QLD 2020 is the year for Brisbane!

I will add one more to that - timeframe. Regardless, everyone has their own goals, strategies etc so whatever works for the individual.

 

And when there is FHB incentives the solid middle class suburbs move well. You are correct that in %
Terms these suburbs actually do better.

Also a lot of people never consider the holding...stamp...legals...and selling costs of higher value property. The OP has not considered any of this let alone structuring for tax.

Classic case...of inexperience. I saw this and n Sydney during the boom people developing in good areas. But they forgot about GST. Their look was priceless when this was raised. Let's say youuse the margin scheme...but and old house for 1m. You build new one for 650k. And sell for 2m. If you don't have margin scheme on the contract you might have done yourself 80 to 140k of your dough. So that profit is like 210-210k instead. Which is less than the 20% net margin you need to ensure a profitable deal.

But hey what would I know...I making 30-60% plus gross margin on some deals. The other thing they don't talk about is how they minimize tax on 270k profits....if you structure in a company you are up 27% tax. ...not CGT tax. Sure you can pay yourself some of that and get franking credits back. I guess this is what experience comes down to.

It is the same old mob who don't want to know. They prefer to BS ... a lot...and hide in shadows. Why would anyone listen these clowns...they have zero credibility in my eyes. The fact they are pasting stuff from text books is telling.

As I have always...the simplest deals are the most profitable. Not stuff you have to wait over 2-3 years for you deals to be profitable. The fastest way to go bankrupt in my eyes.

 

I understand what you are saying but I prefer to leave timeframe out of it.

Main reason is that timeframe makes it a race and this is far too important to be made into a race.

As an example, let’s say two people reach a Net Worth of $5M and After-Tax Passive Income of $200,000 per year.

Person A had a dream run in life and reached their destination in 20 years, say at age 40.

Person B has a poor start in life, had a serious car accident when they were in their early 30’s, suffered a serious health issue (eg cancer), ... but they overcome all of this to reach the same destination in 40 years, say at age 60.

I am impressed with both as they both got there.

But I am more impressed with the one who took twice as long to get there.

One thing this old fart has learnt over the years is that life is NOT fair NOR equal.

Another thing I have learnt is that a lot of times Person A will skite how great they are but one will never hear a word of complaint from Person B.

On PC, yes.

But, in the real world, the sad thing is that most people don’t.

 

Agree with most of that mate, though I do believe there needs to be some measure of reasonable time set for certain goals. I used to know many people who had airy fairy dreams and would say one day..one day its happening.. one day ill get there. But in reality they weren't doing anything to get them closer to their goals as the months and years passed by. I think we all know people who fall into that catregory. Thats why I believe if we set ourselves a goal, there needs to be some realistic timeframe set to it so if we are not making progress, we can then go back to analyse what happpened and is there anything else we can do, Or do we alter the goals etc. But if there is no time factor, then its very easy to waffle on for years, not getting any closer to your goals and not stop to anaylse why is this the case.

 

Totally agree.

But, to me, achieving one’s goal is primary, the timeframe is secondary.

That is all I am saying .

You know me mate, I like SMART goals .

 

Hopefully you can achieve them while...

Hmm? While you got a little lead left in your pencil.

 

I have a vast number of lead refills for my pencil

 

Which suburbs have this discounting in? I have only seen a 1.3% drop

 

Happy to reveal but not right at the moment ...

 

Although I have vested interest in Brisbane doing well, I would agree that Melbourne will likely fair better long term based on today's fundamentals. There is far greater diversity of Jobs and consistent population growth with little signs of slowing down. That said, I don't anticipate it will outperform enough in the near term (3-5 years) to justify venturing outside my geographical comfort zone and particularly for small developments/flips. Even for seasoned investors it can be challenging to understand the intricacies of their own LGAs and especially when developing.

 

Yeah totally understand. I wasn’t commenting on your comment on median price because absolutely that’s irrelevant when valuing properties. Valuations are done on comparable sales, not median.
I’m just saying use the term “comparables” very loosely. They compare house size and land size and some finishings but once it starts to get above that then most have no idea.

 

I agree mate, once you start getting too niche or your builds are not quite comparable with what is on the market then valuers often need prompting or things detailed out for them.

I think we both agree on the same points with regards to valuers as well as how median values are used.

I will say though that I'm a tad more optimistic with regards to valuers as I've had mostly positive experiences in the past and they've been pretty much on the money. even when I would have liked them to come in higher, I knew what they valued at was fair.

 

We tend to agree on most things mate

 

Dam... that must make you an amateur as well!

 

Sash, mate your posts are full of hatred and disrespect. I find your communication style to be abrupt and inappropriate. I find that large majority of clever and wealthy individuals are very modest and polite. You're neither of two which makes me question your credibility.

What are you trying to achieve by constantly arguing over the forum? Trying to prove or compensate for something, maybe for the wealth level you always wanted to achieve but have miserably failed?

I dont have anything against you mate, just pointing out the obvious. You remind me of kids I used to go to school with, who argue who has better this or better that etc. All clearly points out to a deficiency .

 

Then move on... there is an ignore button.... if you can't handle it. Have you ever met me in person? Do you realize people's style in email...or forums is different. I have met some of the people who write all sort of stuff....and when you meet them...you ask the question .. is this bloker fair dinkum. There are a lot of people making of things...till you meet them you will never know.

You can question... my credibility all you want I could careless. As I have learnt...ignore the noise...I have run my own race.

I have nothing to prove ... no offence...but when you have got to the destination let me know. The first rule of investment...is to see the messaging and understand where that is coming from. If you are squeamish about difficult conversations....then maybe you can get yourself a politically correct JOB (Just Over Broke).

Good luck in your future endeavors.

 

Maybe is the old age coming through. Grumpy old man style. Hi Sash...
There are some truth in what was delivered, but damn mate it was harsh and brutal - take no prisoner style - makes me look like a saint.

 

No probs. I just think that you ruin the experience of reading through the wealth of knowleadge posted here. I manage a large team in one of the biggest companies in Australia and you remind me of some of those disgruntled, negative employees that you can never please, that are just hating the world and themselves. Again, nothing against you mate, I'm just being honest. It would feel better telling you this in person, thats what I'm used to

 

Are you trying to prove something again mate?

Dont worry about me, I'm very comfortable with difficult conversations. As the matter of fact its part of my daily job.

 

Thats just my style, honnest and transparent but respectful