Forum Replies Created
Settlement depends on what you need. If you can get it vacant after unconditional then you can get in and start work on it. If you get a 90 day settlement then you have 60-70 days to work on the property on their money. Just make sure you put into the contract you want it vacant from a certain date and that you want access to complete minor works on the property. This will give you a chance (if you can get it together) to do reno on their money. Just make sure you can complete the contract because if you need an extension then they may say no and have a free reno.
Things to think about……..Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinHey Spocky,
Maybe you might have to reno the property but if it gives you a positive cashflow after the work isn’t that a good thing. The costs of Reno will be added to the capital base so while it isn’t a deduction it will come off the cost. It’s amazing how a little bit of elbow grease can bring the property into a new light.Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinHey ollie,
No right or wrong here. What is your aim in investing? Does this unit fit the plan ? What are the costs of selling the unit ? Can you get a revaluation to cash yourself up for more buys ?Good luck in the choices.
Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinHey ollie,
No right or wrong here. What is your aim in investing? Does this unit fit the plan ? What are the costs of selling the unit ? Can you get a revaluation to cash yourself up for more buys ?Good luck in the choices.
Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinWhy not, all you are doing is providing finance. You could wrap a car if you wanted to. Go for it Hilary. The only thoughts to explore is what happens if they default to you when they have built a house on the property ??
Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinHey shralper,
Welcome. Which state are you in. I know in Queensland you can assign the contract but double stamps would be due. Also you will face CGT on the profit. Just remember though with looking at the deal if you make money but have costs……..at least you make money.Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinI think you have an awesome resource there in your uncle. I (my opinion) think that residential is a better place to start because it is much more forgiving than commercial property. BUT…in saying that you may be able to leverage off your uncles knowledge. Why not ask him to help you out with looking for properties and get inside his head ? Which ever way you go this will be invaluable information. You can either stumble throughthe learning process or stand on the shoulders of others. I am a firm believer in shoulder standing and I am willing to pay for it. I am amazed at how much I have learnt in the last year and a lot of that was due to the help and knowledge of others.
On a slightly different note Bruce what is your aim of Property investing ? This can also help you decide which way to go. In the end it will be your decision as to the right path for you.
Hope this helps.
Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinGotta agree with Peter here. 1.6 is thin but you have got to do what fits into your plan of investment. Do what brings you closer to your goals.
Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinHey insider,
At this point in time I am buying houses closer to the $100K mark. I think the reason discounts may not be as good the dearer you get is because people do not look at discounting them on a % base but rather a $ base. So people see a $20K discount as being the same whether they sell a $100K house or a $200K house. The one thing I am sure of though is that there are houses out there in the $200K range that you can get at substantial discount. I am considering doing a much dearer reno very soon and I will be looking for a property to do. It will probably be in the $300K range. Few to finish off first then onto that job.
Good luck hunting Insider you will find what you are after and it will be worth the hunting when it comes.Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinHey Termite,
Welcome to PI.com. As to templates I have not seen any. As to your doubts and fears….you have to trust yourself. As to being free….yep.Have you reno’d before ? How much are the sort of properties you are looking at ? What sort of Reno costs do you expect ? Are properties selling well in your area ?
I know you said you are becoming overloaded but another book to read is Think and Grow Rich (Napoleon Hill) and or The richest man in Baylon (George Clason). I found them both good in the psychology of making money.
Hope this helps and look forward to your reply so we can help more (maybe).
Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinWhy not have all rent going into the home loan and then having the payments coming at when they need paying. The power of idle money in your home account will accelerate the pay down time.
Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinGood questions Fullout. The bank will hold a mortgage on the property but that is unimportant to me. The real issue (for me) is cashflow and capital gain. Say you buy a house that pays for itself and drops $40/week in your pocket after costs. Is that a good thing ? If that same property goes up 10% (or more) in one year is that a good thing ?
To me that is a yes…yes. I pay the bank for the use of it’s money and I make money from using their money. IF you stopped paying your interest payments they would foreclose and sell the property so they hve an interest in the property but don’t own it as such.As to it being a liability, Kiyosaki puts it best when he says that he only buys assets. Things that put money in his pocket from day one. So is it a liability ? Not in my view if it makes you money from word go.
Also it is good to remember what is actually the asset in a property. The house itself can appreciate in value but the tenant is the asset that helps you make money week to week and help you pay your bills. They make your profit much more healthy over time.
From the banks point of view the house is an asset but the debt is a liability. I prefer to look at things from a kiyosaki perspective. As Steve McKnight says….If you only do things that make you money then …….
Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinHey David,
I can’t speak for Steve but I know for myself I look at every property on it’s merits. I look at comparitive data and find out why the vendor is selling. I always try and getproperty fr 80% of market value. Now what is market value ??? It’s what I believe I could sell the property for the next day after I buy it. Makes life harder but certainly more profitable. Sometimes that means paying full asking price but other times paying much less than asking. A very subjective answer but it really depends.
Hope this helps.Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinHey Ed,
What sort of properties are you after ? What are your deisred goals from property investing ??Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinI won’t argue Terry but I do know of some people who have got multiple structures and personal guarantees for them all.Nothing illegal just disclosing what the bank asks for. If there is a will there is a way.
Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinHey all,
Just a thought. I noted you were saying the 11 second Rule. It is good to remember that it is the 11 second Solution. I am being pedantic ? No for me it’s a way of understanding it’s application. One of the tools I use when looking at property is the 11 second solution. If it passes this test then it fits a certain investment criteria. Rules are hard things to me. Concrete in nature. The 11 second solution though is a great tool. Use it wisely to help you invest but never get hung up on individual tools as there are so many ways to make money in property. If it doesn’t fit the 1 second solution then maybe you could Wrap it, or Reno it or………Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinHey Greg,
Mate I ws wondering why you need to look overseas for investing opportunities. There are so many here at home that just need alittle digging. Unless you have close contacts over there you would hve to be very worried about being had wouldn’t you ??
Love to hear your thoughts.Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinWhen you start hittng troubles with the lending ratios, etc. why not start borrowing in another entity and start all over. Multiple structures lead to massive possibilities.
Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinI agree with these guys. QT… Quality Time. When I first started buying in the area I do 98% of my deals in I talked to nearly every agent in town to find who I would gel with. I found the one person who I happily do business with. 9 properties later and I am still happy. She calls me the instant something appears. I win because I get early info on good deals, she wins as she gets a trouble free sale and potential resale, the vendor wins because they get a purchaser who doesn’t stuff around.
I regularly drop cake into the office and buy presents around events. We are great business partners now and whenever my wife and her get together they have a great old chat.
This took a lot of time on the road and talking to many people but I see this person as an unreal investment for me. She will get a great Christmas present this year if things continue how they went last year.My two bobs worth.
Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinIt would seem that you could get the loan but Hubby could go guarantee for it. His income could support the loan. Check out Steve’s Wealth Guardian when it hits the pavement. Supposed to be very good.
Always worth talking to your accountant as well.
Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert Einstein
