Please find it at:
http://somersoft.com/forums/showthread.php?p=1259693#post1259693
Enjoy!
The Y-man
http://somersoft.com/forums/showthread.php?p=1259693#post1259693
Enjoy!
The Y-man
An interview with Property_Girl
- Thread starter The Y-man
- Start date
Thanks for this The Y-Man. Another job well done!
property_girl, thanks for this.
I now know that UCV means unimproved capital value.
A few more questions:
property_girl, thanks for this.
I now know that UCV means unimproved capital value.
A few more questions:
- What sort of things do you look for to improve on - kitchens and bathrooms - other?
- What gave you the hunch that the southern part of Canberra would do well?
- And how on earth do you manage to pay them off in a few years? Especially at the beginning - even with a high income? How about without a high income?
- Do you go fixed or variable or no-rules or blended or ...?
- At what point did you determine that you were doing well enough to live off rents?
- And does your position improve over time?
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Unencumbered? I must have missed that! That deserves a whole section of the interview wow. Will have to re read it again
Thank you all for your kind comments. WattleIdo, I will pm you. MTR, yes I would never have done it without my father. Even though he is Italian, he was a feminist before his time.
Boring interview with no substance and I didn't learn anything from it.
Dex, what else were you hoping to learn from the interview? I thought Property Girl gave a lot of very helpful information as to how she has achieved financial freedom through property.
Where are you up to in your journey, Dex?
I'm clearly nowhere near Dex on the road, but I learnt from the interview and liked it.
It was good to hear someone in Canberra is doing well out of the local market, as I'm having trouble seeing any short-medium term wins around (<8yrs)! My PPOR has averaged 2.3%pa for the past 8 years. I couldn't see much benefit from an IP at those rates combined with low yields (from anything I can find in the inner south/Woden/Weston Creek).
It was good to hear someone in Canberra is doing well out of the local market, as I'm having trouble seeing any short-medium term wins around (<8yrs)! My PPOR has averaged 2.3%pa for the past 8 years. I couldn't see much benefit from an IP at those rates combined with low yields (from anything I can find in the inner south/Woden/Weston Creek).
Mcarthur, I think it depends a lot on whether you have a unit or a house. Canberra has an over-supply of units at the moment so they have dropped in value. Things are bad now, but imho they will turn around--they always do.
That's why I'm interested in learning more - thanks for sharing your experience.
I've only been looking at houses as I've seen Canberra flood with units for a while now, and the downturn in public service has hit. They also don't float my boat.
House-wise, there doesn't seem much available in the 500-800K that is making capital gain (there isn't a suburb in Woden, Weston Ck or inner south with an avg under 500K according to RP).
Canberra had 0.3% house growth in 2014.
Growth rate in median house rent is negative (was -1.0 in 2013 but can't find 2014 - I'd be surprised if it were better!).
I saw on the suburbs with highest number of renters that Turner featured - but at an avg house of $850k and a gross rental yield of 3.4%! So lots of capital tied up even at 90% LVR and a low yield - not tempting.
That leaves Gunghalin, (possible) light rail benefits, to get any medium term+ benefit in rental yield OR capital growth.
Since I'm looking for an IP now, I had eliminated Canberra for all those reasons. I was interested Property Girl to hear you say you preferred (only?) invested locally - love to hear more, with a particular example if possible (no address needed)
I've only been looking at houses as I've seen Canberra flood with units for a while now, and the downturn in public service has hit. They also don't float my boat
.House-wise, there doesn't seem much available in the 500-800K that is making capital gain (there isn't a suburb in Woden, Weston Ck or inner south with an avg under 500K according to RP).
Canberra had 0.3% house growth in 2014.
Growth rate in median house rent is negative (was -1.0 in 2013 but can't find 2014 - I'd be surprised if it were better!).
I saw on the suburbs with highest number of renters that Turner featured - but at an avg house of $850k and a gross rental yield of 3.4%! So lots of capital tied up even at 90% LVR and a low yield - not tempting.
That leaves Gunghalin, (possible) light rail benefits, to get any medium term+ benefit in rental yield OR capital growth.
Since I'm looking for an IP now, I had eliminated Canberra for all those reasons. I was interested Property Girl to hear you say you preferred (only?) invested locally - love to hear more, with a particular example if possible (no address needed
)Me too but I won't be holding my breath.
House-wise, there doesn't seem much available in the 500-800K that is making capital gain (there isn't a suburb in Woden, Weston Ck or inner south with an avg under 500K according to RP).
Canberra had 0.3% house growth in 2014.
Growth rate in median house rent is negative (was -1.0 in 2013 but can't find 2014 - I'd be surprised if it were better!).
I saw on the suburbs with highest number of renters that Turner featured - but at an avg house of $850k and a gross rental yield of 3.4%! So lots of capital tied up even at 90% LVR and a low yield - not tempting.
I was interested Property Girl to hear you say you preferred (only?) invested locally - love to hear more, with a particular example if possible (no address needed
Mcarthur, I am not sure what the other parts of Canberra are doing. There are others on the forum who own houses in Tuggeranong and Belconnen--they would be the people to speak to.
You're right: the rental return is pretty cr** on properties in Canberra (except, funnily enough, for my managed unit, which is in Kingston). The return on our former family home is about 3 per cent gross. I am keeping it only for capital growth.
My properties (the ones in Canberra) are all in the Griffith/Kingston/Narrabundah area. I have lived in that area for more than 25 years.
I only invest locally because I can take a drive around every couple of weeks and see what's on offer; I check Allhomes most weeks; I know the real estate agents here; I know which streets I would buy in and which ones I would avoid; I know which re agents to avoid; I know the history of prices. I don't have that local knowledge of other areas. That's why I stay local. But everybody's different, and I'm know that some people do really well buying interstate.
Every now and then a house comes up in the inner south for less than $500K, but they are snapped up quickly. They are obviously knockdowns. and in unattractive streets.
The last house I bought (near the Griffith shops) I approached the owners directly the day the For Sale sign went up. They then put me through to their real estate agent, who was not familiar with prices in the Inner South. I got the property for a really good price and it was mine within a week of the sign going up.
You couldn't get a knockdown in Griffith for less than $1.2m a couple of years ago. I'm sure that figure has now dropped--maybe to $1m or even more. The former family home had a UCV of $250,000 when we purchased it 16 years ago. The UCV is now $997,000. It has stayed that price for the last two years.
I was lucky-I bought most of my Canberra properties before the last boom.
As I said, I am not good with figures. I rely a lot on UCV. Some places at the moment are selling below UCV-that's how bad things are.
