Million dollar apartments.

S

Sunfish

I am unimpressed with the price/quality/return of suburban houses but today I looked a couple of good apartments, one with ocean views on the base of the hill for about $900k and another on the beachfront for $1.1m.

There is high demand for corporate and holiday rentals here so the gross return is still in the 4-5% range but I think the cap gain would be higher in the apartments.

This is a new avenue for me and I haven't studied it before. Anybody with experience of these?

Thanks, Fish.
 
Glebe said:
Thommo,

What's happened to you? Where's the silver bug gone? :)
Click to expand...

I would like to think I'm developing into a "more rounded investor". LOL Besides the MD of my favorite silver miner has just shafted his share holders, demonstrating the truth of two adages:

Never fall in love with a stock, and

If you have more than 10% of your portfolio in any stock, you're a gunslinger.

Maybe you could add A mine is a hole in the ground owned by a liar!

I will be cashing out (just this company, not the market) fairly soon and will have a useful sum to re-invest. So I'm looking.

Ciao.

ps The question remains: Are top-end apartments viable investments?
 
Sunfish said:
Did you buy "that" miner, SOS? Someone on SS did.
Click to expand...

No, not a silver miner...

I bought some BSG a while back and sold at a small profit and also CSM which is also getting screwed by the MD and also AGM, a good little Tassie nickel miner that is taking off big time. They're the only miners I've gotten into.

I'm also carefully watching 2 or 3 other tassie miners that have started production recently. Things are looking good here on the south island.
 
Sunfish said:
I would like to think I'm developing into a "more rounded investor". LOL Besides the MD of my favorite silver miner has just shafted his share holders, demonstrating the truth of two adages:

Never fall in love with a stock, and

If you have more than 10% of your portfolio in any stock, you're a gunslinger.

Maybe you could add A mine is a hole in the ground owned by a liar!

I will be cashing out (just this company, not the market) fairly soon and will have a useful sum to re-invest. So I'm looking.

Ciao.

ps The question remains: Are top-end apartments viable investments?
Click to expand...

I have to disagree... I own no properties (not enough money I'm only 21) however for 7 months now I've only invested everything I had into just one company and have made a 1000% return... It's really the only way to maximize a bull run... Yes it is riskier however is it really that much more? I don't think so... If it goes up like crazy you make more money if the market goes down you only lose as much as the market does... You just need to pick A good stock... this took countless hours of research and research I still do as I'm still holding them... Kind of like my stop loss... The trick is to never take your eyes off the ball.
 
Dfer, you may not be in love with your stock but you are a "gunslinger" and they have notoriously short lives. Assuming you started with a useful stake you should sell some and offset some risk. If you can't bear to sell, you may be in love with it too. You don't make a profit till you sell!

Now. Doesn't anyone want to talk about a classy apartment instead of crappy mining shares?
 
Sunfish said:
Dfer, you may not be in love with your stock but you are a "gunslinger" and they have notoriously short lives. Assuming you started with a useful stake you should sell some and offset some risk. If you can't bear to sell, you may be in love with it too. You don't make a profit till you sell!

Now. Doesn't anyone want to talk about a classy apartment instead of crappy mining shares?
Click to expand...

My only concern with apartments is that there is no land content. I am rather conservative though and prefer to buy some land!!

Regards Jason.
 
I'll bite Thommo,
Nothing wrong with a classy apartment within your property portfolio...
Call it diversification.

Its not always about land.( How much of it do you really need ??? )
Sometimes its about lifestyle. No maintenance living. Lock up and Leave.

And they do appreciate in value. Sometimes just on the back of demand.

We've picked one up. Market val is up 49% on the purchase price in 2 yrs.
It was a lifestyle purchase, not a speccy punt.
Settlement is in 5 weeks.
I'm going to sit on the balcony and watch the world go by, till the novelty wears off.

Now back to the real world...SOS.. what were those three emerging producers pls ? I need to pop some shares into the smsf ....

kp
 
Sunfish said:
Now. Doesn't anyone want to talk about a classy apartment instead of crappy mining shares?
Click to expand...

Ha ha ha ROLMAO. I really burst out laughing here. Here is Thommo wanting to talk about a property, and everyone only wants to talk about spec mining shares.

How times can change!

See ya's.
 
topcropper said:
Ha ha ha ROLMAO. I really burst out laughing here. Here is Thommo wanting to talk about a property, and everyone only wants to talk about spec mining shares.

How times can change!

See ya's.
Click to expand...

Yep! That IS funny!!!!

The more I read on here the less I realise I know. ANd I know very little about any market but my own.

However... my opinion....

I"d think that putting a large chunk like that into a top end apartment would be kind of dangerous. Correct me if I'm wrong, but it sounds like you're buying with your heart and not your head.

If I was going to outlay a million, I'd consider buying 3 - 5 houses. But, that is just me. As I said, they may be the best investment going. :)
 
kph said:
Now back to the real world...SOS.. what were those three emerging producers pls ? I need to pop some shares into the smsf ....
Click to expand...

Ok, these are NOT tips, they're jsut a couple of local mines I'm monitoring.

SHE
SRZ

A third is not local and you'd know them but they've had their run, that is SMY. (And I've said that before and watched a stock go up 100%+ too...:rolleyes: )

Another that's getting in the news is Zeehan Zinc (ZZL) but they're listed on the London exchange.

What are your thoughts?

Cheers
 
Sultan of Swing said:
If I was going to outlay a million, I'd consider buying 3 - 5 houses.
Click to expand...

That's the rub. Decent houses are well over $400k and weatherboard 3br, 1bath, park under are now over $300k. I don't see value or much more gain.

Apartments though seem to be following the Gold Coast's lead with the sky as the limit. What is the experience of GC investors?

I'm trying to keep my heart out of it because it will be a rental. They don't suit my lifestyle.

And don't laugh TC. I've always believed in cycles in investment, and I can assure you I will continue investing in resources. I've kept some dry powder and can do both.
 
Sunfish said:
Apartments though seem to be following the Gold Coast's lead with the sky as the limit. What is the experience of GC investors?

.
Click to expand...

Isn't the Gold Coast appartment market as dead as a door nail? Especially the top end? That's what I thought. Q1 and Soul have started discounting. Needed to buy about 01, 02.

Topcroppers 'Gold Coast crane index' says you wouldn't buy a unit there for years now.

Dunno. I only holiday there.
 
I don't think its a good comparison Thommo,
There is plenty of overhang in the GC market.
Too many apartments, and more coming up every day.
Place is a bit overrated quite frankly.
Huge vacancy out of season and too much reliance on the visitor/tourist dollar.

However, further up the coast where there is a shortage or even a lack of quality accomodation, the potential has to be much better.

We have recently returned from a trip to visit a coastal spot north of Brisvegas and we reckon it has huge potential due to lack of accomodation.
(Have to be a bit secretive for now till we bed down the transaction)

You didn't like Isa, but you may like this one (its on the coast)
And we'll build an apartment tower just for you as well !!

SOS, thanks for the heads up...

kp
 
lizzie said:
oooo - property instead of shares - does that mean the market has turned on the east coast?
Click to expand...
Townsville never slowed down. It just kept powering on like Perth (25% in the last couple of yrs) but the housing market looks toppy. (Could keep going though, I don't know) So I'm examining alternatives.

Ciao.
 
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