Interesting links!

I’m not sure what to make of Jenman. I have enjoyed reading his articles, there’s some good information there.

However, reading the ‘property revolution’ article I have to say – the man’s a damn communist! Basically he’s saying that property investing is unfair because rich people make money, and that this is morally unsound. The revolution is coming! The poor will not stand for this! From memory, these are all old ideas, and proved very popular when preached in Russia in 1917.

Presumably as well as giving all our property back to the proletariat, all companies will need to be nationalised as well. So no stock trading either, folks.

He also quotes Gandhi:

“Wealth without work is the first deadly sin.”

Gandhi was a good fellow and all, but when it came to economic policy he was a nutcase. He basically wanted India to revert to an agrarian society where everyone spun there own cloth. I guess what I’m trying to say is that I’ve made more money on the property market than Gandhi ever did, so I’m suggesting that he shut up and stay out of this.

Anyway, what’s this crap about wealth without work? I’ve been renovating for two months solid now, and it’s not exactly like sitting around at the beach sipping margaritas. This is my first reno, and I must say that I think doing my ‘normal’ job is easier!

Neil ‘Trotsky’ Jenman. Where’s J Edgar Hoover when you need him?

How y’all?

My mum’s here from Nashville at the present. I’ll let her tell you what she knows. She is clueless about property (sorry Mum!)

Rob’s Mum:

Buy not rent

will answer any queries
Mum

Mmm. very helpful I’m sure. My parents own a townhouse 3 bedroom 2 bathroom cost US$195,000 in 1999, valued by my mother now at $250,000. Strata fee $352/month. Rent $1,500/month. That makes it 7.2% ROI by my calculations before strata fees, 5.5% ROI after paying strata fees. I’ve visited and it’s in a great location 20 mins to downtown, beaiful community atmosphere, pool, tennis courts, clubhouse etc.

She’s just told me you should buy in Cool Springs at McKay’s mill. Based on her previous property record, I therefore suggest you avpoid this area like the plague

Well, I made it to the meeting and now know more about depreciation than I previously did. Where were you all? I didn’t recognise any names from around here, was anyone else from PI.com there?

I think it was a valuable experience to be able to meet face to face with others interested in property investing, and complemented the on-line discussions we have here well.

Good value for a $1 investment and I’ll be back if another meeting corresponds to me being in Perth.

red stars?

posts does it take

I’m not sure that I’ve learnt much about investing from this thread…

but as I understand it, I can still get some of those blue stars by consecutive posting – but I just have to be willing to invest more time to do so (thanks to the 60 seconds between posts rule). It still sounds like it’s worth it to me – those stars are cool!

I did consider buying one of those Brighton blocks, I was advised by a few people that I might have to camp out. Interesting given the price is really not that cheap IMHO. It wasn’t a spectacular release, as the blocks weren’t particularly close to anything of interest.

There’s still quite a bit of land available in Quinns Rocks, but none of it is very cheap. I think I’d still pay $210,000 to be closer to the beach as opposed to paying $140,000 to be close to nothing much in Butler.

I was very tempted by the Ocean Lagoon blocks in Yanchep – this price of the one I was looking at was $230,000 or so, with decent ocean views if you built a two storey.

Things do seem to be very active in the northern beachside suburbs at present.

I agree with the comments re: proximity to the beach. Southern suburbs are booming, consider the northern suburbs as well. I’ve been looking around Quinn’s Rocks, Yanchep and Brighton/Butler over the last month. My strategy basically has been to pick one area that I personally like, and get to know it as well as possible. For others, inner city is the way to go, but as it’s not a market I understand I’ve stayed away, despite the claims or a building ‘reverse ripple effect’

In the current market, you do have to act decisively once you find the right house, as there’s a shortage of stock on the market.

I’m interested in Yanchep as well. I like the idea of anything coastal, and Yanchep does have the lagoon.

The reason why I bought in Quinns rather than Yanchep was proximity to CBD, and its impact on furture sales value. Yes, Marmion Avenue does make it a shorter journey, but equally it opens up a large area of coastal land for further development. You can fit several new suburbs between Quinn’s Rocks and Yanchep.

I also don’t really understand the nature of the local Yanchep economy ie is there enough jobs to support all these new people who’ll be moving in, or is the plan for new Yanchepians to commute to Perth to work?

On a more positive note, as an ex Victorian I know that people will happily buy beachhouses 3+ hours from the CBD as weekend getaways, so if you can build something with ocean views in Yanchep it may may be of future interest from this point of view.

I’m interested in other people’s thoughts on ‘Why Yanchep?’. I’m moving into my IP in Quinns this afternoon (I’ll be a Perth resident for the first time ever as of about 7pm – yeah![biggrin]), so I think a quick dash up the coast to see what’s happening at the Capricorn development may be in order.

I went through the process with Brett and Alana White in Perth (they’re ‘friends of a friend’). I found them to be very professional and helpful, and believe they’re straight shooters. My friend (wife’s cousin) who I met them through does a lot of small-time property development in Perth, and they’re good mates of his.

Anyway, here’s the URL:

http://www.mortgagechoice.com.au/brett.white

In the end I didn’t use them because I could get a 0.25% better deal through my professional association, which was unusual. But I felt bad not doing so becuse they’d been so helpful!