next hot suburb
- Thread starter alpina
- Start date
hot areas
Ben no Harm done I guess & I have notice your Humour over the past 3 months. At times I have LOL alot. No problem this end..
And always smiling.
Sanchez..
I only buy properties with a delayed settlement. If I exchange I allow myself at least 6 to 18mth delay to pruchase. In extremely Hot areas it allows my purchase to come in at <80% LVR. Then a low doc loan to finish finance+ 6 to 12 months interest.
But you can not afford any misjudgements in the area of speculating the growth. But practice makes it easier.
When interest on lending is 6-7% & growth factors are 25- 45% it makes it worthwhile.
cheers ocean
Ben no Harm done I guess & I have notice your Humour over the past 3 months. At times I have LOL alot. No problem this end..
And always smiling.
Sanchez..
I only buy properties with a delayed settlement. If I exchange I allow myself at least 6 to 18mth delay to pruchase. In extremely Hot areas it allows my purchase to come in at <80% LVR. Then a low doc loan to finish finance+ 6 to 12 months interest.
But you can not afford any misjudgements in the area of speculating the growth. But practice makes it easier.
When interest on lending is 6-7% & growth factors are 25- 45% it makes it worthwhile.
cheers ocean
Ocean
Sounds like an excellent system you've got going. As you said, you wouldn't want to make any gross misjudgements, but hell, what's your worst case scenario - you cant rent it out and cover your interest? Then just sell it. It seems like an excellent return for fairly limited risk.
Anyway - I dont want to get too personal, but do you do this full time? By the amount of dealings you do, it seems like a full time job. How do you find so many willing to have a delayed settlement?
Sanchez
Sounds like an excellent system you've got going. As you said, you wouldn't want to make any gross misjudgements, but hell, what's your worst case scenario - you cant rent it out and cover your interest? Then just sell it. It seems like an excellent return for fairly limited risk.
Anyway - I dont want to get too personal, but do you do this full time? By the amount of dealings you do, it seems like a full time job. How do you find so many willing to have a delayed settlement?
Sanchez
who??
Sanchez it isn't easy I can tell u. fulltime next year.
But takes about 3 hours a day to work on.
Land has been my best returns in the last 12 months. If you can find a developer who needs holding deposits to get his finance approved to develope the subdivision u will get some good results after registration of land. As he or she needs to lower the purchase price at the start of subdivision & only sell half to create interest & prove to the bank that it is a secure venture. Then in the last 50% of the subdivision Developer sells the rest for big mark ups. Which helps the price on yours rise. The developer is in your camp pushing his profit & yours (well thats the plan anyway)
But always go through the negatives first. EG.. Why will that particular subdivision rise in value? Have I a back up plan if growth rate is only 10%?
With experience over time u will know where to invest without concern.
a House & land contruction off the plan. People in general place a hOME & LAND PACKAGE at todays prices without allowing %growth factors(due to not knowing any better). I then purchase it today & not needing to settle for 8- 10 months, until finished (Vendors are happy with $20-$30k profit from the original land purchase)
The agents don't tell them to inflate the price at exchange due to the Buyer making the profit & having a chance to re list the home again with the agent after construction.. Two commissions for agents. I suppose the original vendors also make profit , Just not as much. But cash is cash & it may be needed to go onto something else to continue the cycle.
There are many ways... It is all about DELAY in purchase..Longer the time the more secure & higher return (not all cases!!!) But thats life.
cheers ocean
Sanchez it isn't easy I can tell u. fulltime next year.
But takes about 3 hours a day to work on.
Land has been my best returns in the last 12 months. If you can find a developer who needs holding deposits to get his finance approved to develope the subdivision u will get some good results after registration of land. As he or she needs to lower the purchase price at the start of subdivision & only sell half to create interest & prove to the bank that it is a secure venture. Then in the last 50% of the subdivision Developer sells the rest for big mark ups. Which helps the price on yours rise. The developer is in your camp pushing his profit & yours (well thats the plan anyway)
But always go through the negatives first. EG.. Why will that particular subdivision rise in value? Have I a back up plan if growth rate is only 10%?
With experience over time u will know where to invest without concern.
a House & land contruction off the plan. People in general place a hOME & LAND PACKAGE at todays prices without allowing %growth factors(due to not knowing any better). I then purchase it today & not needing to settle for 8- 10 months, until finished (Vendors are happy with $20-$30k profit from the original land purchase)
The agents don't tell them to inflate the price at exchange due to the Buyer making the profit & having a chance to re list the home again with the agent after construction.. Two commissions for agents. I suppose the original vendors also make profit , Just not as much. But cash is cash & it may be needed to go onto something else to continue the cycle.
There are many ways... It is all about DELAY in purchase..Longer the time the more secure & higher return (not all cases!!!) But thats life.
cheers ocean
ocean view:
How do you find these land developments at their inception? Has the developer started advertising and you just get in early, or do you have "advance warning" even before this?
Cheers
How do you find these land developments at their inception? Has the developer started advertising and you just get in early, or do you have "advance warning" even before this?
Cheers
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kevmeister
I always pick an area first where I can construct a path towards growth. That is the most important part.
Then within that area look to land releases through council or word of mouth. Prices have to be within the plan to profit. But my stratergy is based on retiree areas only....
Sydney is my only other source of information & buying there at the moment is not an option for those growth rates.(except ettalong,,sorry brains)
If a land developer is selling off land & has sold 50% well that still gives u a little room to move. Anything after 70% WELL lets say your not giving yourself much potential,,
I get in a plane & head off for a week end & just drive, take pictures & repeat the cycle until I can satisfy my rulings. Find a place & make a move. But the whole sunshine coast is riddled with these types. Some better than others for obvious reasons..
cheers ocean
kevmeister
I always pick an area first where I can construct a path towards growth. That is the most important part.
Then within that area look to land releases through council or word of mouth. Prices have to be within the plan to profit. But my stratergy is based on retiree areas only....
Sydney is my only other source of information & buying there at the moment is not an option for those growth rates.(except ettalong,,sorry brains)
If a land developer is selling off land & has sold 50% well that still gives u a little room to move. Anything after 70% WELL lets say your not giving yourself much potential,,
I get in a plane & head off for a week end & just drive, take pictures & repeat the cycle until I can satisfy my rulings. Find a place & make a move. But the whole sunshine coast is riddled with these types. Some better than others for obvious reasons..
cheers ocean
B
brains
Guest
Ocean
I agree with you about Sydney, the rent returns make it prohibitive and i think growth will be flat for a while.
I like your concept, there is a small development close to me at the moment that might be worth looking at. (central coast)
pm me if you want to have a chat about it.
I just exchanged on a property in Woy Woy thats a pretty interesting story, (got a great deal) i'll post it next time cause i cant type properly on this laptop
My solicitor thinks im crazy cause i just exchanged on a property on the 6th Jan and walk in with another contract on the 15th.
I agree with you about Sydney, the rent returns make it prohibitive and i think growth will be flat for a while.
I like your concept, there is a small development close to me at the moment that might be worth looking at. (central coast)
pm me if you want to have a chat about it.
I just exchanged on a property in Woy Woy thats a pretty interesting story, (got a great deal) i'll post it next time cause i cant type properly on this laptop
My solicitor thinks im crazy cause i just exchanged on a property on the 6th Jan and walk in with another contract on the 15th.
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Regarding previous posts about Wollongong, I have been interested in Bulli for some time. It seems to have most things the neighbouring suburb of Thirroul has (beaches, good train & road links to Sydney) yet is considerably cheaper.
An agent I spoke to said prices just jump up on the North side of Bulli Pass (the highway dividing the suburbs). Do any Gong locals know if there's a material reason for this eg housing commission, crime etc or is just that Thirroul is more prestigious.
I am particularly interested because I believe the new "Point" land release there on the beach overlooking Sandon Point will allow back street access between the 2 suburbs (at present the only link is along a busy highway).
Perhaps this link as well as the prestigious nature of the new development will cause Thirroul prices to spill into Bulli in the near future ?
Any opinions/local knowledge on this ?
An agent I spoke to said prices just jump up on the North side of Bulli Pass (the highway dividing the suburbs). Do any Gong locals know if there's a material reason for this eg housing commission, crime etc or is just that Thirroul is more prestigious.
I am particularly interested because I believe the new "Point" land release there on the beach overlooking Sandon Point will allow back street access between the 2 suburbs (at present the only link is along a busy highway).
Perhaps this link as well as the prestigious nature of the new development will cause Thirroul prices to spill into Bulli in the near future ?
Any opinions/local knowledge on this ?
