Property

[shmoo]

However, if you accept that there will be forced sales, then not everyone will be able to buy low and sell high.
It is a good strategy but sometimes life doesn't work out that way.

yep. I did say "save for forced sales".

[Phildo]

had a bloke trying to sell me investment property in mackay QLD today, giving all the spiel about best growth are etc. anyone had any experience or knowledge about this? steer well clear?

You would have to ask yourself - if these investments are so good, then why do they have to sell them to people on the extremely opposite side of the country? Wouldn't people with local knowledge rush into it instead?

[Rex Havoc]

You would have to ask yourself - if these investments are so good, then why do they have to sell them to people on the extremely opposite side of the country? Wouldn't people with local knowledge rush into it instead?

I'm sure local people buy them.

Just like Perth people bought Perth property before, during and after the boom.

There were investment companies over east selling investment properties in Perth in 04/05. Would have been a good time to buy on the extreme opposite side of the country!

Mackay/blacks beach has got a lot of potential IMO

[Mutiny!]

Perth's population is growing, and faster than expected. Current projections, contingent on continued prosperity, immigration and birth rates, suggest that WA will reach 3 Million by 2026. The moajority of these people are expected to settle in the Perth and Peel regions.

State's population predicted to top three million - ABC News (Australian Broadcasting Corporation)

Hundreds of thousands more than forecast - The West Australian

Calls for more WA cities

Let's take the projections as read. I'm interested in any opinions about the best way to position yourself for a growing population.

One thing that interests me is that the government, predictably, responded with talk about new infrastructure to meet growing needs and whatever, and then listed three projects which serve exclusively inner city CBD residents and workers.

Riverside/
Perth Waterfront
Perth City Link

They also talk about increased population density.

Now, my feeling is that it is better to be in the action. In the middle of the city where the money is being spent and where the people are going to be. I like the idea of a bigger, more active city and I think that as the city comes to life there will be strong demand for high quality apartments and townhouses within walking distance of the CBD.

I guess an alternative view is that a forced density increase pushed by the government will lead to a glut of large apartment blocks which will drive down prices. It may also mean that nice areas get overdeveloped and crowded out. The foreshore developments might be white elephants and the city stays dead.

So, eliminating other factors, what would you do to prepare for a Perth of 2.3M people? Block of land in Currambine? Inner suburbs cottage in Vic Park? Or up its balls with an inner city flat in the CBD?

[activeman]

i would stay as close as possible to the river or other attractions. look for places that have the potential to become strips or have extra facilities added such as rail e.g. bayswater.

find the suburbs that people are talking of as boom suburbs now, and then buy the next suburb further away. i can remember when 5 k out of perth was the suburbs, now anywhere within a 10 k radius is considered inner city.

[activeman]

w.r.t a block of land in currambine, are the people coming in expected to settle or just be transient workers that will rent?
blocks will be useless if the majority of the new people can only afford to rent upon first arriving.

[HughDMan]

I have always had a unit in rivervale/lathlain and if i was to buy again I'd buy in lathlain.

There is a complex which is on the corner of rutland/howick st, that's where I'd buy. Great Views, close to train line, (hehehehe) power lines are in the process of being sunk. Close to casino, close to airport, close to vic park/perth. The units are majority owner occupied. It ticks all the boxes for me.

I believe you will always find a tenant in the area as well.

[=Stevo=]

So, eliminating other factors, what would you do to prepare for a Perth of 2.3M people? Block of land in Currambine? Inner suburbs cottage in Vic Park? Or up its balls with an inner city flat in the CBD?

Read 'Directions 2031' from WAPC and plan your purchases accordingly.

Pretty much exactly the same as people SHOULD be buying anyway... close to public transport, activity centres and the city. With lots of redevelopment planned, I would be buying green-title blocks with relatively low densities for their area or compared to surrounding suburbs, with horrible old houses on big blocks as close to the city as possible... but if your budget doesn't allow for that - in many areas such as Como/South Perth/Yokine apartments/units are getting a pretty good ROI and there will remain strong demand for entry-level units/duplexes/apartments.

[activeman]

So what will be the impact of this?

Price index could see traders bet the house - ABC News (Australian Broadcasting Corporation)

Personally, I think people will still prefer actual bricks and mortar that you can rent. Especially with Perth's current rental market.

Don't we already have listed property trusts that people can use to trade real estate without buying houses? If so, how does this differ?

[Gordan]

So what will be the impact of this?

Price index could see traders bet the house - ABC News (Australian Broadcasting Corporation)

Personally, I think people will still prefer actual bricks and mortar that you can rent. Especially with Perth's current rental market.

Don't we already have listed property trusts that people can use to trade real estate without buying houses? If so, how does this differ?

Wow...really?

This is quite a stupid idea in my opinion...share prices in publicly listed companies are generally dictated by how the company is performing (well thats the idea behind it) but these days media and other sources play a large role in that.

By putting in a house price index, its not like a single company making an announcement and the share prices going up/down, its like 1000 media sources making differing announcements and having opinions in the hope to move the price index up/down, and this of course means, more media coverage about house prices in Australia...which makes me sad.

[Rider]

Wow...really?

This is quite a stupid idea in my opinion...share prices in publicly listed companies are generally dictated by how the company is performing (well thats the idea behind it) but these days media and other sources play a large role in that.

By putting in a house price index, its not like a single company making an announcement and the share prices going up/down, its like 1000 media sources making differing announcements and having opinions in the hope to move the price index up/down, and this of course means, more media coverage about house prices in Australia...which makes me sad.

So those that own large parts of media can benefit from this.......

[Morgs]

Obviously a few property investors on here....

I was wondering what you use to track income and expenditure on your property/properties?

I have been using Quicken Personal for a while, but was wondering if there was anything better out there? Quicken have a special program for property investment, but it was developed for the US market, and the company that redevelops Quicken for the Oz market hasn't converted that one unfortunately. I am looking for something that will keep track of the financials, and give me a reasonable idea of where I am likely to end up with my tax at the end of the year.

Or are you the type that keeps everything in a shoebox and hands it over to your accountant at tax time?

[HughDMan]

Morgs not exactly a shoebox, but there would probably only be about 12 invoices to keep.

I have 6 strata accounts,1 water bill,1 shire rates and and maybe a repair bill or two.
My interest for the financail year is on my bank statement and my rent received is checked fortnightly, (I manage my own)

Its then as simple as adding my revenue subtracting my expenses, then applying the difference to the taxable income.

I don't have any items I depreciate...

I also declare I'm not an accountant.

[Morgs]

I don't have any items I depreciate...

Can I ask why not? Do you have pre 1987 built property?

[Hazelnutty]

I do the shoebox + diary...

Shoebox for all receipts/bills etc, and the diary for any visits, car trips, phone calls etc...

[Gordan]

I got a file for every year. Basically just separate the file into different sections ie. rent income, strata expenses, bank statements, other expenses etc, and place all relevant documents in there. Makes it easy to calculate things come end of financial year.

[=Stevo=]

I was wondering what you use to track income and expenditure on your property/properties?

EverythingI do is tracked in Excel through seperate columns for income/repayments/rates/etc and then filed in a folder. Spreadsheet automatically adds up all of my stuff and calculates what I can claim and spits out the number for me.

[HughDMan]

Can I ask why not? Do you have pre 1987 built property?

Yes

[shmoo]

Can I ask why not? Do you have pre 1987 built property?

also sometimes it's just not worth the effort. i.e. if you've got a small unit with next to nothing in it.

[Rich]

Like many I just keep what little paperwork I have and give it to my accountant, thats what I pay them for...