Forum Replies Created
In this market – its not relevant too much. Prices are always more than the site value and capital improved value.
Have you reviewed the description the rental manager has used to describe your property on their rental list.
I had a property that we were both dumbfounded on and then I changed the description and low and behold, they were banging the door down to get in.
There Ad –
Situated in a quiet pocket of South Frankston is this two bedroom plus study unit backing onto the park, close to public transport, Frankston Central and the beach. Featuring good size living areas, built in robes in two bedrooms, tiled kitchen with electric cooking appliances, gas heating, carport and a paved rear courtyard and only two on the block. Front gardens will be maintained.
AVAILABLE NOW – KEYS IN OFFICE FRANKSTON OFFICEMy Ad
Larger than normal Unit with two bedrooms and study in South Frankston, just off Kar St, close to Transport, CBD, Beach and Parks. Features large kitchen, dining and lounge rooms. Gas Heating and Electric cooking. Builtin Robes in both bedrooms. Separate Bathroom and Laundry. Carport with a paved rear courtyard, and privacy with only two on a block. Gardens maintained by gardening contractor. More like a House than a Unit.
AVAILABLE NOW – KEYS IN OFFICE FRANKSTON OFFICEYou sound a little one sided Colio – your only posts to this forum seem to only relate to richmastery. Can you not contribute other stuff too?
Are you not a property investor first and richmastery advocate second.
yadda yadda yadda yadda. Not sure i believe a word.
If you belive the property will grow over the next 5 yrs – then keep it. Growth is the key.
This is how I would justify it over a 5 yr period.
Growth is $55255
Rent is $52000
Costs are $88500
Nett Costs $36,500
Tax benefits (assume highest tax rate) approx $18250 ($36500 * 50%) ie. a fat tax refund every yr of $3650.
Depr – lets assume $1k per yr. Could be more or less. So that $5k.
Total holding costs = $52000 – $88500 + $18250 + $5,000 = $13250.
Growth as projected = $55255
Increase in equity = $55255 – $13250 = $42005.
So roughtly in 5 yrs time
Property is worth = $255255
You owe = $210000Rent may be $230 per week and you owe $210,000 and dont forget your income in 5 yrs hopefully had increased too. eg today its $45k and in 5 yrs its $55k.
So in my view if the property is placed for capital growth – then hold it.
My only other proviso is – if you cannot afford the short term hardship of $7k a year then maybe you need to sell. But in fact its only about $4k after your tax refund.
I hope this helps a little.
It seems this thread is very Subjective.
Does not matter which is beter – do whats best for you.
There is alot of static out there in the world from stock brokers, financial consultants and the superannuation industry who benefit from commissions and management fees on shares bought and sold.
Trying to be objective. The main benefit in my view is that with Property you can LEVERAGE. Provided you have a deposit $10k and an income to support the loan.
By leveraging you can build a substantial property portfolio which can result in an accumulation of wealth and income.
Comments on leveraging please.
Yes – thats how I buy my next property. And yes it does mean your repayments go up. I cross collaterise so I have a new loan and we just use the security of the old property to secure the finance for the new one. But you need to have increased equity in the old property. It takes time, a renovation does not necessarily result in enough equity to buy a new property.
Me – i would be more concerned about capital guarantee and security. I would stick to the big 4 aussie banks. I dont know enough about ING and Citibank eventhough they are huge internatiomnal banks. But i do recall that building society back in the 1980’s that crashed and a mate of mine had his housing deposit stuck there. He had to effectively start again.
Welcome
Start searching these forums. This question has been asked many times. At least weekly.
I personally dont have an answer for you except, you gotta start looking somewhere. In my opinion your 5 yrs too late to find too many positive geared investments esp in Vic.
I believe in doing what is fair and equitable.
Life is a negiotation I reckon. And the happy median is what is fair for you and me. I hate the expression win/win as its been hijacked by all those spruikers but thats fairness.
Something where we both can walk away and feel satisfied.
<<<I got the last copy and it’s now worth $400>>>
Maybe to you – but not me.
Why do you carry cash? I never have more than $100 in my wallet. All my property transactions are done automatically and I am paid straight into my bank account.
Bad luck just follows some people.
Hopefully an honest atxi driver will come a knocking. I lost a good camera once in the back of a Taxi and never saw it again. Shit happens.
<<<<I just don’t trust the migration figures that are being churned out at the moment.>>>>
I dont know about them either. I sometimes think that we are getting more people coming into the country than is stated. With all this One Nation and people not too keen on new migrants etc.
I feel there are more than actually stated. But then again – I dont know. Its just a feeling I have. We need the migrants to develop our country.
I reckon you are doing nicely. I would stick to what you are doing. Sounds like you are investing the Jan Somers way. I agree with her way.
I would stay away from rural regional and as Jasn Somers says – you buy your next property when you can afford it.
Me – I have used equity in a property for my next purchase – so its important to see what the numbers are.
GREAT ARTICLE – A MUST READ. Another reason why I dont ahve any rural/regional properties.
Rural population decline is a trend across Australia and in many other countries.
Tony Sorensen, environmental expert at the University of New England, says the issue is beyond the control of governments and has more to do with technological developments, commodity prices, currency value, climate and lifestyle preferences.
Farmers are now so efficient they no longer employ nearly as many people as they once did.
“We continually hear the argument that all would be well in regional Australia if we reopened a few branch lines, brought back cottage hospitals, courthouses and bank branches and protected small businesses,” Dr Sorensen has said.“A lot of that agenda is not going to happen, and it’s like a hallucinatory drug that prevents a clear vision for the future. We’re seeing the development of larger-scale rural enterprises, and that will entail the slow demise of many small communities unless they can find an alternative reason to exist.”
My only suggestion is that 90 days is a long time. Alot can go wrong in 12 weeks. Jenman suggests 7 weeks. thats enough. My brother signed for 90 days – they had a sort of fall out – the agent was a ass and it just stayed on the market and the agent did nothing.
As for price. I sold a property about 4 weeks ago and got more than our initial discussions with the agent. But I still feel I could have got a bit more as a similar property sold for a few $000 more. But to me it was a trade off – pay extra interest or just sell it.
Just keep reinforcing to the agent what the other properties on the market are selling for. He cannot refute that information.
Have a look at http://www.jenman.com.au
Its not gospal and I dont suggest a jenman agent but have a look. It will make you more aware of some of the problems in selling and what tricks some agents may get upto.
I said <<<<100k people a year net migration>>>
You said <<<<For starters they do not reflect migration out …yes it happens. >>>>
My figures are rough and net means in less out – i am not really into statistics.
Dont forget population growth. As property investors we should welcome as much immigration as possible. I am not sure of the figures but I think on average we have about 100k people a year net migration into our great country.
This has also helped the Boom.
SIS – can you confirm? If it is you I will go out and buy a copy.
