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I also received a property report that I am hoping to purchase and it has been extremely helpful.
I would recommend everyone to use this service if they are looking to purchaseWould definitely have to agree with Jamie, there is no reason why you can't enter the market and still enjoy a good lifestyle
I purchased an IP when i was 22 (am now 24), with significantly less savings than you have, lived in it for 6 months to satisfy the first home owner requirements and then moved back in with the folks and rented it out. It is currently costing me about $70/week to hold so no real dent into my disposable income.wealthyjvd wrote:Thank you kindly for the advice Simon!I have been hearing generally good things with re: to the Frankston council and very few hiccups that i guess is apparent in all councils which is good to hear.
I may have to play devils advocate and say that my experience (have completed 2 town planning applications with Frankston Council in the last 12 months) hasn't been overly great. The time taken to approve the permit seemed way too long for the relatively simple developments that i was proposing.
Also, when i obtained the permits, there were conditions on one asking that I move the propesed new dwelling closer to the fence line, which i found totally ridiculous. I ended up dealing with the head of the town planning department and he admitted to me that the conditions placed on the permit were incorrect.
My advice, get as much info from council and town planners as you can regarding the development, because if you go in under prepared the time/budget blow out can ruin the final outcome
If you have any other questions happy to discuss
Good luckHi Scotty8911,
I too recently faced this decision and started a similar post. See https://www.propertyinvesting.com/forums/property-investing/help-needed/4335319 for a number of the responses.
As you will read, it really does come down to what you want to do at the particular point in time. Have of read of the above thread, and weigh up what is most important to you at this stage
Hope this helpsJake H wrote:Catalyst you said I wouldn't have to negative gear it if I do a good Reno, but I thought it was good to negative gear as you got tax benefits. Or am I misled?Jake,
As a most of the investors on this forum will tell you, receiving tax benefits should really be seen as an added bonus of your investing, not a reason to invest.
If you use negative gearing, you are required to pay the shortfall between the rent and repayment using your after-tax dollars. Although this can give you solid deductions at tax time, it also limits the number of properties you can purchase because eventually banks will not lend you any more money due to servicability (your ability to repay the debt) factors.
Hopes this makes sensescotty8911 wrote:One last question I have, is there a rough set of guidelines for doing your due diligence? I know it includes doing your research on the area, owner occupiers vs. investments, people per household, infrastructure plans, but sure enough when doing research you will overlook something, possibly a big factor in returns, so is there a book or a site that recommends certain research and a list or the like?Margaret Lomas has a book called '20 Must Ask Questions for Every Property Invester' that outlines things that should be considered before you buy a property. This book is a good read and seems to be popular with other investers.
CheersBlitzad wrote:Growing wrote:Bank savings: 25kJust a quick note, i believe he said that he has 25k in savings, this is a good start i would have thought. I am not sure, i am only new to this investing too. Cheers, Blitzad
Agree with Blitzad. When I bought my first IP, I had been working in my job for about 4months after finishing uni and had saved about $14k. I was eligible for the first home owners grant so this was added to my savings but still, the $25k you have saved is definitely a good starting point.
I would recomend speaking to a mortgage broker and see what you can borrow to start off with, then go from there.
Good luchfda wrote:blairmason17,
For a 2 x double storey townhouses in Donvale on a 690m2 lot, they quoted $25,000 for everything is needed for a town planning permit and building permit, plus arrangement for builders and weekly site inspection by the project manager.
Shoot them an email and let them surprise you! Get them to do a free inspection and quotation and you got nothing to lose right? I will PM you with their details might come handy for you in the future.
That actually seems pretty reasonable. Does this include the plans/drawings for the development or just the items you mention (town planning, building permit and site inspections/management of contractors)?
fda wrote:hI bbasdg,In terms of dealing with designers and builders, I always find it easy to have someone that is a one stop shop who takes care of everything from start to finish as it saves a lot of time and hassle. If you are interested I can give you some contacts, the guy takes care of all town planning, architectural, engineering, building permit and arrange for builders for a fixed fee.
hope this helps!
Hi fda,
I am currenlty finishing off 2 sud-divisions and although should realise a solid equity gain, I feel the project has been delayed because of issues with organising all the different parties (draftsmen, town planners builders etc) and was thinking for my next project i would like to use a company that does everything for me (as I am still working full time and don't really have the time)
My question to you is, does using such a company eat into your final profit? Surely these types or companies charge you a premium for what they do?
Any comments would be great.
CheersScott No Mates wrote:The rates notice valuation (in NSW) bears very little relevance to the price that you might purchase the property. It is used solely to determine how much you will pay for council rates & services.It does not take into consideration the house or other improvements on the land which may exist.
This is the same in Victoria
I believe this is a response to NAB's offer of paying exit fees for Westpac and Commonwealth customers to make the switch.
Hopefully such offers continue to come out so we dont have to pay these feesluke86 wrote:It is possible to get positively geared properties in capital cities, but you cant just go to the "Positivley Geared Property" shop and buy one. You need to create one by doing something out of the oridinary to bring the property up to its highest and best use- then you can gain maximum returns from the property and make it positively geared.Luke.
[/Luke makes a very good point, to obtain positive cashflow in the city needs some creative thinking. One strategy that i have seen used successfully, (by my partner's father) is create as many incomes as possible from the property. things suchs as converting a bungalow into a self-contained flat, or splitting a 2storey house and renting out the top and bottom levels seperating are ways positve cashflow has been achieved by receiving more rent]
Hi Laurie,
As you said everyone seems to have an opinion and are always happy to offer their 2 cents.
I am also a young investor (24yo) and have been fortunate enough to purchase 2 investment properties, both of which are in Frankston North.
Similar to you, when i was looking to purchase everyone i spoke to had a different opinion and told me what i was doing was far too risky, wouldnt have good growth, tenants will trash them etc.
Well 2 years later and I have had no problems, tenants always pay, and values have increased.
The most important advice i could offer would be that just get into the market as soon as you can (so long it is not a stretch on finances). do your research and due dilligence and then just take the plunge.
Good luck!joshkay83 wrote:Thanks jamie for your post!I guess its all about timing and deciding on a strategy. We live on the Gold Coast in Qld but wont rule out investing interstate or regional Qld.
Hi Josh,
Jan Somers makes the comment in one of her books that regarding real estate, it is all about time in the market, rather than timing the market. I am of the opinion that if you have the capacity to buy an IP, why not do it. If you plan on holding it for the medium-long term then there is a good chance you are not going to lose out.
Especially if you are relatively young, the earlier you can start the better i feel.
Just my two cents
Hope everything goes well with what you decideHi BigTeddy
The landlord would pay for the water service and the waster water service, with the tenant only paying for the water usage (well at least in my experience this is the case).
The water service and waster water service bills would of course be a tax deductionHi Lesley,
I posted a similar question recently on the forum. a few people got back to me and similar to scott no mates words, it really comes down to what your lifestyle needs are. if you are happy renting (with the possiblitlity of being kicked out because the landlord sell etc.) then this is fine.
if you would selling up and renting would make better sense financially then this should be the path you go down.
have a look at the thread and you will see more details of the pros and cons
hope this helps
https://www.propertyinvesting.com/forums/property-investing/help-needed/4335319?highlight=rent%2Cvs%2CbuyHi Ryan
I discussed this last night with my partner and i think we have decided that buying a PPOR is the best option for us.
She wants the security (as do i as well) so buying a PPOR will provide us this. Like some of the comments above has suggested, i think we are going to look at buying something that we can add some value to (which we have some experience in with our first two IP's).
thanks for all your commentsryan mclean wrote:An interesting thing that I found out the other day.Robert Kiyosaki (who Authored Rich Dad Poor Dad), who preaches positive cash flow property. Bought his home before he invested in any property.
Jan Somers also outlines buying your own home first and paying off the debt ASAP in her 'More wealth from residential property' book.
Interesting way of looking at. I think if you have the descipline to pay down your own home loan, then this could be the best way to go.Thanks Jamie,
I will definitely look into these!Hi FF, I am currently undertaking 2 subdivisions with the Frankston Council and have found the process to be rather time consuming.
Both projects are a simply subdivision, keeping the existing house while building a 2 bedroom townhouse at the rear. I started working with a private town planner in Feb 2010 and have only received permits within the last couple of weeks and these permits have conditions on them (such as landscape plans and stormwater detention plans) that must be submitted and approved before any building can commence.
I agree with other posts, get a good town planner that has completed this process with the frankston council and be prepared for it to take some time, especially because you are planning a 6 unit site.
Good luck with it!
