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Does anybody know where best to find a RE Mentor in the Toowoomba/Brisbane/Gold Coast area?
Anyone interested from SE QLD?
IRT = 'In regards to'. No biggy.
Quotes? Do you need this to complete the feasibility, get an idea if the deal is a goer or actually go solid on numbers??
If it is to roughly to analyse a deal ask for an estimate, an experienced one will give you a workable range. This should give you a start point, they would have completed work recently in the area if they are local and then go from there.Ask to send a builder through, ask the agent who built the property or if the owners renovated. If they say 'I do not know' motivate the agent by asking them if they could find out because you could move onto purchasing the property much quicker if they did. What you are looking for is the name of the builder or the renderer that completed the work to verify what it is. Then give them a call and take out all this guess work, do not rely on the agent or owner to say its all good you need verification by the 3rd party. Happy investing.
You need two accountants. Find a good Australian accountant that understands the Australian rules. Find a good Delaware accountant, not just American because they are a bit different over there.
Ask the American one what to do within their rules and then tell the Australian one what he said. The Aussie one will tell you the pros and cons if he is worth their salt. You may have to go back and forth a couple of times however it is better then them doing it if you want to save money. Don't expect something for 30 mins free advice, you pay peanuts you get monkeys $1k now or $50k latter.
Just withdraw it into an account exclusively used for the IP, ask the bank to waive the fee or just pay it if you don't.
Its all about justification with the ATO, if you only use that account for IP expenses it is extremely easy and quick to prove. Ask your accountant. The bank only calls it a savings account you can call it anything you would like 'IP Account'. Just be disciplined with how you utilise the account IP stuff only. Happy investing.Just a quick one. If you can avoid LMI do it. Have a think about what you are paying for. If you default on your loan the lender gets to sell your property back to the market and accept any price it likes. The short fall is paid by the insurer and then goes after who? Who paid for the dogs that are unleashed on you?…………………………
On your other point:
Work Ur Money wrote:We currently have a conditional approval with ANZ for $410, if we were to push our loan to $500K (i.e. property purchase would be not more then $550)Make a decision on the precise max price you will pay for a property that you are both happy with. This will prevent you from going above your means or having to do without something your have 'budgeted' for. It will also help take out the emotion that can be associated with buying your house/home, its pretty powerful.
Ask your partner again if they would like to live in a old home for more money or a new home for less again and watch their reaction closely.Best tip, and I talk from experience, I had a very similar 'experience' and was the best thing that ever happened to me regarding RE investing, I learnt this lesson very early.
Get out of renting out tents and move into commercial real estate ASAP!
Consult a solicitor if you are this worried. Most of them will have a first consultation is free policy, check this when you book an appointment and take all your documents (including landlords insurance, agent and rental tenancy agreement documents) even if they are not going to look at them all it saves them having to guess. Don't leave things like this to chance and by raising it you are obviously worried and it will help you sleep better at night which is pretty important believe it or not.
RE investing is great stick with it and look for a solution, the problem is obvious it dominates all your coffee break conversations at them moment, you are not alone and the first or last person this will happen to. Learn from it and distract yourself by looking into commercial property. Happy investing.Negotiate, go to another bank and see what they offer and then go back to your original bank and see if they will match. Better yet switch banks if they will do it for $0 (covering your exit fees as well). They want your business and ~$10k you are giving the other bank every year anyway with your current loan. For IP always use IO never P/I.
Keep your properties in different accounts. It means it will be easier for you and your account to find where income and expenses have come and gone from and make tax time a cinch so you get your tax return ASAP, no use being in the ATOs account. Anyway if it costs you $325 in account keeping fees so what, its a tax deducting and cheaper than spending 3 of your hours sifting through statements for your accountant in June. Do not get me wrong 0 is better than 325 but if you do no not ask you will never ever get.
My recommendation, go with another bank and meet someone new, you will need to anyway at around your 3rd IP. Consult your account and see what s/he thinks. Happy Investing.Best tip I can think of is next time hit your accountant up for a trust structure before you purchase if this is going to be a regular thing for you guys. I know that does not help you now but maybe next time. The benefit is the asset protection with the additional benefit of having more tax options it is an extremely flexible and personally unique arrangement. Don't focus on the properties you are selling think of it as a whole of finance approach for your circumstances and will take into account your job, investment activities, businesses etc and your accountant should understand this and look after you. If s/he does not look after you or know what you are talking about look for a new one as there are heaps out there. PM me if you want someone that can help you out (they are in NSW and QLD though). Happy investing.
Actually pressing the submit button from my end helps.
Should be GTG.While you wait to get that info from the experts on this forum make sure you have all your financials up to date. Collect all your info into one folder ready to head to the banks, YEP BANKS. Pay slips, credit card bills, loan documents, personal debts, repayments on phone, cars, living expenses etc. All those documents are those the banks will ask and the quicker you can produce them and more organised you are when they ask the more professional you come across and more inclined they will be to spend more time with you. Trust me this is a good thing and you will stand out from the crowd, also a good thing.
Another tip, if you want, go to another back for the loan do not under any circumstances let them cross collateralise your loan. You do this by asking your current bank how much is the maximum amount you can redraw off your current loan to purchase another property. At this stage they will tell you because you have not told them you are looking at other banks and there is no reason to (Best way is to say you are looking to buy at auction and want to know how much you can have available). In your case $46k based on your figures at 80% + MISA account.
This amount becomes your equity available and this can be made available after they complete their approval process with no cost to you or increased payments due to interest until you actually withdrawal and use the money (Then you will obviously have higher interest repayments which you will have to take into account if you wish to use equity for IP).
While you wait find the place you want to purchase and ask another bank for a loan on it. They will see you have another property however once again under no circumstances let them sign you up to a mortgage with the other property for security. The reason they can accept this is because the property you want to purchase should be able to stand up on its own feet and their valuation of the IP will prove this.Even if you go with the same bank don't let them sign you up on a mortgage requiring your other property as security it makes it complex and will cost you $ in the future. PM me if you don't fully understand and make sure you do your sums. Food for thought, happy investing.
Thanks SNM,
Any local knowledge? Which is the 'better' one IRT reputation on the GC? Anyone in particular in those RE agencies that you would recommend to approach? I've found that the keen and good RE agents, a good filter, will always be willing to go to the effort to open up a property and put the information together during the week. Thanks for the info. Happy investing.
anne25 wrote:hi all just wondering what you all think of the mtt Druitt area and St Marys in Sydney ? are they just great for postivie gearing or grow as well? as do you think 3 x3or 4 bedders priced around $310000 will do any good in St Marys ? Will they sell? any advice will help , im also looking for a good/cheap builder !!G'day Anne25,
For building relationships with builders, RE agents, accountants etc aim to do a job that they would be pleased to be associated with not 'cheap'. If you plan to be in the RE game for a while and not have to continually look for builders etc, do things that will last and expect the same from the professions that you employ/make associates. If they do not perform keep looking until you find one that does and do everything to make it easy for them to work with you. This will allow you to retain them and they will continually want to work with you, you can then stop looking.
IRT the property that you specified that is one of the great things with RE a 310k property may or may not do well. Without getting into great detail its up to what you plan to do to the property and then how you market it, don't just rely on a for sale sign out the front and an ad on the net, be proactive and at least make phone calls and conduct letter drops in your area, it requires a plan, time and effort but is well worth it and you sell more properties that way. Talk to your local RE Agent and ask for the RP data on a similar property in the area currently for sale to get an idea of the sales in that area and make comparisons. Happy investing.
Depends what you are looking for in particular and what you are willing to do to make it cash flow positive. They rarely, and even more now fall out being CF+. Think outside the box, sovle the problems of a building and you will more than likely have a CF+ property on your hands.
Should be GTG.
