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Interesting figures from YIP August edition

Discussion in 'General Property Chat' started by jins13, 11th Jul, 2015.

  1. jins13

    jins13 Well-Known Member

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    Hi,

    I am always willing to learn new information and knowledge from people. I also respect the fact that people may have a different investment strategy that works for them in their property investment journey.

    Attached is my very poor photography of some figures from an article on YIP August edition. Congraz to the fellow and if it works for him, than great. To be honest, I am still still very new in this and know nothing about the Queensland market but in all honestly, I would be very concerned with these figures and choice of places (Happy to be shown the light, because maybe I do suffer from tunnel vision)

    Firstly, I cannot see Southport going up that much in capital and with the number of blocks coming up at the moment. Yes, the Commonwealth games is around the corner, but what happens after that? If the fellow bought two properties which are Meriton buildings than expect many unexpected bills later on down the track (goggle World Tower and others in the city) Also, when I used to have access to Price Finder, there were many properties in Southport (units) that actually lost value and was in the market for sale for more than 200 days and some 300 days.

    Secondly, the high strata fee for all the properties as it seems to have lifts, pools and other costs due to some of the properties being blocks that seem to be hungry with many bills to the owners! This would impact on the rental yield and return per week.

    Thirdly, the article mentioned he used a buyer's agent which would have have further decreased his gains. I know which agent he used and lets just say it was $10k per property. Not including the possible period he may not have any tenants in place.

    Happy to have a thoughtful discussion and once again, I do not want to come across as being critical but just wanted to learn from the discussion.
     

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    Last edited: 11th Jul, 2015
    Tekoz likes this.
  2. Hodor

    Hodor Well-Known Member

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    The article doesn't include holding costs associated with the properties, only looks at gross yield. Magazines like to present things this way as it makes everything look more impressive.

    Still he is holding a multi million dollar portfolio. As long as he can hold it he should do well, even with modest CG.
     
  3. Tekoz

    Tekoz Well-Known Member

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    So how do you know about that surprised bills ?
    are you the owner on one of the Meriton buildings ?

    Yes, my firend who owns the apartment in World Tower, told me that the price he paid ofr the strata is exorbitant $2000 per quarter, based on last year comment.

    Regis apartment in Castlereagh St. is also very expensive with $1800 per quarter strata levy.
     
  4. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    I read the article last week. Certainly wouldn't have bought any of the properties in his portfolio myself but as @Hodor says, regardless, longterm, should do well if he holds.

    I don't recall the article mentioning but I am guessing pretty high income for Desmond.
     
  5. MTR

    MTR Well-Known Member Premium Member

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    At least his giving it a go, good for him.

    A couple things though - insurance in QLD can be a killer depending on area??

    Investing in QLD/Gold coast during this period I would have though was not the way to go, there was an oversupply of units, I am surprised he still experienced some growth.

    I suppose if you time the market you have better chance of achieving superior result. Imagine if had purchased in Syd and Melb market??

    MTR:)
     
    Last edited: 13th Jul, 2015