Forum Replies Created
Thanks everyone for the input.
I decided to rent and whipped down to sydney from far north coast NSW, i renovated or fixed everything in 7 days and had it re-let for $50pw more before I left.
It is now on a 5% yield. i bought 9 years ago so showing 9.3% on original debt.
I have taken a new Line Of Credit out with a new bank to use for deposits for another property.
All good advice about the other areas, i couldnt afford them at the time.
cheers Philip
Do you think it has something to do with fishing??
Hi tess85,
i bought my 1st house in Tempe before the 1998 boom and i have never regretted it. we rented it out (to continue living in Rose Bay) for 1st year then moved in for 4 years renovated it and then moved to Woronora River at Sutherland. we are now in Byron and still own both houses (Woronora for sale)We enjoyed our time there you do become desensitised to the noise but i have lived in Wilson st Newtown 2.5yrs and my brother lives in St Peters in Wilson St. and to be honest the Barden st Tempe house, although closer to the airport, has less noise less often. something about the planes have to bank quickly and fly over Newtown and St Peters.
I wouldn’t live in any of those places for too long but there is growth in all of them and they are easily leased.
cheers Philip
Hi JaneS,
Thanks it is sounding like it is worth the effort!cheersHi JaneS,
i have spoken to ANZ financial section, they say they do not influence the Valuer in any way, but that is not what i am hearing, you obviously believe otherwise.Also what price property are you basing the 30 to 50k amounts on eg: a percentage of how much more you believe can be achieved this way?cheersLooks like you have had all the good advice, heres my story-
I have a tenant who was similar although i have never had to meet her, thank god, i have a PM.Anyway she complained so bitterly and constantly that my PM suggested i give her notice (PM was fed up, its the first I had heard).I agreed with her and we did, the next thing i hear is that the agent is going to the tribunal because the tenant has complained to the Rental Board!It did not go in my favour as the Magistrate said i/we were being ‘retaliatory’ (he was right)He said i had to paint the townhouse and repair a few minor things.This all cost me $3500, and we have raised the rent from $165 to $200 which tenant is paying happily.The upshot is i am getting a 55% return on my investment in the 1st year and using Steve Mcnights ‘Rental Multiplier effect’ (from his book 0-260 properties in 2 years) the property is worth up to 25k more!!Knowledge is Power!Hope its all going better there, I would be flicking her too, she sounds like a bunny boiler to me.Thanks JaneS,
i will try speaking to another branch, your methods seem sound, it is what i am trying to implement.Do you believe you get a higher valuation this way?cheersgood advice thank you both
cheersthanks matt007,
you are right i’ll get off that one and look for a solution, i know i am lucky to have such a problem.it is what i predicted 3 years ago its just i am more involved-i had never planned to live in it!cheersScottNoMates there is a moratorium on new builds in the town because of inadequate sewerage, new sewerage plant late 2010.
The land opposite where woolies is going is State Rail, and the train service was cancelled 4-5yrs ago.i bought the rental because it had high return (house divided into 2 b/r flat and 2 b/r hse with sunroom) 6.5% and on a 960sm block with rear and side lane, in the hope that i may be able to plonk a dual occ later or even commercial (doctor/dentist/chiro). depending on new LEP.i have renovated house side now and plan to live in for 3yrs then re-rent at 9.7% yeild (on original investment) or develop if possible.there is growth still in this area-Tugun Bypass will cut travel time from Brisbane by 25mins and Byron Bay has gone nuts and now soft.it would be a bummer if i had to go backwards 25-50k because of the Woolies.Does anyone think rental properties are less affected by this kind of development?rant finishedthanks for your responses all,
My main concern is falling values of houses opposite or adjacent like my rental property.The local Jenman Real Estate agent is touting we will all lose 10-20% value being so close.Does anybody agree???As an investor, i believe it is a growth stimulator for the town.Hoping i dont have to take a step backwards first is all.i may have to buy another house here to offset!It will be just a woolies and a bottle shop for now. i had expected something like this 3 yrs ago when i bought.Matt 07-it is Mullumbimby NSW, contact me if you like.to recap like steve, does anyone agree line of sight properties will be detrimentally affected???cheers allthank you all for responding!
TerryW – i believe pay down means parking the cash in the ANZ (now) investment loan. i dont want to leave it there as it is now an IP hence my looking for a way to offset the StG loans and decrease non tax deductible debt. i will look into an IO loan.i will also look into the Pro Pack Qlds007 the loans are all interest only currently.Finance Guru-The 3 loans are for the 3 properties but not proportional to the debt.the three loan amounts are 375k/90k/303ki am not sure why the amounts couldn’t coincide but apparently they could not do it.the 375k is for the property we live in now.as for being not clear, the property we have moved into has a flat attached (a section of the house with own entrance, meter and yard) this is rented and separately (landlord insurance) insured with AAMI. For taxation i am not sure how that stands, this debt (375k of the 480k loan) is the NTDD portion, am i right in thinking that with an offset attached to the whole amount we can apportion the NTDD at the end of financial year?I hope this is making sense and i am loving the inputphilipthankyou stuart, any information is useful
cheerz[biggrin]
hi nevilleg,
all i know from conversation with a rep:
1. he owns NO property
2. they are paid by vendor
3. hard to get any concrete info/offers to ‘face to face’personally i dont think i will be using them[biggrin]
1. stuck! have 200k borrowed funds to invest and i am wasting it! NEED DIRECTION.
2. TOO MANY CHOICES analysis paralisis
3.consolidate or extend further? Market?[blush2]just saw your post, good one.
it is hard to do on smallish incomes but thankfully very possible.
love hearing stuff like thatcheerz[biggrin]
thanx all,
i hoped it was possible and thankyou for sharing yo experience.now i have to work out DSRs and see if this can be achieved with our incomes (both self employed)
we will need a cluey accountant, Nicholas Moustacas has been mentioned – all those in favour?
will need a good solicitor is Chris Batten the man?does anyone recommend ‘Destiny Financial solutions’ for property investment planning?
cheerz
[eh]thankyou everyone,
much clearer on a direction now,property investing aware solicitor, accountant,
any reccomendations in southern suburbs sydneyso many questions
glad to be here
[blink]
wouldnt be dead for quids
Thanx APerry, Qlds007 and Wylie,
that makes sense, we dont have a trust set up but i have been planning to do that maybe now is the tiime.
i would imagine that selling the property (with most equity) to the trust would incur SD and probably CGT (wned mor than 1yr). i am ok with that if the numbers stack up.
the other thing is, that property (our 1st) is still considered our PPOR by the OSR as since moving into this one 3 yrs ago (we can consider this our PPOR for 6yrs) we have not changed that.
if that could all work can we sell it to the other partner for below market value (we dont show big earnings so the 35% rule is restrictive)
i dont expect to have it both ways but would like to get rid of the non taxable portion of our debt so i can get more serious about investing.
cheerz
[biggrin]thankyou shwing and dazzling it sound like you are both right i love that.
dazzling – not my name only, we are both self employed, and joint owners. does that bugger it up?
NTDD – ?
in debt and loving it
[biggrin]
