Forum Replies Created
Hello JB.
Are these power lines by any chance the ones through Narre Warren North?
I am interested in the area but also concerned about their impact on the investment re resale/development.
It’s great they have allowed for increased interest rates but I would be wary about the compounding capital gains & rent increase rates of 7% each.
I have used more conservative increases at 4%. Over 10 years this reduced your capital gain by $170,417 & your income by $32,285. Does the analysis look as attractive now?
There numbers may not factor in repairs & maintenance & a multitude of other property expenses.
Dave
Thanks Freckle.
I read some reviews on the somersoft forum and have bought it.
I'll be testing it tonight.
Cheers,
Dave
Thanks Lesley.
I will check them out.
Regards,
Dave
Thanks JacM
I would prefer to keep the management located in close proximity to the property.
If anyone has had experience (good or bad) with property managers in Corio it would be much appreciated.
Regards,
Dave
Hello Srini,
I like the idea. Very simple & quick.
Personally I would prefer to see it in excel whereby when I change a variable the charts automatically update so I can tinker with "what if's".
I also tried to download to excel and nothing happened.
Regards,
Dave
Thanks Shape.
Shape,
In this example is the interest on Loan 2 tax deductible?
If not, what alternative solution would you recommend if you still needed the $100k for a IP deposit?
Regards,
Dave
I recently looked as Karratha as well and it does seem that significant growth has already occurred.
Prices will continue to rise as more projects come on board and employees move into town.
I was simply out-priced so I stopped looking into it.
Good luck if you can afford to enter the market.
Cheers,
Dave
Yes Ryan there is the possibility that prices have peaked and the growth will not continue into the future.
And usually all good things come to an end.
In saying this though there is no reason why a suburb can not out perform other suburbs in the long term.
If the suburb is managed well by the council, desired by the public and attracting investment $$ property prices will increase favorably.Cheers,
Dave
Hello Beans,
I just had a look at InvestSmart to see what you were referring to.
1) Is Long Term Trend the long term trend up until now or what is projected?
2) When they talk about 12, 24 & 36 month growth is that past actual or future predicted growth?I believe both growth measures are based on past data and are not forecasts.
The long term trend would be calculated on the past 5-10 years and obviously 12, 24, 36 is the past 1 ,2 ,3 years.When looking for a good growth suburb a long term average of 10% p.a is good.
This shows the suburb is continually increasing each year and isn't just the flavour of the month or affected by statistical outliers.Keep in mind statistics are only as good as the data and past performance does not equal future performance.
Cheers,
DaveBen and Mina,
In regards to the real estate agent you could use the same but I do not see it as a necessity.
I believe it is important to use a local real estate agent when selling as they should have the best knowledge and access to potential buyers.Paul,
Would you be able to elaborate on the pest inspection technology and how you find it useful.
Cheers,
DaveAndrewH wrote:meh…Meh… What?
Meh you can't be bothered reasearching?
Meh it is too hard?If this is the case then you don't deserve 10% returns let alone a cash flow positive property.
Dave
Below is a link to an interesting article on the shortage of supply of housing
http://www.theage.com.au/opinion/no-room-for-nimby-syndrome-20100405-rn08.html?rand=1270465134946
Cheers,
Dave
I do not have kids but have grown up to be financially literate and I believe it is due to a few factors:
– Encourage and promote learning maths from early primary school to year 12.
– Promote business studies (accounting/economics/etc)
– Encourage them to get a part time job when they hit 15
– Do not give them everything they want. Make them decide what is more important (opportunity cost – economics)
– Explain how you make your financial decisions without dissolving to much information and overwhelming them.
– Support them to reduce their financial decision making fear.My sisters and I have been spoilt financially over the past few years by our parents but there is a big difference between how we deal with money.
Cheers,
Dave
Duckster I agree with the majority of your statement as it exactly what you find in an economic textbook.
However I don't believe property prices will drop anytime soon.
This is due to many factors, some of them are:
– Population growth (immigration & natural) -> Increasing Demand
– Land restrictions -> Limiting Supply
– Credit Restrictions -> Limiting SupplyYou may note I have not included yields & interest rates which are fundamentals when accessing investment options.
In my opinion I believe the property market is dominated by higher net worth individuals & wage earners. These individuals have a greater ability in the long term to ride out high interest rates & lower yields to create wealth. This is the opposite for low net wealth & income individuals as it means they are unable to enter or remain in the market. If less people are able to enter the market and create supply (building new dwellings) this adds further pressure on demand (rental demand)
In summary I believe there is going to strong property yields (rent + capital gain) for the next few years.
Feel free to disseminate my post and disagree economically or logically.
Cheers,
Dave
Thanks Duckster, Ryan and Geraldine for your suggestions.
My partner and I will be scouring ebay, graysonline and budget furniture stores.
We are actually going to check out some ebay furniture tomorrow night!I will look more into the bargain shopper website as it looks like a great source of information.
Cheers,
Dave
Thanks Banker & I Dream. I will contact the bank tomorrow.
I will update my progress.
Clint also keep in mind of holding costs.
You are looking at a loan approx 440k not including purchasing costs. (500+50-110)
Cheapest Interest rates about 6% but likely to go up.
Your interest p.a. is $27,000. For the 9 months you wish to renovate interest is $20,250 or $520 per week.
Can you afford $520 per week in after tax dollars?
In your first post you mentioned about taking the safest route. IMO I would try tackle a project which is less risky.
This is all personal preference and you may quite easily be able to service the interest repayments.My personal preference in your situation would be to look at properties in the $330-380k range and spend approx $20k on the renovation. I would aim to complete the renovation as quick as possible and focus mainly on the cosmetics. Each additional week you are renovating the property costs you money in time/interest/potential rent lost/cash back from sale to re-turnover. If you were able to turnover 2-3 cheaper houses in 9 months your wealth would be more substantial i believe than 1x 500k property.
Let us know how you go.
Remember this is just my opinion other people will totally disagree.
Cheers,
DaveThanks Mike for the report!
Hopefully I will be making an offer on the property this week.
Cheers,
Dave
