Forum Replies Created
I prefer to invest for growth because that is how you increase your wealth.
As for finding areas that will grow – population growth is what drives real estate prices.
But as Jan Somers says – its time in the market that is important. The longer you hold a property the greater the return.
As she says – when is the best time to buy a property? Anytime – as long as you can afford to hold it long term.
Good Luck.
You may end up with two Books in the top ten.
I was in Myers the other day to get a ticket to see the Sainters and noticed your Book is still in the Top Ten at number 6.
All agents are almost the same to me. I notice that any State Trustees auction in my area is always done by the same agent.
They are no different from the others in the area. They have probably been around the longest.
And thats also the case in another area where I have a property.
It seems to me that State Trustees dont change their agents often.
In the long run to build wealth you need to purchase growth properties. Most of these tend to be negative geared properties in the first instance.
As time marches on they become neutral then positive.
The problem with too many negative geared properties is that you need an other income to support them.
So its probably best to have some of both.
<<<<<<Anyways this IP doesn’t have plaster walls.VJ’s tend to have a bit more give thankfully.>>>>>
What are VJ’s????
I had a similar experience with my property manager.
In my area all the agents have listings at the front desk. Therefore I dont believe in paying for advertising. Renters will go to agents and get their listings NOT look in the local paper as local paper only really has some of the available properties in area anyway.
I got a copy of the agents listing. I re wrote the description of my place and within a few days I had a tenant. Previously with the poor description by the property manager it was on the market for 4 weeks with only a few inquiries.
My advice – get a copy of the listing and re-word it to sound better than the others on the list. Emphasise the good points about the property and use words like better than average, large, private surrounds, pleasant outlook, around corner from public transport etc.
I always do a pre-settlement inspection on the Thursday before settlement on the Friday.
In our PPOR there was a trampoline and other stuff. I said i wanted it gone or I would not settle. It was gone prior to settlement.
Its very important you always do a pre-settlement inspection. Usually solicitors insist on it.
The last thing you want is no curtains, stove etc etc.
Same all over Australia – Auctions are a thing of the past.
Yeah – but if I gave an email like that to me boss – i would be out on the street the following week. I aint got that much patience and I dont want to remember my business law days at uni.
Can you summarise the legal mumbo/jumbo? What is the upshot?
Jo
I have option D for you.
My brother lives in Shaftesbury Ave. He has a 3 bed house and a one bed unit. Back rented at $150 and house probably at $210.
He wants around the $300k mark.
All the work is done. He is a carpenter, so its all done professionally.
I have suggested he sells and buys something he can develop. For a passive investor its great but for someone in the trade I suggested he buys an old joint for $300k and turns it into $450k with his sweat equity.
If interested, let me know and I can give you the details.
Restumping can also cause problems with plaster cracking and requiring fixing and painting.
My sister re did the stumping on her PPOR and there are cracks in the plaster everywhere.
Restumping is no easy task.
Thats one of the reasons I am not too keen on weatherboard houses unless its been restumped recently.
I believe a property agents fees are not deductible against income as its of a capital nature.
So its an acqusition cost and deducted from the selling price when working out your capital gain/loss.
My predictions (for what their worth)
Problem today is that house prices are historically too high for first home owners. Present property prices are not supported by current incomes and yields are low. If market does not correct government may intervene. Market has not corrected as baby boomers have seen benefits of property investing and have invested for the future.
As the US economy picks up interest rates will rise. Those overcommitted will feel pressure of interest rate rises. Some developers may find it expensive holding properties and profit margins may deteriate as properties are completed. If property values are not rising investors and developers may no longer be prepared to keep pumping money into non productive investments.
Therefore I expect rents will rise as interest rates rise (increased costs of ownership) or remain flat if investors are prepared to hold investments at lower returns like present. I expect rents to remain stable and increase a bit as property values will fall as interest rates rise.
I also predict over the next 3-5 years some may get disillusioned as they will not realise what they expected from property investing as they may no longer be prepared to keep pumping money or their time into properties that have not met their goals – growth or positive cash flow. Some may also be over committed and need to sell quickly.
I tend to agree. I just sold my latest purchase which was made 2 yrs ago. Will bank a nice profit and now i can look forward to buying in the next year or two.
As the US economy recovers interest rates will rise and property prices may fall.
Interesting
<<<<<* serious investors will continue accumulating carefully selected properties as fast as they can (without becoming overcommitted, of course).>>>>>
I hope I am this. I sold a property last week as I felt i was starting to be overcommitted. I did buy it two years ago with no deposit but I did make a tidy profit.
Now I can sit tight a bit with my existing properties and purchase again when I feel that I am not overcommitted.
Ya gotta love that show and the people it showcases.
If you can make $1000 a month positive cash flow go for it. It should not be too bad to fix the mould. Worse case scenario would be to remove the bathroom ceiling, see where the leak is and get it fixed.
After purchasing you may even get the above unit to bear some of the costs or even the body corporate. You may even complain to the agents and offer a lower price for the mould.
If you need another opinion get a building inspector in for his advice.
We are talking about their next one.
Your question is too general. You may need to see an accountant in the first instance and tell him/her what you want to do.
