buxton

the normal way to use a cap rate and known net rental income stream to determine a properties value is thus:

Net Rent / cap rate % = value

for instance…net rent = $12000, cap rate = -8%

therefore…

$12000 / -8% = -$150 000

so in fact, you would have to give me your property plus $150 000 cash.

not looking too flash i expect, alternatively, the above posts make (more) sense.

cheers

brahms
Purveyor of Fine Finances
aka Mortgage Broker Brisbane

yep, anz will do 95% and cap MI to 97%.

cheers

brahms
Purveyor of Fine Finances
aka Mortgage Broker Brisbane

sure, if its really quirky then there is a higher liklihood you’ll get burnt – if the design and construction is relatively standard and appealing to a majority of buyers in that market, it will recieve a positive responce from the market.

ultimately you have to compare other properties that are for sale and have sold to what your finished product will be in order to make a valid judgement of end sale price (and then you have to work with offers from the market).

cheers

brahms
Purveyor of Fine Finances
aka Mortgage Broker Brisbane

jparsons – people use this jargon a lot, it’s a bit of a nonsense really (promoted heavilly by realtors of course) when you consider –

– comparitive populations of Syd, Mel and Bris
– comparitive economies of each

Brissy is a great place no doubt, but now that our medium house price is neck and neck with Melbourne, and our population isn’t half of Melbourne, B = 1.7m M = 3.6m, i feel there is a bit of a discrepancy, Maybe Melbourne is cheap.

Qld net immigration is great, so long as they aren’t all disenfranchised brain dead unskilled welfare dependant loosers moving here to get a better tan due to our ‘positive sunflow’ status.

Or worse, thrifty old retirees who glut up our roads doing 47.5k’s, turning left from the right lane with miserly useage of turning indicators!!

I have seen research indicating Qld is suffering a brain drain to the southern states….simply put, the good money in Australia ain’t north of the border.

Infrastructure….mmm, i’d say its poor at best(we simply have a smaller population spread over a larger geograhical area – Brissy is the largest city ‘geographically’ in Aust. – in terms of infrastructure this isn’t a good thing).

We have a skeletal rail network, no trams (a very sad day in 1968 when our learned forefathers dispensed with what is now sorely missed), and a heavy reliance on road transport which has not been supported by any significant roadworks, icb being the only real ‘net’ improvement in 15 years.

granted, there are some great planning initiatives in place….now

Having said all that, i’m not going to sell any of my real estate up here either, long term prospects are really positive – i just think a balanced view is needed sometimes. And i haven’t had a coffee yet, so i may come back and change everything….

cheers

brahms
Purveyor of Fine Finances
aka Mortgage Broker Brisbane

Rob, its

et al

. adv 1: used as an abbreviation of `et alii’ (masculine plural) or `et aliae’ (feminine plural) or `et alia’ (neutral plural) when referring to a number of people [syn: et al, and others]

cheers

brahms
Purveyor of Fine Finances
aka Mortgage Broker Brisbane

i’ll save you the wait…have an early night after drowning your sorrows, or should i say ‘blues’

cheers

brahms
Purveyor of Fine Finances
aka Mortgage Broker Brisbane

as your looking at ‘deductible’ debt – many like to maximise this area as opposed to using their own cash – as Terry indicated, you do this by using equity in another property, either by cross securitising them, (please no howls of protest, we’ve done this to death and back) or by accessing the equity in a separate loan.

even if borrowing costs etc are deductible, its still commercial to find a loan with –

low entry costs
low ongoing costs
low exit costs
competitive variable and fixed rates

(the last two don’t always come together, which is pretty annoying if you want to fix the loan
later on)

cheers

brahms
Purveyor of Fine Finances
aka Mortgage Broker Brisbane

cutegirl

also, you may be looking at ‘managed apartments’ – where you have a long term agreement with the managing agent (in house).

the apartments are generally run like a motel, short stay etc. in the cbd.

i have clients who net considerably more month in month out with their managed apartments than their standard suburban long term rental properties.

some buildings and some managers are better than others – sometimes significantly better – this variation is what causes lenders to be more cautius when it comes to financing.

re 3000 apartment market – it appears that despite the ‘cbd’ doomsayers, the market has absorbed significant levels of new stock, both rental and sales – as mentioned above, i look at it on a building by building basis as opposed to a blanket approach.

cheers

brahms
Purveyor of Fine Finances
aka Mortgage Broker Brisbane

hi Terry – what do you think the primary motivation would be to do this – i’m sort of thinking it could be used to minimise cashflow whilst maintaining (or slightly worsening) debt – but a method which could significantly support additional borrowings in the short/medium?? term.

To my knowledge i haven’t seen anyone do this, but it is certainly a very interesting concept.

i would think that someone doing this wouldn’t care two hoots on the tax deductiblity situation as such, but relish in the retained cashflow.

any thoughts along this line?

cheers

brahms
Purveyor of Fine Finances
aka Mortgage Broker Brisbane

thats a great question for your lawyer – you could also…no, there is little else to add to that.

cheers

brahms
Purveyor of Fine Finances
aka Mortgage Broker Brisbane