Forum Replies Created
Hi Everyone
We have been away for a while, but the News is only getting better, Bowen is warming and getting hotter!
We have sold five house and land in the last two weeks.
The sale price was $408,000 and HTW valued to the dollar as and investmetn property.
The developer is a special person who cares about a positive result for his land
BluegrassDid you all know that the capital growth in Bowen 'the town' has enjoyed a 20% growth per year for the past ten years!
Email me and I will send the article that has been researched to back up the statement.
I only sell stock in great areas and this is one of two I believe in at the moment!
[email protected]
BluegrassHi rekooh01
Bowen is the unsung area of North Queensland and on the coast looking at the Whitsunday's!
We are selling a lot of product up there at the moment.
If you hold interest in more info. please send me you email address and I will forward you our info package.
Regards
BluegrassHey JR
Give the FA the big swerve (or get Richard to give you advise) and go direct to the source off the investment property seller and have them sort it all for you.
They are being paid by the builder and that is what the good ones do for their clients.
I do not have an up to date A&L sheet so you can get an idea of your BC, but I am sure Richard would!
Regards
BluegrassHi Rekooh01
If you are considering an investment property the last place I would go is Ipswich!
The town at this point in time is full of investment properties and all the sharks that feed in the pool.
Granted there are some good opportunities but the rents are not so good and the capital growth is a little slow.
The mayor of Ipswich is a real go getter and he is doing all in his power to make it a great place, but until the new towncentres surrounding the area start there is going to be a slow period.
The corridor between Brisbane and the Gold Coast is a lot better and then there are the mining towns of the Surat and Bowen basins.
BluegrassJR
It seems again I an agreeing with Richard but he is right!
By the time you walk out of the FP's office if he/she does not like property they would have convinced you to buy managed funds or something similar that crashed through the floor in the last twelve months.
That said you need to talk with someone, I am sure there are wealth advisers and finance people on this site that can help and you will end up with what you want/need to make life easy for your kids future!
I can help with the property when the time comes, but realise that the property is only the product that you lend on.
If Red Telephone Boxes gave you capital growth and tax depreciation you would be investing in them.
Regards
BluegrassHi Kane
First up the defence houses are totally different to the NRAS.
They are rented by the Defence Force and used for personal.
The NRAS concept while needed is under siege from opportunists.
Granted you get the $8,000 at some time and the benefits of depreciation, but do you want to put yourself or your clients in a situation where the capital growth will be almost nil?
As wealth4life stated 'This will end up being another sub prime mess…….' I could not agree more!
There are so many great investments out in the market place that surpass this stuff like they are standing still!Bluegrass
Hi Carol
All investment property is is a brick money box.
So long as you buy in a good growth area (growth area = jobs, industry,transport, schools to name a few) your investment should return to you in ten years double your input!.
That said finding CF+ in towns that are established is difficult if you are looking for tax relief as well.
I suggest you buy new in the mining towns of the Central Coast NSW or Queensland.
I have product in Qld. that is CF+ four bedrooms brand new.
Remember it is a brick money box, you do not have to like it's location just it's purpose.
BluegrassSearch the web on ASIC for Parktrent Property Group, Cross Country Realty, Ron Cross and then as Bassa46 states Be Afraid Very Afraid!
JR
Go hard before your wife stops work, but use a finance company that is not going to make life 'repayments or increases in the IP' a burden on your lifestyle.
Make sure that what you buy is 'as Richard stated' neutral or cash positive'.
The rules are simple:
Use your equity for 20% of the purchase price plus costs and the remaining a loan on the IP.
Most banks ' I could be corrected here I deal in property in the main not finance' are happy to lend with your income and what would be considered a safe loan.
In fact you are most likely in a position to buy two done correctly.
BluegrassLets get back to the question!
KRudd has not helped anyone but Bruno!
This man 'KRudd' has bought votes for the next election two years out and we as a country have let him!
We had no choice as a nation the goose just went ahead and did it!
But look tonight at his next vote gathering effort 'Health'
He has told lies about what he was going to do and it amounted to nothing!
Opposition get of you date and do something before the country is a trillion in debt!
The hand out should have come in the form of giving the councils payment for your rates, reducing land tax, many other area better than a handout, give the renters (46%) of the population petrol, food and energy vouchers instead of the making the poker machine owners richer.
Granted there has been some effect but hey lets wait for the best yet washout of the package, CHEAP housing that has been reposed because the first home buyers could not afford the repayments.
BluegrassHi Molly
Cash Flow Positive is a company that sells a lot of property throughout Australia.
I sell property via them and many other companies like them.
They believe in full disclosure and whilst others may suggest you could save a few dollars by doing it on your own, you rightfully understand you need the knowledge to do this!
A software program http://www.somersoft.com.au was developed by a school teacher and her husband and they now have many properties.
Jan Somers is the lady and you could not go wrong purchasing her books and looking up her program on the web address above.
I and my finance colleagues are also happy to help, and yes I sell investment property!
Regards
BluegrassHey Jack
Can you replace the home on the land valued at $200k for $75k?
Is the home habitable?
How much do you want it after you know the answers to the two questions.
Other answers to questions!
Is it a rental property and if so how much can you get for it?
What is the capital growth in what period?
If it seems like a goo deal take the selling com. off the the price and the in's and out's.
BluegrassRC51
Buying new is going to get you a lot more tax depreciation.
Your problem will be the price point for new.
BluegrassHi Whitebait
A full turnkey price with commissions would be 930 – 1080 m2
The higher amount for less m2Hello to thecrest
The 40% is the return after costs on the rent.
Assuming that the rent is $800 per week on holiday letting and the costs related to holding are 60% of it, there will be a shortfall in the mortgage payment if say $300,000 was borrowed at 7%.The comment Negative Geared – Cash Positive comes from when a new property is bought and the rental income plus the tax depreciation exceeds the outgoings.
Eg I have some house and land packages in Chinchilla and the purchase is $326,900 and the rent is $420 per week.
When tax depreciation is bought into calculation and say joint income of $120,000 then the holding cost actually becomes a profit (the property returns $25.00 per week in the first year.
Regards
BluegrassHi tsarbla
You say you are searching for cash flow positive property and keep coming up with motel rooms.
That is because motel rooms on their own are hard to finance, hard to sell and hard to get capital growth out of.
There are many cash flow positive properties available throughout Australia that are a better bet than a motel unit.
If going the motel way you need to buy the business so you can control your risk.
Motels are not always full (in fact are very seldom at 100%) ad the rooms that are used the most are the ones easiest on the eye and close to the bar, pool etc.
Unless all the rooms are in pooling there is a chance you unit may never get rented.
Also my experience tells me that the return to you will be no greater than 40% after all the costs of admin, cleaning, insurance, maintenance, management fee etc.
Be aware, do your research, and when completed you should be buying a negative geared cash positive property ahead of a motel unit.
Regards
BluegrassHi All
NRAS is a good idea by the government but make sure you check out all the tax benefits and the holding cost to you.
As one contributor stated if you want out before ten years you may have some heart ache.
Also remember that if the rental is stated at 350 per week you have to carry 20% of this for the next year, you cannot get it back (as I understand it) via the ITWV form!
The other situation to consider, is that a large amount of this stock is being sold in apartment blocks and then rented.
Experience shows that a complex 100% rented will not gain the capital growth you could expect from say a duplex or stand alone home or maybe a unit in a complex with a mix of OO and rentals.
Even stock like I have at Chinchilla would show a better capital growth in my books.
Research you purchase long and hard.Bluegrass
Hi All
I build and sell investment properties and I can tell you that if there is a rental guarantee you are paying for it.
I do not know the comapny you speak of. I am in Queensland
BluegrassHi benhiggins
I would suggest the RTA in your state to cover your bases.
As a general course of events in Qld you cannot accept rent if it does not conform to building standards.
That said I would beat it has been rented in the past!
Bluegrass
