Can anyone tell me if they have invested with property manager groups and how effective they are. I have been given a choice of 3 properties to choose from and not sure which way to go. 1.Melton Vic. 2.South Yarra,Vic. 3.Zillmere, Queensland, (they are all off the plan properties). I am first time property investor, so would appreciate your feedback. Thanks
Hi,
What types of property – units I presume? What is the purchase price?…what is the rental yield?. How much will you have to borrow?
These are the types of question you need to look at, not just the suburb/state
Swampy
Hi Nina,
Depends on the property type as mentioned by swampy but purely from a capital growth perspective, a unit in Sth Yarra (as long as you have some decent land content and it isn't high-rise, so less than 20 in the block) should perform better than a house in the far outer suburbs. Generally this is due to the land and demand in the inner city being far greater than that of areas where land is in abundance. There are also issues with properties in the "mortgage belt", as these are the properties that come under affordability pressure if interest rates rise. There are some opinions though that Melton is on the rise, although I personally don't agree.
Can't comment on Zillmere, sorry…Is the Zillmere property one offered thru NRAS ?
Good suburb but need to be careful on valuation there.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Thanks for the reply.
Swampy this is going via dynamic 8 group and the property in South Yarra will be a 1 bedroom unit, the other 2 places will be 3 bedroom houses. I still yet have to see the plans for this 3 properties on offer, and doing so this weekend, so don’t know yet how many units in the block. Not sure what NRAS is Richard.
At present finding out as much as I can about everything.
But all the replies help.Hi Nina, I work as a property manager in South Yarra and would advise against purchasing off the plan. Generally when you are trying to let the property, so will another 40 – 60 landlords and as a result supply is much higher than demand. Resell is also much lower than purchasing say a 1 bedroom apartment in a pre-existing block in south yarra, prahran, toorak, windsor etc. I am looking to invest again soon myself and would never invest in these off the plan developments all around the SY area as I have seen first hand the pains they cause investors like yourself when trying to find a tenant!
In Melton's defence, it has been flagged as one of the "future" cities of Melbourne. In other words, it has been recognised that it is not sustainable for everyone to commute to and work in Melbourne cbd every day. While Melton isn't near anything amazing in terms of natural stuff (eg ocean), it is in a very interesting spot. 30mins to Ballarat (major hub). 30mins to Melbourne (major hub). 30mins to Werribee (flagged to be another Melbourne city), and a tad over an hour to Geelong (major hub). It'd be a great spot for a family of two working persons to live, because they'd have several major employment hubs within reasonable commuting distance.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Nina_10 wrote:Can anyone tell me if they have invested with property manager groups and how effective they are. I have been given a choice of 3 properties to choose from and not sure which way to go. 1.Melton Vic. 2.South Yarra,Vic. 3.Zillmere, Queensland, (they are all off the plan properties). I am first time property investor, so would appreciate your feedback. ThanksOK – What Due diligence have you done?
How does the price relate to similar properties that are a few years old?
What will the rent be (not what they tell you it will be?) What is the rental yield?
Is there a rental guarantee? If so why do you need it? Will it rent on the open market? What's the vacancy rate of the area?You need to do you OWN due diligence. Remember they are selling you something so it is advantageous to them to make it sound attractive.
Off the Plan properties are only worthwhile purchasing in a booming market. Are these places booming?
What happens if you get a valuation that is less than you paid? Can you afford to pay the gap between what you paid and what the bank will lend you?Not my cup of tea but everyone is different.
South Yarra for sure
Thank you everyone who responded to my question, its a great help.
Nina_10 wrote:Can anyone tell me if they have invested with property manager groups and how effective they are. I have been given a choice of 3 properties to choose from and not sure which way to go. 1.Melton Vic. 2.South Yarra,Vic. 3.Zillmere, Queensland, (they are all off the plan properties). I am first time property investor, so would appreciate your feedback. ThanksWhat do you mean by property manager groups – who are they representing – I assume you mean property marketer groups – if that’s the case be very, very wary – huge hidden fees you pay for
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