Forum Replies Created
hi youngie
my usual stategy is buy and hold. only buy cash positive properties that will put cash in my pocket, like to aim for $30 a week. i also like to buy run down props that can be painted and fixed up that will add a lot to the value. given that there are so many ways to make money in property i would look at all ways but relying on capital growth is too risky for me at the moment.
westanhi AD
start with my favourate loser story. i bought 2000 shares in CSL on the float 7 years ago for 2.40 each. sold them 3 months later for about the same price when i decided to buy a family home and neaded the deposit. chose the wrong shares because they they recently reached $50 a share could have made 100K, i get a good laugh from others with that one. Today CSL shares are only about $15.
a good story bought a duplex in Smthfield Plains in adelaide 6 years ago for 42K settled on the sale yesterday for 158k, i’m really pleased considering everyone said you will never have any capital growth in a govn’t housing estate.
westanhi joff
congrads on ararat and portland, i especially like portland but don’t have any props there. stuffed around last year trying to get a $41k home $2k cheaper when someone else bought it. 12 months later it would sell for $85k.
Anyway i agree with your comments. i also think there are so many new investors in the market when they start having tenant issues, and hastles they will sell. i expect in the next few years many will give up on property this could give us another opportunity to buy below todays prices
westanhi joff
congrads on ararat and portland, i especially like portland but don’t have any props there. stuffed around last year trying to get a $41k home $2k cheaper when someone else bought it. 12 months later it would sell for $85k.
Anyway i agree with your comments. i also think there are so many new investors in the market when they start having tenant issues, and hastles they will sell. i expect in the next few years many will give up on property this could give us another opportunity to buy below todays prices
westanhi ronulas
i have made it a rule not to buy in towns under 5000, but i think there can always be exceptions. for me if the numbers a good ie rental return, then i would look at rental demand some smaller towns you may get stuck with vacant properties during quieter times like winter when not as many people are moving. it is also important that there are local property managers, as you need them to look after your property, many smaller places don’t. i would also look at the towns future prospects. one day you may need to sell so towns that are moving forward will sell quicker. some banks will not give finance for smaller places also.
regards westanHi all
leigh, Queenstown is a great place, my cheap motel was $85 a double and on the foreshore, 50 meters from the Eanrslaw (steam ship) in the heart of town, love the place especially during winter festival. But to buy in Queenstown is very expensive as is Wanaka.
dave i love Christchurch also: a big country town but nice and central to everything. i think i will head further south, maybe as low as Balclutha i lived there for one year as a kid.
will compare notes with you soon
westansorry to hear of your difficulties
us who buy at the lower end of the market in country centers often cop a hard time from people you are Sydey and Melbourne centric, but demand is really strong. i don’t have any of my 20 properties vacant. they are in the latrobe valley, hamilton, stawell, horsham etc. Rental demand at the cheaper end is still strong but i hear the top price end (eg $200+ a week) in places like Horsham is very quiet.
westanHi David
i am also seriously thinking of going to NZ to live for at least 12 months just to invest in property. (it will be a great experience for the family also). I’m heading down South, where are you thinking of going? i have to sort out a few things here but should be relocated by January.
regards Westanhi fullout
sorry to take so long to reply i,ve been in New Zealand. Anyway my email address is [email protected]
but feel free to phone me at home on 03 5358 5278
or on the mob. 0415 438 666
regards westandave i’ve got no idea what you are talking about, better be careful who i ask it may be his relative. Anyway i will pack my woolies looks very cool on the forecasts
thanks westanhi alex
i wouldn’t waste you money on a valuer. you should have done so much investigation of prices that you have a better idea of the value than a valuer. all they do is compare with other past sales in the area of similair properties. i think we as buyers must know if we are buying at market above or below. when i refinance i tell the valuer what it is worth with info on recent sales. all the best
westanrental demand is very high in most small towns, i wouldn’t be supprised if the next census shows a return of people to country Vic. Area around me are growing again after years of decline. Areas like Ararat, Stawell Horsham are buzzing even little towns like St Arnaud are doing we even though we are in the middle of a drought. As far as purchase prices goes- Kennett neally killed rural and regional victoria. for the last 3 years prices are starting to play catch up to Melb. When you look at the figures many towns had virtually no growth for 10 years. The latrobe valley went backwards big time. You can still buy properties returning 10% return in many areas this is going to keep demand high. but other areas the return is down to 6% so i’d be careful with such a low return
westanHi brett
i’m a bit more positive on the idea.
but
make sure you do all your figures right
there is always more work than you expect.
i bought a house for 3k relocated 100km put a new roof on and it cost 20k, electrical came in at 2k, the plumbing, plaster, i did a new kitchen, the landscaping it goes on and on.
if you plan to do the work yourself it takes forever, so be careful if it is a long drive away.
i have a friend who has bought some land in regional vic and will do this. he expects to make 40k out of it (with him doing some of the fix up).
one last warning check out finance a lot of banks have strict guidelines with this and you need a bit of cash to finance it up front
westanViral
have a “search” for Tas through the forum a lot of good discussion recent weeks on areas of Hobart and especially where not to invest.
regards westanhi my name is Westan i’m 39 married to Janine have 5 kids live in Stawell Vic. Work in a school as a School Chaplain.
Started investing when i came out of Bible College 6 years ago, i was poor so i needed extra income. Started buying properties in 1997, have been really fortunate that they have kept going up in value, so i refinance to buy more now have 21. Currently looking at NZ going over there these holidays with my 10 yr old son looking at the South Isand.
westanhi david
futher to what terryn has said you have 69,000 available. This can be used to borrow another 276,000 so you can buy properties up to 345,000. once again subject to servicability. this is why you shouldn’t buy negative geared properties it stuffs up your servicability (ie ability to pay off the loan) my taxable income is only 20,000 (not my true income) yet i am able to service loans of over 1,000,000 because i have cash positive properties. hope this helps
westanHi richmond
six years ago i found you could make offers 30% below asking price and occasionally they would be accepted. but today the market is so hot i often hear of properties selling for above asking price. i would still try offering low, i was lucky this year to get something for 63k (asking price 79K) but another time had to pay 74k (asking price 79K). i ask what has been the best offer so far and how long has the property been on the market, if its been on for say 2 months and no offers i would start low say 20% below.
regards westanHi ed
a few other tips. One is never tell the agent or anyone else at the auction what you are prepared to bid, if you do they will make sure you end up spending that amount. I believe you should be confident with your bids it can psych out opponents. And as “new investor” said set a limit before the auction and don’t exceed it. sure its tough to lose at an auction but it is valuable experience. Remember the deal is the figures not the house, if the price goes higher, look for the next deal i’m amazed that when i miss out, i soon find a better deal.
all the best westanJay Cee
i agree with “investor” good deals with these properties are hard to find. On those figures 110k for 150 per week i wouldn’t be interested. Your property would end up taking money from your pocket each week and not adding to it. Unless there were some opportunities to add to the rental return (ie paint /carpet/carport and add 20-30pw) or some unique local situation that would really help the areas growth i would keep looking. I would like to buy for 75k for a 150pw return, i just settled on two like this in Horsham Vic, but it is harder to find currently.
regards westanhi jay cee
housing is a state govnt function. i can only share what i know from my experience in Vict. SA and Tas.
in victoria the min of housing is auctioning their properties through agents. They will not accept offers before the auction and i doubt it is possible to deal direct with them because of their stance on auctions.
in tas i havn’t purchased for a while so i may be out of date but they were selling through Roberts Real Estate across Tas and selling to a price not auctions (beware of some Housing areas in Tas)
In SA the process is auction. Elders has the contract (about 1 year to go) to auction all properties outside Adelaide. Dennis Brewer is your man if this is the market you are in. Can’t remember the agent that is selling in Adelaide can look it up if you want. the Housing trust will not deal direct with people, i wanted to buy a whole street (10 houses) and still couldn’t get anywhere with them.
Hope this helps, if you want any other info i may be able to help such as contacts in housing dept in Vic. i know most areas of Vic, Tas, SA if you want advice about specific areas and don’t want to post here email me direct [email protected] or phone 0415438666
regards westan
