Forum Replies Created
Hi Luckyinvestor, I was looking at a house at Ashfield, WA for sale opposite the river, uniterrupted views 9yrs ago for $250,000. Now that house would be worth $1 mill. I wasn't quite ready to buy when it was for sale and no other properties came on market when I was ready to buy. Bummer!
My prediction is interest rates will hit 10% in next 2 years. I don't think it's a political decision, just how much interest rates need to rise to stop people spending.
So does that mean you can retire nurve? In my rough estimations I worked out you'd be able to retire at that score.
Have you filled your crack in yet?
270k for a block has become too expensive for majority of buyers.
Foundation, shouldn't you also be considering the growth of the property also with your rent stats against interest? Just say for example if my portfolio increased by $1 million in 4 years, cost me $60,000 of my own money to hold the property and we were heading for a BIG correction (40%-very unlikely) so my propery went down by $400,000 wouldn't I still be better off then not investing in property? I'm a bit baffled by your charts and opinions, am I missing something? Is there a certain type of property investing that you don't agree with – growth/cashflow/residential/commercial/all property? Do you think there is a better way to invest money?
In 1994 I purchased my first property for $95k. Prices were almost at their peak in Bris and I was lucky enough to purchase at the bargain price as the unit was very orange (orange walls, orange curtains, smoke-stained orange chandeliers, and a very bitter neighbour). I painted it and the bank re-valued it in 1995 at $116K. In 1999 when I tried to sell it the first offer I received was $95k from an investor. I declined and then received an offer from an owner occupier a couple of months later for $104k. I certainly agree that property can go backwards, but only if you're desperate to sell. Today the property would sell in a minute for about $350k. I agree that if you are purchasing a property now and stretching yourself it could be a bit dangerous.
Are you an Economist Foundation?
http://promo.realestate.yahoo.com/most_undervalued_real_estate_markets.html
I don't know if this info will be any good to anyone.
I noticed Margaret River WA does this also which tends to keep property prices low.
I heard this a few months ago from a friend of a friend that lives at Byron so do your own research. (my space bar just carced it) About 6 – 12 months ago the council upped the rates massively todiscourage investors in Byron Bay. Loads of investors offloaded their properties and prices slumped as there was a glut . May be something to consider…….
Hi Barts78, yes I've had some interesting applicants… and a few of them that I wouldn't choose to live in my property have come from a property that has been managed by a Real Estate property manager. It can be time consuming choosing a good tenant and I do sometimes wonder if someone with a porfolio of 100 tenants can find the time and effort to choose a better tenant. I have a property in another state that is managed by a top property manager, it's a nice feeling being seperated from the tenant and property, but until I get sick of managing my two properties near where I live, I'll continue doing it for now.
1. In addition to application I ask for 2 writtten references, 3 payslips, photo ID (this quickly gets rid of applicants that turn up at 8.00am smelling like they've just finished a beer.
2. Always ring previous landlord
3. Always ring their bosses and get a verbal reference to find out if they are reliable/good employee
If I still have doubts (Guilty, until proven innocent)
4.Check that the previous address they've given me is actually correct
5.Do a driveby their current address to see if kept tidy
6. If your feeling unsure, advertise again and you'll find your ideal tenant. I also have property well maintained to attract good tenant. If you have any doubts about tenants, listen to your feelings. Ask prospective tenants questions to get a feeling what they will be like. (eg easygoing, pain-in-the-a)
Good Luck, it's quite interesting the people you come across! LYer, it's a good one!
Hi Amy, I'm not a Perth Specialist but have invested for past 14yrs in Bris and Perth. On my first property (Bris, 2 bed unit 5k's from city). I went from having a 6.95% interest rate to a 10.5% interest rate 2 years later so I've previously experienced rising interest rates and a flat market. Rents rose also though so I wasn't affected. I sold it 8.5yrs ago for $104,000, now it's worth about $340,000. If you can ride it out Vic park is an excellent location and will provide good growth. Building costs in Perth are rising by 5%/yr. Land supply in Vic park is limited which should force prices up also. I agree with your list of facts to consider also. Also consider:
Can you afford to hold onto your property if interest rates reach 10%?
Can you improve your property, (new paint job, freshen it up) and increase rent?
Is your property manager renting your unit for a reasonable amout or renting it too cheap?
Can you allow a pet in your complex and ask for premium rent?
All the best, LindaTake a look at Mansfield. Not sure what it is like now, but achieved good results when I was at school.
If you're interested in purchasing in Perth invest in a suburb that will be rezoned soon. You may need to do more research.
anni – what suburb
Thanks for info Simon, sounds like a winner! Congratulations. I have a few idea's happening, just gotta research more and get motivation to try something different, Linda
