Forum Replies Created
Hi,
Last year I managed to find myself a +ve cashflow property in Townsville. It gross yields at 7.4%, which if anything works out only just +.
I went up there for a week, and done some serious house hunting and investigations into different suburbs and areas. Like in most cases the higher yielding properties are normally in the less desirable areas.
Townville I believe is a pretty good place to invest, with the military presence, a uni, and northern queensland major hospital. Thuringowa City which is literally next door to Townsville is also doing very with alot of new developments and money being poured in.
I also nearly bought a block of units up there yielding 12.3%, but some bugger beat me to the post!! One thing to bear in mind, there is a shortage of cheaper style accomodation
Still if you have with properties yielding at 7%ish, I still see them popping up… I think 6-7% is about the average now for up there…Cheers
Rob
Looks like SIS has gone all quite about giving out his accountant details….. I wonder why…..
Rob
Thats interesting Westan when you mention about trusts. I recently looked @ homepath for a loan for use in a trust, with me as an individual trustee rather than corporate and they told me they do not support trusts full stop.
Just out of curiosity, I phoned them back a few days later just to make sure that they didn’t, as I thought they might of been mistaken. I spoke to a team leader and after some investigation he also confirmed they don’t support trusts either with individual or corporate trustees.
So how the bloody hell did u manage it… haha..
Well done, next time I get a loan I will try with Homepath a bit harder !Cheers
Rob
lol [
]it has been very funny reading everyones responses…..
Definately be interesting to see the figures on the deals in the end….
I am a little suprised with Steve McKnight endorsing such a posting though…
However with DD being part of the MAP group I imagine they have run out of money for any more deposits. So Steve has asked them to be inventive in creating some more $$$ for deposits. Well thats my hypothesis on it… and well give them 10/10 for trying it on with us punters !!
Rob
Hi,
Thanks everyone for your contributions. I was up in Townsville recently and managed to chat to several RE with regards to management fees.
I think the level of service varies considerabley between agents, and its always hard to tell what you get for your money. Some of the points we looked for was how many they had on there rent roll, and how many staff they had in the rental department. It was quite astonshing some of the things you find out. For example one RE agent said they had 700 properties on the books, but only had 4 full time staff. There service included quartely checks on the properties. A quick calculation, and it would mean that a single member of staff would have to visit 2-3 properties a day for every working day of the year!!!!
We found most of them start between 8-9%, but nearly all of them are negotioable to 7.5% apart from a couple. I found Nicholson First National in Kirwan would not budge from there 9.35% inc GST, which I found rather strange. It wouldn’t of been so bad if they were cheap to start with.
In the end I decided to go with Knobel First National, who would do 7.5%+GST if I had more than two properties otherwise it was 8%+GST. It wasn’t the cheapest option. But they seemed very accomodating, and were willing to customise there service to our individual needs. Only time will tell whether it was just hot air
Rob
Spryan,
I think I know the units you purchased on 29 Grace St…. Just a word of warning, I looked at those Units just for the same reason you did, looked extremely cheap. But just a word of warning, do your due dillegence as there are some hefty costs involved with them… ie. they do not meet fire regulations, minor structural damage.. in a flood area, so when a flood occurs you have to get the placed cleaned, and house the tennants….There are a few other things, but just getting the fire regulation approval is a few thousand dollars…
If you look @ the other blocks of units in the area, this block stood out as being exceptionally cheap, and there is reasons for that…. Anyway I suspect you already know all this…..
Happy Investing
Rob
[] innisfail 1 hour south of cairns is going great at the moment,rental demand is extreme and prices are dead cheap,we just bought a block of 4 units for 165,000 rented out for 355 per week.if you need any more advice email is [email protected]Hi Kate,
Great to hear you are finding some of these properties, and its definately a good idea to setup a new forum or similar.
In the meantime if you wish to offload the excess properties, obviously for some sort of finders fee then drop me a line on [email protected].
Cheers
Rob [
]Michael,
No where in the book does Steve quantify the number of wraps, b&h, and leases he has. So where you get your figures from I don’t know.
The book eludes too that a majority of his wealth was done through b&h. Only towards the end does he talk about wraps, and leases. If there was a Joe Average on the street, the book would give the impression that b&h was Steve’s main strategy, but this is far from the case.
Steve has been very clever in composing and structuring his book, as well his marketing. Good on him, I reckon.
I also look at it in a pragmatic point of view. 3.5 years ago he started his venture. He has made significant money, but being a prudent business person I am sure he saw that the property market was slowing and exceptional deals were getting to hard to come by.
Steve throughout his book is an advocate for making money with least effort. So considering the property market, and Steve being a smart guy, he has now sold and marketed the strategy he had been using for the last 3.5 years. Whether it is applicable now, well… it probably is but not with the rewards that Steve initially reaped… ie. it takes alot more time and effort, and the rewards are probably smaller than 3.5 years ago. So Steve has compensated for this now, in doing the book !
Smart guy if you ask me
Thats my morning thoughts
Cheers
Rob
Still if you have with properties yielding at 7%ish, I still see them popping up… I think 6-7% is about the average now for up there…
] innisfail 1 hour south of cairns is going great at the moment,rental demand is extreme and prices are dead cheap,we just bought a block of 4 units for 165,000 rented out for 355 per week.if you need any more advice email is 
