Hello all formites,
just thought I would ask what you are all doing, just to catch up – OZ wide.
I will start- I have sold a regional property in WA. I was fortunate to make 23% in 6 months. Hoping that something else will come along.
I am definately NOT buying. My reasoning is this, I will enter the market when there’s an oversupply of desperate vendors and people will have to be open to negotiations (generous ones at that too, in my favour!)
I am so sure of this becoming a reality that I’m sticking to this strategy no matter what. If this doesn’t eventuate, then obviously I’ll change strategy, but I’m so confident that it will I dont think I’ll be reverting to any plan B.I know this is a pretty strong opinion and stance but my crystal ball is saying it’s gonna be a smorgasboard for good buying fairly soon!
Marisa,
We are flat out buying up everything that the bank will approve. I think we’ve reached our limit with the latest purchase and might take a breather for a month or two…
We reckon it’s an absolutely fantastic time for buying, and confidently predicting great growth from a combination of both passive organic and active development. Our corporate tenants seem to be going from strength to strength, and we are actively milking them for all it’s worth…as you do.
Our biggest gripe still, as always, is the impost of State stamp duty on the title transfer. [angry2] Our sett. agent commented the other day she had other clients buying nice homes for less than the stamp duty cheques we were handing over.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Selling some, keeping others. The numbers just aren’t there for buying right now. Moving in other directions
Hi Dazzling, Congratulations, you seem to be going from strength to strength.
Keep hearing how well businesses are doing and comm/indust rents predicted to soar, about time.
We are now looking at purchasing another factory unit for our company as we have outgrown the current.
Would be interested to know who finds your properties, do you have someone out there working for you. What price range, if that’s not a rude question.
Regards, MI’m buying. I agree in principle with you g7 but I feel in the areas / markets I’m buying that time is now.
I just bought a block of land and getting a house built on it. I’m getting $6,000 off the house price (to stop me going to a competitor) and $2,600 worth of landscaping for the block as part of the deal. Not to mention that the block is big and relatively inexpensive. The only question is how long do I have to wait for the real growth to kick in? I’m guessing 2 years for really solid returns. But that’s better than my other options at the moment.
surrey.
Marisa,
We source all of the properties ourselves. The last thing I wish to do is pay someone to gather all of that experience for me whilst I sit back and have to take their word for it. The tangibles you pick up during the negotiations and ‘process’ of buying are invaluable for your personal and financial growth.
We are guided by 3 simple rules nowadays for acquisitions;
1. Prop. must be green title and preferably in WA.
2. Land content must be over 85% of list price.
3. Prop must be +CF.As I’ve said before on this forum, there are many that satisfy # 3, some outrageously so, but when you compound it by applying # 2, the list really thins out.
Ultimately, we are in it for the cap gain…which the large land content provides…we just prefer it when the tenants chip in enough so we can access the gain and hold for free.
Price range – depends on the property…I’ve discovered that equity levels and cashflows slide back a tad and the bankers look at you from a confidence perspective and ask the question “Do we feel comfortable giving this guy our money ??”
The strict ‘corporate bank policy’ guidelines seem to be very rubbery when they have confidence in your ability to manage funds.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
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