Your Latest Purchase

May 2015 3BR house on 700 sqm in Newcastle. PPOR while renovating. Townhouse potential but that is on hold for a few years.

 

Has Newcastle moved??? I just don't get this market, I think it has had a little jump but nothing substantial right??

 

Yes Newcastle has moved, depends on the suburb as to how much. Places like Wickham have doubled in 2 years. My 2013 purchase in Waratah West has seen near 40% in 18 months. So I'd say substantial.

It is the most active winter period I have witnessed for many years. Will see how it goes leading into summer.

 

Where in western suburbs, William?

 

Hi mate.

Both in Oxley.

We also collected a BA fee for a third site in Oxley we wanted but couldn't afford due to some cash flow constraints It has gotten bloody exy now though. I reckon we could sell each site we picked up for 10-15% more than what we paid within 6 months. It's getting a bit silly for "land" in most areas we are looking.

 

Nice. North or South of Ipswich rd? There are a few hidden developments in behind there now just on the Northside of the Ippy hwy. The inductrial development at the old ? Boral site should also help with employment.

 

All well north. One is almost Corinda, and the other two are smack bang in middle, none of them wet though which we were pleased with.

There are yer, there is so much going on in the suburb with some medium density stuff as well, not far from the station. It's a top spot and hopefully will shake a bit of the crime etc stigma in the near future. When you look at the growth suburbs like Chelmer, Corinda, Sherwood have had, I think it's set to explode but that's just me.

Cheers

 

Going for IP #4 in Mount Warrigal can pick this up for $450k IMO undervalued as a lot as been put into it with drive ways, pergola, ducted air con and new kitchen and bathroom.

http://www.onthehouse.com.au/report...9/21_Henricks_Parade_MOUNT_WARRIGAL_NSW_2528/ was purchased in 2004 for 400k

My only concern is that I have 3 other IPs in Albion Park, Horsley and Figtree ( all Wollongong region ) and this will put my land tax between 6-7k for NSW ... it should rent for around 440 id imagine quite easily

Basically the diversification argument is always strong and don't want too much exposure in the one market.


Any thoughts?

 

Yes I bought IP3, settled late March 2015

South East QLD 3/1/1, $320k, rents for $350/wk

This is the last purchase for a while I think, at least a year while I wait for (hopefully) some good CG.

 

I've never been able to justify developing in less expensive areas. I'm guessing your numbers would be something like this....eg old house/land = $500K.
All-in cost to build 5 townhouses, say, $1.5 mill.
Total outlay = $2 mill.
Townhouses valued at $450K each = $2.25 mill.
Profit = $200-250K plus, and if all townhouses kept, yield would be say, $400-450 pw, so 5-6% yield max for the devo.

Am I way off? Is there enough fat to justify the risk?

 

I can't add anything other than to say that I bought one there earlier this year, rented immediately for $440. I'll take it as a good sign that you're thinking of buying there again.

 

North Gosford - 3/2/2 - $400k

 

There is plenty of fat in the deal, your end values are too low at least $100k per townhouse. My townhouses including double garage will be 20 sq, sales anywhere conservatively from $550k and as much as 600k-620k dependent on location.

Compare sales Croydon, I have been monitoring this. Recent sales OTP similar product sold for 595k, but working on $550k. To not limit market, master bedroom, ensuite on ground level.

But I may not necessarily build ...not sure?I may be selling the DA to builder/developer, it's all about the timing vs risk

MTR

 

July 2015 koondoola WA

Arnel

 

Have you thought about a different ownership structure to beat land tax. Maybe like a trust? And I agree with the diversification argument. You have 3 pretty close together. Maybe go outside your usual area. Actually with other cities starting to move maybe thunk about buying your next one in a moving market in another city. Diversification is good. Increases your chance of getting some CG all the time as opposed to a lot once. Then having to wait for the next cycle. Just my thoughts....

 

Are you looking or have you purchased?

 

Purchased

Undergoing reno... Will post progress thread soon

Arnel

 

Sunshine, Vic. Last week! 2 bedroom brick beauty.

 

Yeah I have thought about it, and looked into it a little not in great depth, but I just always saw the land tax as a cost of business and understand trusts can be expensive etc

I have a friend moving to Adelaide to run one of the new ALDI stores they are opening, so when I go to visit him in September I will make it a business and pleasure trip. Thanks for your response, I agree with them as Wollongong has experienced a lot of CG in the last few years ive had my others. I just was excited about perhaps getting it below market, and fully furnished to rent ASAP.

 

do you have a link to this? not bad price i must say. is it in reasonable condition? good buy