Forum Replies Created
I believe the changes to depreciation do not apply to investment properties.
I thought you needed to be a Licenced Real Estate Agent to do Property Management? If this isnt the case I might start offering this service up in the NT!
Missed out on the deal. It’s already under offer/contract now. Was only on the market a few days. I guess you really need to have cash ready the minute you find these deals.
Actually, I draw back of equity will probably be better.
Richard,
I am very interested in persuing this further with you. I can very likely come up with 15% of $430,000 as a deposit from the sale of one of my IPs in the area, and cover additional costs for the aquisition. Im not too worried about the higher interest rate as it will be an asset that will appreciate in value reasonably quickly.
Borg.
What’s the max LVR?
Hi Richard,
The figures are as follows:-
6 2 br units close to CBD asking price $430,000
Yearly income from rentals $57,000
approx gross yield 13.5%
area has shown 12-15% growth in last 12 months.Borg
Mortgage Hunter,
Your wisdom on these forums never ceases to amaze me.
Borg
As far as I am aware a “captive rental population” is where Demand outstrips supply. EG there are more tennants than there are properties available. This creates pressures in the market… sometimes this means that rents go up, or that tennants may be more willing to sign a longer than normal lease, in order to secure a place to stay. This is just my simplistic take on it, and Im sure there are other ideas out there on what this means.
Borg
When Im asked my price range, I usually say that I’m chasing the return and not limiting myself to a price range.
*BUMP*
Im interested in investing with this Joint Venture in the USA. Is their any further info available?Thanks,
BorgInvestor
Swifteagle,
Positive Cashflow property straight off the cuff is a rarety indeed at this point in time. EG:- buy a property for $100,000 and rent it out for $200 dollars a week.
There are however, opportunities around where you can increase the value of the property through rennovations or additions that can increase the base rental to nudge your return into the positive.
You’ll find that the 10% return figures can only be found out of the box so to speak with higher value property such as large commercial premises which has a purchase price in the several millions. Not to mention the lower borrowing usually max of 70-85% LVR.
There are “bird dogs” around that will help you out when it comes to finding high return investment properties, and they charge a certain percentage of the deal as a fee.
BorgInvestor
Im currently with Wizard home loans for all my loans, who dont tend to loan money that isnt secured against a property. I’ve been referred by them to TIO, who apparently are quite good with commercial/business loans.
I’ll let you all know how I go this coming week.
Thank you all for your replys. I very much appreciate your insight into my situation.
Mortgage Hunter:- with a top up to 95% of all properties I have access to approx $120,000. 120k is an estimated value based on the current value of all IP’s and PPOR combined and multiplied by 95%. I’m under the impression that this can then be capitalised up to 97% including LMI.
The real estate component of the business is listed as valuing 30k and doesnt specify whether building or land is involved. I will have to ask for further information on that one. Even then a loan secured against that appears not to be worth the effort as it’s quite small.
Stuart:- Using the x2 $35K personal loan idea, would it be more likely to be approved if one of the loans is under my name and the second under my wife’s name? As we are both going into the business together, and the loans may be looked apon more favorably?
Hb:- I need to get further clarification from the current business owner as to the assets being sold with the business, as this is a bit vague on the Balance sheets/asset list. Looking on your website it looks like I would be able to loan against 60% of the value of motor vehicles in the business, and 50% from other tangible assets. This increases my options available for finance.
BorgInvestor.
Up to $9000 Pos Cash flow p/a so far. Going strong!
Borg
Hello there!!! Before you make any decisions I suggest you read a book called “Rich Dad, Poor Dad” by Robert Kiyosaki. Very enlightening book, and good advice too. (I have a loaner if you want it)
Borg
I have lived in Darwin since 94. The market has really heated up especially in the last 12 months, and Palmerston in the last 6 months. As we are still well behind many of the other capital cities as far as price goes, it doesnt look like the market will level out for a while yet.
Borg.
I’ve been to Mt Isa on my way through to other places a number of times. It’s main economy appears to be mining. In the last 12 months, the price has been pushed up across the board a fair bit. I can only summise that this has been due to out of town investors. You may find some good deals around there still. But I think (and this is only my opinion) that the bird has flown the coop on that one!
Borg.
Im sure you’ll find some interest here on these forums… Can you provide us with details? Failing that you could always advertise it in the local papers.
Borg
I live in Darwin. Housing prices have surged ahead in the last 12 months in both the burbs, and Palmerston more recently. The last three auctions in Darwin have been interesting to say the least! I may be interested in a joint venture.
Borg
