No that's not Off the Plan. It's just a house and land package. Why are they saying they are wholesalers?

Just compare the land + build price with the cost of buying a built house.

Do your due diligence to see if there is value in it. I wouldn't let the word "wholesaler" lull you into a false sense of security.

Freckle wrote:
It isn't rocket science. Both principles of BI can do this stuff on the fly in their head because they've taken the time to learn and practice the skills required. They have a very aggressive approach to PI and think outside the square when looking at deals.

Neither employed others to do their leg work that enabled their success…[Read more]

So you are talking Off The Plan? 

Hi, when calculating whether a property is REALLY cash flow positive I count ALL costs to me. I borrow 105% so calculate that. But even if you haven't borrowed all the money you need to calculate lost earnings.

i.e. You have paid $38,052 out of your pocket (does that include solicitors costs, building reports etc)? This should all be…[Read more]

If it was the Northern beaches your thoughts make sense but this is the western suburbs. There are lots of suburbs out west where houses can be built. I don't think people HAVE to live in St Clair for example.

Vent away!! That's property investing. Expect the unexpected.

I'd also offer the tenants (if they haven't asked) some compensation for the inconvenience. Even if it's a bottle of wine and chocolates. Cheap in the long run considering you could have lost a weeks rent. And they will always remember that when things come up in the…[Read more]

I have seen some and I think it's a great idea to get people in the door but I don't think it will transfer to sales as when the person arrives at the house it will be a letdown.

I think it's better to pay for staging the house or even to put a few pieces in yourself.

If it's cash flow positive why is serviceability as problem? If it's putting money in your pocket every week the bank shouldn't have a problem. 

Or is it only positive on paper? And admittedly the banks usually only count 70% of the rent.

You would have to work out what's fair with the other person. If you are putting up the cash and they are…[Read more]

I would switch to interest only now. Put excess money in an offset if you have one or put it aside for when you buy your new home.

You are better having the current loan high and your new loan low as it's not tax deductible. Also take money from the loan to fund the build (or apply for a new loan) as it's also tax deductible. Do not use any of…[Read more]

I think you've missed the boat. Western Sydney has had great growth in the last few years.

Property is very hot out there and things are flying out the door as soon as they hit the market. You'd be hard pressed to get a decent price now.

As regard to growth I think it still has some more growth there. This may be wishful thinking as I'm going to…[Read more]

Hi, it needn't take 10 years, although that's a "typical" property cycle so that's what most people look at.

You can  beef this up in different ways.
The simple ones being buy and renovate. By doing this you can have increased equity and be CF neutral or positive from day 1. This allows you to buy again straight away. You can just keep buying…[Read more]

Yes but in order to get finance you have to have insurance.

When they ask is it habitable and you say no then that is recorded on the insurance. The bank will see that. 

It involves more than just sitting and waiting for rents to rise.

Rather than repeat things that are in many places-  Type "Living off equity" into google.

There is lots on it.

Type this into google for lots of Living Off Equity dicussion threads.

site:somersoft.com "LOE"                               Look for comments by Rixter. He's been…[Read more]

And same to you and everyone.

Looking forward to this year.

For general I base it on ALL purchase costs (eg purchase + stamp duty + buy costs) and rent.

But you need to compare apples with apples. For example a unit may have a higher yield than a house but have high strata fees.

Yield is just a number, which in isolation doesn't mean much.

I'm more interested in the whole picture. Money in/money out.…[Read more]

APWPG wrote:
Hi Catalyst, most financial advisors will try and sell you insurance product thats what they know , i only belive in people who have done it themself .Street smart people are the best ones ,and ofcourse later down the track you will need good property servey accountants ,they are hard to find but there are some out there .
 

Yes I…[Read more]

jmsrachel wrote:
$7k for a seminar?? How can they justify the price?

That's pretty standard these days.

They give you LOTS of paper- and usually a weekend workshop. Most offer follow up and some mentoring. They do them often as they know that usually only 10% follow through.

I've never paid for a workshop but I've been to a few free ones.…[Read more]

Or you could renovate and keep. If done well you will have increased equity and be CF+. Then you are in the perfect position to do the same again and again.

That has been our strategy for the last few years.

Granny flats are all the buzz in western Sydney at the moment. It seems everyone is trying to put a granny flat in their backyard to increase yields. Sometimes it's good, sometimes not. It depends on privacy of the 2 tenants. Sometimes the house rent will drop considerably and be difficult to rent.
If there is privacy for both tenants this is not…[Read more]

The pushing is over the top but why not just go and have a look. Unless you lack the willpower to not sign you've lost only a few hours of your time and you may gain some valuable insight into areas to purchase in etc. AND you can network with like minded people which could prove beneficial.

Nothing to lose, something to gain I think.  Keep your…[Read more]