Forum Replies Created
Do you "know" they can be subdivided or are you assuming they can because they are the right size? I've seen people get burnt paying extra because of subdivision potential only to find it can't be done. There are more things that can stand in the way than just easements. That's why the ads always state "STCA".
Where did you get the offer price? What is it worth? Are you willing to go to that price?
What discussions have you had with the agent? eg does he know you have more money? Did he suggest signing a contract knowing the vendor would not accept your bid? If it was such a low offer did he not tell you you'd have no chance?
In NSW the agent must present all offers unless the vendor requests not to present offers under a certain price.Sorry about all the questions but there's not enough info.
Catalyst wrote:Kristin Simondson PBRE wrote:A usually overlooked option – serviced apartments.They can offer fantastic yields, secure tenants, little to no outgoings (depending on the lease structure) and I've seen some great ones in Melbourne over the past year for under $160,000
The down side – very little CG, can be difficult to get finance from some lenders.
DO NOT buy serviced apartments. As mentioned they have very little CG. So what's the point? On the surface they look high yielding but look closer at the management fees, cleaning fees, vacancy rates etc etc and they are not CF+.
Newby23 wrote:Thank you Adambc.
What I am doing now is finding places that I think could be CF+ and calculating how they might work and practicing DD and how I could possibly increase value. Practice makes perfect, right? I am finding that most of the ones that may work are in the lower socio ecinomical areas that are more 'undesirable. Now while I don't consider myself a real estate snob, I find they clash with one of the golden 3 rules I read on this site… Product saleability.What is your thoughts on buying a property in an 'undesirable area'. I wonder if issues with problematic tennants and crime rule these places out.
You're not going to find CF+ places on the North Shore. Know your area, pick your streets and you'll be fine. Not everyone in an "undesirable area" is undesirable- same as not everyone in a rich area is rich.
Most of my portfolio is in "undesirable areas" and I've never had a problem. But I fully renovate (to make CF+ and add equity) and demand top rent and can be fussy about who I choose (because of the standard I renovate to).
Of course if you buy a dump and it looks like a dump you'll get dubious applicants to rent.Kristin Simondson PBRE wrote:A usually overlooked option – serviced apartments.They can offer fantastic yields, secure tenants, little to no outgoings (depending on the lease structure) and I've seen some great ones in Melbourne over the past year for under $160,000
The down side – very little CG, can be difficult to get finance from some lenders.
DO NOT buy serviced apartments. As mentioned they have very little CG. So what's the point? On the surface they look high yielding but look closer at the management fees, cleaning fees, vacancy rates etc etc and they are not CF+.
Newby23 wrote:Thank you Adambc.
What I am doing now is finding places that I think could be CF+ and calculating how they might work and practicing DD and how I could possibly increase value. Practice makes perfect, right? I am finding that most of the ones that may work are in the lower socio ecinomical areas that are more 'undesirable. Now while I don't consider myself a real estate snob, I find they clash with one of the golden 3 rules I read on this site… Product saleability.What is your thoughts on buying a property in an 'undesirable area'. I wonder if issues with problematic tennants and crime rule these places out.
You're not going to find CF+ places on the North Shore. Know your area, pick your streets and you'll be fine. Not everyone in an "undesirable area" is undesirable- same as not everyone in a rich area is rich.
The tenant needs to contact the Body Corp of the units. It's not your problem. Tell your agent to pass the body corp details to the tenant.
If you don't know what it's worth I would suggest doing more research until you know. Don't just go by what someone tells you. Look on Realestate.com. Search for what's out there. Look at some, compare. Do you know the different areas, streets etc. Prices can vary for a similar place just because it's in a better street.
I know I wouldn't risk spending that sort of money without making sure it wasn't going to go belly up.You should be able to use the $60,000 as deposit for the purchase but without borrowing 95% you may have to cross collateralize. Can you get more equity from your home? then use that for legals etc and get a stand alone loan for the new purchase. The bank will still come after your money if it goes belly up.
You can order a strata search. Your solicitor can order it.
The outside of the house in Case 2 is Hog Bristle.
Mine is Hog Bristle on the outside. Hog Bristle quarter for the trims. Colours look lighter when outside.
For inside use Hog Bristle quarter. I use Warm Neutral as a feature wall in the lounge (and sometimes in the master bedroom).
I find it warm and inviting (so do the tenants). My places usually rent to the first person that sees it. The new kitchen etc doesn't hurt either of course.
If you go daring colours people may not like it, or it won't go with their furniture. I find whit to clinical. Not inviting at all.If you go to Youtube and type in LovetoReno you will see the house with my colours as I've described above.
Hi, a few questions if you don't mind. I only have one away from me but I use a property manager. I self manage some of the closer ones.I know Perth management fees are pretty high compared to other places.
The tenants will have your mobile number for emergencies?
How will you do inspection reports?
How will you handle maintenance issues from Brisbane?
Having lived there maybe you could have a friend you could call and pay them as/if necessary.
alfrescodining wrote:Would anyone recommend brick cladding?No! No! No!
We used Hog Bristle on the outside walls for our last fibro place with Hog Bristle Quarter for the windows and trims. White can yellow over time.
We like it. We use Hog Bristle quarter inside on the walls too.
An interior designer and builder for a studio reno? sounds like a bit of overkill for one room.
What were you thinking of doing? Bathroom? stip out or tidy? New kitchen? moving walls? flooring? That will determine who you need to contact re council, strata.
Strata covers building insurance (including public liability in common areas). Landlord insurance is a good idea if you are going to rent it out (that covers public liability in the unit). The builder should have his/her own insurance (check).
Clear the trees, put a nice picket fence, paint it a warm colour with contrasting window frames and eaves, clean the roof (maybe respray?), new door. Can't see the driveway but do something with that if ugly. .I think that will make a vast difference and not cost a fortune.
waydo77 wrote:just got an email for a discount on dean and elises, program for nearly 50% off, dont think ill take it up but has anyone done this course? what are your thoughts? cherie gets the nod for now i think, just hope she doesnt sell other components after the course, like to do this renovation I would recommend buying my tradie access pack or, some kind of list on where to buy renovation building products or the like..When I heard Cherie speak she did have a tradies card where you got discounts at places she uses. You get that when you do her course.
I went to a couple of hours talk with the Reno Kings. Hated it. All that screaming, hype stuff. I couldn't stand weekend of it.
In the scheme of things I don't think Cherie's course is that expensive. You'll make ten times that on your first reno. Go it alone and you could lose ten times that. Not saying you can't do it alone but I think you need to start small. There are a LOT of things that can go wrong. We learn something new with each reno.
We are thinking of doing a few buy/reno/sell. We have done a few buy/reno/hold and have made very nice capital gains. If we had sold any we would have made a nice profit for 5 weeks work. These are bread and butter properties. So we figure moving into the next price bracket will net us some great profits.
You definitely learn as you go and I'm glad we started small and worked our way up to a full reno. This has meant we didn't make any costly errors along the way We've only done minor structural so far (walls out, etc). Youtube is great for learning hands on trades but that has nothing to do with Cherie Barbers course.
The most important thing is researching what and where to buy. She teaches that.
Waydo77. What city are you in?
A friend of mine just did it. I was thinking about it but I had too many things on. She said it was great. Very detailed and she has many proformas and gives specific details about what to look for, how to research and area etc.
I've heard her speak a few times and she seems to really know her stuff. If I was going to do a renovating course, that would be the one I'd do.When I get a free day I'm going to visit my friend and look at the stuff she received. Apparently it's 20+kg of stuff. I'm very interested to see it. When I heard Cherie speak she showed some of her proformas. She seemed to have a form for everything. But my friend said she didn't have a detailed scope of works which I found very strange.
Is this the strategy you are wishing to apply? to sell for profit or buy/rent?
DWolfe wrote:Cut back on groceries to pay mortgages – what a great idea.Hear me out, firstly, obesity epidemic, might reduce that. Secondly food wastage. We've cut back on junk, basically quit drinking alcohol, and make sure we use up all the food in the fridge. I'm happily cutting back on the food bill, fresh fruit and veg is cheaper and better for you! Supposedly Aussies throw out heaps of food, so maybe it'll cut that down.
DHave you heard of the $21 a week grocery challenge. For one week you are allowed to only spend $21 (for perishables). You only do it occasionally (or monthly). It;'s great in that it makes you use the stuff in your cupboards that tends to sit there. I buy a lot of fresh fruit and veges so it's a bit difficult but I like the concept.
So my pantry is now half empty because I would look in the cupboard first and plan dinner around what's there rather than but what I want. Surprising what's hiding at the back.
I looked at buying a house once and the back corner of the house was very close to the fence line. After investigation it turned out the house was never passed by council. I pulled out. The solicitor rang me a month later to say it had been passed but I had already put a deposit on another house.
I'd say (unless there are major defects) that council will pass the buildings. So did they actually say thet'll pull them down? Can he rectify any illegal parts?Good luck.
Hi danis.
No one can tell you what or where YOU should buy.My advice is to know what YOU want from buying property. ie what is your end goal? This (combined with your current situation) will determine what and where you buy.
The mistakes people make are not doing the above. People get it in their head to buy a property because it seems like a good idea, or everyone else is doing it. Or to save tax (biggest mistake beginners make).
Look at YOUR situation – are you cash flow rich and equity poor? Or equity rich and cash flow poor? Can you afford negative cash flow? Lots of people buy their first property without considering the long term (or even short term) implications. Eg how much will you be out of pocket each month? How will you cope if your IP is empty for 2 months? What if there are maintenance issues. Not thinking about these issue and having cash reserves is the main reason a LOT of people buy one investment property and sell it within a few years, NEVER to buy property again.
Not getting it right at the beginning is also the reason 99% of people who own investment properties lnly own 1-2 investment properties.If you want to be one of the 1% of people that own more than 2 investment properties you need to get some education. It's not rocket science. There are many ways to make money in real estate. But you need to have the right fit for you.
Doing calculations is one thing. Getting the approval is another. Just because it's big doesn't mean you can subdivide it. That is where most people come unstuck. Every block on RE.com over 900sq these days has "subdividing possibility (STCA)". Unfortunately only a small % can actually be subdivided.
Yeehah!!!
CF+. Retirement here I come.
