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Bardon

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Everything posted by Bardon

  1. Yes aussieboy I know what is happening in there and I know it is fairly typical of the Sydney cycle for those areas to grow first. Melbourne and Brisbane are similar although I think that Sydney is at an earlier satge of teh cycle. All our capital cities seem to have the prime water/river front proeprties grow firts and it ripples out from there. There are many invetsors buying in teh western suburbs as the yield is back and they belive that it is now a buyers market. Quoting growth on here could attract critcisim so I merely wanted to point out the error of directly comparing "Sydney" with UK and also the fact that there is more to oz than Sydney. I have just came back from a driving holiday and spent a few days in Sydney and it is still one of my favourite cities to live in comapred with London, New York, Tampa, Brisbane, Jakarta, Glasgow, Edinburgh, Melbourne, Perth and Hobart. I must admit the eastern suburbs is a place I like and used to live in I dont think it is as pretentious as other trendy areas in othere cities I even had a look at some props on line. On the subject of NSW and growth and an area that I am very interested in living in once i leave the day job is northern NSW. Beautiful climate, water, green, hills, dales etc and with the infrastruture improvements only 90 mins south of Brisbane. Checking out a town called Bangalow and would you belive that the median price increased by 38.7% in 07. Back here in Bulimba brissy I purchased a new principal place of residence Jan 07 and refinanced in August 07 and got a 25% increased valuations its only paper I know but an indication, 5 mins to office and uninterrupted city views.
  2. Some responses bank fraud all that I am aware of is over valuations in commercial property which has contributed to the Centro debacle, not aware of any problem with residential valuations, yes lending criteria is tightening especially with LO/NO doc loans. I aint and dont intend to invest in Sydney but I dont think there is a vacancy problem there either, theres more to oz than Sydney, two thier economy, QLD and WA and SA to a lesser extent are booming by anyones measure and VIC and NSW are not. The recent census has shown that young professional people are moving to Brisbane, then QLD then Victoria mainly due to affordability concerns. Although business investment is increasing in Sydney after long depressed period I belive that Sydney will rise again. Supply and demand imbalance should prevent a crash does anyone know of over supply other than apartments in Gold Coast? Have a look at the global business surveys that have just been conducted see where oz sits. Record low unemployment. Stock market jitters after a whooping great three years should see funds move from equities to property, compulsary super (penison) funds now very tax attractive onwards and upwards. Rising interest rates affordability for firrst home owners will only drive up rents 1% raise in interest rate govt were half of it in -ve geraing and it does not even form a blip on teh curve of wealthy ozzies who are the biggets holders of invetment debt as opposed to credit cards tec. Lets have more inflation as all it will do to me is erode the value of my mortages which is good for me. Despite the strong dollar foreign investment increasing in property wealthy Russians now the biggest group of foreign investors in QLD. Exports of all the good stuff. So dont hold your breath waiting on another correction in the short term.
  3. The oz market cycle is on a different timing from UK I follow both. Sydney peaked at 2003 and there have been 4 years of flat to negative growth so you cannot compare to UK which is now where Sydney was in 03. Inner Sydney has startetd to grow and the negative growth is expected to stop in the mortgage belt in 08. Sydney siders more than any othere ozzies know very well that prices dont always go up as many have been stung that bought at the top in 03. Some inner city apartments in Melbourne after 4 years of negative territory are only now selling at the same price that they were purchased for in 03. The realtively samll % ofdefaults are increasing in the mortagage belt but whenever there is a mortagee sale the rich kids or investors buy them up no wholesale discouting here. There is a shortage of properties to accomodate population growth, rents are even going to auction, yields are low but rising and the majority of mum and dad investors hold for growth and "negative gear" the holding loss which for high income earners the tax man pays you 46.5% of your loss but yes its still a loss and you need to hold for at least 3 years to make it worth your while I purchaseed two IP's last year in Brisbane which has just gone through a correction and seen an overall price growth of 17.4% for 07. eg a house and land package for $392,000AUD in Ningi QLD adjacent to Pumicestone Passage a world heritage marine park (90 mins to Brisbane) land size is 989m2 ( a 1/4 acre in oz) relatively large land component cost $201,000 and a 4 bedroom, 2 bathroom, double garage brick and tile home 210m2 191,000AUD. The location is nice its on an esplanade so looks onto the mangroves and there is water there at high tide. Building should be complete by Easter and I have a 10 year lease in place starting at $340 per week. Holding costs with a 104% fixed interest only loan after tax break is $110AUD per week. My forecasts have this area apprecaiting at 13% for the next 8 years yes that is speculating but I dont have a problem with this. I have funds but it is best for me to maximise my investment debt as this is tax deductible and my savings offset against my residence loan which is not tax deductible. I am a bear and have held off investing in oz until I was convinced that the bottom had passed after last boom. We have population growth Of which Brisbane has the highest, low unemployment, major resource and infrastructure projects everywhere, we export coal, LNG, gold, copper, uranium, iron ore, please build more nuclear plants its good for our uranium exports( we have the most). We also have lifestyle that attracts people to live here. Our new PM speaks fluent Mandarin and the Chinese are now directly investing here. So yes the growth is never guaranteed but rents are creeping up and I am a long term buy and hold, high income and am satisfied that property is a necceary element of my investment portfolio.
  4. Uk, Aussie, NZ investors are buying up in Buffalo, Rochester and Texas where they can still get a good yield. These areas are also according to teh dmographia study very affordable wheeras Florida is not reccomended as it is callssified as unaffordable.
  5. Fishface, Picture is attached 14.5k purchase, 10k rehab duplex rented out at 2 x 600 per month. This house is in Rochester. Property manager manages property. I live in Australia. mon.pdf mon.pdf
  6. Fishface you are in your own paradigm about house prices with the say $250,000 price bracket being only 10 fold out in this example. Try this, bought foreclosed duplex for 14.5K spent 10k rennovate each unit rented for 600 per month. Its the house price stupid....that makes the difference.....sure that was a great deal but it shows it can be done. 20-25% yield very very safely being done by many positive cash flow property investors right now. Not forgetting that the area is appreciating at 5-6%. picture attached 10-15% yields in single family homes in Texas fairly standard, check out San Antonio and Houston houses at $75K. As far as never specifying the returns they are available right now in Buffalo and Rochester USA as many an astute UK,Aussie and NZ investor that are investing up there right now will tell you. No hard feelings and nothing wrong with your investment strategy just wanted to correct the statement that you can not get 8% returns like Berlin in a 1st world country.
  7. Fishface good luck to you and it certainly looks like a good invetment area. I just wanted to correct your statement on returns in 1st world country. Theer are very good opportunities in the US with yields as high as 50% in some of the affordable major cities. Also can get 14% yileds on family homes in Texas.
  8. www.zillow.com provides an amzing amount of info on USA properties. Tracking 1/5/10 year trends, aerials etc. I invest in US and found there data to be very accurate.
  9. http://www.nytimes.com/2006/03/05/magazine...&_r=1&th&emc=th
  10. Not sure what you mean by rent controls. My properties are rented out at the market rate there is no regualtory or other requirements that I am aware of that impact rents.
  11. Yes Argentina looks good I have been checking it out but I must admit I prefer Panama.
  12. Matt, why dont you just bite the bullet if you really want positive cash flow properties and buy income producing property do it in US. You can get 25% gross yileds in areas with large populations, speak English, westminster legal system no CG hype and what is wrong with that ?
  13. HPC Guru, Its hard to grasp but it is for real. I go up there and buy although this one isn't in a good area but still it is for real. I buy for about 10K pounds per house. Prices havent went up in 20 years in this area as it was depressed for a long time with the closure of steel mills etc. But it just goes to show how overpriced property is in ozzie and UK. Also the people in tehse areas are in debt with cars, tv,s pcs phones etc and prefer to rent. Its a fact. I know some UK investors that are also hitting the area pretty hard.
  14. 2,500 pounds for a family home http://www.realtor.com/FindHome/HomeListin...95&lnksrc=00002 Hey I am an ozzie and am I buying up there you bet, these houses are for real and there is high rental demand..... no kidding
  15. MT, Yield quoted was gross not net. Real samples of my US potfolio in US $ City of Buffalo Duplex paid 26.5 K spent 7k renno now renting for 950 per month Cityt of Buffalo triplex paid 45K spent 5500 renno should rent for 1300 per month Rochester triplex paid 25.5 K will spend 19K renno should rent for 1775 per month Net is obviouly lower I use 40% property expenses. If you are looking in the suburbs prices higher yield lower. There are many deals like mine my colleauges also buying on similar figures. Dave
  16. Yes some parts of the US are overpriced but some are the exact opposite. Particularly the smokes stack cities in the North. Some areas haven’t had appreciation for 15 years and are only now showing signs of recovery that’s where I am putting my money. I have just returned from a property buying trip in the Buffalo Niagara area and have picked up four properties all yielding at least 30%. I just went to contract on a triplex in a good area of Rochester which will yield 46%. Anyone interested in more info on this subject let me know. Happy Investing, Dave
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