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Steve Keen discusses RBA mistakes
Overcapitalisation – A Common Pitfall
If you are unfamiliar with real estate jargon then you might be wondering what overcapitalisation means. Basically, overcapitalisation refers to an overspend on construction or renovation costs. It means the actual cost of a construction/renovation of the property is superior to its achievable market value. Overcapitalisation is commonly referred to as uneconomical capital expenditure. For instance, Mr A is planning to renovate his house by remodeling the bathrooms, basement and kitchen; upgrading the living room and bedrooms; adding a porch and swimming pool; installing vinyl siding, fencing front entrance and extending the garden. Mr A decides to use upper end expensive quality materials in the renovation. While doing so, he forgot to consider the real market value and quality of the houses in this area, which was lower than the value […]
How to select a property valuer
So you require a property valuation service but how do you choose from the long list of companies that appear in search results. Unfortunately most people will only choose based on the cheapest quoted fee however a cheap inaccurate valuation report can cost you a lot more than the saving on a valuation fee. Here are a few questions and considerations that can help you make the right decision.
How many years of experience does the valuer have?
You can become a registered valuer after only two years of study and as a result the market is full of registered valuers but short on experienced and quality valuers. Be sure to ask how many years of continuous experience the valuer has.
Does the valuer have experience in the subject’s property […]
Sydney suburbs under $270k
These suburbs have some of the best gross yields in Sydney and a median house price well below $270,000. Most will have the potential for a granny flat to improve returns and are ideal for cashflow investors. Below are descriptions of the suburb, median house price and gross yields.
letheridge park
Lethbridge Park is an established suburb located approximately 40.5 kilometers north-west of the Sydney CBD. The suburb mostly comprises of 1960s/1970s residential dwellings (predominantly basic brick veneer, fibro cement and cladded dwellings. Lethbridge Park is located within close proximity to the M7 Orbital Motorway.
Median house price (as at July 2011): $230,000
source: www.investsmart.com.au/property/
Gross yield: 6.6%
Wilmot
Wilmot is an established suburb located approximately 41 kilometers north-west of the Sydney CBD. The suburb mostly comprises of 1960s/1970s basic […]
Free online property research resources
Sophisticated property investors and developers know where and when to invest their funds better than the rest of us. Although it is difficult for anyone to predict the future of any investment market with any certainty, the pro’s have some great resources at their finger tips and some trained professionals interpreting the data and then putting it to use for the purposes of profiting from a venture. This month we share some online resources and reports widely used by the expert economist, financial journalists and investment companies and professionals that help them stay on top of the latest economic happenings in Australia.
Westpac property reports
This site […]
