Investing in property (split thread)

[Diane]

It is a bit hard to confuse them with the Oxford professors or aristocracy.

 

That compensated by their proficiency in "whole world owes everything to me" concept.

 

Not the kind of balance you looking for to trust them a million dollar asset.

 

You must not be totally au fait with the Adelaide market, as very few rental properties here are million dollar assets! And to be honest, as a landlord myself, in the current job market a tradie with wife who does cleaning sounds like an excellent long term prospect! Far less likely to get retrenched than a banker or government worker! In fact, if there are any tradies with wives that do cleaning, I kind of fancy having them come stay with me! Think of the benefits....

[notpom]

You must not be totally au fait with the Adelaide market, as very few rental properties here are million dollar assets! And to be honest, as a landlord myself, in the current job market a tradie with wife who does cleaning sounds like an excellent long term prospect! Far less likely to get retrenched than a banker or government worker! In fact, if there are any tradies with wives that do cleaning, I kind of fancy having them come stay with me! Think of the benefits....

 

I would agree if I was Davoren Park/Liz North landlord. But I do not invest in slums. First rule in Adelaide investment - if it has no water views, it is waste of money.

[Diane]

I would agree if I was Davoren Park/Liz North landlord. But I do not invest in slums. First rule in Adelaide investment - if it has no water views, it is waste of money.

 

Sorry, you are just proving yet again that you don't know the Adelaide market. Eastern suburbs houses are the most sought-after here, with one or two coastal suburbs being popular, but certainly a sea-view is not the main thing: proximity to city is a higher influence on property value. Ok, a sea-view near to the city would be a good investment, but a house in the eastern suburbs in the catchment areas of the best state high schools such as Marryatville is far more sought-after than a house in a sea-front suburb 45 minutes from the city!

[Guest Guest14361]

I would agree if I was Davoren Park/Liz North landlord. But I do not invest in slums. First rule in Adelaide investment - if it has no water views, it is waste of money.

 

notpom I'm thinking you don't even live in Adelaide do you........be honest my friend.......

[notpom]

Sorry, you are just proving yet again that you don't know the Adelaide market. Eastern suburbs houses are the most sought-after here, with one or two coastal suburbs being popular, but certainly a sea-view is not the main thing: proximity to city is a higher influence on property value. Ok, a sea-view near to the city would be a good investment, but a house in the eastern suburbs in the catchment areas of the best state high schools such as Marryatville is far more sought-after than a house in a sea-front suburb 45 minutes from the city!

 

I am not in that crowd following that shadow of property investor whose books you read. And honestly - neither your idol nor you understand the very concept of property investment. You do not follow fancy spruikers, you stick to the basics. RE investment is about making money. It is not about chasing the ghost of "positive cashflow". It is about chasing returns from both rental and capital appreciation. One dollar of capital appreciation equals roughly two dollars in rental return (because of differences in taxation).

 

When you buy a house, it consists of two components - land (appreciating) and building (depreciating).

In other words, trick is to find the property where land appreciates the most. In Sydney - you just poke your finger anywhere on the map - bingo - you hit the area with land shortage.

 

Adelaide is totally different. There is abundance of land for decades to come.

The only land in short supply here is waterfront and waterviews.

Fashion for Eastern suburbs will end in a flash -just like any fashion and values will go down like a lead balloon. Eastern Adelaide it is a "tulip" of real estate market.

Spruikers can fool people for some time, but sooner or later everything comes back to basics.

 

There is absolutely no rational reason for the property to appreciate close to CBD. Adelaide is neither cultural, nor financial, nor hi-tech nor anything at all centre. And after destruction of automotive industry and shifting submarine building to Japan it is no longer industrial one.

 

The highest value of Adelaide at the moment is a place for a sea change - and this is where smart people invest.

[Diane]

I am not in that crowd following that shadow of property investor whose books you read. .

 

I think someone living in Adelaide possibly has a better finger on the pulse than an interstate investor. Which are you?

[Guest Guest14361]

My thought too Diane, I'm sure they will tell us, notpom do you know of Port Adelaide, what can you tell us about the property there and it's waterviews

[Lazy Cow]

I am not in that crowd following that shadow of property investor whose books you read. And honestly - neither your idol nor you understand the very concept of property investment.

 

I'm sorry Mods, but I have to say this - notpom, you seem to have a back of coming on here, and being offensive, or downright rude.

 

You actually have some interesting things to say - even if they are couched in strangely tortured sentences.

 

Perhaps you should stick to the point you want to make, and put in fewer contentious sweeping statements. That way the convo is more likely to stay on track.

 

Just sayin'

 

LC

[notpom]

My thought too Diane, I'm sure they will tell us, notpom do you know of Port Adelaide, what can you tell us about the property there and it's waterviews

 

In short, where you have got waterviews, you can not go wrong. Investing in Port Adelaide would give you a decent profit over long term, but at the moment there are far juicier places to invest. I am going to tell you where (I am stocking up), but there are suburbs where waterfront is sold roughly at the half of land value, plus you get free house.

 

But there are signs already that people starting to wake up and this bonanza is going to end soon.

[Guest Guest14361]

Must be a interstate person......

[Diane]

In short, where you have got waterviews, you can not go wrong. Investing in Port Adelaide would give you a decent profit over long term, but at the moment there are far juicier places to invest. I am going to tell you where (I am stocking up), but there are suburbs where waterfront is sold roughly at the half of land value, plus you get free house.

 

But there are signs already that people starting to wake up and this bonanza is going to end soon.

 

Hahahah just you keep telling yourself that and let us locals cash in on your supposed knowledge

[notpom]

I'm sorry Mods, but I have to say this - notpom, you seem to have a back of coming on here, and being offensive, or downright rude.

 

You actually have some interesting things to say - even if they are couched in strangely tortured sentences.

 

Perhaps you should stick to the point you want to make, and put in fewer contentious sweeping statements. That way the convo is more likely to stay on track.

 

Just sayin'

 

LC

Do you realize that you are actually saying that while others attack me with derogatory comments I have no right to give adequate answers?

 

I think in the different ways. I do not look at the reality through the prism of news.com or spruikers who stocked up on Davoren Park property and pushing it through the same news.com. I respect people's choice to be a lamb who joins the heard following a billy goat to abattoir.

 

I do read news.com, I do read books of worshippers of the false God of "positive cash flow" property investment - but I do not understand why people assume that not following the heard is offensive and accuse me of not knowing mantras of false prophets.

[Lazy Cow]

I do not understand why people assume that not following the heard is offensive and accuse me of not knowing mantras of false prophets.

 

<sigh>

[Guest Guest14361]

In short, where you have got waterviews, you can not go wrong. Investing in Port Adelaide would give you a decent profit over long term.

 

Try telling that to the investors that bought apartments there a few years ago....if you google it you will find out where the area is and 2 you will find out why,

[notpom]

Must be a interstate person......

Wrong guess.

I invest in Adelaide for about 19 years. FYI, my second property was a block of land in Moana on the Esplanade. Bought it in 1996 for $25K on credit card.

 

Five years ago subdivided it in three Torrens title blocks, bank valuation $950K. Built three townhouses using equity in the land.

Current rental return is 28%.

 

This is what happens when you invest for the future, not following fashionable trends.

[notpom]

Try telling that to the investors that bought apartments there a few years ago....if you google it you will find out where the area is and 2 you will find out why,

People in their right mind do not buy apartments anywhere, let alone Adelaide. Pay attention - I told you - you must invest in land, not in depreciating buildings.

Strata title for me simply does not exist.

[Diane]

Wrong guess.

I invest in Adelaide for about 19 years. FYI, my second property was a block of land in Moana on the Esplanade. Bought it in 1996 for $25K on credit card.

 

Five years ago subdivided it in three Torrens title blocks, bank valuation $950K. Built three townhouses using equity in the land.

Current rental return is 28%.

 

This is what happens when you invest for the future, not following fashionable trends.

 

Ah hence why you don't grasp the importance of proximity to the city. Bet you could have made a lot better investments than that elsewhere in and around Adelaide in 1996!

[snifter]

I've split this thread out from the one it was posted in as was getting way off topic and nothing to do with the OP's actual post anymore.

 

So, continue discussing here. Please keep personal insults to a minimum (ie none) and keep it civil. Debate and differences of opinion are all good, but lets not get mean or nasty.

 

Thanks in advance

[notpom]

Ah hence why you don't grasp the importance of proximity to the city. Bet you could have made a lot better investments than that elsewhere in and around Adelaide in 1996!

 

Be consistent Diane. Short time ago you accused me of not knowing Adelaide on the basis that there are not many million dollar properties around.

 

I have demonstrated to you that I made $2.1 million out of ???? If you think out of $25 K - you wrong. $25K it is OPM - other people's money - borrowed, did not come out of my pocket.

 

If you think you are a better investor, and I would have done better where you invest - why would a million dollar property is still unattainable dream for you?

 

Something does not stack up in your logic.

[NicF]

 

Adelaide is totally different. There is abundance of land for decades to come.

The only land in short supply here is waterfront and waterviews.

Fashion for Eastern suburbs will end in a flash -just like any fashion and values will go down like a lead balloon. Eastern Adelaide it is a "tulip" of real estate market.

Spruikers can fool people for some time, but sooner or later everything comes back to basics.

 

There is absolutely no rational reason for the property to appreciate close to CBD. Adelaide is neither cultural, nor financial, nor hi-tech nor anything at all centre. And after destruction of automotive industry and shifting submarine building to Japan it is no longer industrial one.

 

The highest value of Adelaide at the moment is a place for a sea change - and this is where smart people invest.

 

The eastern suburbs have been popular since my OH was a kid nearly 50 years ago. I doubt they are likely to go out of fashion any time soon. I was under the impression they had seen some of he largest house prices rises as well, but I don't have the figures to hand so couldn't be completely sure about that.

 

I do agree about the water front thing though. There is only so much water front availble and it will always be popular so is a good investment if purchased at the right price.

[notpom]

The eastern suburbs have been popular since my OH was a kid nearly 50 years ago. I doubt they are likely to go out of fashion any time soon. I was under the impression they had seen some of he largest house prices rises as well, but I don't have the figures to hand so couldn't be completely sure about that.

 

I do agree about the water front thing though. There is only so much water front availble and it will always be popular so is a good investment if purchased at the right price.

 

Really? Why did not they have any capital growth for decades before Margaret Lomas started to spruik them in the media? Popular suburbs without capital growth - it is a new concept.

[Ktee]

I know nothing about Adelaide suburbs and investing there. I do understand what you are saying not pom and a lot of it makes sense. I think you have two types of investor, those like yourself who do go for the land value and those who are in it for a quick $ and turn around. If I had the money and time to invest then yes I would use your method, however, I cannot afford to sit on assets so it would be a case of looking for a suburb that may be a little dodgy but up coming and selling it two years later for a profit.

I agree that overtime it is the land that increases.

Just out of interest can I ask if you invest in any other states. I would love to know where you would choose for Victoria, from your way of thinking I'd say Brighton, Beaumaris, maybe Mordy. Whereas for me I would look at areas I would never love myself ie Frankston, Carrum Downs, Point Cook etc

[Diane]

Be consistent Diane. Short time ago you accused me of not knowing Adelaide on the basis that there are not many million dollar properties around.

 

I have demonstrated to you that I made $2.1 million out of ???? If you think out of $25 K - you wrong. $25K it is OPM - other people's money - borrowed, did not come out of my pocket.

 

If you think you are a better investor, and I would have done better where you invest - why would a million dollar property is still unattainable dream for you?

 

Something does not stack up in your logic.

 

It's not a competition! I think (although it's a little hard to follow and to be honest life is too short to go back and re-read some of the above posts) you said you subdivided and made $950k. But subdividing denotes putting more than one property on a building block, hence each house is unlikely to be worth over a million. The block you linked to on the other thread was minute - even if you put a house on that with diamond encrusted walls, you'd struggle to get a million dollar property!

 

I think it was only a year or so ago that the first $1million dollar property sold in Adelaide, and as many of the posters on this site will know, the properties that are usually offered for rent are usually those worth a lot less than that, so telling a prospective renter that they wouldn't be considered good enough for a "million dollar investment property" was really just grandstanding on your part.

 

You haven't actually responded to any of the questions about where you are living now, but if anyone is believing the hype in the press about property values, I am assuming it is more likely to be an interstate investor than someone that lives here. Quoting investment-speak acronyms is also usually the sign of someone who has been reading about a situation rather than living through it!

 

1996 is nearly 20 years ago, and I'm sure there were some bargains around in Adelaide and some of the other South Australian suburbs then. In fact, I have been told by born and bred Adelaidians that property around Henley and Grange was not in demand by local Australians at all for a while, and lots of italian and greek migrants snatched seafront blocks up in that area for very little going back a few years.

 

Now as I said, these are minutes of my life that I will never get back, so I'm off to enjoy the rest of my weekend now - talking about money is SOOO common!

[Guest Guest14361]

Bought it in 1996 for $25K on credit card..

 

geez mate back then $25K was a years wage for me

[zebedee]

What a funny little thread.