Getting Started

[WebBoard]

From: Mike .


Calling Melbourne experts
From: Jacques
Date: 06 Feb 2001
Time: 08:16:16

In the Thread entitled "The Investor's Club strategy", Anna wrote: "My strengths are knowledge of Melbourne market, renovation/refurb skills, people management including tenants. I have been bought my first property in Melbourne over ten years ago so I have experienced high interest rates, flat growth years, boom years."

I am a Melburnian, and as a novice investor (looking for a mentor!), I thought I would call Melbourne experts in this forum. I have a number of IPs in my sight, and the Melbourne ones include a mixed commercial-residential off-the-plan unit in a complex, and the one I would like advice about in this post.

An Arab country has made a deal with some of the Melbourne Unis, and are sending their people to be trained here. These students are Moslems, and as they are only here for a max of three years, want to live close to a station and close to a mosque. The only place in Melbourne where that combination works is in Newport. But where it gets harder, is that these guys prefer to be within walking distance. So I need to find a property real close to the station (referring to a Melway, it must be a property on 55 J3 or J4). That's a pretty small area. I know that prices have already gone up in Newport, and I am ready to put in $200k to $250k. I have no worries with yield at that level (the tenants are Arabs from an oil producing country, sponsored by their government, so will pay the fair price within reason), and no problems with tenancy rates, as one Arab leaving is replaced by another coming in. How should I approach this? Should I flood the local RE agencies with my request? Is there a buyers agent that I should use? I have been scanning the web pages of property.com.au and realestate.com.au looking for something suitable but with no luck. Also, these people would prefer a decent property with mod cons. I guess I can learn about renovating, but how does one go about finding what developments are about to happen in the Newport area I am interested in, so that one can approach developers about buying off the plan?

I can see a good opportunity for me, as I know the tenants, and then it is word of mouth referral, but given the number of tight variables, is this a bit of a pipe dream?

Thanks for any comment/help/advice/information.

Cheers Jacques

 

[WebBoard]

Anna

Reply: 1
From: Mike .


Re: Calling Melbourne experts
From: Anna
Date: 06 Feb 2001
Time: 09:48:50

Are you in Melbourne yourself? If not are you able to visit Melbourne?

This would effect my approach to this opportunity. And it does sound like a good opportunity. Newport is definitely one of the suburbs to buy in at the moment. Regardless of the reason.

 

[WebBoard]

Jacques

Reply: 1.1
From: Mike .


Re: Calling Melbourne experts
From: Jacques
Date: 06 Feb 2001
Time: 10:08:08

Hi Anna!

Yes, I am in Melbourne. Way out to the East, but still in Melbourne.

You wrote: "This would effect my approach to this opportunity."

I guess you allude to the fact that I should have a look around. I actually have. My first (future) tenants have found a place, but will shift to mine when I find one. So I helped them when looking for a place.

In what other ways would it affect your approach?

Cheers Jacques

 

[WebBoard]

Anna

Reply: 1.1.1
From: Mike .


Re: Calling Melbourne experts
From: Anna
Date: 06 Feb 2001
Time: 10:27:02

It's great you are in Melbourne. I would start in 3 ways. Visit local council and check for developments under way. The planning area should be helpful. Visit local agents and see if there is something coming up that perhaps they haven't advertised yet. Drive around the streets and look for signs of building work. I have spoken to a number of builders who are a couple of weeks away from completion, have done no advertising - not even a sign out the front - and were wanting to make a good deal as they needed their money RIGHT NOW.

These thoughts are a place to start. And it would be easier if you are already in Melbourne.

Good luck!

 

[WebBoard]

Manny

Reply: 1.1.1.1
From: Mike .


Re: Calling Melbourne experts
From: Manny
Date: 06 Feb 2001
Time: 11:33:07

Hi there,

Newport would be a suburb to look out for, but also Footscray is another (with Trains, Trams & Buses going by) to look out for, as there are Mosques (hope I spelt it correctly) & transport within walking distance... the other factor is that Victoria University is also close by as well (if any of these students are to study there)...

For $200-$250,000 that you indicated you should be able to find something quite livable in both Newport & Footscray (Footscray being cheaper), but speak to local real-estate agents & also keep an eye on the internet (www.property.com.au & www.realestate.com.au) as both of these sites have a number of properties in these areas popping up... but don't forget to call the local real-estate agents, as many properties don't even make it to the newspapers or the internet & it is best to leave your name & requirements to the local agents...

Good Luck with your search...

PS: where did you find these prospective tenants?

 

[WebBoard]

Jacques

Reply: 1.1.1.1.1
From: Mike .


Re: Calling Melbourne experts
From: Jacques
Date: 06 Feb 2001
Time: 13:49:29

Hi Manny,

Thanks for the info.

The mosque in Footscray is at the western end of Essex street, quite a bit away from the station. I actually asked these guys if they would consider other suburbs (for starters, closer to me!), but they had done their research, and the combination station/mosque was at its best in Newport.

I'll keep the RE agents busy in Newport then.

You wrote: "PS: where did you find these prospective tenants?"

I travel a fair bit, and have been to the Arabian peninsula. I met a few Arabs there, and when they heard some of their friends were coming to Melbourne to study, they gave me as a reference. Arabs are very sensitive to trust, hospitality and helpfulness. I gave them all three. Word of mouth is incredibly powerful!

Cheers Jacques