property investment technique in oz

[Asychee]

When young, I always asked myself why builders always go bankrupt during crisis and developers always survive :( Finally, I found my answer as I grew older..

Doing what I am doing now has always been my dream, I'm glad Australia - Brisbane allow me to have the opportunity, next Melbourne... my learning curve has been tough but along the way, it becomes eazi-piecezi japanezi

I'm aint one yet until I see the "finished chicken".. I'm glad based on land price I'm already ahead compare to the fellow migrants..

I like your model - rental (of business) but I prefer another aggressive model - capital gain due to effective tax and good connections with the industry. However, I have to watch closely in the area of aquisition.. My next plan is commercial building..

Careful brother, you do not want to have your feet on full throttle all the time. Trust me - if you kena bitten you will know what it means to have a buffer or reserve in order to restart again

 

[neddy]

When young, I always asked myself why builders always go bankrupt during crisis and developers always survive :( Finally, I found my answer as I grew older..

I like your model - rental (of business) but I prefer another aggressive model - capital gain due to effective tax and good connections with the industry. However, I have to watch closely in the area of aquisition.. My next plan is commercial building..

First point.
The developers are the ones who get into trouble, and not the builders, who will get their 15-20% profit anyway. (when project finish and they issue 6-yr warranty)

The developers risk clients cannot pay or default. Dubai World/Nakheel is a good example.


Second point.
I calculated, today's rental environment will want me to sell rather then lease out my projects.

 

[neddy]

You should consider selling your expertise as a housing consultant in Singapore. Many of the House & Land Package firms from Oz tend to be rigid when they hold exhibitions in Singapore. There is still demand from Singaporeans to buy a landed property on Perth.

If you build 2 or more townhouses in the same plot, you can even get one the GLCs to lease long term as holiday accommodation. They will have to maintain it.

If the Singaporeans are buying landed property in Perth for investment, they can just buy a package.

But if they want a enviable home lifestyle, they can read this forum for tips.

I posted a link some time back on "form and function". Basically, each individual/family have their own taste on how they want the home/house to work for them, not the other way around.

That is why I will go through the trouble to ask myself, how to make this new house convenient for me. Simply speaking, I have move a few rungs higher and instead of saying I want a 4bed 3bath 2car landed house, I asked, how to make this house really conform to my lifestyle.

Singaporeans, and Hongkong people need to learn that. I sometimes shake my head at the expensive home renvovations these people make, that makes livability lower. Very stressful home!!

 

[neddy]

"Going at each others throats"
We are all humans. "

"I out ran them at the traffic lights with my stock standard cooper S. "
What does that tell you about the other driver.
Loud engine, old car and probably a dumber driver.
But try outrun a VW Golf TDI (not GTI unless yours is a Cooper S) next time ... heeheehee

 

[Peiweh]

Anyone considering property investments in Australia is not thinking very clearly. The fundamentals have long since passed as the reserve Bank has risen rates for a third time this year and a 4th rate rise is in the cards. 2010 will see even further rate rises.

Furthermore the Homebuying grant cessation will grind the market slower and depending on the rates rise from RBA will stop or seriously impede any gains in 2010,2011 and beyond as mortgage rates hit the 6 to 9% level, buyers will run out of purchasing power very soon. Also the rise of commodity based growth will be limited due to the US economy; only commodity prices will increase due to a weaker dollar not actual demand which will translate to much lower than expected growth in Australia.

If you are investing in Singapore dollars expect a risk on currency exchange as the US$ is expected continue to decline.

Its important to note Australia is the only country in the world raising rates now. If you did not get in by this time its too late.

Other markets show impressive opportunities at this time.

 

[Ash007]

Yah lah I understand. We are all humans after all and get emotional. At least its back to a saner path now.

Yes, mines a cooper S. I pick what and when to "play" on the roads carefully. Once, I think the driver just relaxing and doesn't want to race, I followed an Audi TT at 100km in an 80 zone. Another time, I notice a car trying to catch up on the right lane, I went for it, after 10 sec the car is still catching up, I slowed down, curiosity and reaching 130km at this point, then found out its a mercedes kompressor. Kind of nice to know your car can keep up with one.

"Going at each others throats"
We are all humans. "

"I out ran them at the traffic lights with my stock standard cooper S. "
What does that tell you about the other driver.
Loud engine, old car and probably a dumber driver.
But try outrun a VW Golf TDI (not GTI unless yours is a Cooper S) next time ... heeheehee

 

[axe168]

First point.
The developers are the ones who get into trouble, and not the builders, who will get their 15-20% profit anyway. (when project finish and they issue 6-yr warranty)

The developers risk clients cannot pay or default. Dubai World/Nakheel is a good example.


Second point.
I calculated, today's rental environment will want me to sell rather then lease out my projects.

Yes I agree with you.. My wifey has cautioned me about the risk ~ bankruptcy.. cashflow is very important for me.. I could be a bankrupt the next day if I am not careful. Unlike SG, the contingency sum here is extremely high ! in 2006, market price about $750/m2 to build.. in 2007 increased to $1100/m2.. now it is about $1400/m2 ?! there is another avenue for me to maintain it at 2006 price and sell at 2010 market. How do I do it ? Sue the bastard off ! kekeke.. Can't reveal the details now. I may be on TV in Dec 2009 ! self-represented expert taking on the big elephant !! stay tuned !

 

[Ash007]

??? Should I be looking at Today Tonight or A Current Affair mate? Need to post your video on youtube? whahhahaha

How do I do it ? Sue the bastard off ! kekeke.. Can't reveal the details now. I may be on TV in Dec 2009.. self-represented expert taking on the big elephant !! stay tuned !

 

[axe168]

Anyone considering property investments in Australia is not thinking very clearly. The fundamentals have long since passed as the reserve Bank has risen rates for a third time this year and a 4th rate rise is in the cards. 2010 will see even further rate rises.

Dont talk cock.. RBA increased the rate for a reason.. you wana know whats the reason ? Bcoz the avg housing prices increased 15% in a mere 6mths.. Inner suburbz expected to have more growth. By doing nothing, I'm already gaining.. easy money..

 

[axe168]

Careful brother, you do not want to have your feet on full throttle all the time. Trust me - if you kena bitten you will know what it means to have a buffer or reserve in order to restart again

Thanks for your advice bro.. I will only proceed full throttle if I have my family's support.. currently, wifey not pleased, so I have to take a break for 2yrs..

 

[axe168]

??? Should I be looking at Today Tonight or A Current Affair mate? Need to post your video on youtube? whahhahaha

Dunno lah.. normally if the applicant is seeking exemplary damages.. it should be a big thing lah. Victoria Police paid $40k to a tattoo guy for failure to adhere to the SOPs.. I am seeking the same perhaps more..

It aint easy but shall be my ever greatest fight ! heehee..

 

[neddy]

Yes I agree with you.. My wifey has cautioned me about the risk ~ bankruptcy.. cashflow is very important for me.. I could be a bankrupt the next day if I am not careful. Unlike SG, the contingency sum here is extremely high ! in 2006, market price about $750/m2 to build.. in 2007 increased to $1100/m2.. now it is about $1400/m2 ?! there is another avenue for me to maintain it at 2006 price and sell at 2010 market. How do I do it ? Sue the bastard off ! kekeke.. Can't reveal the details now. I may be on TV in Dec 2009 ! self-represented expert taking on the big elephant !! stay tuned !

That townhouse I posted earlier cost about $1300-1400/m2 to build.

He put in an American sized double garage and spent $2.5k on the oven, but because he forgot the downstairs bathroom, he dropped the price and keep this fingers crossed at a buyer will come along.
It is not cheap to retrofit a bathroom. There is just no more space after he squeezed in a Powder Room.

In Perth, I think there are not many projects left. Now, people are promoting off-the-plan. Cheap because I found out that insulation is not included. No allowance for clearing the vegatation on the vacant land as well and no letterbox.

 

[axe168]

In Perth, I think there are not many projects left. Now, people are promoting off-the-plan. Cheap because I found out that insulation is not included. No allowance for clearing the vegatation on the vacant land as well and no letterbox.

Yes-yes.. Dont forget no driveway.. no blinds.. and no permit fee. Hahaha

 

[axe168]

Sub-division is essentially a business venture. The cost of a solicitor falls into the cost component of subdividing and selling and therefore tax deductable cost.

Pointless acquiring a site with the intention to subdivide when you are not aware what status of the site is. A $15 search does not tell if heritage listing is being considered for example. Its requires writing to the State Heritage Board. This is just one example.

By getting a solicitor, you at least have the avenue of suing him if he does not unearth what is reasonably expected of him. You can't sue yourself to cover the losses for $15 of thinking.

The choice is yours.

You sound like a confident person but you are "too stubborn" to admit that there'll always be someone with a skill better than you. Or is it you are simply too smart for everything.

Let me explain.. 1st of all, who will like to purchase a heritage house ? (Only those who appreciate art will do that) Which idiot will write to State Heritage if the property is already listed as residential zoning with no heritage overlay ? Do you need to re-confirm with State Heritage ? perhaps seek flying zone height clearance from the air services ? Also seek evironmental protection as concurrence party? To Fire Brigade, EPA, PE Board if they have any concerns ??? finally seek Prime Minister Kevin Rubb's blessing before purchase ??? Oh yes, the above is tax deductible too. LOL !

In Victoria, I can do a search for FOC.. Ok, i will not argue with you, you win.. there is no need for me to provide details.. come down to my home-office, I charge $400 per consultation (approx 40mins) you'll get everything you need.. tax deductible :p

 

[scroobal]

Agree with you bro.

I asked, how to make this house really conform to my lifestyle.

Singaporeans, and Hongkong people need to learn that. I sometimes shake my head at the expensive home renvovations these people make, that makes livability lower. Very stressful home!!

 

[scroobal]

I don't think you are familiar with Australia or the essence of economics. Don't worry too much about rates etc. The trick is to see if house prices are rising, you can afford to purchase and service it and that capital gains are factored in.

Anyone considering property investments in Australia is not thinking very clearly. The fundamentals have long since passed as the reserve Bank has risen rates for a third time this year and a 4th rate rise is in the cards. 2010 will see even further rate rises.

.

 

[scroobal]

Bankruptcy is very different from Singapore. At least you are allowed to own a car and maintain a decent lifestyle while relieving pressure.

Don' give up. Fight hard. Sometime people think that Asians are meek and can be easily bullied.

Yes I agree with you.. My wifey has cautioned me about the risk ~ bankruptcy.. cashflow is very important for me.. I could be a bankrupt the next day if I am not careful. Unlike SG, the contingency sum here is extremely high ! in 2006, market price about $750/m2 to build.. in 2007 increased to $1100/m2.. now it is about $1400/m2 ?! there is another avenue for me to maintain it at 2006 price and sell at 2010 market. How do I do it ? Sue the bastard off ! kekeke.. Can't reveal the details now. I may be on TV in Dec 2009 ! self-represented expert taking on the big elephant !! stay tuned !

 

[scroobal]

Bizarre - he thought of powder room but not bathroom. The builder or even the guy who did his design would have told him.

There is just no more space after he squeezed in a Powder Room.

 

[scroobal]

I can't know everything thus one seeks advice. Nothing to do with confidence but more towards common sense.

Do read my comments properly. You will note that I stated that the solicitor will write to the heritage board for properties that are being "considered" for listing. Not those that are already listed and must be disclosed by the seller. Consideration can take from 3 to 10 years. It something to consider when looking for property to subdivide. It common knowledge that Italians and HK Chinese tend to end up with such properties because they assume that hard work and a nose for good deal is good enough. Look at the Chinese couple who ended up owning the Pinoy property where the son murdered his whole family in Sydney. Luckly public pressure forced the agent to rescind the sale when they were legally not obliged to.

Properties owned by living iconic Aussie are tagged but not listed. When Don Bradman, the cricketer died, his property within weeks was heritage listed. You are well aware that heritage listed properties cannot be subdivided or altered significantly and the property value plunges.

As I said before, you tend to read things wrongly and jump the gun.

When I commit large sums of money, I don't cut corners, I engage people who are qualified and where I have a legal recourse to pursue in the event of non-performance.

Why you think that I tend to write my comments clearly when providing tips.

You sound like a confident person but you are "too stubborn" to admit that there'll always be someone with a skill better than you. Or is it you are simply too smart for everything.

 

[Ash007]

不入虎穴焉得虎子，I think most Sinkies, are very risk adverse, the PRCs, Indians here are playing the property monopoly as axe168 is doing. To them, Australia is a great place. My Indian colleague is already leveraging his current home to get one that is well placed to send his son to a top school over here. Its also in a suburb which is well known as a traditional "upper class".

Don' give up. Fight hard. Sometime people think that Asians are meek and can be easily bullied.