Forum Replies Created
Hi Island girl,
What exactly do you mean by gearing?
Do you mean borrow against for more properties?
Basically i think that in the current market (Property) you may be able to get better returns with your money in a managed fund. If i find a fund which pays anything in between 20% and 50% it should do better than property in the next few years especially compounding.!
I would still hold property but would sell or refinance to invest in a managed fund. As well a managed fund is considered as income to banks when you go to borrow for property
Just my opinion.Dom [biggrin]
Hi jeremyjysk,
Compared to the rest of Australia i believe that this area is, good value for money CURRENTLY. The property i recently purchased may be positive or negatively geared depending how you look at it. You can work it out for youself here are the numbers Purchase price plus costs, $380,000 rental return per month $3520. IO 25 year term $3600 rates $700 insurance per year. I put in 25 % deposit.
I dont particuly buy in the hot suburbs because if their hot their not. Its to late to buy. Most important thing is to do your numbers a check all costs before proceeding. This and other forums are very good for getting an indication on where you can make some nice capital gain.
I have been buying and selling property for twenty years and to tell you the truth i still have not worked it out. But i have refined my experience along the way . I am nowhere near rich and i still work on a casual basis with a boss and all.
If you do a search on Frankston her and the somersoft Forum you will find more information on Frankston then i can give you.Good Luck All
Dom
http://en.wikipedia.org/wiki/Frankston,_Victoria
http://www.theage.com.au/articles/2003/03/07/1046826530324.html
[biggrin]Hi,
I thought people might be interested at the positive signs of the Frankston market at the moment. This property is producing good rental returns for its proximaty to a major city (Melbourne). My opinion only.
http://www.oliverhume.com.au/l_frankston.html
http://www.domain.com.au/Public/SuburbProfile.aspx?searchTerm=Frankston&mode=research
http://bulletin.ninemsn.com.au/article.aspx?id=177911
Dom [biggrin]
Hi Sanjiv,
I have a property manager which takes care of any problems but so far no problems at all. They charge me a 5.5 % management fee which i think is pretty good. have a look at this link about upcoming projects it is quiet interesting. http://www.frankston.vic.gov.au/About_Frankston_City/Major_Projects/index.aspx
Dom [biggrin]
hello romina and luca,
My personal preference would be to stay landside as the majority of the population and investors prefer these areas.But if it where for personal use or for the long term (20 years or more) then it could be worth investigating further. Prices are slowly rising in brisbane because of the amount of people and work available so for me i will stick to the mainland.
Dom [biggrin]
Hi Alee,
My suburb in albany creek north of brisbane as risen significantly in the past year,. and it is only 15 klms from brisbane. It is still possible to pick up a house in the low 3s ,””but you better be quick””. other suburbs you could try, eatons hill brendale, warner, cashmere all around 20klms from city.
Dom [biggrin]
Hello sanjvi,
This is precisely why i have bought in frankston this year.I beleive this suburb which is close to the ocean has a tremendous amount of potential which has been overlooked for many years.
And i think north or south of frankston wont be a lare price difference in the future. I was fortunate enough to find a positive cash flow proerty but my next purchase would be an old house on a subdividable blockDom [biggrin]
Hi guys,
I thought this article would help and i have included a link to the Somersoft forum on the bottom of the page about Melbourne property.
Dom
Hold onto property’ in 2007
By Rosemary Desmond
January 09, 2007 05:41pm
Article from: AAPFont size: + –
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UNCERTAINTY over interest rates could make 2007 a year to hold onto residential property in Australia, an online survey has found.
But the outlook varied from one capital city to another, said property analyst Michael Matusik in the Matusik Property Insights annual outlook survey.Mr Matusik said people should hang onto their homes in Brisbane this year, but those in Perth or Hobart could find 2007 a good time to sell.
Sydney and Melbourne would show some price rises after a two year slump.
“Overall, 2007 looks like a year to hold residential property,” Mr Matusik said.
“We believe 2007 will be largely a buyers’ market, offering cashed-up investors some very good long-term opportunities.”
While other areas of the country were looking flat, Queensland’s market prospects were more buoyant, particularly inner Brisbane, Ipswich to the west and the Gold Coast-Tweed region.
“Most respondents believe Brisbane’s middle ring – an area between 5km and 20km from the CBD will present strong opportunities, along with Ipswich and the Gold Coast-Tweed coastal strip,” Mr Matusik said.
Mortgage broker AFG said three interest rate rises in 2006 and the fear of further rises in 2007 had prompted one in four mortgage holders in November to fix their rates.
This was the highest figure ever recorded for this type of loan.
Despite the rate hikes, Australian Bureau of Statistics (ABS) figures showed established house prices grew 9.5 per cent nationally over the 12 months to the end of September.
Perth was the star performer, soaring 45.9 per cent while Sydney edged up a mere 1.4 per cent.
Growth in new home prices was more subdued nationally at 2.6 per cent, less than the rate of inflation.
But for long term property growth, there were still some real estate bargains around, a survey by Australian Property Investor magazine found.
Rod Cornish of Macquarie Bank said Sydney still had the best opportunities in the long term and Melbourne buyers should look to fringe and bayside suburbs and the older “leafy” suburbs.
Gavin Hegney of Hegney Property Group liked the coastal areas on the fringe of capital cities or within one or two hours’ drive but in the long term, Queensland and Western Australia were the best prospects.
Simon Tennent of the Housing Industry Association (HIA) said Maitland and Lake Macquarie were good buying areas because the push out of Sydney northwards was likely to continue, while Sandra Peachy of valuers Herron Todd White said the Sydney suburb of Marrickville was good value.
But “Reno King” Geoff Doidge said he was buying in Brisbane because of its population growth and major infrastructure changes.
“I wouldn’t invest in an area that’s losing population, and I think that’s partly what’s happening in Sydney,” Mr Doidge said.
http://www.somersoft.com/forums/showthread.php?t=28622%5Bbiggrin%5D%5Bbiggrin%5D
Hello,
I have just settled on an 8 bedroom student accomodation investment property. The internet is paid by me and the electricicty is capped at $400 per quarter anything over and it is split between the students.
Each room has furniture bed ,table,etc .It has 2 self contained kitchens with all cutlery. The laundry has a washing machine and dryer. There are 2 bathrooms a large communal lounge and dinning room with lounge chairs tv, dvd,table and chairs supplied by me.
Each student is paying $110 per week per room. And the leases are 10 to 12 months long.
Hope this helps
Dom
[biggrin]Hi AJB,
Can you tell us some numbers,how much you paid for property how much rent are you trying to achieve for each unit. This may help with some of your questions.
Dom [biggrin]
http://entrepreneurs.about.com/od/gettingstarted/a/passiveincome.htm
http://ezinearticles.com/?5-Ways-to-Make-Money-Fast-and-Easy&id=90552
Thought this website had a good discripion of passive income.Dom [biggrin]
HI,
Frankston has been an area mentioned several times here. I am in the process of purchasing a property near the university myself.
I am in brisbane and the area reminds me a little of the northern suburbs of brisbane before it became popular.( Redcliffe ,Sandgate, Shorncliffe) I beleive their is much opportunity in creating positive or cashflow positive income in this area. Their seems to be quiet a few properties with subdivdable land. Hope i am right.Dom
[biggrin]FEARS of “absolute bedlam” in the rental housing market are becoming a reality as vacancy rates drop and demand peaks, sparking calls for a national affordable housing policy.
The rental vacancy rate has dropped from 1 per cent to 0.5 per cent in Adelaide for the first time in three years, and Real Estate Institute of Australia president Graham Joyce said vacancies in Perth, Sydney and Melbourne would also take a dive early next year.
“If you’re at a 0.5 per cent vacancy rate, January and February (the peak months) are going to be absolute bedlam,” he said yesterday. “Rental vacancies are going to be a huge issue throughout Australia.”
Perth recorded the nation’s highest vacancy rate in November at 2.1 per cent, and the rate was likely to drop below 1.5 per cent early next year, he said.
Mr Joyce predicted Sydney and Melbourne would also fall well below the 1.7 per cent and 1.6 per cent vacancy rates recorded last month. “REIA is looking at indexation of the first-home owners grant,” he said. “Comparing house prices, $7000 in Sydney is different to $7000 in Adelaide.
Federal Community Services Minister John Cobb did not return calls.
South Australian Housing Minister Jay Weatherill said he had warned the Howard Government for the past five years about an affordability crisis.
He called for a federal housing minister to address affordability problems.
Adelaide renter Darren O’Grady, 37, said rents had sky-rocketed to the point where he would be unable to find a house comparable to his Teringie home if he lost his lease. “I’m on the offensive and working hard so I don’t get booted out.”
He hopes to buy the home he rents. “This is the first house that’s made me want to rise out of the doldrums of rental no man’s land.”
Hi Bridgebuf,
Simply based on rental yeild $300 * 52 = $15600 / 160,000 * 100 = 9.75 % rental yeild.
Repayments on $160,000 0n 8.0% interest rate is approx $1070 per month. Rent is $300 per week * 4 = $1200 per month.
Just a rough example to show the rent is higher than repayments monthly.Their are many other factors involved such as rates ,insurance maintenance etc.
Not to mention if you can find a property in mount isa with only $150 rent a week i would sign the longest lease possible.
So the yeild would even be better.Dom
[biggrin]
Hi smiley71.
I dont know no what you are trying to achieve here so i will presume you are trying to create wealth in some sort of manner may it be short or long term.
Since you are starting out and you are on a single income ,personally if i were in your situation and had time to spare i would look outside the square. Your deal which you have posted will take you longer to create wealth. Simply because the rent does not cover the repayments. I am not saying do not move forward with the purchase but if you have posted here and are serious you should expect Criticism.
If this link works this is the type of deal i would be cosidering.
http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=103692250&f=0&p=10&t=res&ty=&fmt=&header=&c=40527609&s=qld&snf=rbs&tm=1166960348This is one example and their are plenty more if you are willing to wait..
Dom
[biggrin]
Hi grossrealisation,
I just simply want to open a bank account for now to transfer funds into china for future opportunities.
Dom [biggrin]
Hefty rent increases squeeze families
By Melanie Christiansen
December 19, 2006 12:00am
Article from: Herald-SunFont size: + –
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WELFARE and housing groups are demanding limits on how much – or at least how often – landlords can increase rents, amid reports of rent hikes as high as $90 a week.
The latest statistics from the Residential Tenancies Authority show the median weekly rent for a two-bedroom flat in Brisbane jumped $30 in the year to the end of September.
But with a critical shortage of rental accommodation in Queensland, the housing advocacy group Queensland Shelter said many families were now being hit with much bigger rent increases.
“We’re hearing quite a few stories where rents are being put up $50 a week,” Queensland Shelter executive director Adrian Pisarski said. “It’s extremely worrying, especially in the lead-up to Christmas, because it will almost certainly lead to an increase in homelessness.”
One West End family is among those facing difficult decisions this Christmas, after receiving notice of a fourth rent hike in two years.
From this Thursday – just four days before Christmas – Kate Raiti and her family will have to find another $30 a week to pay their rent.
“There will have to be a lot of adjustments,” Ms Raiti said. “We’ll have to cut back on groceries.”
Ms Raiti is reconsidering whether she can afford to stay at home to look after her daughter.
Tenants Union Queensland co-ordinator Penny Carr said thousands of families – especially those on very low or fixed incomes – were facing even more difficult choices.
“We constantly get calls about rent increases. The largest one I’ve had to deal with was a $90-a-week rise,” Ms Carr said. “People out there are really struggling.”
The Tenants Union has asked the Queensland Government to limit the number of times landlords can increase rents in any one year, while the Queensland Council of Social Service wants the Government to consider capping rental increases.
QCOSS director Jill Lang said that would help combat alarming reports of bidding wars for rental properties.
“We are getting into a sort of dutch auction situation where the rental property goes to the highest bidder,” she said. “The sky’s the limit in that situation and those on low incomes will miss out every time.”
But Real Estate Institute of Queensland chairman Peter McGrath said any cap on rent increases would backfire.
The Queensland Government is expected to release an options paper on changes to the laws governing residential tenancies in March.
BNB 23.510 -0.490 23.510 23.540 23.740 23.740 23.500 1,197,854
Bruham
My property portfolio does not drop this fast in one or 2 days!You have made a healthy profit but $23.51 * 30000 = $705300 today.Thats $41766 less then you had when it was $24.90.
Lets hope they dont drop like amp or telstra.
Dom [biggrin]
Hello,
For people trying to buy a commercial property the biggest hurdle is trying to come up with te 25% to 30 % deposit because supposidly it is of higher risk to the banks.
I dont communicate with the banks directly i prefer to use a broker. It is possible to put a 5% deposit on a commercial property but what value is this to someone when the interest rate is over 9%.Dom
[biggrin]
