Have purchased 3 Brisbane apartments, off the plan due for completion 2006.Strategy was to negative gear and get high capital growth. Have since read Steve McKnight’s book and now favour his approach.
Want to find independent advisor in Syd or Bris, to formulate stategy with our apartments, and possible change to positive gearing. Including getting finance, tenants etc.Many thanks .
J F Rawlings
I think you will be hard pressed getting any capital growth on those units in Brisbane by 2006. I will be very surprised if they even value up at the purchase price you signed for.
I hope I am totally wrong for your sake.
Robert Bou-Hamdan
Mortgage AdviserThe problem you might come across when you go to settle on these properties is that you might only be able to get finance on the contract price and not the valuation price.
Wholesale Mortgage Lender that deals only with brokers.
WOW! I’m somewhat amazed and VERY thankfull to get 2 replies today !
Your responses cause some unease, so I should say we purchased 2 years ago, so this hopefully adds some positivity to your initial replies ?????
Thanks again, Jim
J F Rawlings
i have a huge amount of confidence in the brissy city market – both for resales and rental.
i work in this market.
cheers
brahms
Purveyor of Fine Finances
aka Mortgage Broker BrisbaneIf the Brisbane market is anything like the Sunshine Coast, I would be running for cover. I had 3 seperate clients all who bought units in low rise developments which came in at 5-10% below purchase price and they bought 2 years ago also.
Robert Bou-Hamdan
Mortgage AdviserI bought a unit in Bris CBD off the plan 2 years back, due for completion 06/07. Brousing thru the internet realestate sites last week I note that I could sell for a good profit. Also I have a dual key unit in Spring Hill bought 2.5 years ago. I’m getting good rental return + ve cash flow and I beleive I could sell for a reasonable profit too. Despite all the negative talk about Bris CBD and Spring Hill I believe it’s not what many say. PM me if you wish.
regards,
Herb[cigar]
hrm
March 2004 – second paragraph…
http://www.reiq.com.au/mediaReleases/view_media.asp?media_id=256
Great article about property prices…
http://www.loan.echoice.com.au/pages/h_housing_market.html
Various articles and commentary…
http://research.lawlex.com.au/news.asp?id=2278&sp=1#3
Even though the above links show that overall, prices are reducing, there will always be some exceptions. The exceptions are what we need to find.
Robert Bou-Hamdan
Mortgage AdviserHi,
Rob – in the right frame of mind, you really are a tremendous asset to this forum so thanks for your contribution.
JF, like any investment you ought not evaluate your decision against opinions so much as you should against your own pre-determined minimum ROI.
That is, Rob has warned you that the market may be uncertain, and on the other hand Brahms is more bullish. Both may be right, but in your case, how do you know what to do?
My suggestion for you would be:
1. Go back now and look at how much profit you may have made based on actually receiving 75% of similar prices (call this a conservative reality check)
2. Set a minimum required ROI for each property you own
3. Take the time to work out if your current plan is sustainable. E.g. how much debt do you have and how does this impact on your ability to borrow more? Also, are you in a heavily growth-bias strategy in a market that may have moved into a different phase.
4. Can you earn better returns elsewhere, in which case should you hold, buy more or sell?
Finding answers to these questions will help you think through what to do next.
Regards,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Off the plan is a great way you can make income. Sometimes more,sometimes less.
One of my clients bought in stage 1 of a brizzy developement for $305k still not finished they are now selling stage 3 for $389k. There are options where having bought three, you may advertise and sell 2, and with the profit, kick this into the first and wolllllaaaaaaa!!!!! Cashflow neutral or slightly positive.
Then buy some really good cashflow properties in Cairns or tassie and you should have a balanced portfolio of income and growth. Due to its diversity too you reduce your risk profile as well.
DD
Buyers Agent (Dip Financial Services(FP)
Don’t sweat the small stuff,and it’s all small stuff!!I would not go anywhere near Tassie for investment property.
Robert Bou-Hamdan
Mortgage AdviserJim,
Wow- an exit strategy before oyu’ve even entered- talk about real estate coitus interruptus! [blink]
Whilst there are literally thousands of still unbuilt OTP’s coming onto the market in Sydney, Melourne and Brisbane this year (read the figures somewhere this morning- can’t remember where), I imagine in the next couple of years- and by 2006, I imagine the slowdown will take pretty much full effect. Then, who knows, your properties may be in demand? Already rental vacancy figures are pretty low in the Sydney market, and probably in Brissy.
I think the exit costs will be too high to come out financially ok if you sell ’em up now… although it’s unlikely you’ll pay much CGT (although that’s a sad consolation).
I think it is a mistake to panic. There will bea bunch of people to prey on your situation and see your sales with a firesale eye. Give it some time, and talk to as many people as possible about what to do.
kay henry
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