Forum Replies Created
hi darwin
didn’t see the story.
while i agree with those forecasters, that the next interest rates change will be down. i don’t get too carried away with what economists say. they change their mind every week it seems. these are the same guys that until recently have be saying the next rate change would be up. Most of them have been saying this for years. just look at the world you don’t have to be to smart to see the next rate is down. the us and Japanese economies are serious trouble. Japanese cash rate is virtually 0% the US are about 1.5% while we are 4.5%. Look up how many economists make it into BRW top 500 wealthist Aust. Not one,
as you can see i don’t have a high opinion of a lot of economists
westanHi fullout
i found a property (for my brother which he purchased 3 months ago) in Murtoa
cost 27,000 rent 100pw
with 20% deposit plus purchase cost ($1200) he put $6,600 into the deal.
Loan of 21,600 @5.65% interest $23.75 pw
Rates/water $15 pw
Insurance 4 pw
Agent 7 pw
Total Costs 49.75 pwProfit before maintenance etc 50.25 pw
$2,613 per annum or 39.5% RIO not bad, sure not much capital growth but it certainly won’t loose value as large parts of Melbourne could very soon.
i should have kept the deal for myself.
westanListen to askegg
he knows what he is talking about. i bought in clarendon vale in 1997 for 33k. i have 21 properties across Oz. Clarendon vale is the worst area i have experienced. i have had more trouble in clarendon Vale than all my other properties combined. I own homes in Elizabeth SA, Latrobe Valley and they are great areas in comparison. luckily i sold Clarendon vale this year 55k glad to be out. my insurance agent can’t even give insurance for more houses in this area. Not one good tenant in 6 years last tenant did 5,000 damage (covered on L/L insurance, Even the police station got burnt out
westanhi joff
sorry i don’t really know, i’ve never looked into it. i’ve always stayed within the town boundries. off the top of my head i thing that out of town properties take longer to rent and rent is lower? you had best check this with local rental managers. Also if it is not zoned residential you may have some difficulties with finance, they may ask for more equity than if it was zoned residential. So my feeling is out of town may be good lifestyle but not so good investment. The maintenance could be higher and i wouldn’t be too keen on mowing the lawns if the property was vacant?
I’ve got a friend who wants to sell him property in Portland after 80k in Correa Crt, rented for 120pw but could get more. i tell him to hold but he is a trader of shares and can’t get it out of his system. if interested can get phone no’s etc and photo’s
regards westanHi dorothy
i beleive that you really need to look at the individual area, is the city growing pop., what economic developments are happening etc. ie if it where ballarat for instance i would be happy investing at the right price because i feel that developments such as “fast train ” can only help this city.
It all comes back to supply and demand. on the figure you have stated 150k for 180pw rent you want to make sure you are going to make a capital gain because you will lose money on this deal. Personally i would only buy cash positive. it might help us if you tell us what city so people familiar with this city can make comments
regards
westanJoff
Portland interesting you mention this
i’m a bit dissappointed to talk about this. A mate and i did some real good work looking into Portland. I even spent an hour with the cities development officer getting all the up to day news. then when it came to negotiate a deal i stuffed up. a property was on the market for 45k i offered 39 and wouldn’t move hoping the seller to sell down to me anyway he accepted another offer of 41, 12 months later this home is worth 80k.
Anyway why i liked Portland hasn’t changed
Wind farm project $100 million. Given go ahead
Posible Components factory up to 1000 jobs with Capel Prince.
Potential $1 billion paper factory to be built between Portland and Heywood 1000 jobs (10 years away).
Increasing use of the Port largely due to mineral sands project of Iluka resources around Douglas Vic.
Possible rutile (mineral Sands)processing plant (could be at Hamilton?)
possible Expantion of smelter 25% increase in size.
Also tourism is increasing to this area
so the economic future looks bright a lot of jobs in the future meaning increasing population and rising renta and property prices.
regards westanHi Joff
Can’t tell you much about east Gippsland.
But i can help with around the West of the State (i live in Stawell 120km past Ballarat, as i have advertised in a previuos post). Anyway I have purchased 2 properties in Horsham this year one for 74k will rent for 155pw Thats not a bad return. another for 65k rent currently at 120pw, when the tenant moves out i will paint, carpet, carport and get 155pw also. i try to avoid smaller towns under 5,000 population but my brother bought in Murtoa 30km from Horsham (pop 1500) he paid 27k and has a tenant paying 100pw not bad either (i found this deal for him, should have kept it myself) where i live in Stawell one of the major employers has just announced (on Friday)they are expainding and could create 100 jobs? this must help our property market which is already moving up.
i keep a doc. on a few towns and what economic developments are happening, if anyone want a copy email me, or if you have some info to add also email me at [email protected]
Joff call in to see me at Stawell if you are going through to Horsham
regards
westan
i also love this stuffsorry full transcrip available at
http://www.sbs.com.au/business/index.php3?tid=653regards
westaninsider
sorry it was on when i wrote the post at 7.30pm Friday.
Video of panel discussion can be seen at http://www.sbs.com.au/business/on the panel was
Mark Rider- ubs warburg economist
michael Davoren- lj hooker
Neil Jenman
this is my synopsis
Mark Rider- fundamentals looks expensive, is overvalued but may keep going. Doesn’t see it ending soon as there is no catalyst to cause a slump at present. May be challenges in the future?
Michael Davoren- can’t talk about “one market”, beleives the market will hold up well because of the “lack of a viable alternative”. Some markets will continue to grow ie brisbane
neil jenman- believes people will lose money on property, “we are seeing the same as just before the Dot Com Bubble” Dangerous time to invest right now.
regards
westanhi bluebear
Laws change from state to state
In Victoria
a publication from Consumer and Business Affairs called “renting statement of rights and duties” can be obtained from real estate agents. landlords and agents must give tenants a copy of this book or fined $500.
call 1300 366 356 for copies or call office of fair trading on 96276222 or 1800 136 716.
regards
westanHi joff
answer to those questions
HAVE YOU HAD LOCAL AGENTS MANAGE YOUR PROPERTIES?
Yes i do have local agents manage all but one property(this is rented to someone i know). i have managed properties in the past but it is too time consuming now, i’d rather look for my next deal than chase money etc.IF SO,HOW HAS IT BEEN.HAS MAINTENENCE AND REPAIRS BEEN DONE PROPERLY?
i,ve been into property investing for 6 yrs and haven’t really had a problem with repairs not done propertly (only bad jobs ones are the ones i have done). but have had some useless agents and some good ones. i find now that i have to spend time keeping an eye on the agents making sure they are on the ball.DO YOU HAVE ANY THOUGHTS ON WHAT WHAT SORT OF PROPERTY IS POPULAR AS A RENTAL IN RURAL AREAS?
My market is the lower end. i,m happy to buy ex ministry houses. i always present them very well so they rent out quickly. I find, for example, where i live you can buy an IP for 120k and get 150pw or buy an ex min home for 55k and get 120pw, its cheaper to buy two properties. Ex min homes are low maintenance. i try to avoid the worst street in the town, every town has one, often they aren’t that bad but it is all relative and some streets have a stigma.some question for you
what areas are you looking at i may be able to help with some info for you.regards
westanjoff
some info regarding median prices is available in the property investor magazine, as with a lot of figures it is always a bit out of date but helpful anyway. by the way what state are you looking at?
westan
Joff
where is this data available from ?
i know in talking to agents that rental demand is still very strong and supply is short.regards westan
hi joff
i specialize in regional cities/ towns aim for places over 5,000. i keep my ear to the ground and select areas that have some good economic prospects in the future. Last year i bought into Hamilton Vic pop 10000, prices have been really depressed over the past decade and pop declining. But hamilton is expecting to benifit from a Huge Mineral sand development by Iluka resources, the secondary plant in hamilton will employ about 100 new full time jobs, also RMIT University have established a nursing course at Hamilton, once again bringing in new people, with the return of value to wool i thought Hamilton would benifit so i bought 3 properties last year for 32k, 40k and 42K i did a bit of work new carpet etc. they are now worth about 75-85K. but that is in the past now we need to work out where is the next area to boom. will Hamilton continue to who knows, the iluka plant hasn’t even started to be built. i really don’t know where the next good propect is- anyone out there know some good stories around our great aussie towns?
regards
westanHi Vinh
You asked how i got 10 ip’s in one year.
well
i went back to study for 4yrs to get my Batchelor of Theology and at the end my net worth was down to $25,000. So i didn’t have much to play with. I was able to buy some very cheap properties with some money i borrowed from my mum. one property was in Clarendon Vale Tas which i got for 33K but the CIV on the rates notice said 55k so i financed it with the bank paid back mum and had the deposit to buy two more properties this time in Elizbeth SA for 21k each (which i have just put on the market for 82K each) i then had to borrow from mum again then finance at a rate above what i paid. Admittedly it was a lot easier to buy at under valuation back in 1997. i was lucky that my mum was able to lend me money on a short term loan basis, not everyone has that luxury. but i knew i was buying IP’s well below there worth. As Kiyosaki says “the profit is made when you buy not when you sell”. But the message to creating wealth is you nead other peoples money (OPM) to give you the start, if it wasn’t from my mother i would have found another business partner
there are still bargins out there they just take more effort to find them.
Regards
westanHi Gatbe7
if you buy into a property fund you miss a lot of the advantages of direct property ownership
1. leverage – with 50k you can invest 50k in a property fund or purchase an IP worth $250k at 80% finance. Do the figures if they both appreciate at 10% and see how far ahead you will be.
2. you can not improve the value of the fund, whereas direct ownership you can ie paint, carpet etc.
see Dolf De Roos book “Real Estate Riches” for a better explaination
This fund in the UK with 58% return over 5 years is that per Annum if not then that is not very impressive, most places in Oz should have doubled over this time. If you put 10k into a 100k property and this property doubled in value in 5 years your property is now worth 200k your 10k is now worth $110k ISN’T THAT 1000% return in 5 years.
regards
westanHi trying
you asked me a question “how long have i been in the game”
in 1997 i bought 10 IP’s then i was stuck with no equity for a few years then started refinancing to get another 11 over the last 2 yrs.
it was actually after reading “rich Dad Poor Dad” that helped me realize i was on the right trackwhat about yourself
regards
westan
Sorry fullout don’t want to print the answer because too many people read this forum. but am happy to compare notes, phone 0415 438666 tomorrow. the town/city has population of over 10,000 and is in Victoria
regards
westanHi Fullout and David
i like to make at least $30 per week
So here an example
last purchase $75,000 rent for $155pwInterest on loan @5.65% 82pw
Rates/water 15 pw
insurance inc L/L 6pw
agent fees 11pw
Total Cost 114
Rent 155
profit $41 per week
so it fitted one of my criteria’salso interested in what other do
Regards
westani’ve been using Homepath P/L a lot. i have 21 IP’s all cash positive. when i got to about 12 NAB wouldn’t lend anymore to me. Homepath has no application or valuation fees, no account fees and a standard variable of 5.65%. they are owed by CBA and are a no frills lender, no Company loans or fixed rates. They aren’t perfect, sometimes they are incompetent and take 8 weeks to finance, but the product is excellent. Because my properties are cash positive they will keep lending me no problems at 80% even in towns. As far as fixed rates i am putting two loans through Members Equity, i like their 5yr fixed rate of 6.19% once again no app fees etc. too early to know what there service is like.
regards
westan
