Perth Real Estate in Glendalough | Investing service

Perth Real Estate

Locality: Glendalough

Phone: +61 411 326 412

Address: Harborne St 6000 Glendalough, WA, Australia

Website: http://www.perthpropertydeals.com.au

Likes: 155

Add/Update information

Reviews

Tags

• Investing service

24.01.2022 FIRST HOME? EMOTIONAL OR RATIONAL DECISION? The majority of people don't ask themselves that very important question. It's a decision that can have a crucial financial influence on their future path - not only for property but any other investment.... Will you freeze the savings in a home you love or put that money to work with a house you own? When you decide to buy a house, determine if you see yourself living in it for the rest of your life or if it is temporary or even an investment decision. There is nothing worse than attending a home open, falling in love with the place and overbidding yourself in the eager to get that place purely of fear of missing out on it - unless you truly intend to buy it as the one and only! What happens if you have to relocate? Or it your relationship status changes? Or if for personal or health reasons mortgage payments become a burden? Will it cost you to rent it out or is it cashflow neutral or even positive? Negatively geared property can give you tax benefits but is appreciation in line or bigger than what you have to put onto the table? An experienced investor will not go and see a property until an offer is submitted or accepted. Why? Because it's the human nature that lets emotions manipulate our decisions. Investment property is a numbers game! Do your numbers first! More on this to come.

22.01.2022 inbesthomesimage Toshihiro Sobajima Let's start with a very basic question. Why do you flip or rehab property? If your answer is "to live in it forever" then that's fine and you can renovate and spec it up to your imagination at any cost you can afford.... If your answer is "to sell and make a buck", we should take a closer look. Besides the actual costs of a rehab (building, repair, holding, legal, commission, borrowing, contingencies), which I will get into closer detail in another post, you have to ask yourself who you are targeting. Upgrading a house from a 3-bed to a 4-bed in a market with low demand for a 4-bed property won't do you any favour when it comes to selling! Asking agents what sells the best and fastest not only saves you time but money. Whether the market is at its peak or bottom, plays a very important role for the type of property and product, you will offer for sale. In a peaking market the economy and jobs are stable and buyers feel more secure to purchase a property that may be well over their budget. Properties in that market usually sell for more than asking price as the competition of buyers is high. If the market is at the bottom it's the opposite. Most buyers are rather careful with their purchase decision and don't tend to overextend themselves financially as they don't know what tomorrow brings. Properties in that market usually sell for less than asking price. High-end, more expensive properties are also the first ones to suffer in a recession. Why is that? The majority of people are able to afford properties that are priced in the middle of the market. People that are financially hit by the recession are more likely to downgrade to a cheaper property. As mentioned before, a high-end property bears a risk for many because of tomorrows uncertainty. So when you consider flipping a property for cash, here's your checklist: - check demographics (who buys houses in the area - singles, couples, families, investors > cater for them) - talk to agents (what sells best and how long does it take?) - what position is the market in (up-trend > high-priced properties or down-trend > mid-priced properties) ? More to come!

05.01.2022 #INVESTMENT = the action or process of investing money for profit #PROPERTY = the vehicle Out of all investment types Real Estate is the most predictable and slowest moving - it gives you time to analyse & react BUT that pace requires DISCIPLINE!!!... It's also one of the most flexible - the more creative you get the more successful you will be! People tend to think it takes a lot of money and through a traditional purchase it does - however there are other approaches too. The key to getting started is to develop a sense for it - read, listen, talk to people in the field, join your local investors group (things to watch out for there! More to come on this topic). Property takes DISCIPLINE and this advice might test you - take a few months (3-4) to get familiar with the market you want to invest in. A quick, emotional decision can catch you out! There are great sources for getting started! Robert Kiyosaki - "Rich Dad, Poor Dad"; Roger Dawson - "Secrets of power negotiating", T Harv Eker - "Secrets of the Millionaire Mind" (available as books & audiobooks) Youtube has great channels such as "Bigger Pockets" (#biggerpockets) & Phil Pustejovsky

04.01.2022 Want to sell your property? You have different options with different outcomes and costs. There is no right or wrong way to sell - only the best suitable for your situation! Traditionally people sell with an agent which can bring good results but comes at a cost. Selling private is low in cost but can result in a not so good outcome - often depending on the current dynamic of the market. Alternatively you can rent out the property and wait for the market to recover - but maintenance and repair not only cost money but time. Selling with a Lease Option puts a motivated tenant buyer into your property that not only guarantees punctual rent and good treatment of the premise, it also saves you traditional sales and holding costs as the turn around time can be quicker. If you want to know more feel free to get in touch with us! Ivette & Steve

04.01.2022 As Robert Kiyosaki said an ASSET is something that puts money into your pocket and a LIABILITY something that takes money out of it - this is as simple as it gets. That's a truly obvious statement, yet so many don't understand the difference. What's the house you purchased to live in - asset or liability? I'd like to claim last - 30 years of mortgage payment isn't a trait of an asset - after all you live in it and still have to pay rates & insurance. A property you buy to ren...t can be a different story - if you do it right! What's your car? That should be an easy one! What's your child? That's a grey zone! What's your wife or husband? That's something you should think about before speaking out loud! Joke aside - you can see where I go. There are so many materialistic things in our life that we THINK are an asset for us! If it doesn't put money INTO your pocket (at least in the long run) - it's not an asset! This is the absolute base rule of investing of any kind. Re-set your thinking! Leave me some comments about something you own or possess - I'll tell you if it's an Asset or Liability :)

02.01.2022 "Cap Rate" also known as "Capitalization rate" expresses the return on a real estate investment as percentage (%). It indicates investors how much % of their investment the property is returning (usually in a year). Debt payments are NOT considered in this calculation. Cap Rate = (Net Operating Income (NOI) / Price) x 100% To calculate the Cap Rate you need to first calculate your NOI (income from property less expenses)... Possible expenses to consider are: - maintenance & repair cost - insurance costs - land and council rates - property management Example: A 3-bed house is on the market for $300,000. You can collect a rent of $550/week. Income from rent = $550 x 52 weeks = $28,600/ year Expenses per year are: - maintenance & repair (assume 10% of rent) = $28,600 x 10%= $2,860 - insurance costs = $700 - land and council rates = $2,500 - property management (quoted at 9% of rent) = $2,574 TOTAL EXPENSES = $8,634 Cap Rate = $19,966 ($28,600 - $8,634) / $300,000 = 0,067 x 100% = 6.7% What is a good Cap Rate? The answer to that - it depends! It depends on the area you´re investing in. A cap rate of 5% can be strong in a high-demand area. On the other hand a Cap Rate of minimum 10% can be strong in a low-demand area. Areas can be strong in cashflow and slow for capital growth or the other way around. The trick is to analyse the area first to find out if you have a strong performing property and what Cap Rate is acceptable for you. There are different ways to analyse an area - more on that to come. See more