Forum Replies Created
Both methods work.
The tradesmen we use prefer to paint over the render. It doesn’t cost extra and lasts as long.
The real benefit is in touch ups. If you get chips or damage it is easy to patch up with paint.
With colour through render you have to redo a whole wall to match colours.
Michael Yardney
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FREE subscription http://www.metropole.com.auYou are correct that you will find bargains when you find a motivated vendor, but I don’t really think that either method you suggest will flush out motivated vendors.
They don’t usually announce themselves, but often the agent will let you know.
You may flush them out with “cheeky offers.”
Michael Yardney
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FREE subscription http://www.metropole.com.auI agree with See Change – Kieron Trass’book is the best I have read on cycles and should be on every investors bookshelf.
Michael Yardney
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FREE subscription http://www.metropole.com.auMost of the expenses you mentioned are capital costs – ocsts of setting up your business as a property investor and are unlikely to be deductible.
Interestingly the interst is deductible – there have been a number of test cases that have come down in favour of the investor for this.
Michael Yardney
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FREE subscription http://www.metropole.com.auBIS Schrapnel seems to get lots of publicity for their forecasts which is curious since they are invariably wrong.
The last time one of their predictions was right was the end of the property boom in 1989.
Have a look what they said last year and the year before and how they predicted huge drops in property values in Sydney and Melbourne – these haven’t occurred.
Then have a look at the forecasts by Residex and you will see they have an enviable track record.
Michael Yardney
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FREE subscription http://www.metropole.com.auIt depends what you mean by “boom.”
Remember the boom stage is the shortest stage of the property cycle and in my opinion the hardest time to make money.In general property cycles occur in our major capital cities every 7 years. Both Melbourne and Sydney’s booms ended about 2 years ago in late 2003 helped by 2 interest rate rises.
Brisbane’s boom ended a little while and Perth’s boom is still going.Melbourne and Sydney have been in the slump stage of the cycle for a while now. We have evidence of price growth in the more expensive suburbs of Melbourne up to 10% increase in property values in some of teh suburbs we are buying in. Residex reports a similar finding in Sydney saying the slump has bottomed.
But that does not mean we are going to boom for a few years yet.
I agree with Nigel Kibel’s previous comment that Sydney’s boom is afew years off yet. (Wehn you have been in property for a few cycles like Nigel and I – you can pick the cycles a bit better)
But even though the boom is 3 to 5 years away, property prices will increase.
These next few years will deliver some great buying opportunities – we are in a buyer’s market. During a boom we are in a vendor’s market.
If you want to learn more about property cycles and why they occur, all new subscribers to my free emagazine get an ebook on property cycles and how to take advantage of them. You can subscribe at http://www.metropole.com.au
Michael Yardney
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FREE subscription http://www.metropole.com.auJenD
You may need more tha your neighbours consent. If other adjoining properties have teh same covenenant ( and that ususually is the case) you will need everyone’s consent.Its a slow tedious process – MOVE ON TO THE NEXT SITE.
Michael Yardney
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FREE subscription http://www.metropole.com.auOriginally posted by Dougiejg:HI all
If I make an offer on a property that is unconditional, but I have not yet organized finance, what are the possible outcomes for me? ie. what is the worst that can happen?Unconditional offers are very powerful and help in the negotiating process. But they commit you to the purchase.
If you default, you can loose much ore than your deposit. The vendor can sue you for any shortfall in price he achieves in a subsequent sale plus legal costs.
You should really organise your finance first or buy subject to finance. In today’s slower market many vendors are accepting sales subject to finance.
Michael Yardney
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FREE subscription http://www.metropole.com.auOriginally posted by rosieb:Hi
Im looking for a switched on accountant in Melbourne. Any suggestions pls? And reasons why you’d recommend them would be appreciated too.
Cheers
R
I know a number of great accountants in Melbourne that we refer our clients to. They are all property savvy.
Who I would suggest will depend a little on your needs – are youa beginner, do you have a large portfolio, etc. Tell me a little more and I would be happy to make some recommendations.
Michael Yardney
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FREE subscription http://www.metropole.com.auOriginally posted by Tools:Hi Michael,I understand the theory,but investors require the information to make informed decisions as well.I jusy don’t see how REAs are above it all.
ToolsYou are correct – its privacy laws gone a bit stupid.
Michael Yardney
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FREE subscription http://www.metropole.com.auOriginally posted by Tools:In the Herald Sun on a Sunday they pick a property that is for sale,and list all the prices it has been sold at for the past 20 or 30 years.I assume thy must get this information from a real estate agent.But if this information is covered by privacy laws,what is the difference between a RE and an investor accessing it?
Tools
The theory is that real estate agents require this information to make informed decisions when advising prospective sellers on prices they should be asking for their proeprties
Michael Yardney
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FREE subscription http://www.metropole.com.auNone of the general providers of property information can give you this as they are all bound by the same privacy restrictions.
This is a Vicorian restrcition – it doesn’t make sense to me why privacy legislation should vary from state to state.
Estate agents and valuers have acces to this information. If you are wanting to know about sales near a particular property you are interested in, then a local agent could help you, but for general research, you are stuck in the same position as most investors
Michael Yardney
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FREE subscription http://www.metropole.com.auOriginally posted by jie-ji:Has anyone heard of OliverHume’s investment property strategies… Partner and I are looking at investing in properties. Partner seems to think they are a good way to start. I’m not so sure. i assumed they were only involved in developing/sales. Only detail partner can tell me is one can buy IP’s with with very little cash. Also, properties are negatively geared.
Am looking forward to your comments.Jie-ji
If it is the Oliver Hume group in Melbourne they tend to sell new homes in outer suburbs.
If that is the case and they are recommending negative gearing, you may want to make some more enquiries.
For negative gearing to be effective, you need strong capital growth and this may not occurr in the outer suburbs.
Michael Yardney
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FREE subscription http://www.metropole.com.auOriginally posted by redwing:Michael YARDLEY will know him
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorYes I do know him.
Firstly let me disclose that his is a personal friend, so I am biased.And no he is nothing like Ed Burton.
Ed Chan is in private accounting practice and does a little speaking on the side and has got some great concepts.
He is a property multi millionaire which is different to most accountants.
Ed produces the DVD’s as part of an ongoing eductaion program for his clients.
You would learn a lot from the DVD’s but if you are in Sydney consider becoming a client and getting teh ongoing education
Michael Yardney
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FREE subscription http://www.metropole.com.auOriginally posted by Aphex:I have a property that is vacant and being managed by a local real estate agent. As it has been sitting idle for quite a few weeks, I was wondering if it would be an option to get another local real estate agent to advertise the property as well.
Is this something that competing agents wouldnt do because of ethical or legal reasons, or is it a normal or acceptable practice.It is not unethical or incorrect to give a “general listing”rather than an exclusive one for rentals.
But you will find most agnets won’t be intereted in it.
While competition may work for you, it may work against you. I have heard of agents who put just any tenent into a property (in other words a bad tenant) just to get the business and beat the opposition.
Also with an uncertain commision at the end (and that’s why they work) a general listing means the agent doesn’t work as hard for you.
This isn’t good for you.Find a good property manager and let him/her work for you exclusively.
Michael Yardney
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FREE subscription http://www.metropole.com.auCarl_Vic
Unfortunately you can’t simply use someone else’s plans.
Town planning requiremnets for multi unit devlopments are very stringent and require that you draw plans that are site responsive and sympathetic to the neighbourhood.
If yo wnat to get some preliminary knowlegdge of how a development project is put together and the various stages, check out our investor learning centre at our web site which has some interestinga rticles and a checklist of what goes in to a development project.
http://www.metropoleprojects.com.auMichael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
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FREE subscription http://www.metropole.com.auOriginally posted by Lightning:It is safe to assume property advisors are simply real estate agents. Some don’t even bother to get real estate licences to properly disclose commissions .
You are correct- many marketing companies do not even hold an estate agency license.
And Chang is correct that acting as a buyer’s advaocate and getting a commision from the seller is definately a conflict of interest.
Michael Yardney
METROPOLE PROPERTIES
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FREE subscription http://www.metropole.com.auOriginally posted by luke__moore:Hi,
I’m new to the game and when searching for an area to look at closer I have been using research tools such as, RP Data, Residex, Homepriceguide, Commonwealth Bank Property Value Guide, Property value.com to name a few. The problem is, when comparing info there a discrepancies in the data. Which of these are more reliable? Or do you not use them?
Thanks
LukeLuke they are all a great start but that’s all they are…. a start
And as you say they give conflicting advice.
The next step is to pick out a geographic territory in which you will become an expert and learn all you can about it.
Then all the reasearch you are doing will make sense.
You will need to know much more than just what properties sell for. To become an expert you will have to get to know things like….
1. Geographic layout
2. Major street names
3. Subdivision names
4. Price ranges by major subdivisions and streets – prices achieved not asking prices
5. Rental market data
6. Future road plans
7. Future developments in the planning stage
8. Local employment statistics
9. Employment trends and major impacts that may affect these trends
10. Local private & public schools
11. Public transportation routes
12. Local council town planning and zoning rules and regulationsSo the research reports are a start, but to be able to buy a property under market value you will have to do a lot of leg work
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
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FREE subscription http://www.metropole.com.auOriginally posted by APerry:Chang,
Some do a good job for their clients, others not so good and they all have different structures and methods of doing business. It is simply not possible to comment without knowing who you are talking about.
There are people who post on here who provide these services, you could try talking to one of them. Michael Yardney and Nigel Kibel come to mind, but there are others also.
Regards
AlistairThanks for the plug Alisair. [blush2]
Both Nigels company http://www.propertyknowhow.com.au and ours http://www.buyingmelbourne.com.au are licensed estate agents and have professional indemnity insurance . We are members of the REIV.
Neither have properties for sale but are paid by the client to find our clients a bargain.
Property marketing companies are paid large commissions by the developer and this is added to the price the invetsor pays.
As others say, you must do your homework very carefully.
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
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FREE subscription http://www.metropole.com.auConcrete paving is 40 per sq mt and concrete for driveways (heavier duty) about $60 per sq mt
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
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FREE subscription http://www.metropole.com.au
