Forum Replies Created
Hi Jye and Tahnee,
You make some good points. Sounds like you're on the right track. Are you wanting to do a buy reno sell strategy? It's a great way to build up some equity but in order to "make it" you need to hold too.Be careful not to be too limiting when you reno too. It's great to know a target audience but an area doesn't only have one "audience". So it's good to appeal to a wider audience too.
As you said it's an investment, not your home so buy products, and renovate with that in mind. It's a newby mistake to make it look like something "you" would like. To most people a $100 tap doesn't look any different to a $400 tap. I've seen people put granite benchtops in a cheap property. Crazy.
I'd be interested to hear about your future endeavours.Check that you CAN live in it. Many have limitations on who can. I've read horror stories where people have bought assuming they can live in it. You know what they say about assuming!!!
Also check if the fees would still be payable if you were to live in it.Do NOT take the RE agents word either. Get your solicitor to check.
Also what name the loan is in makes NO difference to CGT. It's who owns it (as in who is on the contract).
3. I just cross it out.
My hubby hates paying full price for anything. When we first got married I wanted a sewing machine. They had a deal on- if you bring in your old one you get $50 off (that was a bit nearly 30 years ago). Anyway he said- look I could find an old one, bring it in but you'd just have to take it to the tip. Yep- they gave him the discount.
We stayed at a 5 star hotel in Amsterdam for $130 a night AMAZING. FREE minibar (hubby still talks about it), spa, sauna, pool etc etc Spoilt.
I'm also of the "if you don't ask you don't get" camp.
I'm assuming (as it's a property forum) that you are talking about CF properties.
There are a many ways to have CF properties.
Too much to go into them. Which type are you interested in?
I'd suggest reading some magazines (free from the library) to get some stories from "real" people. This will give you an idea of some of the different strategies out there. There are a multitude of great books.
It's no use really just saying I heard Cf is good, tell me about it. That strategy may not suit you. Investing in property (or anything) is different for everyone.
You need to know, first, what your goals are and then how you will get there. Without knowing your personal situation no-one can advise as to what strategy would suit you. eg how much deposit do you have, how much do you earn, how risk averse are you? ++++That is correct. The rent is considered income. She could transfer her half of the IP to you.
Tracey B wrote:When purchasing I always ask myself: Will this purchase take me closer to my goal or further away?Good point Tracey. I'm the same. Unfortunately when people start out they do not have clear goals as to exactly what they do want to achieve and by when.
I know I bought my first property because I thought it was a good idea. I didn't even think about the cash flow. Luckily it worked out well (start of a boom).
There are so many ways to maker money (and lose it) in property you need to sit down and make a goal with a specific target and date. It may not turn out to be very accurate but at least you have a target.
Read my sig below.Glen_B wrote:I wasnt going to touch the equity as i was told that using my personal funds is a better option.
Thanks again.Listen to someone else!!!! (like Jamie).
You can save about $1000 a year by NOT using your cash..
http://www.depreciator.com.au They have done all of mine. Very professional. good price. I use Scott.
The thing is, the average punter is looking for the next "big thing".
So when you read in API that a certain area is about to boom it's a self fulfilling prophecy because all the punters run there to buy property.
Fact is though that those who know what they're doing have already bought there and the sudden rush is great for them. But it doesn't mean it's sustained.
So yes investment groups/magazines etc have a lot to answer for.
Do you mean timing the market? As in when demand is high? Yes of course you need demand. If there are no buyers you can't sell it. But if you buy low, do a great reno at a great price you'll sell it because you have the margin to sell at a good price. It's all about the numbers. You need to know everything about your area and that includes knowing what sells and at what price. If you are doing a reno to sell you need to know who your target audience is. Getting this right will attract the buyers you want at the price you want.
Yes I'm a subscriber. I have seen it a few times lately. I haven't gone back to check whether it was listed later though. Next time I see one I'll check back later to see if it's listed then.
Yes but then all those things will drive your buy price up.
There are courses that charge thousands to give you all the checklists etc to help you pick areas.
It comes down to picking 1-2 suburbs and knowing them like the back of your hand.
Know your end price and reno costs. That will give you your buy price.Unfortunately there is big competition for unrenoed properties now (in Sydney anyway). Some people are paying a lot more than I want to pay. So missing out on a few I want.
It is becoming more common that RE agents don't list the sale price. You can ask them not to list it anywhere. If it's not listed then it can't be found. RP data can only record figures they know about.
I've seen a few lately listed as sold but with a $0 sales figure.RPdata may have it.
Ask someone with access- me, broker, RE agent.
No. It goes on who owns the property ie who is on the title (contract).
Make sure you consider the long term and not just the yearly claims. When/if you sell the CGT will be all on your income.Sorry to say, but this is a common occurrence. And you'll find there are others n your position so there will no doubt be a few hitting the market.
sorry I can't be of help.Fair enough points but they are cont committing just 20% (well in cash yes) but they are committing to a loan of more than that. Plus stamp duty. Risk is worth something. They are taking all the risk until the properties are built. If you don't carry through or if the land cannot be subdivided they are the ones that are committed to a large loan.
Good points Terry. You really need to get that right. Might be an issue getting the loan in one name and title together. Not impossible I don't think but needs to be considered.
You are at the mercy of council. First check is to see if council allows subdivisions. Some will not allow separate title.
There may be too many subdivisions in the street (car parking issues).
Drainage.I don't know all the reasons, I just know you can't assume a block is sub-dividable because it is big. I went to a seminar once and they said 75% of blocks advertised as sub-dividable STCA weren't.
I wouldn't pay extra for a block without knowing that it WILL be sub-dividable if that was my intention.I'd say 50/50 if the others are taking out the loan (+ interest).
Is it approved? If I was your friend I would want to have that in writing before I committed.
Profit $280 minus holding costs $30, stamp duty $10 landscaping etc $10 = $230 – CGT = real profit divided between partners.
