have been following it sonce 2006/2007 and fortunately I didn't buy. Even within 1 km of the train, which I must admit is a unique piece of infrastructure to be able to walk to a train station on the Gold Coat. Not a common thing.
 
I understand that projects and development of this nature take time, however as a good place to buy for future capital growth?……………………….how far into the future? Whatever is purchased there will be a negative gearing play…….how long will it take for rents to rise and demand to provide growth?………………….there is no housing shortage on the Gold Coast anywhere.

I was addressing keiko's comment. My opinion is that Brisbane will ostensibly outperform the Gold Coast by a long shot when it turns to the upside. I don't trust councils and developers to deliver when/where they say………………….this thing has been promised for a lon time. This will likely eventuate and possibly GFC and other leverage issues with Westfield may have deferred this project from starting. My take is (like buying a rising share/stock)…..wait until this thing has started before committing funds there for IP's. It's not as if the market is booming there or anywhere near there ………………..yet.  Merely my 0.02.

I do however agree with your notion Bluegrass about renting versus ownership. Saqib,  It is generally (mostly) cheaper to rent where you wish to live/reside than to actually buy there and furnish mortgage and other non-deductible costs. Funds may then be directed toward investment assets where debt servicing is tax deductible.

There is one aspect of owning though rather than renting and it does not involve financial criteria, but rather the intangible feel good comfort of owning. This cannot be discounted and will be different for every person. The great aussie dream is not dead just yet.
 
Saqib, step back and establish some goals as to what you want from property. Be very careful from paying too much for brand new housing to entities who will benefit on many and varied levels from selling you their stock. Look for amenity and where you (or you tenants) wish to live and that will have greatest demand. Keep reading through this forum and search the sub-forums then narrow down you selection to a few suburbs. Research further and if you are not confident, engage a buyers agent/advocate. I haven't had the pleasure of meeting Andrew in person yet, however have read enough of his posts here and moreso on another forum…..IMO you could do much worse than engaging Andrew Allen to assist you should you feel the need.

Good luck.

Depending upon wording of lease, strata costs should be borne by the tenant. your closing costs should
be as with any other resi IP. Stamp duty, legals and other sundry title fees. Stamp duty on mortgage and
commercial fees (assuming you're using the comm asset as security) for borrowing usually have higher
establishment loan fees and of course a higher interest rate. Check with your lender or MB.

7 % is OK but not that special. I look for higher yields than that to hedge the higher risk with commercial assets.
Check if all outgoings are paid by tenant including land tax (portion on single holding basis) and usual DD with lease, rent reviews, car parking, etc.

SNM, I have PM'd you also.

Here's a post from another thread:

https://www.propertyinvesting.com/forums/property-investing/general-property/4336587

May help with some considerations and direct your further research and due diligence
about the Gladstone region.

Careful with brand new in regional centres. Haven't been to Gladstone to investigate personally (YET), however my
slant is older box on decent infill land where they can't make any more. Then there is potential to value add as others have suggested. Whilst Gladstone SEEMS to have good fundamentals and enough projects to keep things buzzing for a few years, this would not be a long term buy and hold if it were me. Milk the (likely) cap growth of the next few years whilst enjoying reasonable rental return, however at/near the top when the market is saturated and the prices get silly, I personally would get out and take my proffits to put them into a metro area……..merely my 0.02.

Hey there young Nath,

I intend going. It would be nice to meet you. I have enjoyed reading
and celebrating your accomplishments as detailed moreso on another site.

 If you're inclined, we should meet up for a coffee.
You'll recognise me by my avatar    

Hahahaha………LOL.
 
Dunno if I'm savvy. I know my way although I certainly don't profess to be The Stig of the property world.

Leo,

also have a look at council websites (LGA's) of the suburbs/regions you are targetting. Handy info as far as potential
projects and other demographic resources that you may be after.

Happy New Year.

WinstonWolfe wrote:

Hi Mr Michael. In 2011, I'll continue to read widely and deeply on what really drives house prices, and post about it. ……………………………………………May all your attainable New Year's resolutions be attained. 

Thx WW. The personal one's are back on track and (to date) looking the goods.
 
Investment wise, I shall be a very careful observer in 2011, however ready to grab opportunity by the scruff of the neck when/wherever it presents as long as it  is on special and it  cashflows.

Ausprop, the smilies and avatars are also more dynamic/kinetic here   but you already knew that.

Happy New Year to all 

How do you get a discount…….simple, just ask!

I see that circa 2-3 % is the going rate that most pay. I accumulate and  I have only ever sold two and I didn't pay anyhwere near that either, although the rea was also the PM firm looking after the rentals…..long history and we understand each other
and our mutual expectations.

Five and six per cent is nonsense. I might offer 5 % on any amount over and above my reserve and even that
reserve would need to be ridiculous, however the bulk of the commission would be around the two's.

Don't know about other's experiences, however whilst I don't intend screwing the agent to the point
where they're not going to promote your property with the energy and diligence that it deserves, I also
don't think paying them an amount equivalent to the stamp duty on purchase is going to receive any different
outcomes.

Be very pleased to hear other's views also.

Depends where it is and the cap rate of the precinct. Burleigh Heads versus Molendinar versus Bundall versus Stapylton versus Nerange versus Yatala ????? …………..all are different. Ask an independaent commercial rea up there what the cap rates should be for what you are entertaining. Use them as a guide.