Forum Replies Created
That’s great, thanks everyone.
Richard you have a very good point, if the adviser has his/her own succesful investment portfolio then they must be good at their job.
Thanks for the advice guys [oink]
LifeX, this company appeals because I’ve read 2 of the principal director’s books and so I feel that I can trust them. The other advisor I called is also a published author, I’m not sure if I’m allowed to say their names!
I feel that this industry has too many people trying to sell something to naive people like myself so I need someone who has a good reputation. Any recommendations from people here would also help! [blush2]
Hi Carpenter,
You can work out the gross yield as a starting point in deciding whether or not to pursue a property.
Rent x 52 / Cost of property x 100 = yield.
E.g. A house worth $280,000 with a rental income of $250 would be: $250 x 52 / $285,000 x 100 = 4.56
If your interest rate is more than the yield than chances are that it’s negatively gearned. Please note that this is gross, for nett you would have to take into consideration the body corp rates, management fees etc and deduct from rental figure. But as I said this is only a starting point, don’t go by this is alone.
Lena
Great to hear!
Yes I signed up, it is not so much a forum as a place to stay in touch with community members. We discuss things like meeting venues, resources and topic ideas.
I am looking forward to meeting you, feel free to PM me for more details or for any other info.
[jerry]P.S. By the way are you Brisbane based? There are communities all around Australia, but we only run the one here…
Lena
Thank you to everyone who replied to my post, you guys are great.
I decided that I would purchase a wireless modem from Telstra (got a quote for $70) and he can set up the account under his name. I think he expected a wireless card that costs $250 but I think the modem will do the job & that’s all that matters.
To everyone who said that this isn’t my responsibility, I agree with you, but since we need the tenant more than he needs us, I am going to try to keep him happy – within reason [blush2]
Lena
Hi Pedro,
You said you’ve been to http://www.888abundance.com but are not interested because it is selling something? You have got it wrong, the founder Gary Seeto may be selling something, but that is not associated with the investment community.
The members meet up and chat, exactly as you said. Gary is letting us use a forum section of his webite to stay in touch with group members around Australia, similar to Steve’s forum which we’re all in now. Being here doesn’t mean you have to buy Steve’s books…
Lena
Hi Don,
If you think you should have purchased the property at $50k back then so you’d be better off now, then buy it now and perhaps you’ll be better off in 10 years time. That makes sense to me!
Never say, should’ve, would’ve or could’ve!
Lena
Hi Jonohug,
Have you looked up the local council’s website? Some have more information than others. I was surprised to find so much detailed information on the Gold Coast City Council website, about their infrastructure plans…
Lena
Hi Mal,
I know, this forum is great for feedback, positive or otherwise!
How did you find that information about the new mines and army training centre? I try to research but I never come up with anything good!
I was looking at towns that the qld goverment is building housing in. I work for an architectural firm and we’re currently building homes in places like Chareleville, Barcaldine, Roma and Emerald. I thought maybe this may be a good sign of better things to come?
Although, I’m quite adverse to risk, so I may just sit on it for a while…
Lena
Hi K-girl,
We have a group here in Brissie, our next meeting is on 29 Oct at the UQ St Lucia campus. We basically do research and discuss property topics such as strategies, finance, locations etc.
There is no hard sell, just a group of people who are passionate about property. I’m exactly like you, my friends are not interested in property and it’s frustrating not having anyone to chat to!
PM me if you’re interested for more details.[specool]
Wow great advice guys!
I will go to a few in my local area to get a feel for it. I don’t want to go to a place I actually want to buy incase I get carried away the way most ametures do!
By the way is it true that I have to have finance organised before hand and that there is no cooling off period? Can I buy subject to building & pest inspections, or do I have to organise them before the auction?
I’m getting excited at the new possibilities unfolding [biggrin]
Lena
Anyone? No one?
I suppose I should thake this as a sign that it is not worth persuing.
Lena
[worried]Brisbane has quite a few southern and bayside suburbs, can you be more specific?
Lena
Hi Aslam,
The property was in Eagleby, but I decided not to go ahead with it (chickened out more or less) and now it is under contract. Am now considering Beenleigh, there are cheap units available around the $130 – $160 mark. What would be the market value for a 3 brm unit in this location? There is 1 on realeastate.com.au for $149k, I don’t think this is too bad…
Lena
Hi Leila,
I do it here in Brisbane and charge a flat rate of $70 per hour.
Any interior decorator can help you too, you do not require a home staging expert per se. You can find a good decorator for under $100 an hour which is worth every penny when you consider the difference to your house profitability.
thanks guys [wink]
good point matthew about the tax bonus, i din’t even take that into consideration [upsidedown]
snowflake, we want to pay $400k because we want it to be a residence for us in 2 years time, we cannot afford it now. so it doesn’t have to have a good yield.
the other option that i was considering is buying a cheapie for say $150k and paying interest only. Then, after the year is up we own the property, and we’d only pay $20 a week more. the challenge now is finding such a cheap property in brisbane…
I would personally rethink the location. If there are no agents or property managers will there be tenants?
I agree with bennido, the best thing about negative gearing is delaying gratification, so to speak. You may have a short fall now, but you will receive it back in capital gains sooner than than you would with positive cashflow properties. Of course this is not always the case, you just need to pick a suburb that is in demard i.e. inner city. We purchased our PPOR in 2001 for $250k & it was just revalued at $515k. I know this doesn’t happen all the time, but it is much more likely to occur (and faster) with negative gearing. Plus do some reseach on the tax advantages, if you have a $5,000 short fall and claim 30% back, it only becomes $3,500. This may not seem impressive but it does soften the burden of the out of pocket expenses…
P.S. I am not pro negative or positive, I am just highlighting some advantages for negative. I understand that positive cashflow has many advantages too…[thumbsupanim]
Hi Dr. X,
Our last property manager caused us a lot of stress even though nothing ever went seriously wrong. She rarely contacted us and when we tried contacting her, she was always so busy and slow in replying to emails. Many of her emails were single sentences like “I’m on it”. That was so frustrating!
We didn’t like being treated like a number so we changed to a new manager. We chose her because she provided a personal service and treated us like we’re her only client. She emails me with anything realating to my property just to keep me in the loop. I think she is great, and would stay with her even if she increases her fee.
I hope that helps,
LenaHi Jamie,
You just articulated the negative thoughts that were clouding my thought process and decision making…
Everything you said is unfortunately true. I know the importance of working through all the issues as they can make a huge impact on my profitability. I just don’t want to end up being struck with analysis paralisis!
In short: I will not be going ahead with this deal. If anyone is interested in reaserching this, please PM me and I can email you the details.
Lena
P.S. I received a foster kitten from the RSPCA yesterday & named him Jamie [biggrin] True story.
