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In a market that is not really moving I think this is a risky strategy in this market. Also there is more money in the upper market rather than the lower market. Frankly there are better products in the market such as our development model where investors pool there money to buy a development project.
To make real money you need to be creative and know what you are doing. I partner with some very smart and experienced people.
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Capital growth is based on supply and demand. If you have a storage shed it will only sell to an investor or someone who wants storage so the chances of strong capital growth are limited.
It is all about how hard you can make your money grow. I always find it funny that so may investors look at property which often supplies the worst cash flow and often little if any capital growth.
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Why spend your money on something that will have zero capital growth and not even great returns.
Whenever you invest it is important that you look at overall returns and also capital growth. Generally Storage sheds will be considered a commercial property which means you either pay cash (not a good use of your money) or you will find you can only borrow 60 to 70%Nigel Kibel | Property Know How
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Richard has been on this site for a long time. You will not find anyone with more knowledge of offshore Finance than Richard
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I agree, every time we hear about a product it is either very expensive or false. In some cases people are being sold over inflated property with finance. With the United States it is very important that you do your due diligence very carefully before proceeding further.
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thats interesting because most banks we re talking to talk about tightening finance to foreign nationals. The other unknown here is Europe. If we get a number of countries defaulting in Europe it will effect the amount of money available worldwide.
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If you look at Sunbury there is nothing but vacant land between there and Ballarat. If you want to throw away your money buy there. Mining areas are much better but will cost a lot more. I would look at inner city Brisbane as well as it is undervalued at present.
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What you have to consider is resale, while the Adelaide market will remain flat for some time to come, what you have to consider is are you keeping it forever. Frankly whenever you invest you should always have an exit strategy. So what you have to consider is this. If you were to sell the property in the future what is your market. If it would be only investors then you are restricting your market. If you believe it would sell to owner occupiers then it may be worthwhile.
Without knowing what you are trying to do it is difficult to advise. My personal view is that I would buy in inner city Brisbane as I feel this is an undervalued market and one which will grow
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send me you details I might be at least able to give you some ideas
Nigel Kibel | Property Know How
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Make sure you work out a plan for what you want to buy. Do you have a strategy. Have you determined what you want to buy and where. Happy to have a chat. I have been doing this for a number of years in both Australia and the United States
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Yes I agree I think the problem with Queensland is that the market is at least 10% under market because of confidence in the economy. I think we will see confidence go up a lot. I also think this is because Campbell Newman will be a great Premier. I really like inner city Brisbane.
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You need to do your research carefully. Most people lose money because they are dealing with the wrong person at the other end. The secret to great investing is the quality of your contacts in the US. If you are not prepared to do that then you should not be spending your money there. Frankly I can make you more money in Australia.
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That is always one of the problems with renting. You should also always check documents very carefully before signing anything. Also when you ask questions especially important ones always get the answers in writing. That would put you in a position for possible legal cation. However if you have nothing in writing and have signed a 6 month lease there is not much you can do.
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Maria if you are going to buy a one bedroom look at areas such as St Kilda or Elwood they tend to be older style larger in size easy to rent out and easy to sell. The problem with the city you are often buying in large high rise blocks. Personally I like 2 bedroom but period apartments in a one bedroom are ok
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It really comes down to wear you are buying. Frankly I would rather buy a townhouse in an inner city area rather than a house in the outer suburbs. There is a mistaken view that a house with land is a better investment. The reality is the land the townhouse sites on in an inner city area is far more valuable based on a per square foot price. than the land of the outer city house
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I suppose it depends on where your properties are. My view is nothing much will happen in the US market til at least 2015. What will determine the housing market is finance. Currently the view is that the finance ,markets in the United States will continue to tightened. Have you thought about on selling the properties with you providing vendor finance.
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If you buy a 2 bedroom apartment it will appeal to investors and owner occupiers student studios will only ever sell to investors therefore no real resale market. Student Accommodation us a poor investment. If you are loosing money and there is no capital growth what is the point in buying it. Remember everything comes down to supply and demand
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I think that a business plan is essential however before you do that it is important to develop a life plan. Most people send there lives drifting and then get frustrated because of that lack of achievement. However it is important to work out what are your goals both personally and professionally. Try and work out a short, medium and long term plan. Once you start to work out what drives you, then you can develop a business plan as part of the life plan
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You need to do your own due diligence on not only the markets but also who are the suppliers you are dealing with.
You also need to ask yourself Why do you want to invest in the United States. Then if you do what is your strategy. In my opinion the only reason you invest is to have a separate income stream to what you have in Australia. Once you have decided that you then look at the markets. If all you can afford is a $30,000 property then don’t brother you will be buying into a slum.
I think Texas but there are other markets/ Once you decide on the market the most important thing is who are you dealing with. Go over at least once to firstly satisfy yourself as to the market and the type of properties you are looking at and to also make sure that the supplier is in fact in the city you are dealing in. If you are not prepared to do these things then you should not start buying.Nigel Kibel | Property Know How
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The secret to investing in the United States is who you deal with on the ground. If you appoint someone without doing due diligence it can be a costly exercise. The amount of money the lawyer was talking about was just a starting fee you could easily spend a fortune. You are better off just getting someone else to do the work.
What is more important do you have the deed title of the property. You need to make sure that the property is in your name. I assume that you had a lawyer to do that for you?
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