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2 quick points
first some support for Foundation ( no pun intended) I had the same reaction to the Brisbane”HOUSE PRICES SLUMP” headline- I couldn’t find anything in the article as evidence except”3 per cent fall in the March quarter”
Second there has been some talk about first home buyers ” deserting the market”. This doesn’t seem to be the case in Brisbane yet rather they deserted and then came back- though not to the boom levels- the direction is Up though.
http://www.osr.qld.gov.au/gas/fhog/statistics.htm
Cheers
Hi HotRod
I understand what you mean about seminars in general. Perhaps these observations might help you decide.
I have studied extensively and have expertise in a number of fields. I have noticed that I usually can still learn even from those who are not as expert- either there’s something I missed along the way or others see things in a different way and thus give me another perspective.
The focus of the Masterclasses( I have been to 2) is on the “business”. 5 properties seems to be an entry level for making full use of the information provided and, to quote a comment from the most recent masterclass in Brisbane, property is a volume business- you need at least 20.
about 35 minutes of the whole day program I would put in the “motivation” category-the rest is information, techniques and concepts. You may already be aware of a lot of this but it shouldn’t take too much extra to cover the cost
-but if cost is the big issue-why both go? why not only one?It is also fertile ground for making contacts and the attendees (I can only speak for Brisbane)have a wide range of property interests which can complement each other.
Cheers
Whether you have a home with equity or not, there is nothing untoward about financing an income producing activity such as property investing and claiming the interest on it as a tax deduction.
there is also nothing wrong with using income to pay off a home loan
What I think you do need to be careful of is artificially creating or increasing tax deductions and this largely depends on the exact circumstances and the way the transactions are effected.
Obviously on a forum like this I can take no responsibility whatsoever for you acting or not acting on these comments and would suggest that on the face of it what you are suggesting is ok but must be done absolutely correctly to be effective- and therefore I would also strongly suggest you obtain advice from a fully qualified professional who will give that advice in light of your specific circumstances.
While we are on tax- now may be a good time to consider strategies such as prepaying interest- it’s much too late to plan AFTER 30th June
CheersHi Wilandel
I think the budget will have little effect on property- there were no nasty surprises and no major incentives either.
Cheers
Hi Ibuycashflow
This is a kind of combination inspired by the previous posts. If you called it “Lamb Surprise” and put together a top lamb “secret” recipe that was absolutely delicious and could only be obtained at your place. you have
1) exclusivity
2) sublety
3) the home cooked meal feel
4) plenty of scope for logo’s showing surprised lambsCheers
Hi AussieXJ
The Australian Financial Planning Association can be found at http://www.fpa.asn.au
They have several articles that may be helpful including
http://www.fpa.asn.au/images/userimages/services/sixsteps.pdfhi Landt64
It’s obviously a risk you need to weigh up and more information would help ie a further or different type of inspection.
If you do decide to go ahead it would be a very good bargaining point to reduce the price eg look mr vendor i’ll pay your price if you get all the termite damage fixed. More than likely they would reduce the price and ask you to do the work- then it’s just up to you whether or not it is worthwhile to get fixed for the period prior to demolition.Cheers
Just a little note about a comment in the original post i.e.that tax cuts are likely to put upward pressure on interest rates.
I’m currently highly geared and paying around 6.7%pa interest. I do my calculations on a scenario of 9% i.e. only deals that I could still comfortably service at 9%.
I’m interested in others views ie what percent chance do you think there is of standard domestic Australian mortgage interest rates exceeding 9%pa?
Cheers
I understand Steve’s Accountant is looking for more business-I will advise him of your post
CheersHi Leanne
There have been some properties sold through this forum I believe-if you provide some brief details (and if Shelly doesn’t get it first)there are plenty of people here interested in +ve cash flow property-myself included.
Cheers
BattleshipsHi Clay
I haven’t used a removal home myself but my parents have very successfully- HOWEVER-it was their PPOR and they put in a lot of work. Perhaps you could use someone else’s elbow grease- you’d have to price it in though. HMMM or swap it for rent.
CheersHi Clay
I would have thought removal homes would be feasible. There are a few three bedders under $60K at http://www.drakehomes.com.au/removal/stock.htm.
I used $60K to allow about 50% extra for costs. This would give you $90K all up. If you’re doing more than one you have a strong negotiating position as well.
CheersIf you want to get some idea of what the coaching may be like then I suggest you get hold of one of the tape sets of his seminars. These are much more cost effective ie I paid about $500 for the tapes of a $5000 3day Sydney seminar and I think the price for that one now is about $200. The Australian site that distributes here is http://www.powwowevents.com.au.
CheersHi Gary
Without detail it is a bit hard to advise, however, the old fashioned way that could work quite well is to have the property finances completely separate and pay out your personal debt from personal income- even if that means negotiating a payment schedule with each of the creditors. Chapter 9″ The Clay tablets from Babylon” in the book ” The Richest Man in Babylon” may give you some ideas on how to do this. I have seen a quote somewhere that says “It is impossible to borrow your way out of debt”
Hope this helpsHi Rhett
Seems to me there are two considerations
1) the legal impact eg are you bound if you dont put an expiry, and your offer eventually gets accepted- maybe when you have moved on and don’t want to buy anymore: and2) the negotiating impact.
I would say for 1) you should obtain a proper legal opinion and get them to draft the clause: and for 2) I can’t do any better than the advice SIS and Steve offer except maybe to add Do YOU need a quick answer or are you happy to wait the time- different circumstances will give you different answers but 4 days by itself isn’t necessarily excessive.
CheersHi MJA
I was at the masterclass as well. I think the bedroom thing is more a useful rule of thumb than a precise $ per bedroom formula. I’ve noticed also that the premiun for an extra bedroom is different in different markets even comparing just the standard 2 bed and 3 bed varieties. Rolf de Roos in one of his books talks about adding a bedroom by closing in a carport that shares the same roof as the house.
Hi Zeallous
You can also get auction clearance rates emailed to you free from places like Home Price Guide Newsletter http://www.homepriceguide.com.au
Subscribing to local newspapers can give you some insight
In QLD the dept local govt and planning has some good info but I’m not sure if there is an equivalent in other states.
Australian Bureau of statistics site http://WWW.abs.gov.au is a bit hard to find tthings in but can be useful. If you are very serious and prepared to pay- ABS will do some research for you eg I was quoted about $300 for a full 20 year population projection on a town I was considering.
Hi Psyduck
I would start by working out what you want eg term, fixed interest period, flexibility to make extra repayments. The better informed you arte about what you want the more likely you are to find a mortgage that suits your needs. There is also a magazine called Your Mortgage that might be a good starting point.
[drummer]Hi Borginvestor
In my experience it is almost impossible to get an unbiased rent appraisal- even if it is in writing from another agent. I think the best insight you can get is to put yourself in the shoes of a tennant and see how much you would have to pay to rent a similar unit in the area.
Without knowing the area but as a general comment for units-if there is a body corporate be sure to peruse their records as well- the unit itself may not need repair but you may be up for maintenance on the block.
On the face of it though it looks like a great deal.
