Forum Replies Created
GMH its easy…,
because now developers have developed anti growth drugs so your children stay smaller longer, while you pay off your 27% interest free store account that you had to refinance because the term ran out.
Tthe home loan issue has been fixed also now that the banks have introduced 50 year home loans which mean lower repayments and less pressure on first home buyers. Very smart!!
The other great saving is now that people will be living on smaller allotments of land there is no need for a lawn mower, this yearly saving in itself is enormous.
The other reason for the smaller allotments is that due to the increasing divorse rate there is no need for a double bedroom which cuts down the size of the living space.
As to the Mini Minors return well this actually is the size of the new garage so all the boys with the big toys (cars) will be alloted a strata storage unit nearby at a guaranteed 8% return, lets call it a developers assurance package.
The dogs will now be housed in a dual kennel/letter box arrangement, with a sign on the box saying – please take me for a walk because i can’t move my legs.
All in all i think that Australias future is looking rosey!!!
Don’t forget that my prediction will be no housing slumps in the future, because it just can’t get lower than that.
D
Here are a few extra interesting future facts.
1. Developers are producing different products to accomodate new entrants into the market at affordable pricing.
2. House and land packages are getting smaller in size, some starting now at 300 m/2
3. The cost to develop raw land and build houses is increasing.
4. Baby boomers are moving to warmer climits close to ocean front locations or in intergrated resort facalities.
5. 50 year home loans are on the way.
6. Building your own duplex and renting out the other half is smarter than owning a house and land package.
7. Peoples need have changed in the last 20 years.
D
All you boys and the cars, i really don’t know at least you’re no into Minis …
Yes for me i just can’t understand Perth and why its holding for so long, the resourses boom has put too much money into peoples pockets and they want to burn it some where.
An acquaintence of mine left Sydney (bad market) and set up an office in Perth selling Queensland properties … they can’t keep up with the enquiries.
Sydney people are so nervous and negative it’s hard to get people motivated about real estate, oh well one day they will be back!
D
Equity lending is not new and was around in the 80’s.
These deals are extreemly RISKY for the unsophisticated investor and IMHO should be avoided at all times.
Get legal advise from a large firm such as Gaydens before you even think of this.
If a developer resorts to asking ordinary mums and dads for this type of investment that means that the bank doesnt have enough faith in the development to lend all the necessary funds.
Very Very High risk … IMHO
D
So who thinks the interest rates will go up before the end of the year and if so whats in store for the various states around Australia.
D
OK i’m back – i have been up north doing some research on waterfront resort projects for a large Asian syndicate, sorry cannot tell you any more at this stage.
GMH you honestly make me laugh with some of your one liners, please keep it up i love good humour.
My idea of the bottom of the market purchasing for saftey is picking an area like Elisabeth Bay or Darling Point in Sydney and finding the cheapest property in a well healed suburb.
Every city has its best top 10 suburbs and IMHO these have proven prudent over time, how about a Point Piper one bedder or bed sit??
Buy in gloom sell in boom “Rinee Rivkins” favourite quote.
D
OK so i’m watching the Sunday news and i hear that 5000 people per year in Sydney are losing their homes because they can’t afford to pay the mortgage.
Will it get worse?
Developers in Sydney are moving to QLD to get profits in a more boyant market, which is slowing however over the 10 year prediction is the most stable.
So who’s buying at the moment and what are you buying or are you scared to make a move?
D
Hi Mark PM us we are very active and always interested in a deal … we can also get finance if it stacks up.
D
Hi CRUISER wasn’t minimogul a member of the forum, did you get her from here and if you did do you have a collection of her correspondence.
Keys;
Only deal with licienced individuals.
Get a copy of their drivers licience.
Get a copy of their PI cover
Get everything in writing spoken about “signed”
Opinions are like belly buttons “every one has one”
In the end you must take 50% of the blame and responsibility because you made the choice to proceed with out inspecting.
Caveat emptor
D
Reduce debt = increase cash flow = +ve gearing = better purchasing opportunities = repeat.
What is your goal Nathan? how much do you want to make in life?
good luck … D
Your partner seems not to be convinced so i am asuming there is a risk that you have maybe not disclosed.
Is it 100% guaranteed to return a profit
What are the down sides
How much money is the out lay and can you afford to hold it long term to get the profits you have caculated.
Is there a demand in the local market for profits
What is the guarantee on the long term you will make greater profits including holding charges
If you invest in this project will you miss out on other better opportunities because you have locked your money up.
“profits are better than wages”
D
As M.Y points out there are many ways to value land especially its potential yield.
There is also the location factor, a 100 lot rezoned subdivision in a major CBD location will have a higher value than the same 100 lot subdivision in a country town.
Supply and demand also plays a huge part, you must build what is in demand for that area or you can lose your shirt.
Yes commersial property is valued on yield so why shouldn’t residential property be valued the same, would you buy a property yielding 2% when you can buy a small commersial office suite yielding 7%.
Too many people IMHO are focused on residential, you should ask your self “how much can i afford” and “what else can i do that could give me greater returns”
Use the rule of 72.
D
Yes AJS i agree with you so how many properties do you own currently and what are you looking at buying at present.
There are a lok of experts out there with great theories and empty bank accounts.
What is the sence in owning an investment if it’s not going to go up in value by 10% a year, thats what stock traders expect so why isnt property investing any different.
I would like to know what Steve is doing, does he have a blog as the CEO of this site it would be great to get inspiration from the top.
D
If you think out side the square and don’t just look at houses as investment vechiles you may be surprised.
How about,
50 – 100m/2 furnished office suites
Land rezoning and flik on with DA
You get what you focus on – unit developments are a problem, construction cost up by 20% and not a sellers market for a few years yet.
If Perth is 400k now as medium price rises by 20% p/a for two years that means the new M.P will be 576k in two years – yeah sure, thats a crash waiting to happen.
IMHO Perth is over priced – but we will have to wait see.
Sydney houses in suburbia will fall further but waterfronts and prestigue properties in saught after locations will rise.
Commersial developments in QLD are booming along with child care developments.
Why not get a syndicate going with a group of friends and do a real development instead of worring about houses.
I would love to know just how many people on this site are investors or couch potatos – don’t worry one day you’ll be ready, remember there is more to property than houses.
D
ten years from now what will they be saying about the price of property???
Renee rivken said “buy in gloom sell in boom”
The only people we are hearing about are the people that bought in “boom” and each have a storey or reason for their loss.
As we get older we get smarter – when you are young you don’t want to listen because you know it all – “information + education = webucation.
Thats correct doondoon,
Markets and times change – when i first started out i had savings and put down a 40% deposit on my first property which was a one bedroom unit. I worked hard and saved putting my money into an investment account.
Currently we are involved in the negotiating of an 88 acre sub-division for 2mil on a no money down deal. The block can accomodate 250 600/m2 lots plus two town house sites. We will get the da done on the 250 and sell for 30k eack or 7.5mill leaving a 5.5mil profit and retain the town houses for future development.
Today we see more greed with young people starting putting down no deposit and borrowing 100% of the loan in some cases, which IMHO is shere madness.
Young people today expect to get rich over night and don’t realise it’s takes time and knowledge to succeed, as i have learned. If you make the wrong decission you can lose more than you invest, so you need to work smarter and not harder.
D
I’m with GMH however i believe the market is changing in Perth and with another two rate rises before the year is out more blood will be lost.
Residex stated the med prices across the country
520k syd
Perth 420k
Qld 350kNow i don’t understand how a population of 1.9mil in Perth can have a higher med price than Qld who is at 350k = 70k less with twice the population and the fastest growing state in Australia – help me understand this.
My prediction is Perth will fall before the end of the year – wow thats going for it as a researcher, opps too late its in print.
My reasoning – with a smaller population than Syd and Qld the change will happen faster. Queensland investor market has halved and Sydney is still sliding, developers are scared to commit and the cost of construction with petrol prices and water conservation systems is adding to the pressure to increase prices – it doesn’t look good.
D
Sorry guys this was just an observation, as i found reading thid thread very hard and confusing, i simply could not follow it as it seemed to me to be very contriductry ..
I will stay away from grosses in the future – didn’t mean to be negative either as we are developers as well and haven’t come across this type of techniques. Maybe we are idiots i guess and gross is really a big time negotiator i really don’t know, sorry gross good luck.
D
Dear srobins –
Theories and opinions can only be check over time – lets see who is right or wrong at age 60, good luck with yours.
Doublek – IMHO and in our formular we never borrow more than 50% LVR – as many experts say cash is king andif the market changes which it is now you don’t want to be in a position of high borrowings,
so i suggest work and get that debt down on your existing property first before you take the leap …
First the pain then the gain …
D
I don’t nor would I ask people to invest in anything I tell people what I am looking at investing in and leave people to make up there own mind.
If I was give the chance to go a roller coaster ride and told I can hop off any time I wanted and this was a investing ride with rene, harry trig or even one of the share trader (not into shares that much) roller coaster drivers then I would buy that ticket.Gross the above was posted by YOU – READ your first line then READ your signiture line when you sign off where YOU are adverising for investors _ go figure!!!
D
