Forum Replies Created
Yes agreed Wolfe and IPF,
Forget about what we have already and look at what is being introduced now … I have done 3 reports on NEW estates for entry point H&L and the average size lot is around 350 m/2 … These I believe will be problem properties in the future and as a friend of mine says "tomorrows slums today".
Then Wolfe we have the golden oldies in areas like West Sydney St Marys built in the 60 & 70s that I believe are hot property as established areas on large lots over 800 m/2.
Also areas like West Pymble, Turramurra, Warrawee etc that are also great for knock downs or refurds that are close to great shopping and the CBD train line.
If you buy a 4 bed DLUG on 350 m/2 it gives no opportunity for future improvements like pools and extensions to accommodate growing families …
Now that said the reverse is happening for the older generation into 2 bedroom homes in controlled estates like Terrigal Sands type villages … there is also a swing away from large estates like on the North Shore in Sydney where the 65 year olds are selling 2000 m/2 lots and not getting any where near their asking prices … many of these people are moving into 3 bedroom apartments on the North Shore at prices over 1.5 million dollars.
The fact is that the government is concerned about is we have 130,000 (baby Boomers) retiring each year for the next 65 years … by 2030 there will be 3 people working for every retiree down from 6 currently … that is why the Rudd government wants to open the flood gates for immigration big time … if you travel you will appreciate how different cultures live compared to the "Aussie" culture.
Here's my answer as we are building in Warrawee …
A friend of mine on the North Shore raves on about large lots and how the valuers value properties on large land …
I disagree … Because of exactly what you are doing … it should be caculated on USEABLE land …
My friend lives in 1200 m/2 on a 45 degree slope — the house is a project home 48 squares (nice) but the drive way and extra building cost and retaining walls cost an extra 150K
The front of the house land is wasted space and the rear yard cannot be seen from inside the house because they had to raise the back up 3 meters for the slab … can't see the pool either …
Now get this we bought as a knock down rebuild in the very next street to them a golden oldie on 904 m/2 dead flat and square … all usable land and the council said we can get a 40 square home on it … no retaining walls or sloped driveways …
Where will your kids play ??
Thanks QC,
I think I will look into this and learn some new stuff with Steve …
What I do like about Steve is that he does charge but at a fraction of the prices like Mark Rolton, Carley Crutchfield and Jamie McIntryes group …
Thanks for the replys,
I wanted to draw attention in this to the bottom end or entry level of the market and not the top end that is IMHO struggling and falling in value … eg: prestige properties in well to do areas like Sydney's Lower and upper North shore.
Two years ago or there abouts a single level 4 bed H&L was on an allotment size of 700 m/2 and up and buyers always were after the bigger lots like the 800 m/2 … I call this the current mindset of the day …
The house also consisted of a separate living room away from the kit, dinning and family area …
Today the separate living room in many cases has gone and the allotment is around 400 m/2 and we are getting a new "mindset" or we are accepting this …
My report to the bank is that lower end new estates are rising in value because of increasing building costs and civil works and council charges while at the same time land and homes are shrinking.
Yes a 50 year old golden oldie was a 3 bedder and on about 950 m/2 – these now are prime properties for knock down or renovators and are located close to CBDs compared to the urban sprawl homes.
On the top end like Hunters Hill peninsular, Mosman, and East of the Pacific hwy on the North Shore in Sydney these properties ( over 1.5 million) are struggling and in fact dropping by over 20% from previous values – that's values not asking prices.
So in summary my point was are these so called rising housing figures false because they are being compared to low end new estates only and not top end houses that are dropping … and the low end estates are 1/3 the land size that was pitched to the market 2/3 years ago eg; over 750 m/2
Thank you Hans,
We have given Hans and brokersite several candidates and they are very happy with your professional and experienced services … I will keep sending people to you …
Sorry Scott you are wrong,
Kerry Packer was one of the largest holders in Australia of real estate and land holdings – it's called security Scott.
Investing your money with a financial planner or in the stock market is risky IMHO and I do both.
I look at real estate from this angle … 1 – I buy it and get it into a cash flow positive position asap … 2 – then I work out how to get the tax man and the tenant to pay my debt out between 10/15 years … so if I have a property investment valued at $400K and i'm not paying for it then in 10/15 years I am $400K richer assuming ZERO growth.
Thats why I only invest now in CBDs or within 500 meters from a train station – private school etc
3 fold … one I got for 120k now easy over 500k
One in Balmain 50 meters to Darling street Ferry paid $42,000.00 25 years ago … worst unit in its day nobody wanted it …
Good luck i'll keep my fingers crossed for you … good time to sell when there are buyers … I know the industry well … take care …
I understand …
How about doing this oversize for me … get all the reports Resi — RPData — API — APM — Hotspoting — Realestate.com.au — Domain —etc etc and compare them … welcome to my world.
Most of these people copy from each other then when someone asks them or challenges them they say that they got to information from and relied upon xxxxxxxx discrediting the other person …
Same as being a politician … they say I didn't make the rule it was the previous government I'm just trying to fix it … then by the time they stuff it someone else is in hahahaha
OK i'll play …
JacM … Articles are just opinions … the next API will talk about the high growths over time in major cities … one up next down … the truth is this the value of real estate is calculated from a CBD center out wards world wide … ask a valuer or become with one … ask a real estate agent …
Secondly — one of the most STABLE investment areas in Sydney is the North Shore — WHY ?? — Answer Private schools and Hospitals … (lots of professionals live there because of the private schools)
Where on the North Shore is the most expensive real estate … Answer — within 500 meters from a train line … why … answer Shopping centers, private schools, hospitals, retirement, aged care etc etc … same reason as real estate around the CBD like Potts Point
You can follow this theory anywhere in any major city … Read Philip Sigglekows book (Australian) 201 ways the rich use when buying real estate …. all covered in this simple book and reference manual
JacM … no apology needed most real estate is about common sense and not opinions in books, 2 years ago a so called expert said it was the bottom of the market, I asked him to put it in writing on this site and he wouldn't "lucky for him he didn't"
Finally Cresty my friend … we were talking about the value of real estate in this question around the CBD and in particular Potts Point, so your comments 2 & 3 had no relevance to this … the topic is about EB and Potts Point and Growth …
My opinion in summary to this question is this … unless you are a trader like Steve who sells jaust as many as they buy … a stable long term strategy for buy and hold is stick to CBDs — Train Stations in particular —
I NEVER buy property outside 500 meters from a train line — sorry I lied, I have and I lost money ie didn't double in 10 years, actually 2 lost and one took 3 years to sell "Proserpine"
I'm feeling like some lovin !!.
Can you convert the hotel rooms to strata … we are looking at doing a goldie conversion in Sydney at Hornsby … room cost $70k each rental $250.00 a week …..
OMG
Crest 1 – Major cities 2 – no reply 3 – no reply 4 – my business is not your business, i'm doing OK
JacM 1 – then why ask 2 – yes my results and refer to 4 above
Question … how many properties do you own now … why does every property need to be an outstanding winner for so many here … investing is over a 25 year term … I am not paying my mortgages and debts off my tenants are …
Properties close to all major CDBs in the world out perform all other suburbs over time … values in real estate are calculated from the CBD outwards … talk to a valuer … 99% of the time over time, say 20 years … read more books.
What is the MOST expensive suburb in Sydney "JacM" and why is that? …
Opinions are like bellybuttons "everybody has one" … every jurno has a different storey boys …
No more comments from me on this one …
Hi Crest,
You just do a google search or realestate.com.au … do your home work you have to look at 20 to find the one that turns you on …
I don't care about lifts etc etc … I care about ROI … toooooo many to technical people here or too young to understand …
Great area Crest … question is this … how much is a one bedder in Japan, China, Korea, New York ???
Also all the wealthiest people in Australia invest there … John Symonns Aussie Home loans … Harry Trigerboth Meriton … Packers … the list goes on …
Penrith or Point Piper ??? Sydney Eastern Suburbs is not for nerds…. sorry for spelling in a rush doing a report …
Wow … and hello JacM
We have 4 one bedders there … love it love it love it … growth and rent … No.1 area in Australia IMHO
Read Peter Spanns books … that is how Peter Spann began to build his empire … one bedders in the Eastern suburbs …
My advise to new and young investors … including my children … Buy second hand renovators (one bedders) close to CBDs and North shore train stations in Syd or similar suburbs in major cities … stay away from new 4 bed h&l in outer suburbs that my solicitor calls …..
Tomorrows slums today …
Summary EB and Potts Point YES …
Hi QC,
I don't think seminars are tax effective under the PAYG only if you have a business you run it through …
What mentoring program are you apart of q.c sounds as though you are happy with it …
Good luck …
Hi Marx,
I agree that certain areas are effected more than others and those reliant on industry are effected worse than ofther …
Agora Financial (USA) just published the worst figures for USA housing drops … do you read their news ??
Sighting : mortgage refinancing – worsening unemployment – 5 year loans falling due – credit debt – top end coming back another 20% in value – major commercial vacancy rates …
These are the facts I am not making this stuff up …
Robert Kiyosaki says he only invests in second hand cheap real estate … preferably for over 55 year olds with no assets …
Great question …
In last weekends paper "appartments begin shrinking" Developer Dr Stanley Quek talks about the new one bedroom apartments they are producing from 35 m/2 to 75 m/2.
With building prices rising and sub division costs increasing builders are working out how to keep the prices down by building smaller properties and smarter designs including "pull down beds"
I have been to Korea, China and Japan and Folks they don't have bedrooms in many cases !!!!!!!!!!!!!
I recently viewed a new subdivision in Victoria and looked at the display homes of a 4 bedroom DLUG house … OMG you have to be kidding !!!!!!!!!
Kitchen Dinning and Lounge all in one area – try putting 2 adults and 2 kids in those houses … these are the WORST investments for GROWTH i have seen for investors …
Oh the bath was more like a bucket it was soooooooo small … Marketing companies are selling these for $380,000.00 and my valuer said he would come in at around $310k … LAND size was …… wait for it …… 326 m/2
Hello Nigel,
Yes the oldest answer in the book Nigel … over the last 2 years I have been reading "now is the time to buy" we are on the bottom and in many cases now is always the time to buy if you are paying true value.
As a licensed financial adviser my only problem with what you guys do is that it appears that the majority of your presenters are not fully licensed to give financial advise.
I am not saying this as an attack however after reading your sites I would not advise investors to use your services … to me (IMHO) you are giving advise to people to invest money without proper authority to do so.
Our responsibility to the public is set out clear with the department of fair trading … we are all trying to convert sales to cash and make a living Nigel I am just over the pushy salsmem thing … good luck to you.
Thank you Steve well said and we/I are all guilty at times through passion and belief …
ONE suggestion Steve to you …
Clean up the registration process of your site … stop multiple post names under different profiles …
IMHO
I think the best thing for most people is to start their own private investors club with family and friends.
Set a schedule to meet once every 2 weeks and give each other tasks to complete and compile lots of infor.
Have one of the members write up a pdf and let everybody have a copy … start up a free web site to attract like minded people and give the info away for free … charge space on the site for accountants and other professional services.
