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Well it depends on how much experience you have, how much time you have to do research, how much time you can afford to waste and how cluey you are. They gave me a lot of tips about the lenders such as make sure you get a copy of the bank valuation- important for getting equity for next purchase . There are lots of other sound tips which I didnt know about.
Hi Sara
What other investments were you referring to as being better at the moment? I am investigating a property development company called Custodian. Their strategy is sound and they seem ok. I would have a number of properties to chose with new houses to be built on- good locations, large land content, new building so good depreciation. BUT I have also bought shares.My delema is that I am debt free at the moment- owner/occupier very close to centre of major city ( small but cosy)- have ajob in health profession so not likely to lose it. If I go ahead with this property puchase i will have an IP with a $440,000 mortgage
Most of the info for property investment – here and elsewhere- says what Custodian are doing – location near schools transport – buildings depreciate and land appreciates so buy as new as possible and with larger land ratio- dont cross colateralize- borrow without using existing home as the back up. As soon as you have enough equity in the first IP buy the next using the same formula.
It is 3% of the initial cost and is payed for sourcing property ( they do this by various means) and assisting with all details of set up including supervision of house contruction. They provide for coverage of costs if there are delays in building or if costs rise during delay. This seems quite good to me. I am doing this on my own so the concerning part is i will have a mortgage of $440,000. Once the house is built the rental provides asistance in paying mortgage of course. After rent, tax incentives, depreciation it works out for me that It will cost roughly $150.00 per week out of pocket for me . That is supposed to include everything including landlords insurance, agents fees etc etc
Hi ! I would also like to hear from anyone who knows about Custodian. I have been talking to one of their advisors for the past two weeks. I understand their concept. I think it is ok to pay 3% for their expertise . But am worried i will find out they are not legit when I sign up.
