What a good problem to have. You sound like you are going fine. I’m sure someone in this community will have answers for you, but it isn’t me – sorry!
Let’s see who does pop up with some sound ideas. I do like the idea of finding new expert members for your team – sounds like the previous ones weren’t up to the task, as you have “moved on” past their skill levels. Good luck, and I hope someone stops by soon,
The links to the topics are not clickable. ? let me know If I am missing something.
You are quite right – the Index references are not clickable (maybe one day when I have some spare time….. ;) so use the Index much as you would in a book. i.e. You look for a chapter title that sounds like what you want, then look for a page #, then look for the page within the book. In this case, use the date of an interesting post as your reference – then scroll on through until you reach that date (and of course, it might be on another page, so select the correct page before you scroll).
Look for the Index on page 1 – (or click link below) :-
Read down in that first post to get to the Index. Once there, note the item you wish to check out, log the date, then scroll down to find that date. It might be on page 2 or 3, so click the page button accordingly.
NOTE – the boxes that allow you to change the page you are on appear at the very top of any page, so, after recording the date of a post you want to access, and noting what page # it is on, scroll right to the top of the page. Once at the top, at right you will see 3 small boxes with numbers 1, 2, and 3 in then. These are the pages mentioned in the Index. You will be on page 1 when you read the Index. Select which page # you need to get to the report you want. An alternative is to scroll down just past the last post on each page – again at right you will see the 3 boxes that show the page #. These are seen just above the “Reply” box near the bottom of each page.
Or, simply scroll through and read them all – there is a host of useful info hidden within these replies….. And thanks for your question,
Benny
This reply was modified 4 years, 9 months ago by Benny. Reason: Adding the Index info
This reply was modified 4 years, 8 months ago by Benny. Reason: Added "How to find Page Numbers"
When new to anything, it is normal to want to “get into it” as soon as possible. I’d caution against that…. While you are still unsure what and where to buy to meet your goals, do sit back and keep reading and learning. It is too easy to “Have a go” where you might risk everything on the hope that the one you buy works out for you.
The good thing I read from both of you is that you are wanting to learn, and that is smart. When you eventually buy something, you should know WHY it is that property that you want, and HOW it fits into your plans to meet your goals. You should also have checked out any risks around such a purchase. But you don’t get there without some time and effort.
Give yourself the time to read up on all of the ways you can make a property cashflow positive, and how to add equity. Seems you have heard of some of these ways. Go to seminars, meet other investors, check out opportunities to learn about real estate investing. But beware of those who would “fly you for free to another city and secure your future by having the taxman and the tenant make you rich buying a new (and highly over-priced) property from them”. Such offerings are still out there, and they are NOT in your favour.
Did you get to read some of the offerings in the “Big Picture” link I sent in my welcome PM to you? If you didn’t see it, go here to check it out:-
In an attempt to use “what’s out there” (i.e. you can check it out for yourself) I dug around in a pile of “climate change facts” as ranked by Google and found something that I think is – a. balanced, b. fair, c. easy to take in, and d. providing an alternate view to the current alarmism around the climate.
It is a sequence of 22 separate “mini-seminars” that tackle several claims made and seeks to shed light on each from a different perspective. If you don’t have an hour spare, please take just 10 minutes to view the following two linked offerings from their list of 22 videos.
The fourteenth one is titled “What they haven’t told you about climate change” –
There are twenty other videos to view (each about 5 minutes) if you find you appreciated the content – the above two I thought were a good place to start. A comment I heard in one of these two videos that stood out was this:-
“This does not mean that climate change is not an issue, but exaggerating the threat does concentrate our resources in the wrong areas.”
So you see, this group are not denying anything, but instead are focussing on a common-sense approach – providing far more light and far less heat on the subject than many others do.
Over to you though. What did you think?
Benny
This reply was modified 3 years ago by Benny. Reason: Adding links to accommodate changes at the source
Suddenly we are seeing a “hotter than before” series of temperatures – the climate has dried out certainly, with a major drought having a marked impact on our farmers, and will thus bring higher prices for foods in the next few months.
The current bushfires are playing their part now too – like, when you have an uncontrolled (and uncontrollable) series of bushfires, their very presence is going to have some effect on temperature, yes – and it won’t likely be getting any cooler, will it? The 3 million hectares already burnt, and still with 100 fires active in NSW, this must be adding to the ambient heat of the continent – or at least within these Eastern states. So let’s not be too surprised if/when 150 year temperature records might be broken soon.
It has been quite alarming to read of temperatures in the high 40’s recently. Do keep in mind though that the current highest temperature on record in Australia (according to Google) is around 51 degrees. We may break that over this Summer, or we may not. If we do, the bushfires will likely have added some impetus to the thermometer readings. And as long as they remain out of control, their effect will only grow surely.
We do need rain on many fronts. And it will come – but is not able to be “dialled up on request” – when was it ever? Meanwhile, our powers-that-be need to take counsel from RFS veterans who said this week something like this – “Previously we’ve found we need to do a hazard reduction burn-off every 7 years to keep control of our forests. In the previous decade or two we’ve only managed to do 1% per year of our total forested areas.”
Working those numbers, that tells me we must get many more Firies doing burn-offs so we can get those hazard reduction cool burns up from 1% to nearer 14% (to keep that 7 year cycle going – 7 x 14 = 98% of forests with reduced fuel). It’s time to pay a lot more people to do a lot more work in that regard. Also bprovide them with bulldozers to rebuild the firebreaks that have became overgrown over the last 20 years (these had become mandated “no-go areas” by local/State govts with the lobbying by Green members). With firebreaks, at least Firies have some chance of containing a forest fire. Without them, just read the news to see what happens !! We’re living it right now, and it isn’t pretty.
My concern grows as folk (no doubt sincere in their intentions) are encouraged to rally in large numbers to disrupt our economy – blocking streets and bridges in our capitals to “make a point” about climate change. And now we have those who point to our recent bush fires as being CAUSED by Climate Change….
Now wait a minute !! Who was it who locked up vast tracts of forests as National Parks, then didn’t allow the cutting of fire breaks even, nor any kind of maintenance? And who voted down the regular burning off of these areas to reduce the fuel on the ground caused by branches and leaves falling yearly? Some reports I heard after a decade or more of neglect were that fuels loads were “shoulder high” in some areas. How can anyone stop a fire that has THAT much fuel at its disposal?
And just what led to that happening? It wasn’t some arbitrary “Mr. Climate Change” – not at all. It was politicians and bureaucrats who should all be lined up to take responsibility for these conflagrations. The climate is certainly a bit drier than usual, but with lower fuel loads and fire breaks maintained in these areas, the fires would have remained far more controllable.
I have also heard it is ILLEGAL to clear around your own home in some of these areas? Now which idiots voted in THAT particular law? And just who should be on trial for the massive grief that their actions have caused?
It’s an open question people. It galls me to hear some politicians turning the blame onto others for “inaction on Climate Change” when they themselves have played a huge part in fanning the flames of the recent unstoppable fires.
Further reading tells me that our Earth has been hotter than today for 97% (yes, that’s right – 97%) of its long history. Our current warming event is line with earlier warming phases – but this one is quite benign. The Roman and Minoan warmings were some 4 to 6 degrees hotter than today.
The Earth continues to do as it does – so does the Sun, and so too do those who would have us wreck our economies to fight some elusive bogeyman instead of concentrating our efforts on cleaning up our act re plastic waste, the unnecessary felling of trees, and the custodianship of our wildlife. Let’s not waste too much more time chasing shadows.
Polar regions melt then freeze again – it happens. The Sun goes on a heating cycle, then cools a bit – it happens. If man doesn’t burn coal, then he burns trees and (in some cases) dung to keep warm or to cook. All of these release carbon, but some release far more….
Man does a lot of damage. One man with a D9 Caterpillar can devastate a small forest daily – 1000 men with 1000 D9’s can do a helluva lot more. WHY are we doing this? We need trees – so let’s spend some money on ways to re-afforest the place, and let’s not build our homes where we need to chop down vast tracts of trees (disrupting wildlife). And let’s look at phasing out coal in a considered, sensible, planned manner – without the bogeyman of “We’ve only got 10 years to turn this around” alarmism. I don’t know where that came from, but it DOESN’T help.
Let’s talk about sensible solutions rather than accepting the first wild scheme that comes along to “set things right”. Even planned things can have unintended consequences – and this current climate change rebellion sets in train a whole HOST of those.
I want to rebel against the extinction of commonsense and to suggest we sit down and have a huge round-table that covers what things are important, what are real, and what are realistic to fix. King Canute tried to “fix” tides coming in and going out – didn’t work for him. And I do tend to see “Climate Change” in a similar light.
I DO agree that the climate changes – always has – always will. But I don’t agree with the capitalised version as trotted out by fanatics. We can do way better than that.
Benny
Another week has gone by now, and virtually all servos have followed their brethren to their current highs (around $1.70). But, using that website, one servo is easily identified in my area that has not lifted. Thus, I can top up at $1.41 saving nearly 30c a litre. Without using the website, I wouldn’t have known, as they are on a road I don’t use much.
Check it out – you could save yourself a lazy $25 when filling up. It’s like trivago for servos !! :)
By the way, Perth seems to have stuck with “Cheap Tuesday” so no need for this procedure. But other major cities seem to have around a 3 week cycle, so it is good to be able to flatten out the sine wave a bit. Darwin, Hobart and Canberra are a whole different case altogether, so this may not apply to you either. The graph on petrolspy tells all.
Using a similar process it may be helpful for investors to determine a net worth $ goal and a date of achievement and then work out how much per day need to be invested/saved to achieve the goal, and then set about building a portfolio of assets to get there.
That is a great thought – I think it needs a little tweaking though as it is easier to get a small snowball rolling and picking up size than to be doing it starting with a large chunk.
In other words, finding $147 a day may well be too hard – to do, or to even comprehend, in the early days. The $147 is the final outcome worked back, for sure – but probably NOT how you achieved it. It would have been more like $30 a day in earlier days, then, with assets returning extra assets, it might be that you were stumping up $300 a day in the last weeks of your journey. KWIM?
Steve talks about a goal setting thing – I may not have it right, but it goes something like “Look to achieve 1/3 of your goal within HALF the allotted time for its completion”. This gives the nod to the fact that the early bit is harder to achieve while you are “building up a head of steam” in your asset building.
And, using your example from Michael Kemp, I did up an Excel spreadsheet that showed me that “$5 a day, and earning 8% Interest on your savings” would have indeed produced over $200,000 – but the first half of the journey would have produced just 1/4 of the final outcome ($55,000 of a $220k outcome).
I add all this just so others following aren’t put off by their “low figures in the earlier days” – that is just the way it all works. See, in essence, it is the interest that is compounding things – the total cash amount from 30 years of $5/day is actually less than $55,000. The interest paid provides the rest ($165,000).
In your case Tom, it will have been your good buys combined with rental incomes that is increasing your wealth over time (i.e. some savings, but perhaps a bunch more equity growth and rental income above expenses). Could you have realistically SAVED $147 a day (over $1000 a week)? Maybe in later days, but not in those earlier ones I’m picking. But anyway, well done you – and a great talking point you have put up there for us. I hope others share their thoughts too…..
Cool. So two self-contained units – one up, one down. Depending just where in Sunnybank you are, there may well be a need for doctors and nursing staff to rent nearby to the QE2 Hospital. Have you approached them to see how they are situated re “temporary accommodation”? Maybe QE2 might like to buy it – or, at least, they might show an interest in becoming permanent corporate renters of such a place. If so, that info would surely lift this place higher for any interested investors.
Or, maybe look at Airbnb accom for families who might want to be near the QE2 while loved ones are in hospital. If not close by, look at providing bicycles, or seek out nearby scooter parks they can utilise. Or, if they have vehicles, do you have vehicle accommodation for both units?
Sounds like you personally don’t want to hold it – but would you, if the return was better? Temporary accomodation is always a much higher return, but then it is more difficult (and costly) to manage.
Just a few thoughts. If still wanting to sell, drop me a line with more info…. I know someone who may have some interest in such a property,
Benny
Hi PBP,
Sounds good, but a bit of clarification please…
I feel the property would appeal more to a buyer of rooming houses (rooms upstairs and downstairs with own kitchen and bathroom).
Does each ROOM have these, or does each area (upstairs and downstairs) have separate kitchen and bathroom? If the former is true, this sounds like it is set up for MHO and should be a great cashflow possibility.
Hi Anae,
After a bit of thought, I think this needs a heap more info before one could answer sensibly – here’s why…. First let’s put some numbers around this scenario – these are a guess, and maybe nowhere near your own numbers:-
Example: You have a house worth $500k, with a mortgage of $400k, and Rental Income of $500/week ($26k pa). The mortgage is IO at 4%, so $16kpa – then add rates, Insurance, RE fees, (Body Corp?), Maintenance, etc and you would have to allow another $6k surely. Thus, income = $26k, and expenses of $22k, and you’ll see that expenses are thus 85% of income. Your figure of 40% looks pretty good at the moment!!
But then, are you doing an MHO-style investment (multiple tenancies in one house), where your rental is HUGELY increased? That could get you nearer – let’s say double the rental (it’s quite possible with MHO). The new figures then are :-
Example with MHO: You have a house worth $500k, with a mortgage of $400k, and Rental Income of $1000/week ($52k pa). The mortgage is IO at 4%, so $16kpa – then add rates, Insurance, RE fees, (Body Corp?), Maintenance, etc and you would have to allow another $6k surely. Thus, income = $52k, and expenses of $22k, and you’ll see that expenses are just 42% of income.
Other changes (cheaper house, or lower mortgage, or better rents) can affect these figures. But then, if you had a lower mortgage, it could also mean you have a lot of “lazy equity” in the property that might have been doing you better elsewhere. So in the end, it comes down to ALL the numbers and not just the expense to income ratio.
Wanna share some more numbers? We may be able to add some more relevant ideas (no advice, mind – but a good “talking point” for sharing ideas that might possibly work….). Great question by the way….
Hi PG,
$160k sounds low to me for a townhouse. What’s its condition, ‘cos a quick look at Woodridge’s median values over 5 years tell me it should be fetching more today. Add to that, Bne’s prices have languished these last few years while Mel and Syd screamed up. Bne missed out – is it yet to run up a bit as everyone gets priced out of Mel and Syd? Could be.
Meanwhile, it sounds like this should be cf positive, so not too hard to hold – is that true? Is it worth taking a hit on its capital value to allow a better purchase somewhere else? Could it be a candidate for a different letting style with better returns? Or is it in need of a reno? What if Bne were to grow 20% in the next three years – would that have you wanting to hold on, or do you just want it gone anyway? Tell me more…..
Hi Runnyman,
One issue that caught me some years ago (going 50:50 with another person) had my Bank “deeming” that each of us was to receive HALF of any rent, and yet each one of us was “jointly and separately liable for the WHOLE loan amount”. Killed it when going for further finance….
I suspect your situation may have at least that one problem area. Do check any intended moves with solicitor and/or accountant and/or financier BEFORE going ahead with anything. Too late once you are signed up.
Hi Cal,
There’s quite a bit to it – I suggest you get in front of a qualified adviser before going ahead with this. In a nutshell, there might be better ways…..
I’ve estimated that expenses relating to the investment are roughly $15K annually (inc. loan interest payments). Does this mean that $15K is taken off my tax bill?
The short answer to your question above is NO – expenses are not deducted from your tax bill. But expenses can become deductions; they are then subtracted from Income and less Tax is paid because of that lower Income. Of course, rent is added and that increases your Income too. Tax will be paid at your Marginal Rate after Income and Expenses have been applied to arrive at your Taxable Income.
A simple example for your understanding:-
You have a rental house – you receive rent of $10,000 a year, but have expenses of $15,000. Thus a $5,000 loss. This loss is subtracted from your other Income (presuming house is in your personal name) – e.g. you earn $80,000 as a PAYG worker. So taxable Income is now $75,000 and you pay less Tax because of the lower Income. Marginal Tax Rate is 32.5% (not including Medicare of 2%) so you get a Tax Refund of 5000 x 32.5% = $1625
You might be better off to sell and keep the whole equity gain to yourself (assuming this is your own home, so no Capital Gains Tax would be liable on sale). Then all of the profits are yours to keep, to use elsewhere.
Note, I am not a qualified adviser, so seek advice from those who are. Who knows – maybe someone else replying will be qualified and can add more value here,
Hi bb,
>>> “I will have tip in about $50k for the refinance to occur. I do have the cash to do this and it would bring it back to cashflow neutral on a P&I basis (Never again will I use an interest only loan) but will tie this cash up until I sell.”
One other option would be to put the $50k you have available in an Offset account against that mortgage. You’ve said that paying down that amount would bring the P&I cost back to “neutral” so the Offset would work similarly. (i.e. you would be paying Interest on $50k less than the amount actually owed).
The advantage of that (as against paying down the loan) is that any monies in the Offset are yours to use whenever needed. i.e. to take advantage of any screaming deals. Of course, as money in the Offset reduces, your interest payments rise again, but at least you haven’t given it back to a bank, so you remain in control of it.
In essence then, the Offset allows you to “pay down” the loan without actually paying it down. That could help you to hold on until better times come, or until you complete renos, or whatever else might work for you.
Hi I saw your post that you want someone to take over the course that you are currently learning, I would like to do that, but before I do I would like to know what is the price of this course, also when does it start. thank you I await you reply.
You seem to be referring to Jack19’s post. Let me help there – Jack had requested anyone who was interested to PM him – that means “Send him a Private Message”.
To do that, simply scroll up till you see “Jack19” then click on that name. On the new page that opens, select “Private Message” and follow the bouncing ball from there.
Hi Natalia,
It is an interesting document and could be of use to some on here. For mine, I found some of the indicators straight out confusing. Maybe you are using “urban planner” words that mean little to Joe Public?
The Hazards group is where I found the most confusion – one example is “Attenuation” – just what does that mean? Then there seems to be 3 indicators that could/should be grouped as one (Coastal Erosion/Inundation/Stormtide). Other than these, all the other indicators do look quite useful.
i cant seem to find your STEPS program. is it a course that i can purchase or is it just a forum? if you could please send me the link that would be great!
Hi mkl,
Steve’s new offering in that space is a vastly improved and super comprehensive product – STEPS. If you are interested in taking a look at this, go here:- http://propertyinvesting.com/course
Or for any other Product questions, call the office on 03 85920270,
Benny
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