Forum Replies Created
- kokjhoonwong wrote:Hi All.
It is definitely a great subject. When it comes to investing strategies, there is no one way. What I have learnt is our perception of risk and how much of it we think we can take on. There are countless books to read and research. Depending who you read and likes is the one that you are most likely to side on. Robert Kiyosaki, Peter Span, Margaret Lomas, Warren Buffet are all great skilled people who have cut out a niche that they are good at and went forward to achieve great wealth.
I am by all means financial free yet. However, I think to help those who are not sure yet whether properties or share is the way to create wealth, we simply need to change our mind set. Mind set does not mean just about investing, it is about how we live our lives as a whole. For example, My fiance and I have a plan with investing and formulating strategies to become financial free in five years time. We have a wedding next year that cost <$10k. Speaking to some of our work colleagues, their wedding cost have been >$20k-100k. We are back packing in our honey moon whereas others are living in the best hotels in the most expensive city. They call it once in the life time opportunity. I guess that different people have different objective as we believe once we are financial free, all the options suddenly open to us for the rest of our lives ahead. We will be more confident not having to rely on those less than optimal bosses in a job.
My advice to those starting out, is to find an area that you think you will be good at. Then concentrate on it. I know a couple, who did everything they can to be successful in properties. There are plenty of money to be made when we are more creative.
all reasonable re frugality for a future outcome, just dont forget life has a habit of not running to your plan. We have had a couple friends who defered once in a life time experiences , only to find they ran out of lifetime when they least expected it.
the charts show interest vs rent, the question was rent vs inflation. The rent line if its adjusted for inflation indicates flatline, this has not been my experience over short term in Melbourne with two properties in different areas. Over 2 years rent moved 170 >215 and 240 > 300 . Long haul you would think that rents can only outstrip inflation for short periods of time e.g. gentry-fication of areas driving up rents, and driving out low income earners. Sooner or later affordability kicks in and balance has to be restored which would get back to the flat line. Long term it doesnt seen wise to base a strategy on ever escalating rents above CPI.
gravel garden, couple of desert style plants, park your cars on it………you would think they had more to do, your rates at work
just adding a little on what Mashi is suggesting re going for capital growth, do some research on the areas proving best/worse capital growth (Domain has an article released by the REIV recently) before you decide where to buy. Dont fall into just buying where you live/have lived because you think you know it, you may miss out on useful gains. Good luck.
thanks all, I will look at both solutions once we get access. I imagine battening the ceiling will involve some scrapping back along the batten line to get a flat surface to secure to. Think I have the height to play with OK.
Pity it degenerates into yet another east vs west, my suburb is better than your suburb so there! type rant. Thought we might actually learn something
you will need to move quickly if you want to retain the option to buy something close in (assuming the price range you infer is your limit). We recently completed a purchase in Thornbury and the rate of movement we saw in 3 months of searching was alarming. We have some places in outer Melbourne also and they continue to grow steadily but nothing spectacular, with the exception of Frankston which seems to be quite good (for us at least, I hear variable reports/experiences in the area). With all the pressures/trends people describe above and gross population trends in Melbourne , the inner ring would have to be favoured….but its only my opinion.
Frankston has been kind to us over the last couple of years, exceeding our expectations. Its really hard to answer your questions without any info in regard to your aspirations, budget, constraints etc.
We have a place in what some people would think was Frankston North/Karingal, but is in a newer development and attracts tenants easily at a good rent. A kilometre or two away, across a golf course, things look a little tired and dowdy and of course cheaper. Great place to hunt down fixer uppers , but we arent in that game at the moment.
Although I hold a couple of units , I tend to agree with Terry if you are thinking of a longer term hold. Our approach to units has been that we first look if we want to buy into the body corporate, then we look at the actual unit. If the management group keep the place in good repair and order , has meetings and plans, it is usually worth looking at and will be a good rent/sell proposition later. Over the long haul having absolute control and full exposure to the land value should give better results.
Tools wrote:Any painte rthat doe sspray painting can do it for you, but be warned-you will use a LOT of paint.Tools
OK thanks , I will try general painters, I assumed it was a specialist job. Yes , I have heard that stuff really soaks up the paint and needs sealing as one of the steps.
Hi
Have you tested this with other banks/lenders?
I recently changed banks and (as we got into the bidding war) my old bank said the valuation of a property I held was $200k (based they said on sale of adjacent property…..that was a family sale brother to brother)…..a brief troll thru the Internet sites showed similar spec places all in $250-270k range. New bank valued it at $250 k and was in line with other bank on other properties. If you like your bank you may have to negotiate it up, ask for a rethink, present similar sales if you have them. They are conservative by nature and all the valuers they use are not professional/competent.
blogs wrote:yarpos wrote:I dont think the west is inherently bad , its just what you prefer or are familiar with. For me (ex Sydney years ago, settled in the east by accident as much as anything) the west tends to be a flat and boring urban desert (and yes I would say the same thing about Pakenham).
First of all welcome!! Now the above is the type of view I just dont understand-the east to me is sickening in the sprawl of houses-it is relentless and non stop for nearly 2 hours…..whats so interesting about that? Add in constant 6 lanes of bumper to bumper traffic everywhere ughhhh no thanks. And if you are liking hills well like Ive said earlier most of the east is just as flat as the west bar Donvale, Templestowe area etc.
yarpos wrote:
Inner west is full of industry (tannery, abbatoir, petro chemical plants, oil terminals, organic material and metal recyclers etc). In recent days there has been a bit of publicity in regard to industrial smells affecting the inner west.Another common misconception by people who dwell on the east and hardley venture into the west. Truth be know the east has over 5 times the amount of industrial areas than the west-you seem to be basing your opinion on a narrow field of view obtained from the westgate merge, though I can understand you reasoning. Ever ventured down Moorabbin, Dandenong way? And as far as smells, well I live inner west and have never smelt anything lol and anyway the wind normally blows from the west to the east so we get clean air and the east would get all the dirty air anyway. Air quality has been measured to be much worse on the eastern side-what would you expect when there are again about 5 times the amount of cars on the eastern side pumping out pollution?
Like I said its just my view, doesnt make it right…just like yours. And like I said I say the same thing about Pakenham also. I am very sure that the east has more industry, its just the nature of it. I spent years working in the Newport / Yarraville/Geelong areas at various industrial sites and now work full time in Moorabbin as per your example, so please dont make out that somehow there is a glass wall at the Westgate people dont cross. I guess the activists in Yarraville must just be imagining things.
As long as people are happy where they are it seems there's nothing to get to concerned about. Although these pissing matches, just like Sydney/Melbourne one, are always fun.
I dont think the west is inherently bad , its just what you prefer or are familiar with. For me (ex Sydney years ago, settled in the east by accident as much as anything) the west tends to be a flat and boring urban desert (and yes I would say the same thing about Pakenham). Inner west is full of industry (tannery, abbatoir, petro chemical plants, oil terminals, organic material and metal recyclers etc). In recent days there has been a bit of publicity in regard to industrial smells affecting the inner west. Doubt if anything will happen about it unless it affects the city area, its been that way for many many years. I imagine if someone has paid heaps for a luxury townhouse in Yarraville that it would pisse you off. Access to good quality secondary education may also be an issue but that is probably a whole other debate, and is a pretty subjective thing.
All of that is more why I choose not to live that side of town, not so much to do with investing. The counter argument is that population pressure is on at the moment and at least the next few years, and all that industry also means to jobs, people and places to live being needed. Early settlers get some proximity to town, before the spread heads seriously towards Geelong. So from an investment point of view I dont see why it wouldnt be a good area to invest in. I have limited time and all the opportunities I need in the other half of the city so I havent gone there. If people are doing well in the west thats a great thing and more power to them.
wealth4life.com wrote:Property Market heating up??A friend of mine just bought a 900m/2 block of land in Turramurra, new sub division for $630k – it sold 6 months ago for $685k and they spent 30k getting plans approved … where is the market heating up …
Interest rates are rising and "fear" is in the market still – there are deals out there as above … go figure … so market heating up as advised by Steve … not in my opinion yet.
D
I love Sydney….$685k for a block of dirt, sounds like a market that has heated up to me ….. I feel relieved to have gotten out of Sin City many years ago.
Tysonboss1 wrote:yarpos wrote:maybe have a think about the long term value of having a good tenant. trying to gouge more rent aggressively will cause turnover and that usually costs you money. Up to you of course, but at a minimum you will need to honour the lease you have signed.congrats for getting in the game.
Never be afraid to Increase the rent even if they are good tenants, after all you have to atleast keep up with inflation, It doesn't take much investing skill to accept a below market rent the only one who will suffer is you, especially if your investment is neg geared, what kind of idiot sits there letting there weekly rent get eaten up with inflation over the years as they fork out more for increased costs each month just because they like there tenant, a good tenant is one that looks after the property, pays there rent on time and accepts annual rent increases of inflation rate + 1.5%. if they winge about an increase inline with inflation and the market they are not a good tenant in my books.
Having said that, you must honour your lease just as you would expect your tenant to honour it,…. and Interest rate increases are not a valid reason for increase it is one of the costs that the investor must absorb, an interest rate increase is one of the risks you signed up for when you became an investor with a leveraged portfolio, would you lower your rent if interst rate decreased.
Not quite sure what triggered that tirade. The topic was trying to put up rent after signing a lease two weeks ago.
Dont know how we lurch to idiots sitting there for years with rent getting eaten up, or being afraid to put up the rent for good tenants…sheeesh!
maybe have a think about the long term value of having a good tenant. trying to gouge more rent aggressively will cause turnover and that usually costs you money. Up to you of course, but at a minimum you will need to honour the lease you have signed.
congrats for getting in the game.
you might also look at Kentucky Napier
tend to agree with scarecrow
We looked at central Frankston but an opportunity came up near the golf courses on Skye Rd. That was Nov 2005 and weve had about 20% appreciation since then (admittedly we fell on a good deal going in). I think what you are talking about will work but it would be better to stretch as suggested (or look harder for a good deal) closer to the water and/or central Frankston. Nor sure how much longer the freeway factor will play on prices (till it opens I guess) but its been a nice ride so far.
as a relative newbie I can also say that the main thing is to get started. I was concerned by what we did at the time but the ramp up of values and of rents has made a dramatic difference in just 18 months.
good luck
If the orginal work is done in a tradesman like way and normal maintenance is done there is no reason why a hardiplank place would develop leaks. Might not last a 150 years , but not really your problem.
regards, Steve
mmmmm…really depends on how you value what you do with your life….if you really believe that he who dies with the most toys or IPs is a “winner” then I guess your right.
