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I'd ask to see it in writing where it says if they make a mistake they can ask for money after the fact.
A friend of mine noticed a small mistake once and the solicitor said too bad, too late.
As mentioned you need to separate the original $380K loan from the money you will use for your PPOR. If you don't you will have issues with the tax department because it will be part personal and part investment.
I'd change the $380 to interest only NOW. You don't want to be paying down deductible debt when you will have non deductible debt in your new PPOR. Always pay down non deductible debt first.
I'd speak to a good mortgage broker ASAP.
Josh Atherton wrote:The construction of new houses is not really an indication of a booming property market, it is more an indication to the success of property marketers.So true. I remember Sydney 2002. Developers were building like crazy to catch the craze going on. Resulted in some shoddy work due to the rush and then the boom ended. People got caught with a property finished after the boom and not worth what they predicted. Plus a declining market and then years of no growth.
Unless you can predict a property boom before it starts I'd be wary of OTP.
Yeah we've been saved a few times from getting the sizes wrong. My hubby thinks I'm going a bit far asking him to hold up cardboard while I pretend to have a shower though. LOL
We fight over shower sizes. I like room to move.
Tell them to go away. It's their fault if they didn't get it right.
If the buyers solicitor made a mistake it's up to them to make good. Of course he'll try to get you to pay it.
They aren't going to go to court over $622.
I wouldn't call that a third bedroom. It looks tiny. What will the size be? Looks less than 2m X 2M. Ok for a study I guess.
It's difficult to assess the width of the kitchen. Have you looked at the distances between the cupboards and the island bench?
I'd be drawing out on a floor somewhere and walking it. We do that with bathrooms to see if it feels right. We just draw it on the garage floor. Sometimes it seems fine but when you actually have to walk around it (you can put boxes down) it's not always reality.
Also are you on floorboards or concrete slab? If on a slab it won't be cheap putting in the shower and new vanity.
Hi, Google Nathan Birch. He has some great Youtube videos and also look at his Invested website.
Nathan is inspirational and tried to buy his first property at 16. He did buy his first I think on his 18th birthday.
If you are in Sydney I'd recommend meeting him. He's a wonderful young man (showing my age here) and has encouraged many people on their property investment journey.
Agree with the townhouse, also you will be less likely to outgrow a townhouse (with kids).
Demand in Blacktown/Mt Druitt at the moment is crazy so it will not be easy. Maybe look at surrounding areas also. Eg St Marys.
Good luck.
Thanks, I have been to a few of those free workshops where they talk about some different strategies but my property has been working well for me so I didn't see a need to change. Things are cruising along nicely and there's nothing for me to do. I don't really want to increase my portfolio so trying not to look. LOL.
But I'm getting a bit bored so looking for a new challenge.
Dymphna used to push CF+ regional properties. Now she's more into development to get cash flow.
What will be the setup?
Pay a fee per meeting? or for guest speakers? Do you have any suburb or area in mind?
Have you put it on meetup.com? That's a good way to get members.
Good points. People tend to put down things they don't understand.
I have found that people also get very protective of "their" way. It worked for them so it must be "the right" way. It annoys me when "experts" make blanket statements like "you can't make money out of buy, reno, sell" Dymphna (at her last workshop).
Can you please explain what Creative Real Estate is to you? And what type of Creative Real Estate are you involved in.
thanks.
What do you think the potential of growth is? If you see growth hold on but it will take a long time to get rid of a negative CF of $80pw.
That is a LOT of negative CF for a cheap property. Why is it so high? Have you fixed the interest high?
What's the rent?
There are lots of variables here so can't comment on which is better for you.
If you want to live in an area that has a low yield you can be better off renting (as it's cheaper than buying) and buy an IP in an area where yields are higher (thus covering most of the costs).
You may also live in it for a while then move out and rent it under the 6 year rules, thus avoiding CGT (assuming you don't buy another PPOR in the meantime).
Most people do like to own their own home, but that can come later also.
Personal choice.
tI think it's more to do with the Significant Investor VISA, whereby foreigners now have another way to get into the country (if they have money to invest).
These are going like hotcakes and there is a massive waiting list.
Info here
http://www.interstaff.com/immigration/significant-investor-visas.php
You don't need to look for an empty place. Just ask for vacant possession. That way the tenants get notice and you can do the quick reno then rent out. You should get more rent that way also.
As long as it's not a fixed lease. Check when it expires.
Sounds great to me based on the figures.
Cash flow positive with likely CG. Can't ask for much more than that.
You need to have an exit strategy though. No good if you are stuck and need the money if you can't sell them.
Are they separate titles? What's the vacancy rate? Would you need to do anything to them if you needed to get new tenants?
Like what?
And for what purpose?
Unless it's absolutely necessary why would you want to reno while they are in there? Are you thinking of selling?
It would need to benefit the tenant, otherwise they would be reluctant to give permission. You'd need top detail what you intend to dop, how long it will take etc. Also detail how you will compensate them for the inconvenience (this may be reduced rent or that fact that they get the new)paint? etc).
How long have the tenants been there? Are they happy the way it is?
The Property Investor Summit is a group of successful investors that are basically spruiking for you to go to their courses.
You get some info from them so it can be useful if you are just starting out. I would recommend going if you have the time and want to hear about different strategies in property investing. Of course they make it sound like everyone will be a millionaire in a few months (if you give them $1000's of dollars of course).
I went to a few of these type of things years ago. You always learn something and it's great to talk to other people. You might even meet some new friends.
A similar one is Think and Grow Rich. At least they give you all their books and DVD's for free.
Just leave your credit card at home if you're the impulsive type.
Doesn't sound very approachable if you can only get answers if you ask "the correct questions in the right way"??? What's the right way?
Most beginners don't know a right and wrong way, they just need guidance and support.
Daniel I'd put it in the "too hard" basket. There are plenty of great companies out there. Why struggle with one that is unsupportive before you even start.
I'm not as fan of spending thousands on courses, but I know some people swear by them.
Not everyone is out to make money from you. There are some great groups out there that hold regular meetings for bvery little money. Unfortunately I don't know VIC so can't suggest any there.
Read LOTS of books and magazines (free from your library) and get a feel for what type of property investing suits you. THEN do a course if one suits you. There are so many different strategies, you need to find one that fits your circumstances and risk profile.
How have you calculated $70K equity? If your loan is $355K then your loan is already over 80% so you likely couldn't borrow anymore.
You can usually borrow up to 80% of your house value. Sometimes up to 90% but you may have to pay Lenders Mortgage Insurance (LMI).
Assuming you DO have money to borrow from your house you set up a separate account or LOC and use that for the deposit and legals etc. Then you get a loan for 80% of the IP as a stand alone loan. That way they are not crossed. Double check this when you sign the documents that ONLY the IP is listed as security for this loan.
More accurate figures will help others give you more info.
