RBA Interest remain unchanged at 1.50 per cent.
Property Friends Tips and Tricks
How do Property Friends select a new area?
1. We start of with offside research. We look through lot of statistics, talk to other investors, and check out what area fulfilled our strategy.
2. We build up a list of properties that have sold and run tools that are being taken up in that area.
3. We talk to the builders, identified builders, identify house and land packages, to get a benchmark on what is the cost that we will be looking at.
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Hi Team, Uwe Jacobs Property Friends. So, in regards from a nice sunny Hobart. Well, this is the next installment, the March installment of our tips and tricks video series. So, I often get asked, how do we do a new area? How do we select a new area? We run around have fun in beautiful places like Hobart. And just have a good time. No, no, seriously. I’m sorry about the dark glasses, the weather is beautiful in Hobart as you can see and life is good. So how do we do a new area, how to we select a new area? We start off with offside research. We look through lot of statistics, talk to other investors, and check out what area fulfilled our strategy.
From there, we build up a list of properties that have sold and run tools that are being taken up in that area. That gives us a marked met of what is our income and what is our cost. From there on we talk to the builders, identified builders, identify house and land packages, to get a benchmark on what is the cost that we will be looking at. If that all takes up and we’ll do that for probably six weeks so that we get a good data set together. In the meantime we obviously look for statistics, and all sorts of information about the areas that we’re looking at. And that puts us into the picture whether the area qualifies or not. Now, the way that we do things in property friends, is that we go physically and visit the area, not once, not twice, probably three times, before we locked in any deal, before we lock in any land.
The challenge usually is that, we need to find the right area in a town. And there are obviously many many areas in the town that one can attack. Again, it comes back to the strategy, what’s my growth predictions like and what is the prediction for the rental income. Because you want to know your cost, you want to know your income. From there on, we talk to builders, negotiate prices on a set product, a set design, on a set, let say an average 10 – 600 sqm block. That gives you the benchmark about the builders, you talk to previous clients, and so on and so forth. So, it’s really a game of due diligence getting all the research together and putting the pieces in the puzzle together, to find out what is my cost, being the house and land price, and what is my potential income being the rental income. And very earlier at front, we would also identify or three rental managers that we talk to and get market intelligence from them. So, that’s how we come up with the projects that we do. That’s give you a bit of an overview of how we identify our market and how we do the research on markets. That’s how it works, and quickly also to the RBA update the RBA has decided to leave the cash rate at one and a half percent (1.5%), as expected nothing new, so that spells stability all around. Which we like. There has not been a time in history to my knowledge that the interest rate has been so low. And it is obviously very important to go into the right market, and that depends on strategy.
So, this was it the tips and tricks and RBA update for March 2017. Trust you’re having fun, and take care. Have fun! Yibidee yibedah