Forum Replies Created
Hi anhie
Get a good finance investment finance person to give you the right advice.
There are a couple on this forum, but there are others.
What part of the country are you in?
BluegrassHi kasd
Not knowing where the land is, you are on a hiding to nothing if you do not have the finance and you want to keep it.
There is a great saying, ‘never plant a tree in another mans yard’!
If you want a JV partner make sure they are family and family you want to be in business with.
You have the upper hand in that you have the land, work out a way to move a house there, put a demountable there without you using anyone else’s money. It will be best for you.
Finance I cannot advise on!
BluegrassHi Renoah
Lets look at what you have been offered if it is a permanent rental!Here is what I was quoted which is essentially 8.5% + GST + a bunch of other fees: – For standard it should be 7.5 + GST
Rent collection commission: 5% + GST – Should not be happening
Management fee: 3.5% + GST – Shoiuld not be happening
Letting commission: 1 weeks rent + GST – Standard, but be aware of them renewing a lease every six months
Lease negotiation/Renewal Fee: Half 1 weeks rent + GST – Should not be happening
End of financial year statement fee: $25 + GST – Should not be happening
Postage and Petties: $10 per month + GST – Can vary but appears normal.
Advertising/Marketing fee: At cost (?) – Needs to happen if the property becomes vacant, but a goo agent would not let this happen.
N.B. Many of these fees are tax deductable. Buy this months API mag, great extra article on tax deductions.Any one have any tips on best areas to negotiate down on? Commissions or management fees? Or pay those but reduce other costs?
Thanks for your advice!Email me with your property address and I can put you in touch with a couple of companies.
As per my previous post, the worst it should be is under 10%, but some of the companies my clients go to are 7.5% flat rate!
Regards
BluegrassHello again Bonnie
Finding a reputable Finance Company is no different to finding the best baby sitter or motor mechanic!
They are everywhere, but as you may have seen there are some companies that are always on here.
They are still here after a few years and they do not get too many complaints (written here).
I do not know these companies, but they make the comment and appears to guide other in the right direction.
Send an email to them and make you judgement.
I build houses and guide my people through the problems of building.
Investing in property is 95% about the figures.
If the figures do not work and the company giving you advise on depreciation don’t, don’t go there!
Regards
BluegrassHi Renoah
The standard rate is 7.5% + GST, plus post and petty’s, inspections and one weeks rent for every contract signed.
There is better rates available if you shop around.
I know of a few good companies, where is you IP?
BluegrassHi Rich
As builders we recently went through this scenario with someone from the army.
That fact is the amount of money you save by getting the 1st home owners grant pales into the background compared to the benefits you receive from the government as a defense personal.
What we did was give back to the client the $6,000 we had allocated for marketing and commission.
This meant the client got what they wanted and only missed out on $1,000 from the 1st home buyers grant.
Regards
Bluegrass
0449 905 797Hi Lulu1
There is no need to buy reports.
Deal with a finance company and a builder that has done there research.
Set up google alerts on your computer for BIS Shrapnel, they are recognised forecasters for property. They have good and bad reports.
Also have a look at property investment websites, as they have often have news!
Another site that answers your questions is http://www.raspinvestment.com.au
Regards
BluegrassHi Bonnie
As Richard stated, they are as sure as god made green apples a marketing company is telling you what is best for you.
Deal with a reputable finance company that knows how to protect you assets and therefore give you the best option to create some more wealth.
The more people you talk to the more confused you will get.
Talk to Richard!
Look at this site http://www.raspinvestment.com.au to answer your questions.
Regards
BluegrassHi BillyBob27
Your confusion will only get greater the more people you to talk too.
Find a finance person who knows the industry (some do not) and listen to them.
Once you have the info, do not look around too much for what you believe to be the right property as this will increase the confusion.
If you send me an email I can give you a name of the company we use.
They are very good.
In fact they put one client with gross income of 45,000 into a 328,000 property, no problems full doc.
Regards
Kevinwblack
The only question is, why all of a sudden is it being sold?
Does the owner need money or does the building have a structural problem and the owner is trying to reduce their exposure!
RegardsHello again wblack <moderator: delete advertising>. There are lots of positives and a couple of concerns when buying an IP. The positives always out weigh the concerns, but just get the concerns answered. The biggest concern is 'will I rent the property out'? Yes you will even if it I below what you want, the property is rent-able Regards
wblack
I would be looking at a lot of things before buying on a block of units.Body Corporate
Sinking fund
Condition of the exterior of the building
Age of the building and how high it is
What can go wrong, e.g. if there is a pool what is the condition of it, what is the condition of the balcony railings etc.
Who is managing the unit
What maintanece has been done on the unit and what is requiredI am not trying to scare you, but if the sinking fund does not have enough money in it for repairs etc. then the body corporate can attach a levy to each owner to get enough money.
An exapmle is a 20 storey building on the gold coast, a levy of almost $10,000 was attached to each unit to repaint the exterior and replace the balcony rails.I build house and units, but I would only ever buy a new unit.
Email me if you want more info.
RegardsHi Losty
Subject to your income and weekly budget the more you can afford to use of your equity up to 20% of the investment property IP the better your life becomes.
Remember that the bank will offer you the opportunity with a 10% deposit of the IP, but they will also consolidate the loan into one. Meaning if you fail on one you fail on both IP an PPOR.
Get advise from a well experienced property investment finance company.
Purchasing an IP is 95% about the figures!
Email me and I can put you in touch with such a company.
Regards
Kevin
0449 905797Hi Reeen
Yes tax relief is depreciation amongst other things and you can claim it weekly if you set yourself correctly. A tax form call a ITWV is available on the tax website.
Your questions are best answered by a finance person. Another company you can look at is australianpropertyonline for advise. This company is not mine but the owner is very well versed in property investment finance and I have used them.
KevinHi Reeen
Talk to a Property savvy investment finance person.
Your thoughts are good ‘insofar’ that you are looking to invest.
Be aware that if you are purchasing a older building the depreciation ‘tax relief’ is limited as opposed to buying new even though you are looking to develop the block.
We are builders and sell a lot of investment property in Queensland ‘present day nearly all waterfront’ sic, and history has shown that those who venture into doing something ‘developing’ they know little about or have gotten the wrong advise hurt, whereas the people who let those who look after them more forward without any pain.
Remember that most properties ‘until present day’ have doubled in seven to ten years and all you have to do was use other peoples money when buying new. Yes we sell new not used!
@BluegrasspiHello Wattoette
Cash flow positive property is only going to make your tax more.
If possible always buy new.
EG if you buy new at say 400,000 and you and your partner earn over 140,000 your new taxable income would be approx. 106,000
Qualified investment finance people can give you an exact figure.
I can help with all your answers.
Regards
KevinHello Want to Invest
Use the equity to do a spruce up on the IP and gain a bit of depreciation on it and go buy a couple of new IP’s.
You are in a good position.
Make a consideration of a display home with a guaranteed rental return for a period of three years and another property in a different location.
We can help with your sums.
Regards
KevinHello Investhut
Get the right advice from a finance company who know investment finance.
With your income you had better watch you do not increase your threshold by paying into an old fibrosis home ‘which will b e very short on depreciation’.
My suggestion would be a new home that is close to cash neutral and whilst your wife is still in work, that will be easy to achieve.
I may also suggest a display home in a display village with guaranteed rental income for a period of one + one + one.
Send me an email and I can send you figures that you can work with.
Regards
KevinHello Larry
It also depends on how much your deposit is.
There are many companies out there stating cash positive, but why use your money ‘savings’ when for a small amount per week input by you you can use other people’s money.
Get the right advice.
KevinThere are a number of criteria to deal with when looking for a good working IP.
As land holders and builders we look for the following:
Schools (Primary and Secondary plus the draft plans for more)
Shops (Local corner store and centres)
Public Transport (Trains and bus routes)
Close to Main Roads ( not close enough to be driven mad with noise though)!
Close to Freeways (As above)
Affordable rents
Plenty of work (Old work and new work)I see that you want to get positive geared.
Positive geared is not always the answer!
Remember positive can impact on your taxable income in a negative way.Happy hunting
Kevin
