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Our research shows that markets have bottomed in Sydney, Melbourne and Brisbane (this doesn’t mean we in the next boom yet!)
I am actively buying for myself – have for 6 months- and very strongly for clients.
If you can buy “good” property below market price, add value and have a medium to long term perspective, it doesn’t really matter how long we bounce along the bottom. You are creating your own opportunities for capital growth.
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
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FREE subscription http://www.PropertyUpdate.com.auTo help answer your query it would be great to know what you want to achieve, and a little more dteail about the property – where is it, what would you uild, waht type of return?
Otherwise it is hard to give a relevant answer
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
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FREE subscription http://www.PropertyUpdate.com.auTo get accurate results you need to undrstand how you get your returns from property.
These include.
1. Cashflow
2. Capital Growth
3. Tax benefits.
4. Adding ValueThere is also the time value of the money . Getting $10,000 today is worth more than getting it in 5 years time (because you can do something with it in the meantime)
Using a program like Jan Somer’s PIA will allow you to input all these figure and get a present day value of the return called IRR (internal rate of return) which is the figure you are looking for.
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 10,000 readers each month.
FREE subscription http://www.PropertyUpdate.com.auThe past couple of years have been tough for many real estate investors looking for ways to cash flow their properties. Many I speak to are worried about the stagnant markets and the downturn in some areas.
They often still want to get involved in property but are shying away from the conventional buy and hold strategies that have worked well for long term investors. They want to know, “What is the next big thing?”
And my answer is – “I don’t care.â€
You see…. if you have trained yourself to find deals everywhere and know how to create value where none existed, you don’t need to worry about what the next big thing is going to be. You can create it.
So while it would be nice to buy after the slump has bottomed, and our research suggests that Sydney, Melbourne and Brisbane are hovering around the bottom of their cycles, if you can add value through renovations or property development or buying considerably below market value, then timing in the cycle is not critical.
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
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FREE subscription http://www.PropertyUpdate.com.auWell located proeprties have doubled in value every 7 to 10 years for the last 45 years and there is little evidence to suggest this won’t continue.
The cover storey of December Australian Property Investor (to which I contributed) discusses this exact topic, with facts and figures
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
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FREE subscription http://www.PropertyUpdate.com.auOriginally posted by JJ&Jo:Can anyone recommend a good real estate agent to sell a property in Abbotsford Melbourne? We are trying to sell a one bedroom place there and have had no interest in 3 months!!!
Any ideas?
Thanks
JJ&Jo
Many would say Xmas is a quiet time to sell, but there were lots of sales in Nov and early December.
WHile we don’t sell properties, my team buy properties and know a few agents out that way with “fire in their bellies” – mad keen to make a sale.
Send me an email to [email protected] and I can pass on a few names.
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 10,000 readers each month.
FREE subscription http://www.PropertyUpdate.com.auI know a number of them in Melbourne but don’t know of any in Adelaide.
Sorry[glum]
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
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FREE subscription http://www.PropertyUpdate.com.auI agree with Don
It is critical to choose the right property manager, and don’t choose on fees.
If you want to know what questions to ask a prospective property manager have a look at this report….
http://www.rentingmelbourne.com.au/html/s02_article/article_view.asp?art_id=109Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
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FREE subscription http://www.PropertyUpdate.com.auThe council town planners know an angry aggressive neighbour when they see one.
Neighbours always complain about proposed developments.
The council only entertains relevant town planning objections, not spurious complaints.Having said that you should have already had someone represent your project to council. Have you used a town planner?
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 10,000 readers each month.
FREE subscription http://www.PropertyUpdate.com.auProperty development can be lucrative, very very lucrative. Have a look at this article on the benefits of becoming a property developer….
http://www.propertyupdate.com.au/articles/19/1/The-Benefits-of-Becoming-a-Property-Developer
I spend a significant part of my time helping investors become property developers http://www.metropoleprojects.com.au, but it is not a strategy I would recommend to beginning investors.
With the higher reward comes significantly higher risk and you will probably need considerably more money than you thought you would.
There may be a reason why there are few new townhouses in the area you are considering. At this stage in the property cycle many projects are just not viable
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 10,000 readers each month.
FREE subscription http://www.PropertyUpdate.com.auIf you are “new landlords” I would be very wary about doing your own property management, especially if you are interstate.
I know of all the things that can go wrong from my personal experiences as a landlord and particularly from my wife Pam’s experiences as director of a property management company. http://www.rentingmelbourne.com.au
Property management is a lot more than just collecting rent and it may be false economy trying to avoid managing agent’s fees (which are tax deductible) considering the amount of value a good property manager can add.
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 10,000 readers each month.
FREE subscription http://www.PropertyUpdate.com.auAgent’s commisions vary between 1.5-3% plus GST.
There are also legal costs ($500-$1,000) and possibly finance break costs due to the short term of the loan.
It’s great that your property has increased in value.
Have you considered not selling, but refinancing it?.
It is likley your property will continue going up in value and it won’t care who owns it. Why shouldn’t it be you?
One of the great things about property is that you don’t have to sell it to collect your profits like with other asset classes.
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 10,000 readers each month.
FREE subscription http://www.PropertyUpdate.com.auOriginally posted by andyperry16:hi all,
i would like to hear from anyone who has dealt with Cameron Bird real estate agents?
a buying agent who doesnt charge? is that to good to be true?
any info would be great.Cameron Bird have been around for a while and in general sell properties on behalf of developers…..
Nothing wrong with that!
But they are not buyer’s agents.
Sure you don’t pay their fee but the developer does its in the price and remember who they are working for. They are legally and morally bound to get the best price for their client (just in case you hadn’t worked it out by now – that is not you.)
Does that mean you should not buy from them or thru Roy from GPS, a valuable forum contributor. Not al all.
It just means you need to understand everybody’s role in the transaction and do your due dilligence even more carefully.
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 10,000 readers each month.
FREE subscription http://www.PropertyUpdate.com.auOriginally posted by dee dee:For real. Thaks for the advice, I’ve got a few different areas in mind and will continue to do research for at least the next 6 months. I hadn’t heard anything about buyers agents until recently on the net, then I found out a friend of a friend went through one. It cost them about $2000 and then one I saw on the net worked out to be nearly $4000! Seems like a fair difference to me and then I found that costs were not easy to uncover on various other web sites. I’m not sure why they don’t advertise this. It made me a little suspicious. [cigar]
LIke all other professionals, buyers agents fees vary.
They are often a percentage of the final purchase price and vary between 2% – 3%. It is worth considering the agent to fix their fee to ensure they are working in your best interest.
Be very wary of the $2,000 fee – you are probably not dealing with a “licensed agent” at that fee.
There are some unlicensed scouters out there, but with such a significant sum of money involved be careful who you are dealing with. Get some refferences and recommendations form past clients.
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 10,000 readers each month.
FREE subscription http://www.PropertyUpdate.com.auOriginally posted by Dr.X:what do seasoned developers usually do on a site with a significant but sick-looking tree?
1. Obtain an arborist report to remove it?
2. Let it go and keep looking for more property
3. Any other suggestions?We buy properties in Adelaide. No Agent Fees.
[email protected]
phone 0412 437 582It depends where the tree is situated and if you can build around it. You must take into account its critical root zone and how far away you must build.
It depends upon the health of the tree and if you can get a “favourable” report from your arborist.
Sometimes, its just not worth the risk or the bother – move on to the next site.
It also depends upon the council and its vegetation policy.
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 10,000 readers each month.
FREE subscription http://www.PropertyUpdate.com.auA few other thoughts for a beginner:
1.Take time to educate yourself – there is no hurry in this market.
Read books, attend seminars, ask questions on this forum.
Get to know your local property market like the back of your hand.2. Get you finance in place before you start seriously looking at properties so you know what you can afford. Learn to use “other people’s money”
3. Develop a support team — solicitor, accountant, finance broker, maybe a buyers advocate’. Get advice on the best structure for purchasing your property baring in mind assett protection and tax consequenses.
4. Associate with like-minded and “positive” people! You will find some of your friends will think you are “silly” to consider property investment.
5. Have fun – this real estate business is serious – you must treat it so, but remember to have fun Property is a great and fun way of securing your financial future.
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 10,000 readers each month.
FREE subscription http://www.PropertyUpdate.com.auIf you can’t be there to do the research and understand the intricacies of the market then I agree with the other posters that you should consider a proficient buyer”s advocate.
This is a relatively new industry in Perth compared to the eastern states, but I have had some dealings with one company – I can give you details if you email me.
Just another thought…..
Why Perth??
I know it is still booming compared to the eastern states but most of the investors who made great profits in the last boom made them by getting set for it and buying properties in the preceeding quieter times.
Many investors who bought in the last year or 2 of the boom are questioning (even regretting) their purchases.
Now may be a good time to consider selected purchases in Melbourne, Sydney or SE Queensland.
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 10,000 readers each month.
FREE subscription http://www.PropertyUpdate.com.auI agree with Derek.
It should not be your problem, your Property Manager should never have allowed this situation to occur, the tenant should have been taken to task long ago.
Now with Xmas and many people being short of cash, it may be even harder for them to catch up.
Every agent has a different procedure but at Metropole Property Management http://www.rentingmelbourne.com.au Pam’s team
* sends a reminder SMS at 3 days overdue
* phones the tenant at 4 days overdue and then ring daily until paid
* sends a notice at 7 and 14 days
* applies to evict at 14 days overdueAgain every agent has a different procedure, but this keeps arrears to a minimum.
Get your PM to act propmtly. Don’t change agents until this is resolved, but when it is consider a change.
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
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FREE subscription http://www.propertyupdate.com.auPro Active
Of course you are correct and what you suggest is the “fairest” method.
It gives the buyer certainty and the peace of mind that you are working for them. It is also the method that is preffered by Metropole’s Buying Melbourne http://www.buyingmelbourne.com.au
Your system seems eminently reasonable with one fee no matter what purchase price. You are providing ab great service to your clients.
Metropole’s fee increases as the value of the property increases, but can be “fixed” at a set fee before the research begins
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 10,000 readers each month.
FREE subscription http://www.propertyupdate.com.auOriginally posted by mgs2:Interesting article, it didn’t touch on pricing of such a service though. I would expect it to be similiar to a seller’s agent?
Buyer’s agents fees usually vary from between 2% to 3%.of the cost of the purchase of your property.
Many investors on this forum have the time and knowledge and don’t need the services of a buyer’s agent. Others may.
But remember, that most people who buy property only do so once or twice in their life and don’t have the benefit of the type of netwrork we have on this forum.
Having said that, only last week we purchased a second property for a member of this forum.
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 10,000 readers each month.
FREE subscription http://www.propertyupdate.com.au
