Join our investing community

Melbourne - growth potential

Discussion in 'Introductions' started by Punter, 5th Jul, 2006.

  1. Punter

    Punter Punter

    Joined:
    29th Jun, 2006
    Posts:
    23
    Location:
    Perth
    Hi

    Need some information.

    There is a three bedroom house on HOPPERS CROSSING by DHA.

    I wanted to know the growth potential in this area.

    Also pointers to median prise will be helpful. I am rather new to all this so not much familiar with routine and regular sites on the subject.

    Thanks in advance.

    Punter
    ---------------
    Sucessful people don't do different things, they do things differently.
     
  2. Tzaki

    Tzaki Well-Known Member

    Joined:
    20th Sep, 2005
    Posts:
    72
    Location:
    Canberra
    Punter,

    Please be aware that DHA houses are generally overpriced, the rental garuntee is effectively added to the purchase price and the property management fees are also very high. (I have heard that they are around 12% compared to 7.5 to 8% normally) :eek:

    DHA houses are, however, well looked after and maintained with a minor refurb at the end of the contract. They do have the rental garuntee for added piece of mind.

    For median prices etc I use Australian Property Investor statisics and some comparative price checking on realestate.com.au and "window shoppping" in local realestate agencies.

    With the low vacancy rates the extra money outlayed could be used for better purposes, in my opinion.

    But if your "sleep at night factor" needs an assured income stream and you are happy with the price, then proceed - there a quite a few DHA investors out there.
     
  3. MJK

    MJK Well-Known Member

    Joined:
    17th Aug, 2005
    Posts:
    280
    There's a lot of land out there in Hoppers that needs soaking up before there is any scarcity factor. Its on the fringe where all the new eatates are being built. 30K out of CBD.

    MJK:D
     
  4. Medine

    Medine Active Member

    Joined:
    22nd Aug, 2005
    Posts:
    31
    Hi Punter,

    You could look up the Valuer General's report on property prices. The new one has just been released and is available at www.land.vic.gov.au

    Cheers, Medine
     
  5. artgul

    artgul Well-Known Member

    Joined:
    16th Aug, 2005
    Posts:
    77
    Location:
    Sydney
    In one occasion, I was quoted 16% for management fees.

    Rgds,

    artgul
     
  6. Punter

    Punter Punter

    Joined:
    29th Jun, 2006
    Posts:
    23
    Location:
    Perth
    Thanks all ...for the piece of info.

    Hey, I am new here, I am new to Australia and also new to all this investment business ..

    I am in oil and gas and by the grace of God, still going strong .. this is one of the lines where old is (black) gold. I am 49.

    Already have DHA rental property .. paying 16.5% fees ...well, let me put it this way .. I know nothing at the moment in property in Australia. But I believe, at least I started somewhere. I am a professional in my field, making good money in my job and have no time to follow up with changing tenants, maintenance, property agents etc etc. Further, there will be no vacancy, gauntleted minimum rent for the next 15 years and no maintenance fees. And further they will do all other things also ... paying council bills etc etc ...so basically I have some net negative cash flow (got a handsome negative gearing) and this all is a compensation to the higher fees. I hope to open books after 15 years. Hopefully my house will double by then.

    Let me tell you by my experience, there are so many well educated, intelligent people who are completely ignorant of even DHA investment options. The catch is getting right and reliable company.

    I am getting interested here in this forum and trying to learn from you experts. Looking for pointers to useful material.

    Thanks again for the piece of info.

    I am putting my plans of DHA on hold. I have a huge equity in my home and want to start somewhere.

    Punter
    ----------
    Successful people don't do different things, they do things differently.
     
  7. Nigel Ward

    Nigel Ward Team InvestEd

    Joined:
    10th Jun, 2005
    Posts:
    1,172
    Well done Punter.

    There's nothing WRONG with DHA homes. You just accept, as you have, that there's a cost for outsourcing all the management.

    In 10 years' time I suspect the growth on that home will make the somewhat higher costs inconsequential...

    Cheers
    N.
     
  8. TryHard

    TryHard Well-Known Member

    Joined:
    17th Aug, 2005
    Posts:
    863
    Hey all

    A mate asked me to check out some DHA homes past Ipswich (Brassall)and I nearly died when I saw the asking prices.

    Our builder was putting houses in the same estate around $300K (about $100K more than I had expected :p) and the ones on DHA books were at least $380K. There is strong rental demand 'cos they keep sticking noisy airborne things and their carers at Amberley, so you can rent easily to defence force personnel or put your own property on DHA books if it meets their criteria.

    In this case, cannot see how the purchase premium (ie. loss of capital due to paying well over market, when the property can be rented regardless) can be justified in this particular suburb. Conversely Sinnamon Park 20 km down the road has/had DHA deals similar price and is 15 km from Brisbane CBD - to me vastly better protection for future CG.

    Punter, I agree with Nigel nothing wrong with a DHA purchase - lots depends on the area and its characteristics. Your situation sounds good ! :)

    Cheers
    Carl