Hay Mooda,

I think the general feed back most people are giving is that the sydney market might not be the best place to find a positive cash flow investment propertys.

I think that it is a matter of researching all areas until you see a trend in a market and ride it.

A unit site eh ?

I don’t Know Alice but it would be worthwhile to go to council and find out what exactly you could build on such a size block.

Spend $ 12 or so and buy the council’s unit code (which tells you about their rules).

In any event the townplanner would probably be able to tell you off the top of his head how many units can be built on a 1,000 sq. metre block as no doubt he has seen applications involving similar size blocks.

Your property may be worth more as a development site than as a house.

Secondly, you will get better value by buying an existing house than building a new one (in the event you manage to sell the property as a development site)!!!

To get the most profit from selling a development site it would be best to sell it with council approval attached.

This means that YOU will need to spend money on a surveyor and building plans, council application fees etc.

Cheers,

Pisces133

I agree about the deposit bonds but the people that use them to secure an IP and then onsell would be classified as property traders not investors.

I don’t think that investors will be the hardest hit as we can always write the loss off against our tax.

I think the hardest hit will be the young couple with a couple of kids that have saved and saved to buy their dream house and have over committed with the repayments.

Chris

Liviwell, your luck may be in.

December notoriously is a slow month for most agents.

A lot less people looking because they are busy with going on holidays etc.

So that combined with some buyers having temporarily stopped being serious about buying may make it worth your while to go your hardest.

Less competition because of the above two factors, combine this with an anxious (if not desperate) vendor and the scene is set for a bargain waiting to be scooped up by you.

Cheers,

Pisces133

I am not saying that the agent’s behaviour is justified but it could be that it may just not be worth their while of they are getting half a peanut out of the rental.

Yes, I know it is around 7% but if the rent is low , like perhaps $ 60 or $ 80 or even $ 100 per week the agent’s take is $ 4-20 to $ 7-00 per week.

So if for example there is a reason that there is a need to go and inspect the property the
$ 4-00 or even $ 7-00 worth of petrol your management fee will buy will be used up before he reaches the place so he stops dead in his tracks.
(and, if he is smart, he wouldn’t even bother getting in his car because he knows the money will be spent before he reaches his destination.

So if you are talking about a low rent and, by implication, a pittance of a management fee it isn’t surprising that the agent doesn’t have too much interest in subsidising YOUR investment !!
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Pisces133

Blowie, you might also struggle with a loan dependant on the m2 of the unit.
Several banks would require a higher LVR if the unit is below 50m2 thus increasing your deposit to purchase.

Chris

The best way to be able to sleep at night instead of worrying about whether the tenants will stay on or not is to realise that security doesn’t lie in a tenant but in the location.

If the location is first class and you lose a tenant it is the location which will fill the vacancy quickly.

If you think that prime locations are too dear I suggest you consider whether it isn’t perhaps better to start looking for a prime location in a country town (or one of the suburbs) rather than settle for an inferior location in a major town.

Yes, I know there may be less capital gain but then again, the returns are a lot higher than buying in a major town.

Pisces133

Accidents are natures way of removing the idiots from our society.

I always think of this one when I see someone doing something totally stupid. It controls the road rage.

I’ve found the ANZ not so positive on the income side of things as either Westpac or the Commonwealth. I agree not to give the bank security if you don’t have to, but not at the expense of having to pay more interest than strictly necessary. Having a good bank manager is worth having. Ours has told us about financial products I wouldn’t have known existed if not for him. Every half a percent you save is $10 a week approx per $100,000 borrowed.