2 of my properties for sale

Sadly I have had to place two properties on the market as due to bank and builder delays cash flow is running short and we need to finish our development projects over here in the East.

The first is in Shoalwater on the Anchorage estate and has navy boys as tenants who have rented since new and wanted another 12 month lease, we have just given them a new 6 month lease from March to allow flexibility for the purchaser.

They have kept the place immaculate - if they don't they have the navy to answer to! They are paying $310 per week at the moment which could have been increased this time around but we want them to be co-operative whilst we have the house on the market, the link is:

www.realestate.com.au/cgi-bin/rsearch?a=o&id=104670807

The second property is in Yanchep and we put it on the market without tenanting so is currently vacant, there is someone interested at the moment as he is building across the road but if he doesn't buy he may be a potential renter as initially he was looking for a house to rent near to his construction. The link to this one is:

www.realestate.com.au/cgi-bin/rsearch?a=o&id=104346813

Please send a pm if anyone is interested.

Thanks!
 
Sorry, I don't mean to be a negative Nellie, but that house at Shoalwater looks really nice, so why is the yeild so small. I know you want to keep the tenants for the sale, I understand that, but I would have thought that rents would be climbing in WA & that something as nice as that would command a much higher rent, at least 5%.
 
Hi Skater

Yes we would definetly have put a rent rise on this time around but as we need the tenants co-operation to show the house we decided not to put on an increase, according to the real estate if the purchaser keeps the tenants the terms can be renegotiated and I think they would be fine with an increase as they don't want to move. I actually think $350 would be an achievable rent now on this estate. There is a small park at the end of the street and the largest of the man made lakes with fountains and all is around the corner so it is a nice spot.

You are right it is a lovely house, 230 sqm and a family room the size of a soccer field! We have another a few doors away which I hope we can hold on to.

Yanchep should bring $360 - $400 per week rent and should bring nice increases as the estate becomes more established.

I soooooooooo don't want to sell either house but all of the delays caused by the builders and banks have eroded our buffer and we need to do something or our development projects will suffer.
 
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Hi all,

Sparky, so that I am not accused of flaming etc, can I refer you to the rules for posting in the caveat emptor section?

6. Ensure your post has sufficient information to justify why a property investor should consider it. Comparative information, extensive demographic detail, financial details, etc. are a MINIMUM if you want your post to be taken seriously.

Remember this is a forum for property investors, not a Saturday newspaper ad. As such, be prepared to answer a lot of "due diligence" questions (e.g. what is your fee structure or commission, what licence do you hold that allows you to offer this deal, etc.)

7. If you don't want to have your deal ANALYSED, DISSECTED, and DISCUSSED extensively, then DON'T post it.
What makes these properties a good investment for the purchaser??

bye
 
Nice houses to look at, but a good investment "looks" doth not make.

The depreciation would be good, but the rent yields don't cut it for me by a wide margin.

I'd need a second job (or even just a first job would do) just to hold those babies. Ouch.

I hope you sell them in a timely manner and for a good price to get the finances back on track.
 
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Nice houses to look at, but a good investment "looks" doth not make.

The depreciation would be good, but the rent yields don't cut it for me by a wide margin.

I'd need a second job (or even just a first job would do) just to hold those babies. Ouch.

I hope you sell them in a timely manner and for a good price to get the finances back on track.
Marc, what rental yield (gross & net) will you be looking at if you are to buy a IP now ? I have IPs which I bought few years back but in Melbourne today it's hard to get resi in better suburbs over 4% (gross) yield.
 
Marc, what rental yield (gross & net) will you be looking at if you are to buy a IP now ? I have IPs which I bought few years back but in Melbourne today it's hard to get resi in better suburbs over 4% (gross) yield.
Well, I only buy cashflow positive after tax property, so at 8% interest and only 4% yield, I'm not buying in that area.

"better suburbs" aren't always a good investment decision. Yes, they may have superior cap growth, but at what cost? It's no good having a swag of cap growth if you're so neg geared that life is a b!tch and you struggle to hold the thing and have no lifestyle. Been there and done that, and the cap growth wasn't all that flash compared to what we've done in less "sexy" areas.

I won't look at cap cities for these reasons. My plan is to be free of the need to have to work, so anything neg geared is going to slow down that plan.

Of course; in the next year or so, we could see the rental yields in the cities continue to increase while the market slows, and the rates come down again, so the gap will close enough for me to look at those areas.

It may mean that there is a possibility of foregoing some cap growth in the process, but I'm very happy to say that this has not been the case for me so far.

My criteria has been so far to only buy something with the yield at least the same as the interest rate of the day. I can hear everyone laughing about now, but there are places in Aus where you can still get very close to this equation even in today's climate.

Add to that the property has to be built after 1987 for the depreciation, to put the icing on the cake.

But my strategy has changed a little now; our next project/s will be of the add-value kind to create the pos cashflow through buying a house on a decent parcel of land, with the plan to redevelop the block with as many units/townhouses as is allowed to be built on it, then sell enough of them to leave at least one unit debt free or mostly debt free and it will have;
a) good depreciation and
b) pos cashflow from completion due to the low or no debt.

For example; older house on larger block, build 4 units, sell 3, keep one with no debt. CFP from day one with the brand new building for depreciation. Use the equity from it to help fund next project.

And I'm not talking zillion dollar properties either; something nice, well positioned, but affordable and easily rented. You know; units worth around the $250 - $350k mark.

Then repeat the process a few more times if it goes well, and see how I feel then.
 
Hi Bill,

...What makes these properties a good investment for the purchaser??...

If you are asking a question like that you are not ready to buy, so why asking?
To stir a pot? Why? She wants to sell 2 houses that's all. Take it or leave it!
Try to be supportive for once.

L.AAussie

This thread is about 2 properties for sale and not about your 'style' of investings.
If you want to express yourself, tell us what've done not what you're gonna to do!
 
Hi Bill,

...What makes these properties a good investment for the purchaser??...

If you are asking a question like that you are not ready to buy, so why asking? To stir a pot? Why? She wants to sell 2 houses that's all. Take it or leave it! Try to be supportive for once.
A95

Bill was asking this question because those are the rules for posting in this forum.

It's not stirring a pot. Anybody who posts in this forum MUST be prepared to answer questions. That's the only reason posts of this sort are allowed.

It's been nearly one week now, and Sparky hasn't answered any questions. Otherwise this thread should be regarded as spam, and should be removed.

Sparky, are you there?
 
A95

Bill was asking this question because those are the rules for posting in this forum.

It's not stirring a pot. Anybody who posts in this forum MUST be prepared to answer questions. That's the only reason posts of this sort are allowed.

It's been nearly one week now, and Sparky hasn't answered any questions. Otherwise this thread should be regarded as spam, and should be removed.

Sparky, are you there?
Hi Geoff,

I know the rules. As I understand, the spirit of the rules is to protect the forum from 'true spam'. Look at Sparky's profile, and her contributions to our forum. No one asked any pertinent questions as far as I can tell.
Oh, I hope you don't consider Bill's question as a real one.
We all know that he's not planning to buy anything in a foreseeable future.

Regards,
A95
 
Hi guys

Wow I just got back from a few days in Sydney and I was quite shocked and disappointed to see that some people still want to pick on me! I have seen plenty of posts in here by people who are merely offering their properties up for sale without the hassle. I am in a bit of a spot at the moment and need to turn a couple over, we have been having a lot of bad luck and unfortunate things happening to us lately and I am at the bottom as Lizzie was earlier and reading these comments today has depressed me further - thanks a lot for your support.

Its quite simple, I have 2 properties for sale here are the details take em or leave em - if you feel the need to remove the thread go for your life but in that case I don't think I will bother coming back here.
 
Hi sparky23,

Why are you getting so upset? You've put two properties up on the forum that are yielding 3.4% (well, the first one is, the second doesn't even have an approximate rental return, so I'm just gonna guess it's roughly the same yield).

That's not exactly going to excite people. Especially since Perth is now post boom and goodness knows how long it's gonna be before you see any capital growth. Based on the system I use of determining what the value of a rental property is, these properties are overpriced by about $130,000. Well, the first one anyway.

You posted these properties on a Property Investment forum, did you think they weren't going to get scrutinised? Keep in mind people aren't questioning you personally, they are questioning the deal.

Mark
 
Sparky

I have posted details on this forum- and I spent a lot of time answering questions.

This is not a criticism. If you would like a chance of selling your properties, take some time to provide some more detail.
 
I don't have the heart for anything much right now. I am only pointing out that there are many posters in this section who have provided far less details than me who are not questioned so rigorously.
 
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Hi all,

A95,

What do you know about me?

We all know that he's not planning to buy anything in a foreseeable future.
What has that got to do with anything in this section?? This section is about pulling deals apart to see if they are good investments. The rules for posting here clearly state that.
It is not, nor from my understanding ever meant to be, a place where you could just put in an ad saying that.........

"I have a couple of places for sale, here look at the pics, PM me if you want any info".


A95, if you think the rules are wrong, start up a thread debating them, don't just flame someone because you think the rules are wrong.

Last year I had a couple of properties for sale. At the prices we were asking, I did not think they were particularly good deals for investors. I did not try and use this forum for advertising. If they were a good deal for an investor, then why was I selling??

This is the second time that Sparky has tried to sell using this section with a 'PM me for details', rather than including the information for all to see and debate.

bye
 
L.AAussie

This thread is about 2 properties for sale and not about your 'style' of investings.

If you want to express yourself, tell us what've done not what you're gonna to do!
Just expressing an opinion.

You are correct though; it's not my investing style.

Not that mine is the best way, but I explained what it is and why.

What I've done, since you asked, is bought and sold properties since 1985 when I bought my first PPoR.

Since then I have had 3 more, and about to move onto no.5.

Also, have owned 7 IP's; currently holding 5.

Not big time by many forumites' standards, but I've managed to make money all the way through (some by good luck rather than good management), and now enjoy a very low LVR and a pos csshflow portfolio.

My Mantra is safety and cashflow first, cap growth a VERY close second.

Seems to have worked so far.

Seeing as how we are swapping notes, what's your assessment on Sparky's investment, and what background and investing style do you base your assessment on?

I agree with Bill; the details should be posted to "sell" the investment benefits to the investors on the forum.

This will achieve 2 things;

1. You don't have to field a thousand replies to all the pm's you get about the deal.

2. the extra details gives the sales pitch a lot more credibility, and shows everyone that you are keen to sell and willing to go that extra yard to get the sale.

If I was trying to sell one of my properties on the forum, I'd be doing everything in my power to make it look attractive enough to hopefully get a buyer; cashflows, outgoings, cap growth since purchase, trends in the area, and so on.
 
Hi,
Just looking at the returns and outgoings roughly,
Purchase Price $440000
Stamp duty $18500
Solicitor fees $1000
Equals $460000

Interest rate 8.25% interest only $730 per week
Property Management 5% roughly $15 per week.

Rates and Insurance?$30 per week

Income $310 per week
minus very rough costings $780 per week
Equals Loss of $470 per week.
Of course I havent taken into account depreciation andf tax relief.
Regards Martin
 
Hi guys

Rightio then here I am feeling a wee bit better. I lost my 'proper' job recently and had just opened a rejection letter for a dream job so not doing too well on top of all our other bad luck when I first looked at the post.

Firstly I didn't invest in either property for yields although for me as the developer the yields are not bad, but for capital growth which has been fantastic in both instances due to the seaside locations of both. Shoalwater was bank valued at $500,000 (also the second one a few doors away which I am trying not to sell) last year which is when I took out the max equity I could, this has served me very well with setting up my NSW projects. I also NEVER intended to sell either and have to do this now due to:

a) losing my job a few weeks ago
b) the builder of the first project which we began 3 years ago (before I had educated myself properly about how everything works) only finishing recently and costing us time and money
c) NAB taking 4 or 5 months to agree to very kindly allow us to get the seperate land titles against this first project but even now delaying the paperwork and causing us a delayed land settlement on another of our development blocks as they won't give us our LOC from the first job until we have the seperate land titles which THEY are causing the delays with due to their incompetence
d) surveyor delays

Despite pulling out plenty of equity and the change in the market in WA there is still equity left that I can take out by selling the property which will help our situation.

So back to the properties:

Shoalwater/Rockingham - the estate is bordered on 3 sides by beaches which can be seen by checking it out on google earth, great location and of course future marina. Schools nearby and childrens park around the corner plus the largest of the man made lakes with lovely fountains also around the corner. Naval base also down the road so no tenant shortage, currently tenanted by navy boys who which to stay and realise they are currently on a lower rent as I did not wish to increase on their new 6 month lease (they wanted 12 months) so that they will be co-operative to viewings. $350-$360 per week would be a more acceptable rent now and I am sure $400 won't be too far away with the rental crisis. Depreciation is excellent and I believe when things settle down the capital growth will continue steadily.

If someone from the forum is interested I would accept $429,000 which is definetly at the bottom end looking at similar houses currently listed and a lot bigger than some at 230sqm.

The Yanchep house is on Capricorn near to a beautiful lagoon and lovely beach and will be more easily accessible and a quicker journey to Perth once Marmion Avenue is complete in August, according to the latest newsletter this is on track. Last year several agents expected that I would pick up $550,000 but unfortunately I tried for a rental first when I should have just placed it straight on to the market, as we were approaching Christmas timing was bad and now with the jitters of the last month or two I would be happy to pick up
$489,000 without agents. I would expect $380-$400 per week rent and again good steady growth as the estate is yet to become established and new schools etc are part of the development. It is a lovely house and the limestone walls in the back yard look sensational - if this was a feature that someone decided to build themselves it would cost thousands!

When I listed the properties initially I suppose I was thinking more of the family markets than investors which is why I was a bit short on details when I brought it to the forum as it was more of an afterthought, but now that the prices are lower yes I believe they are good investments and would prefer not be selling them as it was never my intended strategy.

Please note that these are MY properties not properties I am recommending as per the previous post so please try and look at it differently, I don't mention the other properties at all on here now as I went away and set up the web-site instead - you all taught me plenty during that debate!
 
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