Forum Replies Created
Hi luke
I think there is a general misunderstanding with the EXAMPLE i gave of my parents. Like I said I used those figures simply as an example and I am in no way, shape or form expecting to make the kind of profit they did. the only point reason i used that example was to ask generally weather land and house packages are more profitable than other options. I am not thinking of buying into Southern River or anything like that but.
Thank you for the thoughts about the inner ring suburbs though. Seems to be the general consensus of everyone going into property to buy as close to the city as possible. Only problem that I have with suburbs such as Vic park is just the general feeling of an "unsafe" suburb and a lot of old houses being there. your suggestions do seem quite accurate though same as what I've read or been suggested before. I hope you can take the time to read the rest of my plans and come up with a few ideas
regards
Hi Derek
thank you again for the ever so wise words and advice. I always seem to learn a lot whenever I read a post from you. With regards to starting I am just learning that interest is tax deductible if land is bought with intention for an IP. just wanted to know your opinion if you think its smarter to make your first property buy a PPOR or start straight from an IP (or as I've read in a couple of other threads go interest only and go both). Me and my cousin are quite frustrated of renting really. Our current property manager has been nothing but a pain in the ass and the renting process is a pain to go through every 6 months-1 year so we're really eager to move into a house of our own and avoid all the hassles
Well even the chain of strata properties is a very small stepping stone. I eventually want to go into commercial perhaps start buying/leasing office space all the way upto buying huge land for shopping centres etc. Is it worth it to make the switch from residential to commercial? I've read in a couple of threads that if you have a lot of properties that you should put them under a trust. Just wanted to know if that was true and the advantages/disadvantages of putting them under a trust as opposed to not putting them under a trust (i.e. in my name)
I will definately look into wattle grove and the deals there but, forgive me for my ignorance, but what do you mean by building mini estates? you mean like 5-10 units? or is it something else entirely?
I will also consider your idea of buying sub dividable blocks in perth but I just had a couple of questions. Isn't just buying land by itself not as profitable as you are seeing no returns on your land (till you decide to build on it or sell it) or are you tying this in with my strategy of buying land in established suburbs and building homes on them? also I'm assuming (from what I've heard) that each land has a different zoning and that is the thing which determines weather your land is sub-dividable or not. Firstly is that correct? secondly what zoning (or otherwise) should the land be to be able to be sub-divided. what sort of restrictions can be placed on such blocks. is there anything other than area to consider when buying land?
regards
Hi Derek,
Thanks for your reply. I know my mind is all over the place because I'm just like that, I like to find out everything about something that I'm interested in and learning new things just fascinates me and its just the fact that I don't have much experience with properties. Paying off the bank loan is definately no issue. Me and cousin are both earning $2k a week each easily and I'm thinking of opening a little business venture along the side to get a bit more income too!
Well i should have been a little more clearer. By leavin the "rat race" I simply mean no 9-5 job I am however interested in building a (hopefully profitable) real estate portfolio. I want to start small with houses and look into buying big blocks of land and building 5-10 units on them and owning a chain of strata properties. Admittedly I do not know if this is feasible or if there is a better option but its just to show that I am wanting to commit myself to playing the "property game" in about 5-10 years time (or sooner if possible!)
With regards to my parents I am aware that a boom occured and I shouldn't be expecting such a profit margin but I had always been told that buying land and building a house is ideal since the house increases its value as soon as it is built not to mention the fact that stamp duty is paid only on the value of the land(of course this comes from people such as friends and family and by no means a professional so I do no know how much it holds true but I had thought this up until now)
If house and land packages tend to be in areas which are a "gamble" so to speak would it be more beneficial to buy land in established suburbs(if available) and build on it or you think buying older properties and reno'ing might be the better way to go
regards
