Forum Replies Created
- Originally posted by lei:
Hi i was looking at a particular investment that says its a tax advantage of 100% for five months. What does that mean?
kIt means you won’t pay tax on the first 5 months income. This would be becuase there are tax deductions that you can claim against your income such as depreciation allowances
Michael Yardney
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It’s a pity you paid and missed it.Send me a private email to [email protected] and I will invite you as my guest to the next one (even though it may not be until next year.)
Sorry there were no notes or handouts, but the seminar was sold out and I believe very well received. Hopefully someone else will give you a summary.
Michael Yardney
METROPOLE PROPERTIES
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FREE subscription http://www.metropole.com.auThere’s lots of reasons an agent won’t show you a property or submit your offer to the vendor.
Remember while the agent is meant to be working for the vendor, most really look after themselves first.
He could be telling the trusth about another offer – so why doesn’t he ask you for one?
Firstly he may not think you are serious and he doesn’t want to waste his time.
Or he may have an offer from a purchaser who has a property to sell. And that will give him more business than your offer
Also with regard to potential subdivision have you done your homework. Do you know what to look for and what the council requires for a subdivision. Just because others have done it in the street doesn’t mean you can. Planning regulkations have changed in many municipalities.
So do your due dilligence. Don’t rush in.
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 resiwealth:I believe that the bottom is still a way off, IMHO it will be early next year. There are great opportunities out there for the experienced investor.If I was just starting out i would be s…ing myself.
regards Phil[trigger]
As you know there is not one property market, so your comments are a bit to “broad”
The Melbourne market has been in a slump for about 2 years and has bottomed out. In fact in some areas we are buying in, the market has clearly risen over the last 6 months. (Brighton, East Brighton, Hampton East, Elwood, Toorak)
Prices will not zoom up for a while.
Sydney has been in a slump for a shorter period of time and the Brisbane market topped last year so has a long way to go before prices rise.
As Ausprop says, Perth is wondering what all the fuss is about.
DONT wait for the bottom. You won’t recognise it. And its a buyers market now.
The right time to buy the next property is when you can afford it and when the fundementals for that particulr deal work out. Make cheeky offers and find yourself a bargain
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 Greg F:Originally posted by g7:Greg,The reason it wouldn’t be working is that you need adobe acrobat reader to view the *.pdf file.
Hi G7
I’ve got Adobe Acrobat Reader, I get pdf files all the time on this computer (I researched 3 large pdf files only last night), tried Michael’s link again just now and it still didn’t work!! What gives?
Adobe flashed on the screen for a millisecond then disappeared into the ether, the screen went white, the message at the bottom LHS told me the search had been “Done”, and there was no scroll bar down the rhs.
Can anyone suggest what’s happening?
Cheers
GregIts a big report, lots of graphics. Downloads very very slowly unless you are on broadband.
STart downloading overnight or before dinner and then go off for a while.
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
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FREE subscription http://www.metropole.com.auYou are correct. Valuers will not increase the value even if you have done reno work. And banks won’t accept anything above contract price for mortgage purposes.
We warn our clients about this as many have come unstuck like you.
I don’t know a way around this, but maybe one of the finance guys on this forum does
Michael Yardney
METROPOLE PROPERTIES
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FREE subscription http://www.metropole.com.auMelbourne went into its slump before NSW and prices haev dropped in some areas but not by as much as you are suggesting happened in NSW.
We are locating properties in areas which have strong demand by owner occupiers which means that prices have held up well.
Having said that it is still definately a buyers market. Time to do your research and make cheeky offers and pick up a bargain.
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
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FREE subscription http://www.metropole.com.auIts great to see someone with so much passion.
We own a specialist property management company http://www.rentingmelbourne.com.au
where the whole team has passion and you sound great.Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
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FREE subscription http://www.metropole.com.auDo you have penalty provisions in your building contract.
All contracts include them, but many builders try and leave this section blank.
A realistically harsh penalty for delays is the best inducement I have found to keep builders on time.
Michael Yardney
METROPOLE PROPERTIES
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FREE subscription http://www.metropole.com.auWhich state are you in?
As to which buyer’s agent is good- it depends what you are looking for. Some specialise in investments ( like http://www.buyingmelbourne.com.au) Others in prestige houses etc.
Best way to find a good one is by referal from happy users. Be careful as there are some “interesting” charecters out there.
Michael Yardney
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FREE subscription http://www.metropole.com.auOriginally posted by devilcv8:Michael
Thanks for your reply, I was hoping to get to your seminar last weekend but was interstate for work!
The property is in Victoria, and from the prices I have been quoted today 8k is about spot on.
I have the plans that are going through council at the moment, but will need to get the owner to pay for the copyright so I can use them if I purchase the property. I dont want to rush into it, but I would like to make sure I know everything I need to, and every deal is different! [blush2]
Thanks for your comments…
Dev [cap]
Dev
It’s a pity you didn’t make it last Saturday. There were over 400 people there and I believe they learned a lot.
The plans go with the property and not the owner, so if you buy the property and the plans go through council succesfully and a developemnt approval is achieved, you would also get the plans.
Yes there are clauses you may need to put in a contract. Not the sort of advice to give in this forum but you can call me on 9532 8889 and I may be able to help.
Of course you are paying a premium for the land if the previous owner has obtained the permits. Have you considered doing this yourself?
Michael Yardney
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FREE subscription http://www.metropole.com.auOriginally posted by 392649:Hi everyone,
I have $500k that I am looking to invest in Melbourne property. (i have no other properties)
I would appreciate any advice/recommendations regarding strategies to distribute this money across multiple properties in Melbourne. (i´m considering a LVR of 65%)
thanks in advance.
As Felicity says…what are you trying to achieve?
If it is what most people wnat out of property..financial freedom, extra wealth, security, income etc then it is not really the properties you are after but the money that they can give you.
Property investors are really in the business of finance not property.
You can achieve this in 2 ways.
High cashflow/ low capital growth properties or high capital growth/lower return properties.
Many beginning investors start with cahsflow properties because that is all they can afford.
With $500k you can jump straight to the higher level of high growth properties.
It is a buyer’s market in Melbourne at present (we have already bought 3 investment properties for clients this week [url]www.buyingmelbourne.com.au[/url]
But you must do your research carefully and choose areas with strong capital growth and then choose the appropriate property in that area.
Our research has identified a number of suburbs that will outperform Melbourne’s average capital growth by 100% (OK …..not to hard when the average growth won’t be great in the next 2 years..but better than nothing)
We are buying properties in areas that are still increasing in value by 10% per annum.
Do your due dilligence, look at lots of properties, make some cheeky offers, don’t rush in and look for properties with a “twist.” Properties that you can add some value to and get quick capital gains.
If you are able to do this on your own and have the ability to do this for your first investment then great. Go for it.
If not, get an experienced buyers advocate who understands investments to assist you. They will be worth their fee many times over
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
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FREE subscription http://www.metropole.com.auDev
Sailesh has given you good advice.
In which state is your property.
In Victoria most old houses have asbestos in them. In teh eaves or in cladding. An average old house with asbestos to demolish and clear the site could cost $8,000
Michael Yardney
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Author of Australia’s leading property e-magazine.
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FREE subscription http://www.metropole.com.auOriginally posted by “Shackles Off”:Hello,
We are in the same boat as Wilko , Is this part of the service with the likes of Metropole (I see you posted above Michael)or Hunter House Hunters.
Cheers
ShacklesGreg
If you’ve got nothing to say , say nothing.Yes Greg – that is definatley part of the work my team does. but I want to make it clear we are not financial advisors. The team are licensed estate agents, but all have long strong histories of real estate and substantial real estate investments themselves – not just theorists.
Michael Yardney
METROPOLE PROPERTIES
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FREE subscription http://www.metropole.com.auI know the area well.
We have just completed a reno of 3 apartments there and have purchased many great properties for clients in the area -www.buyingmelbourne.com.auThere is a really simple answer. DON’T SELL WHATEVER YOU DO but if you do can I buy it off you. I’m desperately looking for another block of fats in Elwood – but so are hundreds of other developers.
Why? Because it is a great area. Residex predicts over 10% pa growth for the next 5 years. In other words your properties will increase in value by much more than the Melbourne average.
WHy sell when your property will go up by say $250K each year.
When you own a great asset like that, you have to think like a capitalist. It is capital – equity that makes you wealthy, not cashflow or a small profit on the sale
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 Ibuycashflow:Has anybody read this book or know anything about Bernard Salt?
He has an interesting take on the future of property investment. I am curious to know if it’s worth reading.
Cheers
JeffBernard is a highly respected demographer and his book is often quoted.
As demographics is one of the biggest drivers of property prices, and this is the only Australian book of its type that I know of, all serious investors should read it
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 theBuildingSurveyor:If people wish to use your services that is fine, however I beleive they can start of small like the above situatuion and graduate to yourself, without the need for expensive seminars and project management fees. That I beleive is the best way to learn, even if a few mistakes are made on the way. Michael I believe you are an excellent salesman.
Thanks for the compliment[blink], its funny I don’t consider myself a salesman.
I agree that not everyone needs our project management services. Especially if they are in the industry like you.
Having said that, most beginning developers will learn lots and make most of their mistakes in their first 2 or 3 projects. From what I am told, most will loose money on their first and only project, especially at this stage in the cycle.
Some people are just too busy or don’t have the knowledge or inclination to do it themselves or some just want to minimise their risk. That’s when our project management services may come in useful.
The fact that we are currently managing 83 individual development projects around Melbourne and have been doing this for years suggests that there is a place for our services.
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
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FREE subscription http://www.metropole.com.auThis is a common problem we come across for clients.
In the last week alone had 3 similar phone calls.
If the lease is short, an owner occupier (most of the buyers) will look at your property, otherwise it will only appeal to invetsors.
As we know, most investors have left the market so you are selling into a buyers market’to a limited number of people.
having said that, there are definately invetsors out there who are prepared to buy, but they are looking for a bargain.
The average estate agent will not have access to these people, so what do yo do?
1. Instruct an agent who specialises in investments.
2. approach buyer’s advocates with investors on their books.(eg we have about 10 investors on our books who are seriously looking for investments [not in Adelaide]) These buyer’s agents are working for the buyer – NOTfor you but if the price is right they will definately consider your property to offer to their clients and their fees are paid for by the purchaser.Michael Yardney
METROPOLE PROPERTIES
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FREE subscription http://www.metropole.com.auWilko
It may not be a financial advisor that you are after, even though you need financial advice.Most financial advisors cannot advise on proeprty as part of their license and most don’t own property.
They tend to work for organisations owned by banks or funds and in general do not give you the “full picture.”
Having said that I have come across a few (very few) financial advisors who do give unbiased advice. These are in Melbourne, but hopefully someone will give you a name in Brisbane
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 theBuildingSurveyor:600m2 is probably enough for 2 x 2 bedroom units if the existing house is to be demolished. Dont waste your money on some checklist
You are correct that you could probably fir 2 very small units on a block this size, but would it be a viable development.
By the way the checklist is FREE – it shows the guidleines we use when buying development sites. We find them useful. Maybe you would also.
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
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