Australian Property - please advice

[dgeralds]

Im a Singaporean and thinking of buying a house in Melbourne for about half a million AUD for rental income as a long term investment over a period of 20 years. I may use it for my kids study when he reaches university age and also I may use is for myself if I manage to get a PR (though unlikely due to my age). I'm planning to buy a land and build a house. Just waiting for a 1:1 exchange rate.

Can current owners or who is planning to buy an Australian property comment? Is there any pitfalls to note or things that I should be aware of? Is it a good long term investment?

Thank you.

 

[Perisher]

I remember someone here was promoting Aussie property not long ago, maybe you can dig it up.

Try this
http://forums.hardwarezone.com.sg/money-mind-210/buying-property-perth-australia-4339211.html

 

[Shiny Things]

Im a Singaporean and thinking of buying a house in Melbourne for about half a million AUD for rental income as a long term investment over a period of 20 years. I may use it for my kids study when he reaches university age and also I may use is for myself if I manage to get a PR (though unlikely due to my age). I'm planning to buy a land and build a house. Just waiting for a 1:1 exchange rate.

Can current owners or who is planning to buy an Australian property comment? Is there any pitfalls to note or things that I should be aware of? Is it a good long term investment?

Thank you.

Not at the moment. The Australian property market - especially in Sydney and Melbourne - is red-hot right now, so you'll be fighting with a lot of other people to buy a place, and you'll have to pay well over the odds to win a place.

Rental yields are very very low as well - gross rental yields these days are somewhere down around 2-3%, and once you factor in the management costs and maintenance you're probably losing money on the rental.

I've had my eye on it too, but it's just not a particularly good long-term investment right now.

 

[pilates]

Im a Singaporean and thinking of buying a house in Melbourne for about half a million AUD for rental income as a long term investment over a period of 20 years. I may use it for my kids study when he reaches university age and also I may use is for myself if I manage to get a PR (though unlikely due to my age). I'm planning to buy a land and build a house. Just waiting for a 1:1 exchange rate.

Can current owners or who is planning to buy an Australian property comment? Is there any pitfalls to note or things that I should be aware of? Is it a good long term investment?

Thank you.

Hi dude,


So Aussie has finally hit 1:1 .

I'm looking at Aussie property also.

Wonder if u have any advice?

I did my math and banking on the potential capital gains in 5-10 years time.

What about ya?

 

[Perisher]

Hi dude,


So Aussie has finally hit 1:1 .

I'm looking at Aussie property also.

Wonder if u have any advice?

I did my math and banking on the potential capital gains in 5-10 years time.

What about ya?

I'm interested in your math.
Far as I know, you have just missed the cut off point for exemption from the new property tax of 3% which starts July 2015.

http://www.theguardian.com/australi...rs-in-victoria-to-balance-infrastructure-cost
http://www.heraldsun.com.au/news/vi...-with-higher-tax/story-fni0fit3-1227331057135

What's the amount you plan to use, what kind of financing are you looking at? What rental yield are you looking at? Are you financing by SGD or AUD?
Those are some questions I asked when I last looked at Australia property a few months back.

 

[pilates]

I'm interested in your math.
Far as I know, you have just missed the cut off point for exemption from the new property tax of 3% which starts July 2015.

http://www.theguardian.com/australi...rs-in-victoria-to-balance-infrastructure-cost
http://www.heraldsun.com.au/news/vi...-with-higher-tax/story-fni0fit3-1227331057135

What's the amount you plan to use, what kind of financing are you looking at? What rental yield are you looking at? Are you financing by SGD or AUD?
Those are some questions I asked when I last looked at Australia property a few months back.

Hello Perisher,

I procrastinated and missed out the cut off date

For the extra stamp duty.
.

My agent is offering me a CBD area property bought

By seller 18 months ago at selling price with

COV 50k(nego)

My intention is to get Aussie financing even though

The rates are higher as I do not wanna implicate my

SG TDSR.

After deducting the mgt fee, property tax and what nots,

The estimated ROI is at approx 3.85%

My intentions is to hold it for 5-10 years and

Bank on forecast capital gains of 4-5% PA.

I'm not sure whether I made any mistakes in

My calculation as this is my first overseas

Property investment.

And I can't seem to find any good reading

Material on it.

Would really really appreciate any advise or opinion.

TIA

 

[Perisher]

Hello Perisher,

I procrastinated and missed out the cut off date

For the extra stamp duty.
.

My agent is offering me a CBD area property bought

By seller 18 months ago at selling price with

COV 50k(nego)

My intention is to get Aussie financing even though

The rates are higher as I do not wanna implicate my

SG TDSR.

After deducting the mgt fee, property tax and what nots,

The estimated ROI is at approx 3.85%

My intentions is to hold it for 5-10 years and

Bank on forecast capital gains of 4-5% PA.

I'm not sure whether I made any mistakes in

My calculation as this is my first overseas

Property investment.

And I can't seem to find any good reading

Material on it.

Would really really appreciate any advise or opinion.

TIA

No homo please, haha.

Ok, I do not know how you get

'After deducting the mgt fee, property tax and what nots,

The estimated ROI is at approx 3.85%'

The last time my friends and I did our calculation, we end up with slightly negative ROI unless we decided not to pay down principle amount in some kind of financial engineering on the Australia bank side. This method has it's pros and cons, especially during a financial crisis, the bank may ask you to pay up certain amount if I recall correctly.

There are also many fees which cannot be calculated to a certain exact figure. Ends up, there are just too many variables that discouraged us from investing. If this was asked a few month back, I would be able to give you more details but that's all I remember now.

We were looking at CBD area in melbourne, think the price was about $6-700k. And the rental was somewhere around 4%+ which isn't enough to cover the loan.

The building we were looking at were Victoria One and another slightly cheaper one but can't remember it's name.

If you don't mind, you can pm me your agent, perhaps it's the same as mine. haha.

 

[dowzkeh]

Are you sure your TDSR is not affected just because your have an Aussie dollar loan?

afaik, you will be affected, although SG banks would have a hard time finding out you have an overseas loan unless you declare.

 

[Perisher]

Are you sure your TDSR is not affected just because your have an Aussie dollar loan?

afaik, you will be affected, although SG banks would have a hard time finding out you have an overseas loan unless you declare.

That's the advantage of having a overseas loan... smoking it? Not recommended though, in a financial crisis, it could blow up, big.

 

[antonpoh]

No homo please, haha.

Ok, I do not know how you get

'After deducting the mgt fee, property tax and what nots,

The estimated ROI is at approx 3.85%'

The last time my friends and I did our calculation, we end up with slightly negative ROI unless we decided not to pay down principle amount in some kind of financial engineering on the Australia bank side. This method has it's pros and cons, especially during a financial crisis, the bank may ask you to pay up certain amount if I recall correctly.

There are also many fees which cannot be calculated to a certain exact figure. Ends up, there are just too many variables that discouraged us from investing. If this was asked a few month back, I would be able to give you more details but that's all I remember now.

We were looking at CBD area in melbourne, think the price was about $6-700k. And the rental was somewhere around 4%+ which isn't enough to cover the loan.

The building we were looking at were Victoria One and another slightly cheaper one but can't remember it's name.

If you don't mind, you can pm me your agent, perhaps it's the same as mine. haha.

You end up with slightly negative ROI maybe because the interest rate there is aro 4.13%.

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