Anyone investing in Property Now!

From: Bruce Graham


G'day,
Anyone intending to invest in property in any of the capital cities? In Sydney
With acres of units on the market, and more
being built who would be brave enough to go
for the big jump by borrowing now.
As I drive around Sydney in the taxi, all those suburbs are covered with home units.
Melbourne and Brisbane are the same! So
where to now? Possibly it's time to look at some sought of business.
Some of you go getters from the Freestylers
could come up with some ideas.
The one I like (in the right place) is a
Internet cafe. The ones I've come across
seem to have heaps of people punching keys.
Near a school were kids hang out after school.Plenty of shops and businesses etc. Workers in their lunch breaks, who don't have
internet access at work.
I went to one Freestylers meeting and love it,but I don't seem to have much time lately.
Just a thought.
Bruce G.(Sydney)
 
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Anonymous

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Reply: 1
From: Anonymous


G'day Bruce

Of course - bought one last Saturday. Nearly 25 bids at the auction - I paid $100 more than the underbidder.

Bought on a whim. For me, that's the best way to buy. Not for everyone, though, sometimes people like to think about it, rationalise it, ponder it, ask everyone else's opinions.

Found out after the auction that my 'assumptions' were incorrect. Too small to subdivide in the current planning environment. Mmmm. I know! I'll apply for a change of use permit, convert to ancilliary use (medical consulting suite) in a residential zone, recycle the old sheds of which there are many into timber for the local furniture maker, and turn a faded family home into a smart landmark.

Bruce, the only market is the one right now. And the only time to buy is right now. OK, you may not have the money or the ability to raise the cash right now, but the funny thing about life, is that as soon as you make the decision to act, circumstances often occur which support your action. There will always be good opportunities in any market for those looking for opportunity. And the property you buy today will outlast any business based on a fad or a fashion.

Sorry for the anonymous post. I'm not usually so coy.

Signed Daffy Duck
 
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Reply: 1.1
From: Always Learning


On a 'whim' meaning an emotional decision to fulfill a sudden desire. Thus not based on logical and solid financial reasoning.
<p>
You must be an accountant!
<p>
<hr width="50%" color="pink">
<ul>

<li> Unless you change how you are, you'll always have what you've got.
<li> To have more than you've got, become more than you are.

</ul>
 
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Anonymous

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Reply: 1.1.1
From: Anonymous


G'day Always Learning

"Unless you change how you are,
you'll always have what you've
got."

Yep. I changed how I am, and I changed what I've got, .... on a whim!!

Yep yep ... it took me 13 years to 'do' my accounting qualification. along the way, I learned a little something about being rich, and being poor. Rich wins!

(with apologies to IMG and Billy Connelly)

Signed Daffy Duck
 
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Reply: 1.1.1.1
From: Gail H


Hi,

Sorry Daffy, but I agree with Bruce: don't buy on the crest of a wave (especially if you're negatively geared). Its called going backwards. No, we can't know for sure what the market will do. But as investors we should plug in all the knowledge we have and consider probabilities. And all pieces of evidence point to the probability that the market has peaked for a while (perhaps not in Brisbane) and investors need to be super careful.

So, what am I doing? Paying off my mortgage like a crazy thing and waiting for late spring (should be more of a buyer's market) to go looking for a reno.

Good luck everyone

Gail
 
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Anonymous

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Reply: 1.1.1.1.1
From: Anonymous


Hi, Gail

... But as
>investors we should plug in
>all the knowledge we have and
>consider probabilities. And
>all pieces of evidence point
>to the probability that the
>market has peaked for a while
>(perhaps not in Brisbane) and
>investors need to be super
>careful.
>
>So, what am I doing? Paying
>off my mortgage like a crazy
>thing and waiting for late
>spring (should be more of a
>buyer's market) to go looking
>for a reno.....

Gail -

With all respect, but by spring, this medical suite should be ready for the market. Mmmmm ... three effective full time consultants x $ per annum per room = $?.

And I'm talking Melbourne, not Brisbane, and in an area which has seen 200+ new houses built in the past three years, a new special accommodation aged care facility within 500 metres, has an established primary school, a lead tenant supermarket arcade, the area's best takeaway chicken close by, a large population of 1 car per household, is on a bus route on a secondary arterial road, has three major brand name private schools within the service catchment area, is on a corner, etc

My 'whims' are the result of being able to see an opportunity and act on it. And a lot of faith. An unconditional contract with no formal approval of finance, but my hunches have never let me down.

Wait? What for? When the mainstream market is following like sheep, create your own market. Who was it that said 'Build a better mousetrap, and the world will beat a path to your door'?

My whims have stood me in good stead, Gail, and as Dale remarked, property is very forgiving.

My waiting room will be full, and phfft to the 'market'; the doctor / dentist / herbalist who buys from me will be investing in their future while their money pays off my mortgages.

But of course, to each their own.

Just by the by, I'm doing this full time. I'm not in the 'rat race'. If the medical permit doesn't eventuate, there will be the most beautiful family home standing there in six months, which some family will be very happy to buy. And even by today's standards, my probate will be something to consider.

Oh! sorry, got to go! Have to organise lots of things 'cos I've got another settlement on Monday, and time and tide wait for no man - or woman, or child, not even

Yours truly

Daffy Duck

PS Having read this through I sound a bit miffed and even a tad sarcastic. So forgive me if it comes across that way. Believe me, I seek only to say - if we waited, Noah would still be trying to load the Ark!

In Feng Shui, there are Three kinds of Luck.
Heaven Luck - your Destiny
Earth Luck - your Circumstances of Birth and Environment
Personal Luck - what you make of your own Life.

On my bookcase there stands a three - armed Ganesh, the Hindu Elephant God and pantheon of Business and New Beginnings. Traditionally, he has four arms, but this one was 'made' for me (his arm obviously broke off at the mould). Why? because his message to me is "I'll help you, but you must also help yourself'.

So, how can I fail, with all the Personal Luck in the world, and a three armed Ganesh?

And please remember, we all have the same opportunities. Gail, if I can encourage you, please don't wait for the market to 'drop', interest rates to ease, or the next month beginning in R. Pay off your mortgage if you want, but buy yourself another investment property while you're waiting for conditions to be perfect, or Noah may decide that the Ark is full and set sail without you.

Lots of love

Dafina Duck
 
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Reply: 1.1.1.1.1.1
From: Geoff Whitfield


Dafina/anon,

That last para says it all

..."if I can encourage you, please don't wait for the market to 'drop', interest rates to ease, or the next month beginning in R. Pay off your mortgage if you want, but buy yourself another investment property while you're waiting for conditions to be perfect, or Noah may decide that the Ark is full and set sail without you."

Thanks for that.

I'm doing that in property, but I am "waiting" for the right time in the share market. I've been waiting for 2 years- and have missed out on many opportunities.

Geoff
 
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Reply: 1.1.1.1.1.2
From: Jakk Bass - The SLUM LORD


G'Day All,

I noticed a few words in the previous post

<...the area's best takeaway chicken close by..>

I wonder if this might be Red in colour?

There must lie the answer to who Dafina Duck might be....


As for purchasing now....

April, purchased vacant block and was told by agent too small for 2 townhouses.
Permit approved last Tuesday, Agent has now told me can get $35,000 more.
not interested in selling, I am building.

June, purchased 6000+ sq metres of industrial zoned land at an absolute giveaway price. To top this off, got vendors terms...25% deposit, a further 25% in 12 months with the final payment (50%) in 2 years....interest rate 0% .
By the way, poccession on payment of deposit
Preparing town planning submission for staged development of self storage units.
I'll have these built and collecting rent, well before the land is paid out.

June again, purchased old weatherboard house on large block with 3 flats (2x1br. 1x2br.)in backyard.
This would have to be the ugliest development I have ever seen.
Not to worry, I aint going to live there.
I have had the surveyor out there measuring for possible subdivision of house off the title.
paid $180,000 for whole lot, house should sell as is (in need of renovation) for $120,000 in current market, maybe $110,000.
allowing worst case scenario, say $100,000 so with all costs I should have flats left over for around $100,000 including costs.
currently flats returning around $10,000 per annum. I know with a little tart up I'll increase this to $14,000 - $15,000.

July 10 days ago, made offer on another property, not accepted but we are close.
haven't ruled it out yet.


Yes, by all means BUY NOW, but BUY WELL.
If you think you can't BUY WELL, then DON'T Buy.

But just remember, in most cases, what seems dear in Real Estate today, will seem cheap tomorrow.

regards
Jakk the Slum Lord...creating the SLUM DREAM
 
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Reply: 1.1.1.1.1.2.1
From: Brett Watson


Well done Jack!!

In regards to investing now I signed a contract to buy a block of land down on the Mornington Peninsula for $150,000. I organised to have access to the land before the June settlement and went down and gave it a mow.
Not long after I had received two offers to buy the land from two different developers- one for $230,000 and the other for $240,000 all before settlement.
 
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Reply: 1.1.1.1.1.2.1.1
From: Jakk Bass - The SLUM LORD


Brett,

Tis you that should be admired, maybe you should be giving motivational talks to the Jims Mowing franchisees.

$90,000 for mowing the lawn...UNBELIEVABLE.

I might go out and start polishing the Ride On......there's obviously money in them grasses.

regards
Jakk the Slum Lord
 
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Reply: 2
From: Michael Yardney


Bruce
Yes I am buying at present but very selectively. I am using a strategy that has worked well for us over the last 20 years.It may not suit everyone but I am happy to share it here as it may give some new investors another strategy to think about.
We are not buying new units and especially not off the plan and inner city, for all the reasons most of us know.
What I am buying is old run down houses on large blocks of land with development potential. We bought 2 last month for ourselves and are currently buying about 2 each month for clients.
We then have plans drawn up and get development permits for multiple dwellings on these properties. This will probably take over a year and in the meantime the rent on the old place brings in some income.
I have found that for the investment of $10 - $15,000 in getting development approval we are increasing the value of the property by up to $80 -100,000.
This is nothing new and still works in these times when most of us accept that property prices will remain flat for a few years and will even drop in some areas. It about the only way I know to easily and relatively safely add value at present.
We bought 2 properties last week from motivated vendors - one who had just bought and dropped her price 10% because she had to settle in 60 days and another vendor who had gone overseas. (contracts were faxed back and forth)
Both properties were in Melbourne Bayside suburbs - Parkdale & Chelsea and below $300,000. The Parkdale property will eventually get a permit for 2 townhouses and the Chelsea property will have 3 townhouses. Despite the difficulties involved I know we can get the permits because that's what we do all day and have recently obtained permits for similar properties in this area
If any Melbourne forumites want to know more details about how to go about this - you probably need $100K, email me and we could probably organise a little evening group chat to show you how I go about it.
Michael Yardney
Metropole Properties
 
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Reply: 2.1
From: S W


Yes please Michael. I am about to email you.
 
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