Gemma

I would suggest this sound to be more of a business than an investment, but might prove a good investment in the long run adding value to you rural property.

I would suggest you talk to a good accountant who has experience with rural property, as well as many people that can advise you tha may have similart rural properties to what you are planning.

Research and take you time to gather all the fact before getting in.

It took me about 18 months before I took my property investing to the next level, but patience does pay off in my opinion as well as keeping an open mind to both the negatives and positives of any venture or investment.

Nothing is always rosy, but hard work, dedication and a never say die attitude equiped with knowledge and good professionsals around you has done me well

All the best

Cheers
Simon C

Hi Geoff

I grew up in East Ryde and my parents still live their and attended the meeting that ended up decided to stay with current name.

I think the case of East Ryde it will make very little difference to valuations. Why? I do not think much will change in East Ryde (All houses, no units, no ability to DA a sub-division or create duplexes)

I think this is a good thing for future growth, as this is why is such a sort after address in the Ryde area. Out of all the Rydes as you would know, it has a high if not the highest UCV per sqm in the areas for residently property.

The Bella Vista example is a good one but cannot be compared to what may happen in East Ryde, as it has developement opportunities around it that have impacted the value.

East Ryde surroundings as now well developed and is one of the more central areas in Sydney. Its quite easy to go North, South or West or to the CBD given its location.

Its also predominantly owner occupiers and hous proud people. I have notice some have decided to demolish and build given the like the location, but obviously are looking for larger homes, given most built in the early 60’s with three bedder with a garage or car port. Some are also referbing as another option.

THis is all good for future valuations as the market starts to stabilise. I’d be surprised if East Ryde has been majorly effected by the recent down turn given the demand for homes in the areas.

BTW are you any relation to James? Went to Malvina with him.

Cheers
SImon C

Foundation

Where in Sydney are you getting or seeing a better yield?

Cheers
Simon C

Is a good yield, but interested to see some other variables to see if it is a good investment too

Hi C74

Looks interesting. Are you a member? I am wonding what else it has besides the ability to default and search.

If they have a large database of users may be useful, but wonder how well its know and how many members use it, More the better obviously, but never going to be the equiviliant to the what RE property managers have access to.

I self manage 4 of my properties as I bought then with the tenants already in, and they are really great tenants, but if they left, I’d be handing it over for a RE PM to find as none of them are local.

Cheers
Simon C

Hi Daniel

Just to add to Josh-Prestigeloans sensation post, and in particular cross-collateralisation, it can get trick, and also restrictive, or less flexible.

If you have one or more properties securing others, and for some reason you may need to sell a property securing another property, if your valuations do not stack up you could find yourself having to come up with some cash to prop up the LVR or may need to take out LMI should your LVR exceed 80%

Depending on where you invest LMI may not be an issue, other than an unwanted expense. In some region areas LVR’s can be less then the usual 80% and in some cases mortgage insurers do not offer LMI for loan (quite a few mining towns and small regionals as I discovered about 18 months ago, not sure if this is the case, but ask it you are looking to invest in those areas)

I recently went through an exercise of undoing C-C and fortunately all it cost me was time, but some instituation will charge you for valuations and new loan structuring fees etc.

I have basically taken an LoC against my PPOR up to 80% LVR and use this as my deposits and costs engine, then borrow up to the LVR permitted on the property I am buying to avoid the need for LMI.

Now when I decide to offload a property I do not have to worry about cross-collateralisation being an issue for me as it was or could have been.

Its different for everyone, but if you consider that method, get plenty of advise from some experts.

Cheers
Simon C

Hi morocco

I can give you my thoughts (have been investing in property since early 90’s) is ou can proivide some more information.

1) What is the weekly rent
2) What are you being offered the unit for (want to check your 4.75% yield claim)
3) What is the body corp
4) What are the rates council rates
5) Are you borrowing the lot or putting a deposit down (if deposit what percent)
6) Where in Sydney?
7) How many units, villas or t/houses are in the block
How old is the block
9) Where is it located (near train station, shools shopping ctrs)
10) Have you spoken to real estate agents to qualify your friends thought on low vacany rates in the block
11) Have you tried speaking to some residents who live in the block (particular owners who might be on the body corp or be aware of any issues within the block)

Also, what is you investment strategy (buy and hold, buy/referb/sell, something else)

With some more details I could give you my 8 cents worth. You’ll still need to do you own research, but I will at least give you some food for thought

Cheers
Simon

D

I’d have to agree, worse to come, but the economy moves in cycles and you have to move with it. Good management is key!

It is unfortunate some people are getting themselves caught up in difficult situations. Working in credit and risk myself I question the banks generosity, and then realise its a business to them. If you do not pay they will be ruthless, and in some cases if they are nervous they will pull back credit as they can.

Perth has to be a high risk now and towards the end of a great run. Again their will be pockets and strategies where there will be value to extract. Its there and finding it will be harder, but not impossible.

I think any investment where you can see an opporunity to profit and can see you can realise that profit when you need to. You also need to change your strategies i.e. what worked yesterday will not work tomorrow. Let me explain with some real examples.

In 1994 bought a property on a buy and hold strategy for capital gain. In 1999 I bought again, some strategy, but much higher yield (7.5%) using equity and cash to keep my LVR below 80%

In 2002 sold to realise capital gain of 1994 property (52% gain). Paid down loan on 1999 property, and gained line of credit up to 80% LVR (now my PPOR since 2002 and up 62% in value).

In 2004 bought another higher yielding property (5.9%) where I identified an opportunity to make capital gain in the long term (up 23% in less than 22 months)

In 2005 I bought 3 CF+ investments, with yields of 10.8%, 10.4% and 72.2% (not a misprint) Why? Many markets were either stagnant or going backwards or like Perth, had bolted. Why have I done this? The markert in not going to give me a retun by just being in it, so I have to be active in it not passive.

On the 10.8% yielder I spent 10k on a reno, increased yield to 12% on current value and value of purcash by 27%.

On the 10.4% yielder, when bought (vacant now) looking to funrish (cost $5k) and rent on a 13.4% yield, and sell on yield of 10.4%. This would be an increased value on purchase of of 35%.

The 72.2% yielder is purely for cash return. It returned 22% last year (needed some work), and is projected to return 35% this year.

The lastest , it yeilds only 4.9%, but is a sub-dividable corner block with street frontage. Will add 60% to UCV by sub-dividing. Approval already in place. Options are three fold, sell subdivided block to reduceto LVR of approx 80 %, OR relocate home to subdivided block and rent out. LVR reduced to approx 50% and become cash flow neutral, OR sell one of the homes for an approximate conservative net profit of 60k. I like the middle one.

I think there good investment opportunites existing if you change your strategy to meet those changes going on around us.

Cheers
SC

When I was growing up you were either a Ford or Holden man. I had always wanted this roaring V8. A 5.8l Ford Falcon 4 speed

I ended up living the dream when I finally bought a white EF XR8 back in 97.

I now have a 2003 Black Ford Falcon BA GT and the wife a 2004 Black Mazda 6 Classic.

Hi Hutch

Missed that one, where was the announcement?

Cheers
Simon