Forum Replies Created
Hi AVS
If you look hard enough you can buy 2 bedroom unit in Mt Lawley in certain pockets for under $400K which could represent reasonable value and one bedders for under $300K.
http://www.realestate.com.au/property-unit-wa-mount+lawley-110986399States $420 pw rent which would be about right.
This location is reasonable, more of an older style flat, but in this area this is the norm, this is blue chip area and units are in big demand and tight rental market.Not sure how many units in this block though, however, I know this location may be worth looking closer at this.
Cheers WI
Hi AVS
For units close to the city in Perth you could try.Mt Lawley
South Perth
Como
Mt Hawthorn
Inglewood
Maylands
Yokine
As far as houses go I really don't know where you would be able to purchase at $400k within 10 km from Perth CBD.Rents are very strong at the moment. I would try to buy in smaller complex 6-8 units.
Happy to help if you have any further questions. I am from Perth.
Cheers, WI
I can not comment for Oz recovery in general, however there are certain pockets in Perth that are showing signs of recovery.
As an investor Its looking very attractive with rents rising fast and interest rates dropping.Then again I am not chasing growth but adding value and I just love buying properties at $320-350K which I can develop, retain property and build at the rear. There is certainly competition out there but no way near what it was like 7 years ago fortunately.
Cheers WI
Connolly wrote:Hey guys,Looking at WA at the moment. Strategy of buy, renovate and hold.
Looking at two markets- Armadale and Rockingham.
Both have good entry price and have multiple growth factors.
However both have a stigma of high crime and being a lower socio economic area.
As am knew to WA, just chasing some feedback and advice on anyone who has invested in the areas, general thoughts and recommendations. Both good and bad.
Cheers guys
Hi Connolly
I am an investor and from Perth so hopefully can help you.Areas change, and areas which are "on the nose" today can also provide some great opportunities, I would never let this get in the way of a good deal. My best deals have always been in many cases the lower end.
Rockingham has some pockets which I would say have lower entry levels such as Coolbelup, which perhaps not as desirable, these areas will provide the higher yields, however on the flip side you can pay over $1M+ if you are purchasing close to the beachfront or development properties. If I was personally looking at Armadale/Rockingham areas I would consider beach side property first.
The Perth market is ripe for purchasing properties where you can add value, ie retain front property and build at the rear, this way you are not dependent on growth with an opportunity for cashflow.
Cheers, WI
Hi DHCP
I am confused, do you have 5 properties in Atlanta in total and of these 2 are in your SMSF, total cost $401K?Cheers, WI
streamlineinvesting wrote:I have always been interested in mining property, I have seen a lot of people make a lot of money getting into the property BEFORE the rents become outrageously high. But from what I can gather, there just does not seem to be a long term potential.Looking at your situation, $600k mortgage, 7% interest rate means $42,000 in interest only repayments a year.
$2,600 per week in rent gives $135,200 gross rent return per year.Gross profit will then be $93,200 per year. Taking away tax and other fees, will assume a net profit of $60,000? I could be very wrong there but let's just stick with that figure for now.
Now you say the property is worth $1,000,000 at the time being, but this value will one day become just about nothing, obviously I do not have details of your property, but eventually the mine will be finished and you will have a property in the middle of nowhere, probably only worth $150,000 if you are lucky?
So although you are making $60,000 per year from your rental returns, the capital value of your property will slowly degenerate down to this $150,000 value. I am not sure how quickly it would go down, but saying the mines will be lasting for 20 more years, assuming a linear devaluation of value. So a $850,000 capital drop over 20 years is a yearly loss of $42,500.
So your true return may only be $17,500 per year? Still a pretty decent return, especially given the market. But if you just sold the place, took away your $400,000 profit and invested it and got a 5% net return somewhere else, that would be $20,000 return.
Like I said I am not really sure if this is how mining properties work, but it just seems like the logical way for me. And I just do not see any true value in them over a long term, unless of course you are able to get into them before the mining operations start.
Hi steamlineinvesting
Pilbara region is not going to die any day soon.
This will give you some perspective on what the Government is actually spending on this area to help meet the needs from impact from mining etc.
http://www.waconference.com.au/?q=News&id=5b36ae4c-b41e-5b22-d815-4ff0f02ecb2e
My concern with holding property in Port Hedland, Karratha, South Hedland is that its all about supply and demand. If the mining companies are buying up land and building houses for their employees then this could leave some investors out in the cold.
Cheers, WI
HI Mango
Was it Steve that performed the reno on your house. My understanding is that he started using another company to renovate properties. Also Clinton actually got booted out and he has now started his own company as a buyers agent.I suspect that Sean was not a good business operator, he also employed too many people in the early days and perhaps had cashflow issues.
Congratulations on moving forward and finding a good property manager and securing a tenant.
Cheers WI
Hi Mango
I purchased my first 2 properties in Atlanta with FAH. I am based in Perth.I met up with FAH team in Atlanta and saw one of my purchases prior to buying, also this one below though I did not see it, I thought it was a pretty good deal at the price I paid when you look comparables on zillow.
I only purchased 2 through FAH as I did notice that the majority of the properties were not that great and it was real slim pickings I thought.
FAH were very much yield focused and most of their properties did not meet my criteria. I also noticed that they changed their business model and started also purchasing turn key product that was very old, absolutely shocking, would not touch.I did not have any major problems with FAH as such as I believe I purchased in the early stages of their business but I noticed it seems to fall apart, change of employees which did not seem to make any sense and I found another company that sourced far better properties.
http://www.zillow.com/homedetails/1532-Locomotive-Dr-NE-Conyers-GA-30013/69417698_zpid/
As Jay said consider yourself lucky – what you lost was quite minor, there are certainly horror stories, investors losing everything.
Is Steve managing your property?? If so, are you happy with his service.
Cheers, WI
Pat007 wrote:Hi Everyone,
http://www.realtor.com/international/rdc/listing-detail/2130-Sugar-Creek-Falls-Dr-SE_Atlanta_GA_30316_6148761142?source=webBit of an exercise as i know people look at one place through very different eyes (Jay vs Kyler for example)
Why would this be a good deal?
Why would it be a bad deal?
What is good about the area ?
What is bad about it?
Any other discussion points where you can show off your knowledge ?* note this is not to have my research done for me, rather i want to measure my own evaluations against those who have been in the game a while and live in the USA. Makes a good case study for others to examine too
I would not pay $99,000 in this county. This would probably rent out at max $1300, it would not stack up.
Search the forum there have been posts regarding the issue of bank finance in US, it is almost impossible to get a loan. There are hard money lenders out there, however you will be paying costly upfront fees, high interest rate as much as 12%. Everything I have looked at I would not touch, additional accounting fees and complicated paper work, insurance requirements which could also be costly. Its a mine field for the foreigner investing in US.
Of course there are also the companies that are selling properties with finance, however the properties are hugely marked up, so you are basically getting ripped off.
As far as setting up bank accounts we have set up a number of bank accounts from Australia and authorised our Lawyer to do this, Wells Fargo, however, this is not the case with all US banks.
Cheers, WI
PaulDobson wrote:Paul at Resicert does a good job. His number is 1800 737 423. He also has a website at: http://resicert.com/Cheers, Paul
thanks will give them a call.
WI
Freckle wrote:Jay this is a more accurate assessment of the supply demand metric in Australia for your info; http://www.macrobusiness.com.au/2012/06/housing-shortage-arguments-collapse/jay wrote:Just like OZ where there is limited habitable land.Mate there's more habitable land here than you can poke a stick at. The problem is not supply. That's a myth perpetuated by the RE industry clowns. Demand is the issue here. Trouble is when bureaucrats and govt's meddle in markets they simply bring demand forward then wonder why they have a bigger problem when demand runs out again
Thats right, Supply and demand, in Oz people want to and live on th coast or near capital cities.
As far as selling properties goes, I like to use a company which has a high profile in the particular area then I do the research on who in the company has a great track record on selling. I look at his/her Past sales, listing price vs sale price and
Time it took to sell each property.WI
This is way to broad a question.
There are many different properties in Rivervale, houes, units, OTP, development sites in the area and unless you can give us more details very difficult to answer your question.I can tell you that Rivervale is an area that is relatively close to the city, in the last boom many investors purchased developments sites in this area and did very well. You will need deep pockets to replicate this now however.
I would look at what you are trying to achieve in terms of cash flow vs capital growth.
I require more information on your price point etc. before I can answer your question.
Cheers, WI
I think your current situation will actually slow you down in the investing world as you have no room to move and need a property boom to dramatically increase your equity. Don't know where your properties are but this could be some time off.
I would convert your Principal property to interest only payments for the moment until you build a greater cash buffer.
I like properties which can be developed as it opens many opportunities, instant cashflow or hold 1, sell 1 or 2 properties.
I would consider selling the IP that can not be developed as a way of increasing your servicability with a view of developing your IP down the track, of course this all comes down to whether the deve site stacks up in terms of returns, on sale price etc.
Cheers, WI
Hi Jay
I would like to accumlate more properties in US, but as I have mentioned before as an Aussie investing in US the attraction is the cashflow, income averaging will not work for me, as I can play in my own backyard and leverage my money. I am attending an auction in Perth this weekend and if successful will be flipping this property.
However there is a stategy that may work in US at the moment and will still provide me with the right returns. I will let you know if this all pans out down the track.
Cheers, WI
Hi Emma
Yes, Its now time to look at doing things differently that will work, of course this will take a certain skill set.I am following a different path now which hopefully will provide me the required cashflow.
Cheers, WI
Hi jnb
If there is one thing I have learnt from 12 years of investing in Aus and overseas, balance is important regardless of high income. If you have a highly negatively geared portfolio it can be a huge disaster if 1. circumstances change; 2. housing market goes pear shaped; 3. Banks loans harder to access.
I offloaded a few of my highly neg properties and it has been the best thing as it has allowed me to grow my portfolio I believe in shorter time frame if I had held all my neg properties.
Hi Thejajco
Sorry things did not turn out for you.I do not know how short sale process works I am sure many of the US guys will be able to guide you, however if the houses are trashed and boarded up who would buy these properties, I am guessing you would have to give them away???
WI
Hi CH
Varies greatly depending on the deal, some as low as 14% gross.I am focused on cashflow for good reason, there is plenty of slippage, ie property management fees, vacancies, insurance, maintenance etc.
I also like properties that rent over $1000 – 1300 per month. purchasing properties anywhere from $18-25 sq ft, I have not found anything close to this now and even when I was purchasing at these prices were pretty amazing. But I was also buying homes that were distressed and some investors possibly would not touch, ie termite damage, of course you would never buy anything usless you knew the problem could be fixed.So now it is a different ball game, some investors are still buying gems.
I know an investor who has just settled on a block of 4 townhouses approx. $78,000 in Altanta, brick construction, excellent county and each property will rent out for $850 per month, it was a bidding war she simply wiped out her competition by offering much higher bid and it has paid off. I guess she recognised an amazing deal and prepared to pay more for it. I wish it was mine. Good luck to her.Cheers, WI
