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Oh, & check out Property Investor magazine- there is a quick list in the back on median prices for suburbs and rental returns. YOu can also look at RP Data- a bit more cumbersome but up to date. They call the agents on the weekends to get their auction results….. I used to be an agent.
Brendogs, you seem a bit confused. You set out talking about subdividing then renovation then buy & hold but then you shy away from it all.
If you have a good team then I wonder why you have not purchased already?
Yes, the market is a bit bouncy in Melbourne- but it is a good time to buy.
I have been pondering responses to "when to buy"….
A lot of people get into the market "when the market is good".. or on the way up, then they pay too much and get burned.
If you are handy- start with 1 & do some renovations. You can have all the best team in the world but there is nothing like experience.
Do the math- yes it can lie- but I was taught at University- do the sums – and you think it is a goer- do the sums again- most likely you left something out of your assumptions.
Rural areas can be very hot and cold- hard to figure prices, hard to move and hard to rent.
I would see what your $50K can buy you in Melbourne after that Geelong as JacM seems to do – as a solid investment.
I know someone who bought in Norlane & Corio for $50K years ago- the ends of the Earth it would seem but try buying for $50K in those areas now.
Geelong has a lot going for it- not just lower entry prices.
How much rent are you talking about? Were there any steps taken before they left to get the rent?
It depends on what you are looking to achieve.
In Victoria, you can pay around $30 and go to VCAT- you can get the bond paid to you.
Terryw is correct- states have different cooling off periods.
And DO what Scottnomates says – get legal advice asap.
If you are in Victoria – you get 3 days cooling off – that is to take the contract to get legal advice on it. If the agent has told you to sign it- then I am assuming you have not had legal advice because your solicitor or legal agent would have advised you against this.
Agents are entitled to take 0.2% as fees. They often do but not always. I had a sale that cooled off and we gave them back the whole deposit. Then we sold the house for more.
But other states are different. I dont think you would be in this situation in NSW because it seems to work differently there- you need to get building inspections and finance before you exchange contracts- it works differently.
Good to know Qld has 5 days cooling off
Sounds like a great return on the face of it.
Do all your figures- you will need to take into account body corporate- if its City Central then I might assume it is high rise so there will be body corporate and other costs associated.
I had similar type investment for sale close to university but could not sell as the figures when all was taken into account was not such a great investment.
Is it studio apartment? How many bedrooms? Car parking? Who will be your target tenant? Can they afford this rental?
Call some agents as a prospective tenant and see what you get for that sort of rental as well. See how it compares and what you get for your money.
Is it established? Or off the plan? Have others been sold in this complex?
Just a few questions to consider.
And I dont know what is going on with the changes to planning in Victoria. I dont know what impact this is going to have.
I would be very cautious at this stage going into something for “development” purpose until I understand more of how this is going to pan out.
Hence the reason for my next meeting focussing on this issue.But really again I say – what do you and your partner want to do? Yes, you can make the $$$ but do you want to live in a construction zone?
As I always say – that you dont hear from real estate agents – there is always another “deal” around the corner. This will not be the last one on earth.
I hope by now you have had some constructive numbers feedback from the finance guys on this forum – figures always help me to see the “big picture”…………
Mick, this sounds all well and good.
The question I have is about YOU. Do you want to move? Ok so you want a bigger house to accommodate a new baby. And there is always the nesting thing. How many mums have I known – or how many mums to be did I see at opens.
To do something like this is a big thing to do- while involving the family. Like do you want to be living in a construction zone while this is going on?
Is the house you have found near to where you live? Will you be moving far? How does your partner feel about all of this?
Having done this before – it is a great strain on the marriage – and now I am single.
Property investing is a great way to build a retirement income of course – but is it right for your family just now?Here is information on Dean and Elise Parker:
http://www.propertysystems.com.au/reno-expert-dean-and-elise.html
Hope that helps youHow did you go with the handy man?
Did you find one?
I can suggest someone who can point you in the direction of good handymen.Hi Sonny, did you find a lawyer to help you with this?
What are the issues?
Do you mean a lawyer to write up the agreement or is the tenant in the property and not making the payments for the outgoings?Commercial property is very tricky isnt it.
Kristen – you are such a wealth of knowledge!
What a breath of fresh air!
I would agree on the data and statistics- you can look at the numbers but it does not give you the feel or the “vibe” as Michael Caton said in “The Castle”.
I keep saying here – you get soooo much more from walking around that you cant get from google or from magazines.I did hear someone say that there are properties in mining towns that you can buy in teh $400k’s and rent for $1800pw…
Are you just looking at Victoria Suzbats?Hi Mikesone- did you get any replies to your post?
How did you go with this?
Where about’s are you located?
I do know someone who can help point you in the direction.
if you are still looking- PM me.This is all very odd and sounds like there is a lot missing to this story.
I would be of the same view – that might have been sold to a mate of the agent or conveyancer.
Poses a good question though about proof of the deposit.
As the vendor you MUST be entitled to see proof?Yep, Barry all correct.
Better off running competitions to get your leads- at least they are part way qualified.
And cold calling is a hard slog from one who has done plenty of it…………
Gotta just love rejection!Where is Victoria Park?
I would suggest that the best time to reno is about before you have the tenants move in.
You still wont be able to claim any deductions as this is before the place is earning an income. Your place needs to be earning an income to claim against before you can claim. See you accountant- you will need one who knows about property investing- not many do- I can suggest one if you need. After that- maybe rent out the place , then do your reno about when your subdivision is almost built.
Just in case there is any damage to the house.
You can do your renos while you live there- Oh!
I just thought- consider your Capital Gains- see an accountant and run through figures- if it is your PPOR – then the reno at that time may be worth it- no CG as a PPOR.
Then you are subdividing the block- whole new ball game- again talk to an accountant who knows property- get them to run through some figures for you.Mike – you are a very popular person!
Its nice to see a few genuine people on this site helping others out.
I hope all is well with you……………Liam T How did you go? Did you find someone to help you out?
Did you end up investing in a mining town?
Streamlining investing- that is a great idea. I am not so good at spread sheets so must dust up in my excel skills.
I am thinking of investing in such a place – I like Gladstone as I dont see it just dying when the mine moves out………….Maybe try ebay?
Or other sites … Has Rick Otton got a site?I have had some experience with Metropole strategists but wont post here my views……….
Happy to have a private conversation.Jenny111 – you must be so confused!
There are many ways and strategies to use in property investing.
Perhaps its a good idea to sit down and think about what it is you are wanting to get out of property.
You have posed some great questions here – and questions that dont often get asked – are overlooked until the ink is dry on a contract – then comes the hard part – getting finance for that tiny apartment.
Sounds like you have great ideas.
I think in answer to your question as to why do councils approve small apartments -is that there is demand. There are many students in Melbourne having 2 or is that 3 universities -all close – and = many over seas students.
Also demographers are saying we are changing the shape of our families – and some retirees like to down size to something smaller – maybe not to 16sq m but they pay more for smaller places once the kids have moved on.
