Dud investment need some advice.

[terrence]

Your right in some areas and a little off in others. I have lived in Nowra for a total of 30 years.

your right the big retailers are moving out of town but this is not an exodus.South Nowra is a industrial center that the majority of your bigger outfits are moving there. 6 or so years ago it was dead. Now there is growth everywhere with industrial land prices to match.

the CBD is actually the better place to invest. Not the outskirts ( seaside is a different kettle of fish). the center is landlocked.
river to the north
South nowra development to the south
Cliffs parks to the west
Flood marsh land to the east.
My property window is west of the highway and north of albatross road( services the base)
riverfront is to be developed. Link road 92 will connect Canberra to nowra via braidwood.Soon to be dual lane all the way to nowra from Kiama( preferred route stage). Plus the aviation technology park is expanding with big defence contracts going there.There are others but im sleepy.

there are problems also like high unemployment although the large number of semi retirees distort this figure.So good and bad points but you could do a lot worse. Location is not actually my concern. more worried about making the most of what i have.

Hmm.. link 92, how many years did it take to pave a 2 way road to braidwood?

Dual lane all the way to Kiama, yeah I can see that happening soon, but really, who from Sydney is going to travel passed Kiama to go to the end of the railway... What's there? a river, 3 golf courses, a 24 hour Kmart?

The large number of retirees don't distort the unemployment figures. Do you know the youth unemployment figures? 2nd highest in Australia, demographics of east nowra will tell you this.


You asked for thoughts I;m giving you mine. #4 in my opinion is your best option.


Want to make money in nowra? Buy the block of land that runs parallel to coconut drive on the west side, put the pwerlines underground and turn all the land that has gas lines under it into parkland. Subdivide it and flog all the blocks of land off for a super inflated price when there is another boom in Sydney. All the houses on Karana drive are built out now and massive double story houses with pools aren't they?

I'd classify them as West Cambewarra, chuck another 50k on each block just for that area.

 

[BV]

This is an option because we will sell our current PPOR in the next few years no matter what. And we like the idea of CBD living. 5 minute walks to pubs.clubs cafes and resteraunts really appeals to me ATM. Plus i am able to extend the 2 bedder at my own pace using building skills i have almost forgotten.

This sounds like a go to me, so you should consider it now when your family is young and you don't need a big house

Cashflow is not that much of a concern as we spend less that 20% of our income across all of our properties and i am still a few properties off hitting a financial lending wall.

If by swapping properties your cash flow improves considerably then IMO it's a no brainer.

However, nicely renovated PPOR's can lose their presentation when they get rented out so it's often best to sell the PPOR before you move out and before it gets ruined by tenants

 

[Bon]

Telling a completely irrelevant story about one of your houses is not likely going to help the original poster (just to let you know).

OT I know, but we keep reading your story which is exactly the same in numerous threads, RumpledElf.

Can you go create a thread about your house and your IP, keep all ramblings related to it in there? I'm sick of reading your story over and over again in various threads as it's completely off-topic.

 

[kathryn d]

Telling a completely irrelevant story about one of your houses is not likely going to help the original poster (just to let you know).

QUOTE]

I think this type of conversation helps a lot.I have had many great ideas and solutions which have come from the the continuation of a thought or question.
Seeing/ hearing/reading how others have solved one of their problems can be very valuable information.

 

[skater]

Can you go create a thread about your house and your IP, keep all ramblings related to it in there? I'm sick of reading your story over and over again in various threads as it's completely off-topic.

This post is rude, pointless and very condesending. I am sick of reading some of the stuff you post about too, but up until now I have had the decency to keep my views to myself.

The so called "ramblings" is part of what makes up the forum. Many posters make comments about things, sometimes repetedly, that may or may not be of interest to some others, in a similar way to people make conversation in person.

Are you this rude to someone when you speak to them face to face? When having a conversation with a group of friends and someone re-tells a story that you have already heard, do you tell them you are sick of hearing it? Perhaps the story was not told for your benefit, but for someone else. Is this not the same situation?

For what it's worth RE, I find your "ramblings" to be of value, so keep it up and ignore the rudeness of some posters.

 

[skater]

Devo, is the double garage under the main roof of the house? Can you convert it (or part of it) to one or two bedrooms, giving you the added space without a huge cost. You could then put up a carport for car accommodation.

 

[Perp]

I'm not sure why "do nothing and wait" isn't an option that you favour, because it sounds like the best course of action to me. My thinking is that, whether you reno or not, you should wait for another boom before selling. Selling too soon because you've experienced poor growth and are disheartened is a classic investing error. (There are times when you should "cut your losses", but you don't seem to be in one of those situations.)

If you're going to wait for the market to boom, my feeling is that young professionals - like those cashed-up military couples - are the ones most likely to want to live in the heart of the action, ie your property. DINKs (and empty nesters) are the most likely to have the free cash and lifestyle that will make them want to live in a central location, and 2 bedrooms should be just fine for them, whereas a family that needs 4 bedrooms are probably looking further out, where they can walk to playgrounds and schools.

If you're just bursting to do something, then adding one more bedroom may be of benefit - even when we were DINKs, it was nice to have a guest bedroom and another bedroom for office/storage - but I think if you add two more bedrooms, you risk isolating your ideal demographic. Similarly, I don't think a granny flat is a good idea; neither of these demographics would value a granny flat.

If you have to spend money, I'd be tempted to spend it on decor that appeals to these demographics, such as polished timber floors, trendy bathrooms and kitchen, neat and tidy but low maintenance gardens, maybe an outdoor entertaining area at rear, etc.

 

[devo76]

Hmm.. link 92, how many years did it take to pave a 2 way road to braidwood?

Dual lane all the way to Kiama, yeah I can see that happening soon, but really, who from Sydney is going to travel passed Kiama to go to the end of the railway... What's there? a river, 3 golf courses, a 24 hour Kmart?

The large number of retirees don't distort the unemployment figures. Do you know the youth unemployment figures? 2nd highest in Australia, demographics of east nowra will tell you this.


You asked for thoughts I;m giving you mine. #4 in my opinion is your best option.


Want to make money in nowra? Buy the block of land that runs parallel to coconut drive on the west side, put the pwerlines underground and turn all the land that has gas lines under it into parkland. Subdivide it and flog all the blocks of land off for a super inflated price when there is another boom in Sydney. All the houses on Karana drive are built out now and massive double story houses with pools aren't they?

I'd classify them as West Cambewarra, chuck another 50k on each block just for that area.

Well i wont go around in circles. You seem to focus on the bad points where i look for the good. Like i said i dont need justification on the area. My DD tells me it will perform fine long term as it has done and because i know the area well i can pick the good ones. ( exept for this one).Your spot on about east Nowra thats why i dont invest there although it has seen good growth also.Most new housing developments are out that way now although i still wouldnt buy there.The road links are comming. 92 has a few klms to go and the kiama link will happen. Its moved foward enough already to start having a positive effect.Have a read of Terry Ryders hotspotting. He named Nowra as one of his top 12. He also names the bad points but say there is plenty of upside.He is not the gospel on the subject by any means but it is still a good indication

What you say about coconut and karana is a little scary. For one there was a big section of land sold between coconut and the river that will most likely be 1000 sqm blocks. And Karana drive isnt all double story and pools. Mine is only single and no pool . i think you might be watching me from the bushes.We have joked about moving the cambewarra sign 20 meters closer and adding $50,000 value. Anyway WAAAY of topic.Im happy with the town and its future prospects. Just want to know how to turn a dud around.

 

[devo76]

Devo, is the double garage under the main roof of the house? Can you convert it (or part of it) to one or two bedrooms, giving you the added space without a huge cost. You could then put up a carport for car accommodation.

Unfortunately it is detached but built to be moved from current position.Extension would be built where current garage is and joined by a breezway. This was the original idea but they where a couple with no kids and not in a rush to do so.

 

[devo76]

I'm not sure why "do nothing and wait" isn't an option that you favour, because it sounds like the best course of action to me. My thinking is that, whether you reno or not, you should wait for another boom before selling. Selling too soon because you've experienced poor growth and are disheartened is a classic investing error. (There are times when you should "cut your losses", but you don't seem to be in one of those situations.)

If you're going to wait for the market to boom, my feeling is that young professionals - like those cashed-up military couples - are the ones most likely to want to live in the heart of the action, ie your property. DINKs (and empty nesters) are the most likely to have the free cash and lifestyle that will make them want to live in a central location, and 2 bedrooms should be just fine for them, whereas a family that needs 4 bedrooms are probably looking further out, where they can walk to playgrounds and schools.

If you're just bursting to do something, then adding one more bedroom may be of benefit - even when we were DINKs, it was nice to have a guest bedroom and another bedroom for office/storage - but I think if you add two more bedrooms, you risk isolating your ideal demographic. Similarly, I don't think a granny flat is a good idea; neither of these demographics would value a granny flat.

If you have to spend money, I'd be tempted to spend it on decor that appeals to these demographics, such as polished timber floors, trendy bathrooms and kitchen, neat and tidy but low maintenance gardens, maybe an outdoor entertaining area at rear, etc.

Thanks ozperp. As far as reno goes
Timber floors done
Trendy bath and kitchen Done
Low maintenance garden Done
Outdoor entertainment area Done but could be improved.

Your thinking is in line with mine and im really not falling for that mistake of selling early. I just feel i should improve my returns on it. Doing nothing is still an option but i feel it is a underperformer. It does appeal to the trendies. It has had two artists and a sports star in it so far so they love the trendy town living.The defence expansion does add to the rental pool which is still tight.I think any extention would have to be done right. Two boxes attached on the back will not cut it. Two rooms with high ceilings and decks out over the garden and a breezway connecting them to the house will carry the theme i believe.I believe a granny flat will be a struggle due to the small block. private space would be an issue and that would effect rent.

 

[Lil Skater]

OT I know, but we keep reading your story which is exactly the same in numerous threads, RumpledElf.

Can you go create a thread about your house and your IP, keep all ramblings related to it in there? I'm sick of reading your story over and over again in various threads as it's completely off-topic.

Not neccessarily, sometimes other peoples' stories relate quite well, and can even help you (or the OP) and further educate you/them.

If you want to look at it as "ramblings" so be it, but the majority of us very much like RumpledElf, and these "ramblings".

I believe she is a very smart woman and has helped me a lot, i may not always post on things i've read that have been posted by her, but i admire the fact she takes no sh*t, like your above post..........

 

[Lily House]

Hi Devo,

How much would the property be worth if you were to convert it to a 4 bedroom home?

You have loan of $300K and spend $40k, for a total of $340k.
You tell us rent return for 4 beds - $345 per week, but (unless I missed it),
you don't say what the improved capital value will be.

If (for example) the property is worth $350k after the renovation, then suddenly you are no longer in negative equity territory. In that case, it would be worthwhile building. Just be sure, of course, that your building costs don't rise higher than you budget for.

Best of luck with your decision making. I hope it all works out for you.
Caroline

 

[devo76]

Hi Devo,

How much would the property be worth if you were to convert it to a 4 bedroom home?

You have loan of $300K and spend $40k, for a total of $340k.
You tell us rent return for 4 beds - $345 per week, but (unless I missed it),
you don't say what the improved capital value will be.

If (for example) the property is worth $350k after the renovation, then suddenly you are no longer in negative equity territory. In that case, it would be worthwhile building. Just be sure, of course, that your building costs don't rise higher than you budget for.

Best of luck with your decision making. I hope it all works out for you.
Caroline

If done right and finished well i would say around the $350,000 mark although some lesser properties have sold for the same lately so maybe more. I think the biggest gain would be found during the next upswing. i believe there would be better growth with a 4 bedder than a 2 bedder.

 

[Aaron Sice]

do a smal reno - add a cheap 2 bed transportable to the back, link it in and voila! 4 bedder.

 

[devo76]

do a smal reno - add a cheap 2 bed transportable to the back, link it in and voila! 4 bedder.

I was thinking along these lines. A two bed weatherboard transportable on piers to match the existing house. Plumbing dead easy. I could finish off myself. Does anyone know who does this sort of thing ?