Forum Replies Created
What is the breakup of the strata fees? If the sinking fund is high then this may be to pay for upcoming property issues being identified. If this is the case they should go back down again after sufficient funds are saved to do the works.
I don't know why you started criticizing me for pointing out that the post seemed like an advertisement for the mentoring.
One has to wonder, though why these people need to resort to these tactics if their courses have merit.
I OFTEN see these threads whereby a poster (first time on at that) posts similar questions about these mentoring programs and then NEVER post again. Yes call me cynical but really- it can't be coincidence. I'm hoping your due diligence is better than your ability to see a fraudster.
I'm not saying don't do mentoring or courses. If that's what will get you on your road to financial freedom, then go for it. It's not a small amount of money buy the way. I've seen many people do LOTS of mentoring courses and not do anything. The money they spent could have been the deposit for their first IP. Yes one needs direction and guidance, just choose wisely and don't just believe everything people tell you.
I went to a few free seminars, listened to the various speakers who all have different ways to make money in real estate, then I researched the different strategies. Some of these groups are just keen to get your money. Less than 10% of people that sign up actually use it. YOU need to decide which strategy is for you BEFORE you hand over your hard earned cash. The course is only useful to you IF it suits your situation. They ALL sound amazing and easy.
BTW you will NEVER know it all. But remember. You don't know what you don't know.
Thanks for the wish of good luck but I believe you make your own luck. I've been making mine for the last few years. Looking forward to the future.
Labouring
Under
Correct
Knowledge
I hope you make yours.
Agree with Jamie. It's pointless discussing how much % you got as a discount.
Getting a 5% discount on a property that was overpriced by 10% is a dud.
This is where research comes in to play. You need to KNOW what a property is worth. THEN you know if it's a good deal.
I saw a property advertised on a Thursday night on RE.com. Rang the agent just after 9am and he said someone was already on the way there. They bought it. It was under priced as the agent was a friend of the family and was out of area and didn't understand the prices.
Another one I saw first day advertised. Went straight out looked, went to the office and signed the contract. Two weeks later one sold in the same block for $20K more. I knew the area and the block and knew the price was great. No discount off asking price but in reality more than 10% below market.
You should persist if you think you can realistically get your price. Look at the vendors motivation to sell. This dictates their willingness to drop their price. You need to have a buy price and anything over that is your walk away price. Tell the agent that's your walk away price. Then get it or walk away.
Yeah. Must be keen investors. One post asking about a particular course and NO posts in 2 months. Someone even asked how the course is going and no response. Maybe it was so amazing they don't need to visit forums as they know everything?
Yeah I'm up for it. But I didn't need to spend thousands on a course to make my mark.
Definition of 'Catalyst'. Something that initiates or causes an important event to happen. I am not the catalyst. My name refers to me not getting into property for MANY years due to insecurities. The catalyst was meeting people who motivated me to make the move.
A fence won't necessarily add value but if the fence is in bad repair it could result in an offer being lower to allow for the new fence. And people generally over calculate by offering a fair bit lower. When people buy they try to find faults to justify their lower offer so the less "faults" the better. The shed I would leave as it's personal preference. Maybe the buyer won't want a shed?
Kitchen and bathroom are the main things people discount (or walk away) for. Definitely do those (even if a cosmetic reno). You can do it for a lot cheaper than people think. If people think they need a new kitchen they'll estimate $30,000 so take that off the price, when in reality you can do it for a LOT cheaper.
Strata fees aren't high for Sydney.
I think prices in Sydney are still moving and if interest rates stay low, better still.
Why is it difficult to offload? That may make the difference. Also it's winter if things are hot now, wait until late spring. Anything could happen.
The thing you need to decide is what you'll do with the money. If there's a better option, go for it. But do not sell and not buy in this market as you may miss the ride.
If not sit tight and ride the wave.
Is that a net rental yield? Or before body corp? Nothing stunning. A lot of people worry about body corp but don't forget that pays your insurance and outside maintenance so with a house you'd have that extra cost. And with a house you still have rates.
So you are assuming it will have good CG? 12 months isn't long to experience growth.
Can you handle the negative cashflow? If your goal is CF, why are you buying this? How are you assessing it's potential capital growth? Because if that doesn't happen you are moving away from your goal, not towards it.
Everyone gets cold feet. Check your numbers and if it fits with your goals, go for it.
For what purpose?
If you are short on deposits and/or cashflow maybe.
It can complicate things. For example do you have the same goals, expectations etc.
What if one wants to sell and you don't? What if one gets married and the partner takes them to court to get their assets?
If you can do it alone I think it's better. If you have 2 you are on your way. What's stopping you from getting number 3? Work out what you need to change to allow you to move forward.
If it's one or 2 things you can do it by the tax page but there are probably many things you aren't claiming.
Most depreciation companies won't do a report unless you get your money back the first year. So worthwhile doing.
Scott at http://www.depreciator.com.au is fantastic. Email him with details of how old the place is, what it's constructed of, reno's you have done and he'll let you know whether it's worthwhile doing.
Interesting. One post from Jordan. No answer. Now 1 post from Stephanie plugging another course (related to the first).
Coincidence?? Move on "real" investors.
TheFinanceShop wrote:Also BC charges a contribution fee – I think its $5k. Factor this in your costs.Are you referring to the Section 94 fee? That is about $3,500 in Blacktown Council (it varies by council).
There are also lots of other little charges that add up. And it does add up to close to $5,000 but you get a little back at the end. About $700.
The S94 fee can vary from $0 to over $20,000 depending on the council. It's a rort really. We had a 6 bedroom house which we split so didn't add any extra living areas and we had to pay it to go towards improving facilities due to the rise in population. There are 4 people in total living here.
I just read where Byron Bay council was $20,000 and they were getting rid of it altogether.
Have you read the granny flat specs? Check distances from the border etc to see if it will fit. Also check the yard size you need to allocate for the granny flat. When I did mine last year (Blacktown council) I had to provide a yard 6m x 4m.
If you go through state govt as opposed to the SEPP it's a much more drawn out and expensive process.
You read lots of bad reports but you're still giving them your money and giving less deposit "just in case"??????
Have you researched MT Druitt and seen what you can buy for $400,000?
As Jamie mentioned- you are paying a marketer to sell you a property. This usually amounts to about $50,000 commission. Personally wouldn't want to buy a house where $50,000 is commission.
Google "Off the Plan pitfalls" then see if you still feel confident about the purchase.
Hi everyone.
I think everyone is over emphasizing price and not what you get for that money. You need to compare apples with apples.
It's like saying "I bought a necklace for $100, is that cheap" What type etc.
There are brick and tile granny flats and there are those that look like a container with windows. Also lots of people say "I paid $$" but don't always include the extras. Some people do include everything. So it's difficult to know the "real" figures.
Due diligence.
http://www.meetup.com/sydney-investor/ has regular meetings in Sydney if anyone is interested. Just casual chat, drinks and dinner. No selling etc.
I've sent you an Email.
Sounds like they want to flip it, to me. So they can try to avoid paying the stamp duty. They will just try to onsell it.
It's a risk. Unless there is some great benefit I wouldn't do it.
Are you highly geared? If so you'll be losing money in the 12 months.
Do you get the contracts reviewed before you sign? Yes there can be tricky clauses in OTP
Do I get a property lawyer to do this? Yes
Does the lawyer need to be in the same state as the purchase? Yes. Do NOT use their lawyer.
Are we able to add clauses or make them more specific i.e the finance clause? Nt sure. But they won't like them
Is there anything we should specifically look out for? Yes be VERY careful buying off the plan.
By your 3rd question I'm going to guess you live in a different state to the OTP. I can't stress highly enough to do your due diligence. These selling agents are geared to sell to other states. BECAUSE you don't know the true value of the purchase. They often cross securitise these with your PPOR so you don't know they are undervalued. If you decide to go ahead get you OWN loans and have it as a stand alone loan. That way if it's under valued it won't stand up as a stand alone loan. Research the area. How does the price compare to nearby similar properties that are, say 5 years old. You will be competing with them if you need to sell in, say 5 years time.
I'm assuming you know these selling companies make at least $50K commission on selling you these. You are paying for that.
As you can tell I'm not a fan of OTP (although friends have bought many a few years after the initial sell at greatly reduiced prices). Many people DO NOT do their DD and need to sell within a few years.
Lastly go to google and type in:- off the plan pitfalls. Some interesting reading there. I'd be interested on feedback after you've done some DD.
Good luck.
From the sounds of Belinda I'd say she's given up. If you have attended workshops and paid for mentoring and still haven't done anything there's not a lot of hope. And when she asked for help on here she made no attempt at attending meetups or seeking any specific advice.
Welcome Steve. Keep reading to familiarise yourself with how property basics work in NSW. Also attend some of the meetups. Great way to network .
What type of property investing are you interested in?
Woy Woy has some good and bad areas. You really need to go there and walk the pavement. A fair bit of housing comm stock. Lots sold off a few years ago. Haven't looked for over 12 months so not sure what's happening now.
Opinions differ about the gentrification of the area and whether it can shake the stigma. Some areas similar to Mt Druitt.
What's your budget? And what's your strategy? That will determine what type of area.
Yes it depends what suits your circumstances. If your portfolio is CF- then the extra money can help with outgoings. I like my tax return though. Pays for my holidays.
Just make sure you don't over estimate your expenses. Eg interest rates may drop and you pay less interest than calculated and you'll end up with a tax bill.
