Yes, I agree with Marissa, Armadale and Balga are similar in many ways (Yarwood, the difference is that you do sometimes get a breeze in Balga).

Balga has doubled in value over the last 4 years due to it being “re-invented”.

Yarwood,

I’m assuming you are looking for capital gains rather then cashflow if you are looking in the suburbs?

Well, I don’t mind throwing a few ideas in the wind as long as noone is going to follow it through and then blame me if it goes the opposite way, everyone must do their own due diligence.

Anyway, here’s my thoughts:

a) Armadale – They currently have a “multi million dollar” city plan upgrade open for public comment. Armadale has already had significant growth over the last year, whether it’s because this has been in the pipeline or whether it was part of the boom I don’t know. My guess is, it may increase further OR the surrounding areas will start to benefit from this and increase. Vacancies rates are low, last time I checked 1%.

b) Rockingham/Waikiki – Some of the suburbs around these areas are still below median price but reasonably close to the beach. I believe the water factor will help prices increase. The train line from Perth to Mandurah will stop in Rockingham too.

c) Ashfield – Close to the river and the city. Has public transport (bus and train), schools and some blocks are big enough to develop into unit sites. Some very old homes here though that aren’t in good condition, depends of whether you’re into developing.

Well, there are my thoughts. We’ll know if a couple of years if any were correct. Hindsight is a wonderful thing.

Regards
PK

No, you have the insurance for 12 months to make sure you are paying your way, otherwise you join, have the baby and leave and the rest of us who stay in it have paid for your treatment.

Ok, looking at it a different way, do you insure your houses, your contents, your cars? Yes, and do you use the policy every year to “make sure you get your money’s worth”? I hope not, otherwise you are having a lot of accidents, thefts etc.

Health insurance is the same, you don’t have it to use it, you have it “just in case”, which is the same as all your other insurances, you have them “just in case”.

Having private health insurance gave us choices. We had our first child in a public hospital even though we had private health insurance (so it didn’t cost us a cent), however, when it was found that she had a cleft lip and palate, we had the choice to go public and wait 6 months for the operation that we were advised she should have at 3 months of age to achieve “best results” or we could go private and have the op at three months of age. Yes, we chose private for that op. We wanted her to have the op at the time that the “public” system told us was best, they just couldn’t do it at that time due to waiting lists and it wasn’t considered “life threatening”.

So, basically, I feel the peace of mind to have “choices” was well worthwhile. I agree I’ve spent more in health insurance than we’ve ever used. But I’ve also spent more in car insurance than I’ve ever used as well and I hope that we never have to use the full value of either, but you never know….

PK

Glenetti,

Coulnd’t get to the website, could you check the address you gave please.

Thanks
PK

Marisa,

From memory I think you are from WA as well. If so get the weekend papers and look under pools in the FOR SALE, there’s a fellow in there that removes pools for a job. Some weeks he advertises for pools to be removed and other weeks he advertises as installing them.

At least if you rang you could find our if there’s a cost or if they fill the hole etc.

Regards
PK

Well, I’ve learnt heaps over the last couple of years, can’t list them all, but here’s the more interesting things I’ve learnt:

1) RE investing means doing lots of K’s. I’ve become very good at playing I spy, counting bridges, looking for green cars and finding suitable trees for toilet stops! Travelling with a 5 year old does make RE investing interesting. [cowboy2]

2) When the kid says “Lets buy this one”, don’t let the real estate agent give him a pen. The great room full of toys doesn’t mean it’s a great house. It probably means it’s time to find a park in whatever town/suburb we are in and let him have a play for half and hour before looking at more houses.

3) Next time the tenant says “Part of the fence has fallen down”, get a contractor in. Replacing 13m of “super 6” fence on a 41 degree day and coming across horrendus tree roots is not fun. [weird] (Thanks to hubby it was finished, he was star! And yes, I’m well aware the stars were out by the time he’d finished).

4) All DIY jobs take at least twice as long as you planned.[blink] And you become very good at nailing left over bits of wood together for the 5 year old who’s idea of helping is recycling the leftover bits into swords. [medieval] Oh, and mustn’t forget the tile cutoffs become his “special rocks” which just have to be taken home for his treasure box.

I could go on but won’t, you get the idea. It’s all memories and part of the learning process and in hindsight part of the fun of it all.

From my experience the valuations are usually a bit under what I’d expect to get ie: the last house I sold was valued at $235,000 by the banks valuer but sold at $250,000. (I guess if you take out cost of selling then it’s about right).

Regards
PK

Sis,

Well, we’re focussed on our goals and getting there although a little slower than planned, but very happy with our progress.

I often hear people blame their circumstances for where they are at, without doing anything to help the circumstances they are in. And I often see one of my sisters appear bitter that we are where we are (fits in with Kay’s saying above). Yet, she doesn’t seem to see the effort, the hours, the hard slog and the sacrifices it took to get started. There was nothing stopping her doing the same initally, but instead she chose to live life then, go out and spend etc.

OK, some circumstances we can’t change, but some are self made and some we can improve after they have happened. There are some hard luck stories I wouldn’t want to live through though and I do wish those poeple luck in just battling through to survive.

Good luck to everyone on their journey to achieve their goals.

PK

Michael,

You have some valid points, but when you say “commerical loan or personal loan, it is all the same money”; well, it is be true it’s same amount you lend, however the difference in repayments between a commercial loan and residential loan are quite significant and may tie the persons finances up too much, particularly if on a low income. So this does need to be taken into account when working out what is affordable.

PK

Are you also aware that this would possibly be a commercial loan rather than a residential mortgage as it’s more than 4 residential dwellings. Talk to your bank and get the relevant information, would they do it as a residnetial mortgage or not. If it is commerical what would the interest rate be and over what term would they do the loan.

On the surface it sounds great, but the repayments levels on a commercial loan may affect your servicability so it may pay to check this out.

Good Luck.
PK