Hi Waynel
The stamp duty was from memory and it aint what it used to be.
On one purchase of 3 properties from seperate vendors it was $20,400 on $715k
On another property, a block of 15 strata units it was $51,439 on a purchase price of $1.25mil
It just goes to illustrate the point further what a horrendous cost the stamp duty actually is when you get up in the higher price brackets.
Cheers
PS the stamp duty on the $715k would have been higher if all 3 properties were purchased from the saem vendor.
Haven sent and received several emails from bill, i can vouch for his integrity. He has done nothing but help me with every question and doubt i’ve had.
Bill – will get you the information you’re after this week. I have to get to the national library tomorrow.Once would have been enough to convince me… [
]Cheers,
Paul…“The only thing you get from looking backwards is a sore neck…”
Hi Bill,
I think that it’s a useful indicator you have there. A lack of rental demand with continuing higher property prices isn’t sustainable. In some ways it may be similar to the advance-decline line with share trading.
Westan,
I agree that property should generally be a buy and hold stategy, but as Bill mentioned now may be the best time to offload those underperforming places or to reshuffle/update the portfolio. Most people will say that you shouldn’t have ended up with a poorly performing property but people do make mistakes and admitting it and cutting your losses is one of the hardest things for humans to do.
Josh
Hi Bill,
We’re in the process of downsizing our house to go from a $200,000 mortgage to a $50,000 with the view to start and invest in +ve cf properties. But based on your recent comments should we stay out of the market completely until the heat dies down in 2005 and what should we be doing over the next 18 months.
Regards j.dHi all
great thread
I just know that in my situation it is a very bitter pill to swallow that you have to contemplate selling. I went into this with a buy hold strategy via a property investment come financial advisor with a view to developing a portfolio.
Well without going into the details again as most of you would be aware of them.
There are so many things that go through your mind and im sure anyone that has borrowed would think these things.
If interest rates climb, vacancy factors increase or rents dont meet a certain level well lots of sleepless nights.
I was led and shown figures which suggested that things would be ok in the event of certain changes
however the reality is different.So yes its a cost but it could be a new begining also having that bit more experience.
If the market is prepared to pay a high price then why not.
If i cant get the high price i will have to have a back up plan.
If i wasnt talked into been so heavily geared into it and doing what i had in mind the situation would be hold.
I cant see the market climbing too much more and i can always buy in down the track and set things up how i want and have control.
From the outset i have had no control it has always been that they were doing me a favor. Why because they know how heavily geared you are so you havent got alot of choices.
Someone expereinced may have been able to manouvre better who knows?
To say it was my fault stiff cheddar i would say my mistake was to trust.
kind regards
alfG’day to all that have responded…
There is two types of research that you can do.
(1) Talk to like minded people, Developers,Brokers
Real Estate Agents,Sellers… if you are looking for confirmation that your purhase or intending purchase is a good idea….OR(2)Talk with those that don’t have a vested interest in Real Estate. If you are considering a purchase in Regional areas or a Country Town or anywhere for that matter… get dirty, don’t just ring Agents or get on the net. If you do ring an agent, tell them you’re considering selling and you are worried about the market and you want a realistic saleable price… ask them is the market a bit softer or if you can sell for the same price today as 3 months ago, talk to the locals at the Pub/Club, talk to the trades people doing repairs on rental properties.
Keep records of anything that will tell you what direction the Market is heading, Auction numbers, clearances, time on the market, sale price compared to original asking price. Rental Vacancies by the number of Properties, number of columns, number of pages etc.
Only in doing (2) have you done any genuine research…(1) is loooking for someone to tell you what you want to hear.
Am I suggesting you sell? No
Am I suggesting you buy ? NoI am, suggesting that you do genuine research, so that you can really “feel the market” and in your heart you will know. You will get that “gut instinct” that tells you that “this is right” or there are “warning bells”. Your research will not only tell you what to do, but where and when.
Cheers
Bill
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]HI Mini Mogal
Thanks for your most agreeable comments. I too am in Syd and would like to here where your buying in this market. I have been buying prop for the past 13yrs and only sold to release funds for non investments (home/car) and once for the business.
I don’t think there are too many + cash prop, but I think there out there, just not in Syd. Do you have any area’s where i could be searching?
Cheers 888hey property888,
as to areas where you could be searching – well, NZ.!!!
don’t know if that was what you wanted to hear, but there it is!If you look at realenz.co.nz for any areas that have properties for sale for under 50-60K, you should be able to find that they will as often as not be CF+ve. if you want the super-yields then look for structurally sound properties between 20 and 40K and redecorate them. You should then be able to achieve 20 percent- plus yields. including your renovation and maintenance costs.
due your due diligence *thoroughly*, just repeat the phrase ‘buyer beware’ after me….
what i am trying to say is that not every deal on the internet that is listed for a cheap price complete with sitting tenant is a good deal, even though you will fall over yourself with excitement when you see how many good deals there are (still.) But hurry.Unlike Aus where people are saying ‘don’t buy now, wait for prices to drop’ i would say as far as NZ goes i believe ‘properties at the bottom of the market will never be this cheap again’ – even though price corrections may happen 1-2 years down the track in other sectors of the market.
cheers-
Mini
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