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Just buy any of the popular magazines. They run articles on top places for CG, yield etc every few months.
I feel you are going to greatly restrict yourself by looking for a house that is double brick, with a tin roof, with aluminium windows and tiled floors.
We have units, villa's and houses (of all materials (brick, timber, fibro), some with carpet, some polished floorboards, some tiles). No one stands out as far as needing more maintenance. Admittedly we've held most for less than 4 years.
Look art buying something solid and keep up any maintenance before it gets to be a big job. Find something under market value that way you have some pocket money for those odd jobs.
Generally speaking though, units have less maintenance (some is also covered by body corp).I think you are going about this the wrong way. You buy property ( or ANY investment) to make money. Remember to get a tax deduction you are LOSING money.
Yes you can lower the rent. You could even let someone live there rent free, that way you’d save heaps of tax.Some people do negatively gear but they assume the capital gain will compensate them for their losses. There are also other things which assist, eg depreciation.
When investing the idea is to make money. The tax savings are the icing on the cake. The tax savings are not THE cake.
Maybe get some basic books on property investing and go from there. Flick through some at the library or a bookshop to see which ones appeal to you.
The above information is incorrect I believe. If the tenant is on a fixed lease you cannot make them vacate. They have an agreement (lease) that says they can rent rhe property for the time stated. Its a contract. You could offer compensation if they do agree to terminate the lease.
Why is everyone asking to email pictures? Just put them here for everyone to see. Can I ask how you got the price comparison? A link to the property would be nice.
I love traveling too. Had to count after Jamies post. I’m up to 29. Adding a few every year.
I love cruising too. Tried river cruising last year. Love it. Different from the big ships. Although I do like them Aldo.We’ve been busy spending a few months a year renovating. Thats kept us pretty busy. We dpend 5 weeks flat out renovating then i like to go for a holiday to recover. Having a rest first half of this year then into it again.
I still work full time so that takes up time.
In the next few years I’ll cut down work and increase traveling.
Hi I tried to reply to your private message but your settings won’t allow me to send you a PM. Please change them and I’ll reply next time I get Internet.
Yes they often do themselves an inservice. Time is important. If I see a post where I think it is relevant to me or I can offer some input i have a loo. A lot I don’t even open.
Also when people ask questions but give you no details. Eg where can I buy under $200K?Or they rave on about a million different things.
Think about what you really want to know. State it clearly. People are here not only go learn but go help others. Don’t make it difficult and you’ll get both.You won’t find a paper that will tell you all you need to know. You need to look at an area and see if it fits YOUR criteria. Eg do you want CG? Yield? You need to look for what’s important TO YOU. Eg infrastructure, transport, median price. Too much to list. If you have an area in mind start looking at the stats. Go to open homes. Speak to real estate agents etc etc
Hi, where are you located?
I have a buy Reno strategy. I buy bread and butter properties. Do z complete Reno and then they are CF neutral at worst with equity go borrow if need be. full Reno takes 4-5 weeks. Then holiday!!
The main thing is you MUST do you research into the area to know the end price After Reno. The. You need to have a budget and stick to it. And think of it as an investment. Not what you like. Also be very careful of buy price. Sometimes places in need of a Reno go for not much cheaper than a re odd place. There are lots of people getting into this now and overpaying. I am seeing this in Western Sydney now ( thanks Nathan). Too much publicity in the area and everyone thinks they can buy a place and make money.
I love renovating. That’s the thing. If you love it all is well. If you don’t it’s not a good strategy. We do most of the work ourselves. Only things we don’t do are bathroom waterproofing and tiling, electrical ( of course) and plumbing.http://www.meetup.com/real-estate-sydney/ The meetup site helps people organise meetups for a variety of reasons.
Also look at Somersoft forums. Good info there and people often arrange meetups.
Where are you located?
I don't think it's the point of "losing" $100. It's about value for money. Some people thought it was wonderful. There was one couple there who had done the full course 3 times. Now that's crazy. To spend thousands of dollars to learn something can be a good investement but to pay again and again to learn the same thing?
What's that saying- insanity is to do the same thing over and over and expect different results?For me it's more about time.
I won't miss $50 but the half a day wasted could have been spent elsewhere.
I'm usually picky about which seminars I attend these days. I was invited to this one by a friend and it was not expensive and reno for profit is my strategy so I thought why not. I don't mind spending money if I am getting some valuable information.
I do agree that with the internet there is a wealth of knowledge at your fingertips but networking with others is the catalyst to launching your property portfolio I think. Well I know it was for me. Before I started meeting with other like minded individuals I thought I was pretty hot stuff with my 2 properties. Then I started feeling inadequate with "only" 2 properties. That was the kick in the butt I needed which sent me on a 2 year spending spree. Retirement here I come.gng wrote:Sorry to be off track a little. Obvious No not obvious. There are many suburbs where units track houses in regard to CG. house with land component will appreciate the most, but what about comparing villa unit and apartment in the same suburb say canterbury, vic. I'm thinking capital growth would be pretty similar given both has limited to no space for expansion. Is this correct?You need to research the areas you are interested in. Look at past CG of all. It depends on the demand in the area. I have a VERY small unit in Sydney that went up 50% in 2 years while a lot of Sydney had little CG.
The library is a great place to get past magazines too. There are often great articles and you can borrow a few. Look up the stats in the back of old ones. It's interesting to look at the price differences etc to now.
Go to a few free/cheap seminars too. They are pushing things but you do get some good info. Just leave the credit card at home and don't get sucked in by the hype. Go to the Meetups forum and see if there are any meetings in your area. These are usually likeminded people who get together for coffee/drinks/dinner and chat. It's always interesting to talk to others. I know I got into investing quite late as I didn't know anyone that invested. Having others around you that have the same mindset as you is a real booster.
I went to Nathan's latest talk in Sydney last night.
It was very interesting. He talked about how he got started and how he has made himself the success he is today. He had some of the people that he has helped start their property portfolio talking. He talked about his strategy of buying undermarket with good yield and potential for CG.Just over half didn't have IP's.
I would like to hear how some of the newby's viewed it.Vivy- there are some great people out there that will guide you on your way without having to pay thousands of dollars. Nathan being one of them.
scotts wrote:but you don't actually claim it as PPOR until you sell it correct? Yes unless you are liable for Land Tax- then you need to stipulate which one is your PPOR.would this not work..NO! Sorry- you can arrange it anyway you like but it doesn't change the facts.Legally you CANNOT avoid CGT on one property from October 2010. If you want to try it go ahead but no accountant will endorse it. I'd like it if you could do it. That way I could just keep saying I'm living in my properties all at different times and not pay CGT either.
Property 1 purchased in 2003, lived in it fulltime until Jan 2010. Yep PPOR (until Oct 2010 actually)
Property 2 purchased in Oct 2010, moved in Jan 2011, lived there until Jan 2012. YEP if this is now your PPOR you pay CGT on the profit of the first property for that time.
Property 1 moved back in Feb 2012 for 6months sell July 2012. OK if that is now your PPOR then you pay CGT on the other one for that time.
Property 2 move back in Aug 2012 for 6months sell Dec 2012. Ok if you have sold the other one this is now your PPOR and you don't pay CGT from this time on. And you couldn't keep flipping from one to the other.and it makes no difference anyway.You are only talking about CG on 2 years MAX (less if you sell one sooner). And you only get taxed on half that amount at your pay tax rate. Even if the property went up $100,000 in the 2 years you'd still only pay approx $15,000 CG (assuming 30% tax rate).
Yes you can IF you don't have another PPOR as you are still claiming that as your PPOR.
If you buy another then THAT is your PPOR.
No you HAVE TO PAY CGT on one of them for the time you owned both.
You have 2 properties at the SAME TIME. You have to choose which one is your PPOR and which one is not.
Yes you can go from one to the other but you need to decide which it is. There is no timeframe. From October 2010 you have to pay CGT on one until you sell one. It makes no difference when you sell.
Why should i move to America ? Houses are DIRT cheap. Buy a house cash. Have no mortgage. It's closer to EVERYTHING else.
Why Shouldnt i move to America? It's not as nice as Australia. It's full of Americans. How will you live (money wise). You will miss family and friends.
Where should i consider moving to and why ? California , Florida, Hawaii (beaches, lifestyle for all 3). New York (exciting- so I'm told).
If hollywood is to be believed is anywhere safe from Earthquakes, tornadoes, bushfires, alien invasions, meteors or George Clooney ? Nope. It IS America. LOL
When I saw friends buying houses for $50,000 I must admit it sounded tempting. I could sell everything, buy a house cash and invest the rest and not have to work. If I had no family I would think about it.
Hi Scott, you are a bit confused regarding your PPOR.
You cannot claim 2 PPOR (Principal Place of Residence) at one time.
So you need to make the decision as to which you will claim as your PPOR from October 2010 until you sell.So you need to see which property has made the MOST gain in that period. That's the one you want to have as your PPOR for that period. That way you will pay the least amount of CGT (Capital Gains Tax). Of course you need to look at the figures (purchase cost, expenses etc to be more accurate). Your accountant should be able to advise you.
Sometimes you can get away with a 6 month crossover (which you should be able to do as you didn't rent it out. So that will bring you until April 2011. So you'd only liable for CGT on 1 year if you sold now.
Sorry for the bad news. Good luck.
