Forum Replies Created
I heard that in 1974 that dam mismanagement was the issue too. That when they opened the flood gates they couldn't close them again because trees and logs prevented them from closing. This flood was about 6 foot or 1.8mtr short of 1974 as the property I lived in at Goodna did not go under this time. It appears council has based a lot of faith in the new dam holding excessive amounts of water.
The Goodna RSL was built after 1974 and went under, it's still not being used. I'm wondering if a class action will be implemented as zoning after 1974 was not changed in these areas. The Ipswich City Council allowed many properties to be build in flood effected areas?
Hi Bruce
I don' think there is much of a debate to be had here. Let's ask all the 1974 flood victims, then the 2011 flood victims would they buy another house in the flood zone? Then we can ask all the people who helped clean up the flooded homes if they would buy the house they cleaned up.
If the answer is no, which I would suspect it to be, the market for the sale of the property is reduced by this number of people. It unrealistic to think a flood house will be easy to sell any time soon.
As for insurance, read your policy even if it has flood. My partners house flooded about 3 years ago on the Gold Coast. She was covered by Suncorp Metway for flood. Apparently there are more than 1 type of flood, e.g. flash flood is one of them. Depending on what the assessor decides your flood to be will decide how much the company will pay out.
I lived through the 1974 flood at Goodna, our house went under. I have 16 properties and not one of them is in a flood zone. You never forget. I would look at buying land in flood zone, only if it could be filled and made higher than the flood level. Or the house could be lifted to be made higher than the flood level.
You have to ask yourself the question, how am i going to sell this property? Or another question: how am i going to rent this property?
My thoughts only,
Kerrie http://propertyprospects.com.auHi Madchen
If your goal is to own enough property to provide an income you need to buy property. I would suggest you purchase cash flow property which means dual income property purchased in regional areas or fringe areas or a mining area property. You can not afford buy and hold capital growth property as the banks will stop you quickly on serviceability. Borrow on your existing equity for your next deposit.
The question you need to always ask is: how will I purchase the property after the next one if your goal is acquisition.
Hi troy6225
You need to number crunch to work out your ROI {return on investment} this will tell you if this is more viable or purchasing another property is more viable. Then you need to work out your goals:
- are you accruing property,
- are you looking for capital growth depending upon your income,
- are you looking for cash flow property?
A good balance is 1 for capital growth then 1 for cash flow, then go again. This way the banks should keep lending and not stop you on servicablity providing the properties are simular in value.
You could buy the next one if you can afford it then come back and develop the first especially if you are looking for your next purchase in an area that is currently flat or looking to purchase a cash flow positive property. Once again your personal situation should tell you this or at least your accountant.
Hi
Pricefinder and RPData estimates can be a guide, however its up to you to do your diligence. What i said previously was: Before you offer anything you need to know what the price of houses in that street and area have been sold for in the past year. I did not say get price finder to pick a number, this is not doing your diligence it's asking a third party to tell you what it is worth.
Well-done sammee on your purchase, it sounds a ripper buy.
freerenterprise in Qld a cheque doesn't make any difference, the amount of the cheque shows that you are serious however we dont' exchange contracts hear and the money goes into trust so no one gets value from it.
If they are a good agent they won't give you a figure and say something like: i don't know, why don't you put an offer in and see or they may give you a red herring and say I would expect something close to asking price would be considered. After all the agent is working for the seller and not the buyer, though sometimes it's hard to tell.
What i find interesting in the comments in this thread is that nobody asked the question, what is the property worth?
When you buy is when you make your profit, this has nothing to do with the asking price. Before you offer anything you need to know what the price of houses in that street and area have been sold for in the past year. NOT what they are currently asking. You can buy a report for under $100 at many of the data firms like rpdata which will tell you this.
In the past i have paid asking price for a property that was $150k undervalued. I now receive 14% return on investment. Had i not paid asking price the other 3 buyers would have bought the property, they were messing around haggling. Consideraton for what the market is doing and also why the seller is selling has to be taken into account along with many other things.
I have heard some very mixed feedback from the IC. In the 90's an acquaintance of mine purchase 3 properties through them with in a year then the market took a downturn. They found the properties were very over priced to start with so they couldn't sell them. As the property market does over time, it turned the other way and after a few years they haven't looked back.
You could consider joining a mentoring and buyers agency like Positive Real Estate or just employ a buyers agent to work for you. You may be time poor however you don't want to be poor because you allowed someone else to make your choices for you. Hopefully this won't be your last property either so you can learn along the way by working with a professional who doesn't have a vested interest apart from the commission they receive.
Options are great if you need the time, however they can be a deal closer for desperate vendors.
Currently I am negotiating a block of units 30 mins from a major CBD, they are not strata'd. An option will not help me here because the rents will cover the holding cost and the units meet fire regulations so I don't need the time. 12 months would be helpful for the capital gains tax however I have found I have lost more deals than gained because the vendor wants to sell NOW. By buying NOW I can save more than what the option would have saved me providing I place sensible exit clauses in the contract.
Call me if you would like to know more out some of the deals I put together.
No money down deals are great. It saves your 20% deposit. You just need the 5% for legals etc. If you purchase in a reasonable capital growth area your equity will cover your 20% by the time it comes around to paying back the loan.
