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We use Suncorp in emerald, only jsut recently insured there and they do cover flood. I think Westpac was the only other one who will insure in Emerald.
Fantastic research moxi10. Makes me feel confident in my investment in Mackay (in my case in Plantation Palms). I never actually visited Mackay but you have done well to paint such a good picture. Thanks for that and good luck with your purchase.
Kate, I am really enjoying the course too. I am also 3 weeks behind due to holidays but am very excited to be part of it. Love the webinars and the notes are very comprehensive too.
We invested 7 months ago in Gladstone and happy with our puchase of a townhouse. Rang up an agent to see what it was worth and ask about the market. It has gone up probably $50,000 in value so happy with that. Seems townhouses are the way to go as most of the people moving there are single and not wanting the large garden. New places are preferred. Prices are very elevated so I don't feel confident to invest at current prices.
Also bought in Emerald in December and very happy with gross yield on fully furnished 3 bedroom, 3 bathroom house of 11.4%. Was told that in Emerald people are living in their cars and under bridges in Emerald due to the housing shortage. Our place is rented out to managment, who are only there Mon – Fri and have meals provided so a good deal. We also have a place in Mackay that is being built. I feel that the emerald purchase was our best deal.
All three of our houses have been new, might be time to take on a development project next. Others might be interested to know that we have found it surprisingly easy to buy 3 houses in 6 months. The bank just seems to keep lending us money due to two of them being nicely cash flow positive and one neutral. Shame we took 10 years of having equity in our home to do something about it but better late than never.
OK, sounds like a trust is the go. What trusts are people using and what are the advantages or best application of your trust? Thanks for your advise everyone, I am learning lots. Is a trust always set up by an accountant? My accountant is quite young and has set up trusts but not many. Does this matter or do I need an expert?
Hi Richard, we have not cross collatoralised and have 4 properties at present. I am surprised that it can be done so quickly. Friends of mine were told it would take too long and to not bother when they were in the process of buying a property. I guess we have been waiting to find out more before jumping in. We don't plan to sell properties often and we have mostly new properties at present and I think there is some issue with not being able to claim depreciation when something is in a trust? I have also got concerns about some tax issues with setting up a trust. I have heard you can be caught out if you set one up with the main aim of saving tax – you can be caught on this supposedly. Al of these things concern me so I have been waiting to get further opinion before jumping in. In the meanwhile just need to find out more about the 90:10 tenants in common and if there any tax issues with this set up and where we need it listed on the paperwork. The property is in QLD Derek.
Would love to hear more about using tenants in common and also trust set ups from other people. What are you all using when you build up your multiple property portfolios?
I think the trust will be the way to go for furture purchases but I beleive it takes a while to set up and the cost is a few thousand. We are actually buying at the moment so don't have the time for the trust..yet. Would you recommend a trust for us? We are husband and wife and we want to put together a mulitple property portfolio. Thanks.
Cert IV in Business, the course is property investing.
Terryw wrote:If you have non deductible debt then you should have the offset account on this loan. If you set up a second one on an investment loan you will end up paying more tax.That is what I thought Terry. Changing the subject a bit, "the Smart Borrowers Handbook" suggests that Line of Credit Loans can cause problems with differentiating which part of the loan is tax deductable once you use the redraw. It suggests an offset account is a better option. Interesting. I think Line of Credit loans can often have higher interest rates than loans with offset accounts too. I am finding this book quite interesting and would recommend it to others new to proeprty investing. It certainly highlights some of my mistakes that I have learnt the hard way. It covers loan strucuturing, buying property through super, choosing the right loan products, trusts, commercial finance……its very good.
I stayed at Pottsville recently and I noticed that there was a huge number of houses both for sale and also for rent. I checked the back of API magazine and noticed that the growth in these areas has been ave 3% over the last 5 years which is low. There is been negative growth over the last quarter. . Rental yields are pretty poor too. Perhaps there is an oversupply like its Norhern neighbour, the Gold Coast. I think there are a lot better places to invest.
I have one offset account where everything goes into and everythign goes out of. It is working for me but was just wondering if there was any point in having two offset accounts as recommended in a book I read. Sounds like 1 account is satisfactory so I will stick with the one account. Thanks everyone.
I just read in "Smart Borrowing Handbook" about using two accounts and I was wondering if I was missing something.
I did a free trial and their search engine is fabulous. I cancelled during the trial period as the cost was too much considering I pretty much know where I want to buy and I was not ready to buy for a while. They cancelled my ongoing subscription with no cost to me. Investar would be very useful for someone wanting to build a large portfolio or who is looking for specific deals. I think from memory the cost is $100+ per month to subscribe.
Cheers, JaniceHi Steve, will it be a correspondence course? Thanks, Janice
I use bankwest. Rate is 6.85% (no honeymoon) with no annual fee. At the time I took out the loans there were no application fees and 100% offset account with a minimal monthly fee. Only problem has been bankwest was slow to process my loans and I was late for settlement two out of two times! Living in remote WA didn't help.
Thanks Pinkboy. I bought in Plantation Palms, happy with this purchase too with all the new development – schook, and shops in the vicinity. Thanks for your info on Mirani and Marian. Will pass this onto my friend. (and wish I had more $$ to spend up on investing but have to wait!).
Pinkboy, I would be interested to see what areas of Mackay you recommend, being a local. I have a friend buying a house and land package in Mirani. I was thinking it is a bit far out of town but maybe it is closer to the mines? What are your thoughts? Cheers, Janice
I live out Pilbara, hubby is in mining. From what I can see the mining sector is booming and more and more so each year. As long as the mining keeps going strong then I don't think our economy is going to suffer too badly. In fact, in WA I find the general feeling is of optomism compared with in NSW (and Sydney) where I am orginally from. We didn't even feel the GFC where I live. With QLD now coming on board with some major mining I feel very optomistic and I wish Engelo all the best with his goal of owning multiple properties. That is my goal too, although I only have 3 at present. I will probably be trying to add a few positive cashflow properties and will be spreading my risk by investing in different areas. I certainly see property investing as a much better option than shares. Jackflash – what is your property investing strategy if it is not to own multiple properteis?
Portfolio PI wrote:camjanice wrote:Mmmmm, perhaps I should have bought in Emerald instead of Mackay. Will have to wait a few months until Mackay is finished then might look at Emerald again.Are you building there? Mackay is a little lower rental yields, mainly due to the land supply over the last few years. Your rent will grow in the short term in Mackay, however I dont see the yields on Capital value increasing too much. Still good capital growth to be had, one of the top places to invest in Australia at the moment!
Yes we are building Josh, should have house on land in northern beaches completed by March next year. It seems rentals are getting very tight now and rents are going up. Hopefully the capital growth will be good as you suggest. Also bought a townhouse in gladstone recently too with great rental yields. Love QLD at the moment, just might be in landtax territory when we buy another so will have to be careful! Currently live in Tom Price in the Pilbara at present but hope to move to QLD for our next mining stint. I have been watching your posts and have found them very informative. It is great that you are willing to share the information. Cheers, Janice
Mmmmm, perhaps I should have bought in Emerald instead of Mackay. Will have to wait a few months until Mackay is finished then might look at Emerald again.
