Forum Replies Created
G’day R
There has to be a point where investors will stop buying in regional areas because the returns will not justify the purchase price. I’m guessing this point will be around 6%.My feeling is that it will take an enormous change in invsetor attitude for the bubble in regional areas to burst, although the current over supply of rental property in some areas may scare a few of the less committed investors away, cooling the market a little, untill things balance out again.
Then again………..[?][
]Cheers
Scott S“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anonG’day
I’m buying IPs with my parents at the moment and we’re all confident that none of us will have dramas! Sure we clearly stated our aims and goals at the start, but this forced us to develope a plan early on. If the pair of you are close there should be no probs, just make sure you know where each of you stand before you start.Kooringal, no offence meant by this, but surely you should have known that you and your father may have issues before you entered into a joint venture, I knew exactly where dad and I would differ and we sorted it before we started. Sure we still have some quibbles but we’ve pretty well got it covered. Both of us know what goes and doesn’t go, as we established it early on, and we’re both grown up enough to sort it out quickly if we do disagree.
What it comes down to is talking it over with your father, and clearly defining what goes and doesn’t go, eg; he wants to reno and you don’t have the funds, you have to work out between you how any CGs and extra income are divided between you. None of us can just tell you what to do, both of you have to be happy and in agreement with the way you divide any income and costs. Who knows your dad might be happy to pay for the renos and just split profits in two. I’m paying all purchase and setup costs on our IPs at the moment, and I’m more than happy with that, because I feel that it’s the least that I can do for mum and dad, and it’s going to benifit me in the end.
Just be clear on where you stand and go for it!!![
] I’ve got no regrets.[]Cheers
Scott S“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anonAfter reading other property forums and seeing unbeieveable things happening out in the field (eg: being in a car with an agent on the way to view a property, having someone ring up from in front of their computer, and after a 2-3 min conversation, put in an offer at asking price and asked for a contract. All this without even knowing the agent from a bar of soap!I was dumbfounded!!!), I do believe there are a lot of people out there acting like lemmings toward property investment.
On a more positive note I would not suggest that many if any of the people here are amonst those investors. I go out buying pos properties (which are getting extremely hard to find because of the lemming mentality), in regional areas, not only knowing that they will cover themselves in bad times, but betting on good cap gains because I’ve bought well. I don’t feel that I’m a lemming!
I’m sure that anyone who’s out there trying to buy properties has missed out on 1 or more because they are not willing to just purchase on the spur of the moment, and seen and heard of extrordinarily silly things happening out there, that somewhat justify David’s post! Leigh, I must admit that I’ve come back for my last trip with a little negativity toward a section of the property investing comunity as well. I just hope for the sakes of the people within this forum that they aren’t amongst them, because poorly researced decisions, based soley on a greater than 7% return, don’t create a good investing strategy. Especilly in these times.
Stay focused guys and don’t let the current hot market stop you. It just means you have to be smarter!!![
]Cheers
Scott SP.S. Leigh, on a lighter note I’ve found the perfect spell checker!!! My girl friend sits behind me at the compter and nit picks my spelling AND grammar! (its easy to tell when she’s not here!)[
]“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anonThanks JohnBoy,I’ve printed this out to put up on my wall!!![
]Cheers
Scott“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anonHi guys,
I’m pleased to say that I’ve benn lucky enough to find several honest agents in the area that I’m buying in. I’ve just returned from 3 days there and I’m happy to say that the only real tactic used, was applying a little pressure to get an offer on the table(the agent suggested the amount which was substansially lower than I was going to offer).
I also got invited around to one agents house and spent hours discussing the market in the region over the last 20 years or so, over numerous cups of tea (it was very informative[]), and strengthened relationships with a few others.All in all it was a great few days, that taught me alot about how agents minds work, and helped to gain me a few more loyal members of my team. When things are as crazy as they are up there at the moment it helps to have an agent who wants to sell to you, in preference to others![
]There are good agents out there, and they will work hard for you if they think your fair dinkum and not just pulling thier chain! Tell them what you want and why, if they tell you your expectations are too high, be able to explain why they’re not! I will get you a long way!
Cheers,
Scott S“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anonHi,
From what I’ve been told you can spend drawn down funds on living without paying tax on that ammount. While the interest payments aren’t tax deductable, the money incurrs no tax because it is only borrowings not income. Not a bad ploy if you already own a neg geared high growth IP, and need some cashflow(so long as the growth far exceeds the interest rate!). You still get stuck paying tax on the CGs that you are borrowing against when you sell though (there’s no avioding the tax man), a point to consider when using up your equity. I hope that made sense it’s been a huge day![]Cheers
Scott S“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anonHi Violeta,
I think your yery lucky to be spending time with Stu(I’m very jealous!!!)[]
It is something I intend to do ASAP, once I get over the hump that is confronting me at present!
His enthusiasm, confidence and knowledge(I could go on) are inspiring to someone like myself who is just starting out!Cheers
Scott S“THERE ARE NO PROBLEMS ONLY SOLUTIONS !”
Hi Guys,
*** LONG SENTIMENTAL POST WARNING ***[
]
I used to believe that people predominantly had good intentions, and most were giving. My parents were both heavily involed in a major service organisation(and still are), and I thought all people were like them! As I grew up people went out of thier way to prove me wrong! I started to see that many of the people in that organisation were in it for thier own gratification, getting recognition for thier deeds, was more important than the deed itself. Many of my friends were friends because of what I could offer. As a result I became a little disillusioned with society and it’s values.I have recently realised why my parents give so much, to the point of sacrificing income to serve!…..
It gives them immense satisfaction to see that they have made someones day, unconditionally!
I strongly believe in karma. Now I see thier yaers of dedication being repayed. Mum now gets paid extremely well to give, and Dad has a group of peers who go out of thier way to help all of us!I don’t claim to be in that 1% but I aspire to be!
I also feel that most people on this forum are much closer to the giving end than the taking end of the scale!Compared to other investing forums I’ve visited, the atmosphere here is amazing! You all derseve to be congratulated for the support that you give each other! (sorry I’m getting sentimental[
])Thanks to everyone who gives selflessly on this forum (even those who are new and only ask questions), lets proove those stats wrong![8D]
Cheers
Scott S
P.S. A special thanks to AD for giving up his time to help me through a bit of a crisis, tonight. I hope he realises how much it helped![
]“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anonhi Dram,
Your probably the person who can best answer your question![] If you feel they are good units, are happy with the returns, vacancy rates, type of tennant they attract, etc. Go for it![]
My advice would be the same as David’s buy the whole block, buying one more is a step in that direction.
The only thing to watch is how your bank would view this, I’ve been told that they like to see a varied portfolio.Cheers
Scott S“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anonHi Mark I haven’t had a chance to thuroughly look into Mt Isa yet (which is silly ’cause my mother comes from there, and I have some good contacts in the place). As you’ve mentioned on another post, the MIM takeover is an issue to be watched. While it has good infrastructure any factors that affect the mines will have an effect on rental demand in the area. I’m currently trying to organise the time to do a bit of a road trip over about 3 weeks up the coast to Proserpine, back down to Rocky and then inland to Isa(groan[xx(]).
Then flying home[]!
It’s just a matter of fitting it in with work which wont be easy!
At fisrt glance it looks good though! it’s just a matter of getting in there and having a look.
My gut feeling is that it is a safe bet, but I’ve been wrong before![]Cheers
Scott S“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anonYou got in before me R! by the way I’m 28 I left that out[
]! Sounds like a life style not a job R []!!!
Seeya“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anonGday Kris,
I’ll start, I’m feeling brave tonight!
I’m a toolmaker by trade, that means I make plastic moulds and other similar stuff. (not rakes and shovels as some think!)
I sort of transgressed into plant maintainance and Breakdown maintainance about 6 years ago ’cause the money was better and I found it more interesting.
I went into business for myself about 3 years ago, it started to go sour after 2 years, when a major customer didn’t pay up and went into recievership[!]!
So now I’m in construction, building, servicing and operating the self-climbing formwork systems, that reduce the build time, of the hirise CBD units I so love to bag[:0)], by about 1/3.
I don’t particularly like my job or the construction industry so I’m keen to become financially free ASAP!Cheers,
Scott SP.S. Somewhere in the middle I sold used cars, then installed car stereos and alarms. I needed a break from my trade!
“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anonThe invitation is open to anyone (I might regret this!!! [
]) I know I’m being kryptic, But if you email me, with your details and ask for advice I’ll help anyone who’s willing to help themselves. I’m not offering a free ride or some magic formula though! I’m just a beginner too!!! But I will steer you in the right direction. Who knows you might learn from my mistakes.[]Cheers,
Scott S[]“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anonDrewboy, get on realestate.com.au, You’ll find heaps!
Hint Look in LARGE regional centres, and talk to agents, these properties are not nessesarily the ones that they advertise!
If you want a hand I’ll point you in the right direction. Email me it’s in a number of places on this forum(You’ve got to do some ground work![])Cheers
Scott SP.S. Yeah right Stu, valuers hate them too“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anonHi 6×1,
If you can find a house greater than 3 years old in QLD without termite activity around it your doing well! The fact that there was no evidence of activity in the house is a good sign!
A recommendation for an invasive inspection guards the inspector against possible littigation in the case of an undetectable infestation. It also provides you with peace of mind![8D]
Don’t let these little buggers dissuade you from a good deal. Just do your usual due dilligence to make sure they haven’t eaten the place out.
hwd007, recommendations for 6 monthly termite inspections are common in coastal QLD.Hope this reassures you,
Scott S
P.S Wellington point will see huge cap gains in my opinion![
]“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anonHi AlanaW,
The main problam with hirise units is a lack of rental demand, due to an over supply of this type of accomodation!
There are more units being built and many more investors buying than tennants to lease these properties. So as a result they will be hard to lease and get lower than predicted returns. This causes thier capital growth to slow(against median trends), making them poor investments.
I can’t speak for Perth personally, but it may be similar to Melbourne and Brisbane both of which I can comment on! Developers have actually caused an imbalance in the demographics for CBD accomodation in these two areas so the figures don’t stack up anymore!
Melbourne has already seen huge depreciation, and brisbane is headed toward a similar senario, with many more developments about to start.
Thats why people bag hirise units on this site![]Hope this helps you,
Scott S“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anon
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]) I know I’m being kryptic, But if you email me, with your details and ask for advice I’ll help anyone who’s willing to help themselves. I’m not offering a free ride or some magic formula though! I’m just a beginner too!!! But I will steer you in the right direction. Who knows you might learn from my mistakes.[
