Forum Replies Created
Hi Keen2learn,
So how much was the course?
How many days/hours?Thanks,
Mannie.“It’s too late to go back and make a brand new start, but from today you make a brand new end”.
Steve and Sooshie,
Thanks for the encouragement.
Mannie.
“It’s too late to go back and make a brand new start, but from today you make a brand new end”.
Hi Ozchick,
To me one of the most important prerequisites to investing in property is to have good money habits. You don’t seem to have this. Both yourself and husband are on $110k per annum with no debt tells me that. I understand that you chose to rent first instead of buying your home because of the lifestyle you are living, and yes that’s fine, but where is the rest of the money going? It seems to me that you don’t have $10k-$20k saved. A banks general criteria for DSR (Debt to Service Ratio) is around 30% for a couple, meaning that they believe couples can save at least 30% of their total income. Are you currently achieving this?
If I’m correct, then your solution would be first to address this money habit issue first.
Then you need to decide which way do you want to go.
What do you want to achieve?
Do you want to reduce some income tax?
Look at negative gearing perhaps.
If you do have good money habits but saving money is very difficult then look at some cashflow positive properties.
You have many options.Only you can decide what’s best for you, what you feel most comfortable with, once you have determined that, then you will know what strategy to implement.
Then we can help you with ideas.Regards,
Mannie.“It’s too late to go back and make a brand new start, but from today you make a brand new end”.
Hi David U,
I’m just curious about your search for cashflow positive properties overseas. Have you found any? What was the deal? and where?
Can you give us some ideas of what is available out there?Thanks,
Mannie.“It’s too late to go back and make a brand new start, but from today you make a brand new end”.
Hi,
I also received the letter due to having attended many seminars promoted by Break Free Events. I have booked myself into the midday session and I’m looking forward to hear what this guy is all about. I have also never heard of him. The last free seminar that I went to was conducted by the Owner of Break Free Events. The way I see things whether it’s good or just another one of “those” Seminars, there is always the chance that I may come out with something new that I can use.
Regards,
Mannie.“It’s too late to go back and make a brand new start, but from today you make a brand new end”.
Hi Gus,
Cut price rates?
Some yes just like in many other suburbs (for many different reasons), but the majority come from certain sales agents telling their investor clients that they will get a much higher return. Some provide their clients rental appraisals that are just too high. It goes back to what I always say “do your own homework”! All it takes is to look at the internet, paper or call agents in the area. Believe me, many people do not do that.As in yields in this area, the best you could do is 5% at present. It averages at about 3.5%, which represents a bad return. You really only rely on future Capital Growth here.
I don’t believe that the area will have a suffocation or oversupply of apartments. Even though it is still 12 years from all to be completed. The residential part of the Docklands will only be 52%.
It is expected that 6,000 residents will be living in the area in the next few years. Keep in mind that there will only be 8,000 apartments available.
I believe currently the number of residents is well under 1,000.NAB Headquarters once completed next year is expected to have 4,500 workers. Don’t forget Waterfront City (almost $1 Billion) even though only about 80% of it will be completed by 2006 (Commonwealth Games) it will mostly consist of world class retail, commercial and public entertainment. Don’t forget other things like Central City Studios, The Ferris Wheel, Digital Harbour, Bureau of Meteorology, Moomba, Times Square (no name for this yet),etc.
Docklands Authority want this area to be rich and visited by many tourists. The place to go!
I don’t want to go on and on. I myself have invested in the area.
In regards to LVR’s – First of all LVR’s are quickly being phased out. What banks are now using is;
NICL (Nickel) Net Income Commitment Level.Total Debt Commitment
Total Net Income – Living ExpensesIn regards to a bank’s risk profile for inner city apartments is based on many points of criteria. Banks (in general) have their criteria attached to postcodes regarding inner city. I know the 3000 postcode is a big issue with banks where in general the best you can get from them is 70%.
Also remember it is also difficult to get finance from many banks with anything smaller than 50 square metres in size.
The Docklands is not the CBD it is a suburb of it’s own with it’s own postcode 3008. I personally have not seen or heard of any issues in regards to the lending towards apartments in the Docklands. Of course all banks are different.Another important thing to look at when investing in this area is the price per square metre. Note: do not include balcony size.
Gus, that was a very good post, as you brought up some very good points.
I hope this helps Fernando even more.
Regards,
Mannie.“It’s too late to go back and make a brand new start, but from today you make a brand new end”.
Hola Fernando,
I work as a Property Investment Consultant in Melbourne. The reason for me being on this forum is to talk about my passion – Property, I’m not here seeking business. So what I say will be unbiased and to the point.
So let’s start by answering some of your questions:Fernando your financial advisor has told you it’s a fallacy that the property market has been oversupplied – Not all true! yes there are many suburbs and also certain pockets of the CBD where there is not much construction activity and there is some demand, but then there are other pockets where you can count more cranes than cars.
Your financial advisor is probably advising you on the basis of a government study that says Melbourne will need a further 420,000 new dwellings in the next 20 years to supply the demand.MJKMJK is correct in saying that the vacancy rates for Melb CBD is 7%. Fernando is also right in saying that it means that 93% is leased, but think about it a little more – 7%? what does it represent as in a total of units? 500? that’s a lot of units vacant if you ask me.
Let’s also put to rest about a vacancy rate issue at the Docklands – there isn’t one!
There are only two precints in the Docklands where some construction has completed (in other words settled) – 1. Mirvac’s Yarra’s Edge and 2. MAB’s New Quay.
Let me tell you that there are only 3×3 bedroom and 1×2 bedroom apartments available for rent in this whole area as of two weeks ago.
Always do your own research and don’t depend on others thoughts (including mine).
Ring Metro Real Estate at New Quay and also ring Mirvac and ask them for the rental availbility list.Fernando – does your financial advisor invest in property?
I hope this helps.
Regards,
Mannie.“It’s too late to go back and make a brand new start, but from today you make a brand new end”.
Hi Nelutha,
There are many great books to read. My favourite is Jan Somers – “More Wealth through residential property”. So simple.
You will not be dissapointed with this book.Good Luck,
Mannie.
