Ben,
Re Geraldton, I only have $2,000 there. Regarding shop rental, it is easily rented at 80-90 per week and possibly rented at 100 per week. They have 6 months to find a tenant before it becomes a concern. I think they will do this with no problem seeing on the first day they put the sign up, they got an offer at $90 per week.
Regarding capital gains, before I even received the signed contracts (there are two titles), I was offered $35,000 for the vacant land. This represents a CG of 250% before EXCHANGE, let alone settlement, seeing the contract price on the land is $10,000. Looking at the overall deal, it would mean I keep the block with the shop on it for a piddly $25,000 and still get the same rental return.
I can’t see how your other half would have a problem with that.
Robert Bou-Hamdan
Mortgage Adviser
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Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdHi there folks. Seems the go is Geraldton. Never been there.
There has been a recommendation for Redcliffe and Cloverdale in this forum. Cheap properties but I strongly recommend getting a feel for the locals first. I fly to Perth twice a year to check out my investment properties and to visit my mother who lives in Cloverdale. It’s unfortunate to say, but I wish I could get her to move as she has experienced much activity from undesirables.
mRob
I would not have the confidence to buy property sight unseen.
In the last fortnight I have looked at 2 properties in my hometown and both times the agents had made serious mistakes with the property details.
First one the agent says that block can be subdivided into 4 green title street front lots hence the 299K price. I think hang on I am sure that street is R25 not R40. Pull out scheme map and sure enough R25. Agent only mildly embarrassed.
Second one another corner lot supposed to be 893m2, suitable for duplex. Check it out, gee it looks small for 893m2? Check rear fence line, mmmmm looks like it has already been subdivided.
Check DLI and sure enough block is now only 580m2 and not suitable for any subdivision at all.
Agent highly embarrassed.Regards
Clive
Crusader,
don’t knock somewhere that is bringing in the money!!!I live up in Geraldton and I have to admit, I was one of the knockers, claiming “Oh it’s just the place you have to go through to get to Kalbarri!”. SO I know what you are talking about.
However, when a job opportunity was thrown my way, and on further investigation of the council website, hubby and I felt it was a place to move to and start investing in.
We made the right decision as it is a top place to live and we have bought two houses within six months. One has had capital gains of over $40K and the other is by the beach (Sigh…).
Personally, the more people knock Geraldton the better, coz all the wankers are too afraid to come up here!
Steph.
Success is 1% inspiration and 99% perspiration.
Steph,
What are vacancy rates like up there?
Doug
practically nothing at the moment. JAnuary is when all the government workers move up and there are only 3 or 4 houses available for rent and there are usually a tonne of people going for them.
Don’t know actual figures but we are currently in process of renting out our IP and we have a family wanting it already and we haven’t even advertised or anything!
Steph.
Success is 1% inspiration and 99% perspiration.
GERALDTON GERALDTON GERALDTON
I love the place!!!
I will have to visit one day.
_____________________________________________
The poster formally known as The Mortgage Adviser
When I grow up, I want to be a Storm Trooper!
Big Rob, I think we shall have to concede the fact that I live in a crime ridden town that no one wants to invest in. FINE BY ME!!!
Get rid of ’em all! First impressions admittedly may not be so grand, but when you read what is proposed for the place and having seen it change in 12 months, I have no hesitation in staying for long term.
If you come over, drop us a line.
Steph.Success is 1% inspiration and 99% perspiration.
Will definately do. I was impressed by what the Council plans are for the area. Regarding the ‘crime’, it will drop off as the housing commission areas get dispersed.
Forgetting the fact that Geraldton is a city, it is a great seaside place that will become desireable and fashionable over the medium to long term.
I am trying to find something with water views (that cannot be built out) and a northerly aspect. Let me know if you come across anything worthwhile (unless you buy it!).
_____________________________________________
The poster formally known as The Mortgage Adviser
When I grow up, I want to be a Storm Trooper!
Originally posted by kchin:I am fairly new to the investment property scene and was just wondering when you purchase property do you go through and see everyone. There are quite a few theories on the best way of investing ie. Steve McKnight, Margaret Lomas etc and was wondering what most of you did.
Hi Kchin,
From a personal perspective I don’t go through the properties I purchase and look at an investors summary of the properties first.
The ‘figures’ and the research information provided enable me to make a decision about the suitability of the property for my purposes. I have access to other resources that do some of the final checks and balances for me.
For me I prefer to focus on growth as the main decider in my property selection and then use the increasing equity either for other properties or other investments. My circumstances and plans allow me to focus primarily on the likely growth in a property.
Derek
[email protected]Property Investment Support Available.
Sure.
We just bought near the water. No views but a short walk to river and really cool beach. Windsurfers paradise!
I was only joking about crime rate. I was reading in Somersoft, some tosser wasn’t going to buy in GEro coz of spastic crime rates. It absolute Bullsh*t! The actual crime rate is because there is one repeat juvenile offender they don’t know what to do with and a couple of families around town who disturb things a bit.
We have never seen nor heard of many people actually been a victim of crime. If the crime rate was so bad, wouldn’t insurance companies charge us an absolute fortune? Well actually no they don’t. My insurance bill is only 50% of what it was in Perth.
Anyway, I feel better now…
Steph.P.s. There are some cool old houses in Beresford which have ocean views. Mind you, they are in serious need of reno and will set you back a little bit to start with. Not good for cashflow, but excellent capital gains!
Success is 1% inspiration and 99% perspiration.
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