Forum Replies Created
hello Scott,
No trees are on either block of land at this stage, his or mine, no houses either .
The neighbor was making sure nothing would block his veiw when he builds eventually i , but i suppose he had the forsight about the covernant . but because he or his legal team put it on only 4 weeks ago, (drawn up & signed 9 years ago) i thought possibly it might not need to be honored.
thanks for the reply
Thanks for the replies folks, todate I will work on or near the 6% ROI figure, I came to this conclusion after seeing what defence housing is offering which is anything from from 4.2% to a maximum i can find of 5.3% ROI which for an investor is on the low side to my way of thinking, I know they find the tennant and do some new carpets and paint job. All their properties were outside the Sydney basin as well.
mattnz
The property could be strated i am sure however my rellies just want it sold so wont go down that path.
Ryan
I will get that magazine as you suggested before making any final decisions on price, & thanks for the tip.
Thanks Everyone
andrewbeech wrote:They can be worthwhile or they can be trouble …. I would suggest trying to only buy these on the secondary market as the developers usually try to price the cost of the higher return into the off plan purchase price. If possible try and get the figures for the "actual" returns the room would have netted if it wasn't on a fixed return and also what the expected nett return is when the fixed return period runs out.Over the past few years these types of property (in NZ anyway) were sold predominantly in asia where locals were borrowing money at 1-2% and getting 8-9% fixed returns
If you are still interested in this type of investment I know of several available at deep discounts so send me a message.
I too would like to know more about Motel investing,what would i need to see (figures etc) to determine the profitability of these,i suppose because so much might be cash payments for some overnight stays i would like some tips as to how to evaluate a good one from a bad one.
Thankspitto wrote:Just an update, our valuer came back with a rent of $525 per week, that is $55 a week more than the DHA valuer.It will be interesting to hear from DHA, frankly I don't know how they don't get embrassed when they get caught out like this. They say that 99% of people are happy with their valuation, make that either happy, ignornant of the correct price or not concerned enough to do anything about it.
Repeat word of caution, watch your rental valuations if you have a DHA property.
Cheers
Pitto, did they back date the rent at all.
I wonder if they contacted all the DFA investors close to your property and will increase their rents as well.Unless their yields improve in a big way DFA will never never be part of my future investment stratagy
Thanks for the updateI am looking for an investment property,something that makes me money, if you do your due dilligence i am sure you will find this type of investment is very poor and you will have to find money from your own pocket for many many years fter you sign up even allowing for rental income..
However they must have a large marketing budget and a good sales team because these types of properties do sell over time, i think a lot pf people who buy them dont do enough homework themselves and focus on things like new carpet, new paint job at the end of a lease etc which is possibly oversold to newcomers.
I feel at the end of a 10 or 15 year lease the bathroom and kitchen are possibly outdated as well and should be renewed,but of course this wouldnt happen.
Thanks Terry,
I will look into them, they are not too far away either at Norwest .
Have you used them yourself ?Trustie
I recently attended 2 auctions 1 in Canberra & 1 InSydney Nov 08
Wespac was selling a portfolio about 73 DFA properties in total, i attended these auctions but not before making many enquiries to the Various Ray White agents where some of these were located the agents gave me the impression (possibly just to get me there) that the yeilds may be better than normal as Wespac was keen to sell them,i told the agents that for me buying these properties from DFA didnt suit me as the current yeilds were too low and the purchase price too high,so I took on board what the agents said and decided to put 2 days aside and go to both these auctions in a hope that the yeilds might be as i was led to believe better than buying through DFA.
At Canberra it was a joke not one property sold out of about 33 at the auction and the prices were pretty steep,there were some investors there, with most properties not even being bid on once the sellers bid was announced.
I was shocked to see so many agents there as well i am sure they out numberd the bidders.
In Sydney the next day again most did not sell however they did sell maybe 4 of 30 but again the amount of agent was astounding,they were everywhere.
There was some properties being sold in QLD on day 3 (after sydney) but i decided not to go after Cambeera & Sydney so i dont know how many Wespac DFAproperties sold in that state.I didnt waste my 2 days i dont think, it just reinforced my veiws that you must be careful about what you are told in this industry .
Glenn1964 wrote:The DHA investment homes are something I have tended to stay away from.In particular, one of the aspects of these investments is that rent is 'reviewed' annually and (apparently!) will never go down – only up based upon fair market rent.
Sound okay! Right?
However, consider that most of the adjacent properties are also DHA homes – consequently, the rent increase will be based on those properties as well. So, who sets the rental value? – DHA all the way!
I don't believe this is fair.
Thanks everyone for the replies,the knowledge on this site is fantastic
If i were to proceed with this type of investment now i have obtained some good feedback the first thing is i would only buy where the DHA property was NOT amongst a suburb full of them.
Please keep your feedback coming as i find it very useful when doing my research.Trustie
Futzy,
If you purchase the Oct 08 edition of Australian Property Investing magazine on page 118 there is very detailed information on every suburb in Tassie ie grothe last 10 years, grothe last one year, number of properties sold last year, the median selling price.
For the sake of 7-8 dollers you will get a very good look at how all the Tassie suburbs have been performing.
Over the last year things seem very good down there,however some spots have not performed as well as others.
So bite the bullet & buy the book, you wont be disapointedGood Luck
Not sure if i am able to get this extra grant or not,
I paid .25% to the agent to hold the property, my 10 day cooling off period expires tomorrow, i have not yet paid the full 10% deposit.So any views as to whether i might get this extra $7k grant.
Thanks for the replies Opportunity & Richard
I spoke to both companies you guys mentioned and both were helpful, however we will go with BMT as the person i spoke to (Mitchell) was really trying extra hard to assist me.
opportunity wrote:Contact a quantity surveyor for the depreciation schedule. BMT & Associates (ph92416477)have been recomeded by my accountant. Never used their services or not sure if the phone no is correct.
Opportunity
Jayson
Thanks for your detailed reply,I will certainly take on board all your advice,i can assure you i would never use an unlicenced person to remove the A/C roof sheeting on any project i undertake.
I too have had asbestos clearence tests taken in the past where the air is monitored during removal of asbestos,and again on the completion of the job.
Your advice is all very good and accurate,to other readers of this thread do not mess with asbestos if you dont have to it isnt worth the risk to remove it recklessly..
Thanks again Jayson
mackers wrote:Hi trustieoneBeing a person who is a, A CLASS prescribed license holder and an a class license holder in his own right I would advise that you go to a hygienist company such as Queensland audits, Noel Arnold and associates, Queensland laboratories or Parsons and Brinkerhoff and ask them to do a report upon the stability and state of your roof as it is.
As we all know there are many varied and different reports into when a roof becomes friable or not. The common train of thought is that after ten years or so in the sun a roof can become brittle and can become friable if hail damage occurs.
I point you to the nohsc code of practice part 12.1.2.2 for roof removal which is the standard code of practice which most companies follow however there are a few companies who do not. But be aware that in 12.1.1 of the same code it talks of hail damage and how much of a risk it presents. The words according to the code of practice are hail, storm and fire damaged asbestos cement- products can pose a high risk of asbestos exposure and should be assessed to determine if they are friable. The code can be found here at this website http://www.ascc.gov.au/NR/rdonlyres/1A198A7C-D0A7-40AD-964E-31673C695E92/0/AsbestosCode.pdf
As far as the insurance companies covering this if there is a hail storm the sad fact currently after having worked with many insurance companies is probably not due to many of the insurance loss adjusters not knowing infact what they are dealing with. Many of the loss adjustors who turn up to fires which contain asbestos don’t even wear mask or overalls.
My advice to you is to seek a company who will do the work according to the code of practice who is insured to do asbestos removal work as many companies in this industry do not hold asbestos removal insurance they only hold public liability insurance which if you check with the insurance companies public liability NO LONGER COVERS ASBESTOS REMOVAL unless it is stated as demolition component and has asbestos nominated upon their policy
The check list for you should be.
Are they licensed? To do this removal
Are they insured? To cover you in the event they contaminate your home. Recently there was a company who removed a roof and broke the asbestos into the ceiling space leaving it behind and contaminating the home of the people involved.
Do they have references which you can contact about their workmanship? When I normally give a price and quote I offer something which no other company does and that is a full checkable work history including previous air test certificates I have obtained if the client has required them and also offer the clients the chance to check previous clients I have had and let them discuss amongst themselves as to my ability to do the job safely and in a timely fashion,
You will more than likely get quotes ranging from 60 dollars a square meter to 75 dollars a square meter. The difference in price is one of choice and sadly people normally are money driven but the price difference means the difference between doing a job properly and doing it in a hap hazard fashion
I would make just one more comment here which is
You would not trust your family to go to an unlicensed doctor so why trust an un licensed asbestos removalist to do your work which could if handled wrong potentially contaminate your family and also your tenants
Jayson
Asbestos removal tech
Scott,they were the reasons given by the btoker,he is now looking for another lender,somehow i think i am being misled along the way.
Because of the above reasons they feel if i get into financial trouble they will have difficulties selling the property because of its uniqueness,ie 2 flats,and asbestos roofing etc.Always a hurdle somewhere, this has come completely out of the blue. My broker now tells me the lender (ING) that their insurance underwriter will not take on the property as it is outside their risk profile, to date my loan was approved, with the bank ING & was happy with the valution from the valuation company, feedback from the broker is they are unhappy about the following.
1. The property has asbestos roof and walls.
So what i say there are 1000s of buildings with it, in this case the roof is in good condition and walls have a very good paint job2. This property has nothing like it to compare it to in the area,
it is 2 council approved flats in the one dwelling (has been for 50 years) similar to a dual occupancy i suppose.Each flat containing 2 bedrooms kitchen bathroom with shared laundry.Any view on this situation folks,I cant believe it, borrowing only 200k and the property is returning 7%,i would have thought the risk was very small if any.
Thankyou
During the loan application i asked the broker would i be able to get a copy of the bank valuation, and even at that time he had doubts that it could be obtained, the lender is ING so i dont know if it is the normal practice not to show it to the new owner.
I will insist further for it as i truly feel everything should be out in the open.
Is this a common practice in this industry.
Thanks for the replies everyone.CORHIG
If you google Sizewise a carpentry company called this name is located in Townsville,this maybe what you are after.
Good Luck
Hi Rabbits
The asbestos sheeting in bathrooms or anywhere else on a property is usually fine, just never grind it or drill holes in it, just avoid any thing that makes dust with asbestos/fibro sheeting .
I too have removed it over the years and if you keep it intact all will normally be ok.
If you do need to work with it just wear the appropriate mask and disposable overalls when doing the required task.trustie
Hello Mick & others
Finally my daughter has bought the property,all appears to be good and no surprises to come hopefully, it is showing a gross rental return of 7.19% and is in the Lake Macquarie shire not too far from the lake and shops etc.
As this is my daughters first IP she is a little nervous but also relieved to have finally found something after months of looking and looking, but i suppose that what needs to be done if you want to find something that may benifit you down the track.
Thanks to all the posters your knowledge is very much welcomed and appreciated.Trustie
