Next purchase may be a St.kilda appartment.

[The Wild One]

Next purchase might have to be an appartment in St.kilda.

I know what your thinking and I agree !!!! Crazy

It all started when I explained to my wife that we can buy again. Forms for pre-approvals and valuations have already been sent, with the intension of buying two town houses or a house in Logan with rent yields around 7%. Very affordable.

MY WIFE HATES LOGAN !!!! and has been asking for years that I look into buying an appartment in Melbourne that we can use later on. Well after many days and countless hours of searching, I may have found something. 2 bedroom, 2 bathroom, separate lounge, kitchen and separate laundry, with a basement carpark. Lease is due to expire in june 2009.

I've worked out that it will cost me $5,510 a year to hold, not including maintenace and reletting.

My question for all Melbourne investors is:
What is the going commision that managers are charging in Melbourne?
I've calculated my costs on 8.8%
Also does anyone know what the fire levy is? I understand it's not included in council rates.

Thank you ,and HAPPY NEW YEAR.

John.

 

[pieman]

With one apartment around there you should be able to get 7.7%.
If you have 3+ you can negotiate down. I was charged 5.5% when I had 3 in St kilda

cheers
pieman

 

[turk]

Hi Wild One

Have house in Middle Park, paying 5.5% incl. GST

Cheers

Pete

 

[fernfurn]

I'm pretty sure Fire Levy is a 'donation' to support the fire brigade and is listed on the rates seperately but included in the total. Unless this is something the body corporate requires. St Kilda would be fabulous to have an apartment in, exciting, so much going on, night life, markets, beach, cafes and an oddball arty society. It will be noisy, but that innner city living

 

[The Y-man]

I've worked out that it will cost me $5,510 a year to hold, not including maintenace and reletting.

Make sure you take body corp fees into account.

Cheers,

The Y-man

 

[savoys]

I'm pretty sure Fire Levy is a 'donation' to support the fire brigade and is listed on the rates seperately but included in the total. Unless this is something the body corporate requires. St Kilda would be fabulous to have an apartment in, exciting, so much going on, night life, markets, beach, cafes and an oddball arty society. It will be noisy, but that innner city living

Yes, very exciting, and doesn't sound crazy at all. It sounds like you know what you're doing , diversifying by investing in quite different areas, and also thinking about the future personal use. Do you already have one in Logan?

 

[The Wild One]

Thank you all for your help.

The more I look into the idea, the better it adds up. I almost fell of my chair when I calculated the stamp duty in Melbourne. Wow !!

Savo's I have seven properties in Logan, and all have been very good to me. I genuarly look for properties that have a high yeild and good growth. AS I don't like to work hard.

One thing that's not often mentioned on the forums is the importance of high yeilds for retirement and paying off your personal debt. In retirement you have to live off your yeild/income, not your CG.

I've built my portrfolio out of nothing, working in a corner bakery until two years ago.

John.

 

[Propertunity]

Savo's I have seven properties in Logan, and all have been very good to me. I genuarly look for properties that have a high yeild and good growth. AS I don't like to work hard. I've built my porfolio out of nothing, working in a corner bakery until two years ago.

Congratulations John, it sounds like you have done very well (despite your saying that you don't like to work hard)

In retirement you have to live off your yeild/income, not your CG.

Well that's not entirely true, although that is the strategy of some. See LOE threads. It might be a bit harder to do atm but these are exceptional times.

 

[The Wild One]

So many different avenues to to go down. I'm not a LOE fan, but I do find it interesting!

In my view, if some one is thinking of retiring in five years or so, they should look at buying the opposite of what they already have.

For example, if you have several growth properties you could sell them all and live of the interest in a term deposit. Or you could use the equity to more buy properties with 9% + yields. Now if you already have high yielding properties, I beleave you should use this income to buy some high growth properties, so that when the high growth ip's increase over the next 5/7 years thay may well pay off your high yeilding ip's.

We all want a simular or higher income that what we are accustomed to when we deside to retire. The idea of living of rental yeids has it's pluses with depreciation included.

Just my thoughts, and welcome other investors input.

John.