Aussie Property Kaboom

[Guest]

400k for a house and 400 per week for rent will leave you too much out of pocket. You would be relying on high growth in house prices to get anywhere and as with most rural areas, this is unlikely to happen in the short to medium term.

lol
how is that different from anywhere else? 90% of investors who have bought in the last 5 years are claiming a tax loss. The medium yield for a rental property (assuming you own outright) is 4%.
In Melbourne you can rent a 1.3 mill house for $550.
kABOOM ( 48% CLEARANCE RATE ON THE WEEKEND)

[Vasco]

lol
how is that different from anywhere else? 90% of investors who have bought in the last 5 years are claiming a tax loss. The medium yield for a rental property (assuming you own outright) is 4%.
In Melbourne you can rent a 1.3 mill house for $550. kABOOM ( 48% CLEARANCE RATE ON THE WEEKEND)

Do you have evidence to support that?

I lived there for 3 years and paid $410 per week in a house that was recently sold for $610K. That was in the inner west of Melbourne. A $1.3M home in Melbourne would be around Toorak, South Yarra or even further south in Brighton. I would be surprised if the rent was that cheap in those areas for such a property.

[Guest]

Do you have evidence to support that?

I lived there for 3 years and paid $410 per week in a house that was recently sold for $610K. That was in the inner west of Melbourne. A $1.3M home in Melbourne would be around Toorak, South Yarra or even further south in Brighton. I would be surprised if the rent was that cheap in those areas for such a property.

Yes. Elsternwic. Friends.
So the first property that came up was http://www.realestateview.com.au/Rea...2850503_L.html

which sold for 1.24 and is asking $600 a week neg

[Guest]

For a good summation of why property now is a stupid asset
http://smh.domain.com.au/home-invest...523-1ezux.html

[Vasco]

Yes. Elsternwic. Friends.
So the first property that came up was http://www.realestateview.com.au/Rea...2850503_L.html

which sold for 1.24 and is asking $600 a week neg

When did that place sell for $1.24M ?

[Pass the Ball]

Yes. Elsternwic. Friends.
So the first property that came up was http://www.realestateview.com.au/Rea...2850503_L.html

which sold for 1.24 and is asking $600 a week neg

It is only available for 3 months until the new owners knock it down or renovate it. Not really a true snap-shop of the market..

[Vasco]

It is only available for 3 months until the new owners knock it down or renovate it. Not really a true snap-shop of the market..

Correct.

[Guest]

It is only available for 3 months until the new owners knock it down or renovate it. Not really a true snap-shop of the market..

ok
6 prentice street $600 http://www.myhome.com.au/rent/vic/me...ouse/p001lzf7/
Can't find what it sold for early this year. Median house price for Elsternwick is 1.3
So comparable number 14..... http://www.james.net.au/rating/14-Pr...et-ELSTERNWICK
sold for 1.54. Yes you can take off a few hundred g here and there....this is a bubble after all...... but you get ma drift?

[Guest]

Bottom line is if you own an investment prop or have leveraged up for the family mcmansion (or crumby south mel reno job) you better be praying that the ladder has a one way sign cos the yields don't make sense and the prices arn't eternally binding

[Guest]

400k for a house and 400 per week for rent will leave you too much out of pocket. You would be relying on high growth in house prices to get anywhere and as with most rural areas, this is unlikely to happen in the short to medium term.

Next 3 t 5 years blocks, eg building blocks in town can be bought from 115k in the next 3 t 5 yrs they will be worth 250k minimum.. mudgee has mines on the expand plus another 5 or more to open in that period, tourism is going mad.. in the last 4yrs the population has gone mad and in the next 3 t 5 its set to grow by at least 5 t 7k.. your choice look into it. you will go well if you are wise.

[Guest]

Next 3 t 5 years blocks, eg building blocks in town can be bought from 115k in the next 3 t 5 yrs they will be worth 250k minimum.. mudgee has mines on the expand plus another 5 or more to open in that period, tourism is going mad.. in the last 4yrs the population has gone mad and in the next 3 t 5 its set to grow by at least 5 t 7k.. your choice look into it. you will go well if you are wise.

So you have purchased there?

[Guest]

lol
how is that different from anywhere else? 90% of investors who have bought in the last 5 years are claiming a tax loss. The medium yield for a rental property (assuming you own outright) is 4%.
In Melbourne you can rent a 1.3 mill house for $550.
kABOOM ( 48% CLEARANCE RATE ON THE WEEKEND)

4% of what? The price that the house is worth if you sell it?

90% claim a tax loss but is that on paper? It is a good way to minimise your tax. Short term pain for long term gain in some instances. Of course there are suckers everywhere that fall for the quick sell and the promise of huge returns.

Prior to me buying my first investment property, I had a guy recommended to me from a friend. This guy had some you beaut properties and was happy to recommend them to me and even look after all the details each year for a fee. I spoke to my brother in law, who was a bank manager at the time, and he said "do it yourself. You don't need to pay someone a fee for finding the property or have them look after the day to day runnings".

So I bought a book by Margaret Lomas and it had some good advice in it. I bought a property in Coffs for $157,000. It is now worth $310,000. I get $300 per week rent. Sounds OK to me....

JL

[Guest]

So you have purchased there?

Yep I'm on it at Mudgee. Geraldton WA as well!!!!!!! This is free info I will not coment on this subject again...........

[Guest]

Yep I'm on it at Mudgee. Geraldton WA as well!!!!!!! This is free info I will not coment on this subject again...........

Good luck on it. Hope it goes well.

[Andrew Walker]

4% of what? The price that the house is worth if you sell it?

90% claim a tax loss but is that on paper? It is a good way to minimise your tax. Short term pain for long term gain in some instances. Of course there are suckers everywhere that fall for the quick sell and the promise of huge returns.

Prior to me buying my first investment property, I had a guy recommended to me from a friend. This guy had some you beaut properties and was happy to recommend them to me and even look after all the details each year for a fee. I spoke to my brother in law, who was a bank manager at the time, and he said "do it yourself. You don't need to pay someone a fee for finding the property or have them look after the day to day runnings".

So I bought a book by Margaret Lomas and it had some good advice in it. I bought a property in Coffs for $157,000. It is now worth $310,000. I get $300 per week rent. Sounds OK to me....

JL

It would be fair to say though that when you brought the property in Coffs You were not getting 310 a week in rent More like 150 to maybe 220 tops