Forum Replies Created
One of the main reasons that they are selling at this premium is because the price is controlled by the developer and marketers.
If you buy at this huge premium, you are giving away your first few years of capital growth to the developer, and it’s not his to have.
When you buy off the plan you should be buying at a discount not a premium.
You get a discount to make up for the uncertainty of the deal. The uncertainty of completion times and levels of finishes and the market conditions when you eventually settle.
There is no point in buying offfthe plan in Brisbane when there is over 2 years of stock available in newly completed projects at present.
I understand it is difficult being an overseas resident and not being able to buy established properties. You would be better buying completed but unoccupied apartments
Michael Yardney
METROPOLE PROPERTIES
Publisher of Australia’s leading property e-magazine.
Join over 17,000 readers.
FREE subscription http://www.PropertyUpdate.com.auCan’t tell you what you should do with your own investments. It really depends upon your goals, your needs, your risk profile.
But check out the other active thread on commecial property because it is very different to residential property and maybe not the right thing if it’s your only investment.
To understand a bit more about the differences between commercial and residential property have a look at this article….
http://www.propertyupdate.com.au/articles/49/1/Residential-Or-Commercial—Which-is-right-for-you%3F
Michael Yardney
METROPOLE PROPERTIES
Publisher of Australia’s leading property e-magazine.
Join over 17,000 readers.
FREE subscription http://www.PropertyUpdate.com.auCost of rendering over a smooth surface is $40 – $45 per sq mt.
If the bricks are rough to enable you to get a smooth finish you will need to do a lot of preparation. just measn extra coats of a special material that smooths things out.
This could increase the cost by 50%
Michael Yardney
METROPOLE PROPERTIES
Publisher of Australia’s leading property e-magazine.
Join over 17,000 readers.
FREE subscription http://www.PropertyUpdate.com.auOriginally posted by lakeinnes:It seems the Inner Brisbane property market has not gone through the same down turn as Sydney and the rest of NSW. Is it just a matter of time before the downturn hits Bris? or will it hold onto its fairly boyant house price?
If you are talking about inner Brisbane you probably mean the apartment market.
There was a huge oversupply in this market for the last few years and it was fully priced. Little room for growth.
But the oversupply has now decreased – only 4 months of supply overhang the market today, as opposed to a huge surplus a year ago.
There are still investors and owner occupiers buying. There will be an oversupply of the upper end apartments as a few buildings come on stream.
We see better capital growth opportunities in the inner and middle ring suburbs of Brisbane rather than the inner city
Michael Yardney
METROPOLE PROPERTIES
Publisher of Australia’s leading property e-magazine.
Join over 17,000 readers.
FREE subscription http://www.PropertyUpdate.com.auOriginally posted by jec:Any one used a buyers agent before. if so, where and were they any good ??? I have never used one and ate thinking of using one in perth or melb to help find a property.
Before I go to far let me give a disclaimer…
One of the companies in my Group is Australia’s leading Buyers Agency with offices in Melbourne and Brisbane Metropole Buyers Agency
http://www.metropoleproperties.com.au
I am not an agent – but my wife is so obviously I am biasedHaving said that, some people benefit using a buyer’s agent, while others don’t need to use their services.
For example, if you are considering buying in Melbourne, as you suggest you are, and you don’t know the different areas you could fall into some big traps.
Only this week I saw a lady who came over from Perth and bought 2 properties on Saturday, within an hour of each other. She had done a few days research and thought she had bought 2 bargains because they were cheaper than Perth – boy was she wrong.[blush2]
You see… in the one suburb the value of a proeprty can vary by 10% or more just by being in a different street, and if you didn’t know the suburb well, you may think you picked up a bargain.
Please read the following artcicle which will give you an idea of how a buyer’s agent could help you..
http://www.propertyupdate.com.au/articles/12/1/Agent-on-your-side—how-buyer%26%2339%3Bs-agents-work
But remember not all buyer’s agents are the same. Just like not all selling agents are as good as the other, same with accountants, solicitors etc.
Last month Metropole Buyers Agency bought 13 properties in Melbourne and 6 in Brisbane for clients from all over Australia. And 4 were repeat clients – so they must see some value.
One last hint. here is a checklist you could consider when choosing a buyer’s agent ….
http://www.metropoleproperties.com.au/checklist_for_our_agents.html
Michael Yardney
METROPOLE PROPERTIES
Publisher of Australia’s leading property e-magazine.
Join over 17,000 readers.
FREE subscription http://www.PropertyUpdate.com.auThe REIA publish this data for each state in the quarterly MArket Facts report – but you have to pay for it
Michael Yardney
METROPOLE PROPERTIES
Publisher of Australia’s leading property e-magazine.
Join over 17,000 readers.
FREE subscription http://www.PropertyUpdate.com.auOriginally posted by ptn:Sounds good. Thanks
I like to buy this family trust online. Any advise?
http://www.lawcentral.com.au/CreateDoc/createlink.asp?docId=17
My intention is to move one of my IP into this trust.
We have a family of 5 (including my mother in-law). Hope it’s not going to complicate the process.
Please let me know your thoughts.
Thanks
ptnThis post shows that you really must seek proper accounting advice and not just get information from a forum.
There are huge implications in moving a property across into a trust including capital gains tax payable and stamp duty payable.
There’s lots to learn about trusts. Do this from the forum or by reading good books but then get proper accounting advice for your circumstances and don’t be afraid to pay for it.
A great book to read is Dale Gatherum -Goss’ Trust Magic
http://www.propertyupdate.com.au/pages/Trust-MagicMichael Yardney
METROPOLE PROPERTIES
Publisher of Australia’s leading property e-magazine.
Join over 17,000 readers.
FREE subscription http://www.PropertyUpdate.com.auThe rules for commercial real estate investment are very diffeernt to those for residential investment.
Commercial properties are yield driven and yileds also drive their values.
This article may explain some of the differences:
http://www.propertyupdate.com.au/articles/49/1/Residential-Or-Commercial—Which-is-right-for-you%3F
There is also a good book by Chris Lang call “How Commercial Proprety Works”
Michael Yardney
METROPOLE PROPERTIES
Publisher of Australia’s leading property e-magazine.
Join over 17,000 readers.
FREE subscription http://www.PropertyUpdate.com.auIf you are looking for capital gain – and congratulations for doing so, becuase that’s what creates true wealth in property then the best indication of future capital growth is the past capital growth of a suburb.
And teh longer a suburb outperforms, the more likley this is going to continue in the future.
I am an investor and not a speculator, so rather than trying to pick the next trend or the next hot spot and “hoping” I would look at the past history of groth of the suburbs you mentioned. You can by a Residex report or find 5 year data for free at http://www.reiv.com.au
Both Thornbury and Williamston are great areas in which to invest. I would avoid the other suburbs.
Once you’ve selected the suburb, then of course you need to find the right property at the right price
Michael Yardney
METROPOLE PROPERTIES
Publisher of Australia’s leading property e-magazine.
Join over 17,000 readers.
FREE subscription http://www.PropertyUpdate.com.auThe most common use of a company purchasing a property is when it is acting as trustee of a trust. This structure gives maximum flexibility, as a company owning a property in its own right is a very unusual occurence.
Search other threads here as to the benefits of owning property in a trust or have a look at these 2 articles.
http://www.propertyupdate.com.au/articles/1/1/Should-a-Property-be-held-in-a-Trust%3F
http://www.propertyupdate.com.au/articles/2/1/The-Tax-Benefits-of-TrustMichael Yardney
METROPOLE PROPERTIES
Publisher of Australia’s leading property e-magazine.
Join over 17,000 readers.
FREE subscription http://www.PropertyUpdate.com.auHi
What is attracting you to this particular property?
They are harder to get finance for and harder to sell and have some of teh challenges already discussed.
There would have to be something pretty special about this property to make you choose it over the thousands of properties avaliable for sale.
Michael Yardney
METROPOLE PROPERTIES
Publisher of Australia’s leading property e-magazine.
Join over 17,000 readers.
FREE subscription http://www.PropertyUpdate.com.auOriginally posted by v8ghia:Hi All. Not hijacking the forum or anything, but since a couple have referred to capital gains in these parts of Brissy, and no CF+ there, would any of the buyers agents or others in the know that have bought up that way care to give an example of how much CF- a ‘bread and butter’ home would be perhaps assuming a scenario of no depreciation and no fancy development etc? Or what sort of gross yields? I realise this may sound a bit speculative but it would be interesting to know in the market at present, how long you think a CF- home would need to be serviced in the Sth Brissy area before a good gain could be realised ‘all going well etc etc’ Thanks.[strum]
Good question….
I understand why you are looking for cash flow, but that’s really only part of the equation and in my mind one of the smallest parts.
I realise you think you need cash flow to service your loan, and you obviously recognise that most high growth properties will take quite few to become cash flow positive.
But people who become wealthy through buying growth properties don’t ask ‘when will it become cash flow positive?’
My substantial property portfolio has not been CF +ve in the last 30 years, yet I am worth millions of dollars more this year that I was last year (that’s right 12 months ago) because of the capital growth of my properties.
So the trick is to buy the right type of property in the right area – one that will be in continuous strong demand by both owner occupiers and tenants.
That type of property – and they are hard to find at present – but they are still there – is growing in value at 10% per annum. So are clients may be $10,000 per annum out of pocket ‘cash flow wise’ but $40,000 ahead capital growth wise a year.
In my mind a $30,000 net capital gain – which is tax free – is better than $25 a week +ve CF.
Michael Yardney
METROPOLE PROPERTIES
Publisher of Australia’s leading property e-magazine.
Join over 17,000 readers.
FREE subscription http://www.PropertyUpdate.com.auOriginally posted by islandgirl:From the initial conversation I had with George Kafantaris I can honestly say I wasn’t particularly impressed. He did not seem particularly interested in cf+ properties – only inner city properties and very much equity base investing which of course reflects Michael Yardney’s investing philosophies. He basically scoffed at any ideas I had and then forgot to ring me back to organise a meeting. I figured if this was the intial response I got then he was not going to suit my requirements.
It is important that the BA you find matches your chosen style of investing. I haven’t tried the other guy but might check him out myself. I found Paul at webuyhouses.com.au also good value.
Would be interested to know how you go.
Cheers
You are correct Islandgirl….
If you asked George to find +ve cash flow properties he would not have been able to help you.
He specializes in top performing high grow properties with upside potential – and you are correct that reflects my philosophy…..
But it also reflects his philosophy as an accountant and as an active and reasonably wealthy property investor.Is this the only way to become wealthy in property? NO!
Is it the easiest way? I think so, but obviously it doesn’t suit everyone – especially beginning investors who don’t have much equity.
In the 3 months George has headed Metropole Buyers Agency’s Brisbane office http://www.metropoleproperties.com.au we have become Brisbane’s buisiest buyers agency – buying more properties for clients in Brisbane than any other Buyers Advocate. That’s a great achievement and we have a long waiting list of clients.
So I’m proud of what George has achieved, but how good we are is only as good as our clients perceive – we recognise that.
Sorry if he was tardy with return phone calls. He has been overwhelmed with enquires and work; and now has added 2 other agents to the team.
We try our best, but sometimes it just isn’t enough.
Michael Yardney
METROPOLE PROPERTIES
Publisher of Australia’s leading property e-magazine.
Join over 17,000 readers.
FREE subscription http://www.PropertyUpdate.com.auWell done Sarah – saving the first $10,000
You are right – your can’t get much of a 2BR unit in the price range you are considering. I know – our buyers agents are out in the market place all day looking and we are buying 8 or 10 properties a month for clients.
Don’t wait – Melbourne is over the worst and there has definately been a rise in aprtment prices over the last 6 months – at least in the suburbs we have been looking at.
And with the likelihood of the proposed interest rise now diminishing, there is little chance of the Melbourne market faultering before Xmas.
So either use some of the suggestions made by beachesboy or go for a good size one bedroom apartment.
You don’t have to buy your dream palace first up . Just get a foot in the market and take advantage of the next wave of the property cycle
Michael Yardney
METROPOLE PROPERTIES
Publisher of Australia’s leading property e-magazine.
Join over 17,000 readers.
FREE subscription http://www.PropertyUpdate.com.auYes but they are a little old – the Adelaide Expo was in August. – maybe you could keep them for 10 months and reuse them next year[biggrin]
Michael Yardney
METROPOLE PROPERTIES
Publisher of Australia’s leading property e-magazine.
Join over 17,000 readers.
FREE subscription http://www.PropertyUpdate.com.auOriginally posted by freeman cooper:Hi Michael,
Sounds great,
How do I get a free ticket?Regards
FrankThere was a link in my e-maszine that went out yesterday – if you don’t get it you can subscribe for free at http://www.PropertyUpdate.com.au
or click the link in the orginal post above and download the tickets and print out as many as you want
Michael Yardney
METROPOLE PROPERTIES
Publisher of Australia’s leading property e-magazine.
Join over 17,000 readers.
FREE subscription http://www.PropertyUpdate.com.auWe use feastudy for our development projects.
If you want to see a sample feasibility study have a look here:-
http://www.metropoleprojects.com.au/pdf/UnitFeasibility.pdf
Michael Yardney
METROPOLE PROPERTIES
Publisher of Australia’s leading property e-magazine.
Join over 17,000 readers.
FREE subscription http://www.PropertyUpdate.com.auLike Redwing, I use Scot from http://www.depreciator.com.au and have found his service great – we now recommend his services to all our clients
Michael Yardney
METROPOLE PROPERTIES
Publisher of Australia’s leading property e-magazine.
Join over 17,000 readers.
FREE subscription http://www.PropertyUpdate.com.auIn Victoria there is no official data on a suburb by subutb basis.
The REIV, who collate the data do it in rings – CBD, Inner suburbs, middle ring suburbs, outer suburbs and regional
Michael Yardney
METROPOLE PROPERTIES
Publisher of Australia’s leading property e-magazine.
Join over 17,000 readers.
FREE subscription http://www.PropertyUpdate.com.auHI Mark
Are you a licensed estate agent?
As Audrey suggests this is a critical pre requisite. Have you worked in real estate before?
If you are considering starting your own business (and good on you for doing that) have you thught of your point of difference? Why should someone use you rather than the established agencies. Why would an agent choose to work with or for you rather tahn an established office that has listings?
Its a very, very competitivie market out there
Michael Yardney
METROPOLE PROPERTIES
Publisher of Australia’s leading property e-magazine.
Join over 17,000 readers.
FREE subscription http://www.PropertyUpdate.com.au
