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Catalyst
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March 25, 2012 - 11:50 am
Email AJ at http://depreciator.com.au/
with some details. She will give you a price estimate and whether it is worth doing (they won't do it unless you get your money back in the first year). Tell them Lynne recommended you. They'll look after you. They have done all of mine. Great service and price. They cover most areas.
Catalyst
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March 22, 2012 - 7:40 am
The Gold Coast is on sale at the moment. You need to look carefully at price comparisons. You may be able to snag yourself a bargain by buying something that's already built.
Is this to live in? That makes a difference too. If it's for investment only the numbers matter.
Catalyst
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March 21, 2012 - 11:20 am
Yep. Just get it connected. But don't forget to disconnect. Hubby forgot one and we realised a month later when we got the bill. Caused some problems really. Rang up and said disconnect. Rang tenants and they hadn't connected it. So we wore the month. Then we got a bill the next month. Rang them and were told sometimes it takes a while to go through and they will make sure we don't get a dishonour fee (WTF). Then next month same thing. I was jumping up and down saying it's not OUR bill and not in our name etc. Hubby was calmer (it was in his name)and waited another month before it was sorted. Frustrating.
Catalyst
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March 20, 2012 - 11:18 am
You do realise that you are going through all this stress worrying about whether you can save $108?
$10,000 X 6.5% X 2 months = $108
Catalyst
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March 19, 2012 - 11:26 am
Buying with a friend can be tricky. I'll assume you are thinking of doing this as you have limited funds (or borrowing capacity).
Assuming you want to buy an investment property. Before you go any further sit down and discuss what you want to buy. How you will split the purchase costs, ongoing expenses etc. You need to have plans for if- one person loses their job, gets married and wants to sell etcetc. What are your long term goals? Keep it then sell in 5 years? Renovate and sell? It can get tricky if one person has cash and the other doesn't. If one has a higher income the other may feel they are missing out on the tax deductions.
I could go on forever (sorry). Just trying to avoid a catastrophe before it starts.
Now partnerships can work as long as you plan for as many situations as you can think of.
As the others said I wouldn't get too carried away with partnerships etc unless your friend is likely to be a life partner.
Maybe just buy something tenants in common with a clear exit strategy (in writing). This simple thing can save much heartache.
If you have the capacity to go it alone, that would be the preferred option.
Catalyst
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March 18, 2012 - 9:59 am
Hi Damien you are correct that CG is essential but I don't aspire to the old notion of Yield OR CG.
Nor do I have "hope" as a strategy. I'm to impatient (and getting too old) to wait for Cg so I make my own. I buy under value, reno and in doing so create 20% increase in equity in a month and increase yield to 8-9%. So I have good equity (to withdraw for the next purchase) and my deals are CF neutral (at worst). If the purchase doesn't put me closer to my goal (increased equity AND cash flow) I don't buy it. I want to retire VERY soon.
A $600K purchase would have to have equity potential or development potential for me to consider it. Losing money each year while hoping for CG is not my strategy. Mines working for me but it's not for everyone.
But as we both said. Everyone needs their own strategy.
Catalyst
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March 18, 2012 - 9:48 am
Nigel Kibel wrote:
It really comes down to wear you are buying. Frankly I would rather buy a townhouse in an inner city area rather than a house in the outer suburbs. There is a mistaken view that a house with land is a better investment. The reality is the land the townhouse sites on in an inner city area is far more valuable based on a per square foot price. than the land of the outer city house
Yep. I was surprised when I got my land tax bill. My 28sq unit in the city has a similar land value as my 600sq land house in the suburbs.
The question is too broad to provide a 1 2 3 answer.
The answer is- it depends. I have all 3. I buy for the deal, not whether it's a house, unit or villa. If the numbers work I buy it.
Catalyst
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March 17, 2012 - 9:38 pm
Damien Y wrote:
Hey Wilko, Property investing is relatively easy to understand compared to other forms such as a investing in the stock market. Just read a couple of good books, magazines and property forums and within a few months you should have a fairly solid understanding on the basics. The other thing you may find is that you really enjoy property investing and find it really interesting like many others on this forum. A general piece of advise is to buy the best property that you can afford. If this is a run down terrace so be it – however if you can borrow more and afford a bigger property with another bedroom then buy this. Personally I would prefer to buy a good 600k property rather than 2x300k, although no doubt some people will disagree with this. Spend the time to do your research so that your first buy is a good one and can hopefully set you up for a long and successful property portfolio. All the best mate. Damien
I'm one that would disagree with you.
If you buy the $600K property there's a big chance your portfolio will stop there (unless you have lots of disposable income).
Just the outgoings alone will limit you.
Talking average here (and of course there are places that vary). A friend has a $500K property that rents for $550 pw. 2 of my properties that cost less than $230K rent for $350 + $365. So I'm already in front $175pw (take away $30pw for extra rates etc). I see both areas as having good CG.
You really need to take all the advice in and then sift through it to find what suits you. In the beginning I made the mistake f taking it all in and trying to get it all. I passed up a few good deals because of this. Find a strategy that suits YOU then go for it.
Catalyst
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March 17, 2012 - 1:51 am
You can afford to pay out $10,000- $15,000 a week? So you have $520,000- $780,000 a year spare money? Want a wife??
Catalyst
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March 16, 2012 - 10:04 pm
Hi, some great advice above.
Just to add.
I would not ber buying in a place that had 8% yield and no growth. 8% will not be cash flow positive and with no growth you will be in a worse position in 5 years time.
Cash flow is nice but you must have CG in order to get ahead (at least keeping with inflation). Of course some people buy where there is MASSIVE cash flow and this is good for them but they usually have other properties with CG to balance their portfolio.
Can you please clarify $600K CASH. Low doc?? Do you mean they'll lend you $600K or you have cash sitting in the bank? And they'll lend you 60% of what you want to purchase? How much will they lend you?
Also you don't state your income. That makes a difference to what you buy. Can you afford to pay money out each week? How much?

Catalyst
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March 16, 2012 - 9:16 am
VerityHodge wrote:
Catalyst wrote:
VerityHodge wrote:
Catalyst wrote:
You can do that but I find mostly Real Estate Agents don't have vision. ie -they can't see what it WILL look like. Look on the net at what's available for rent. That will give you an indication. Look at what renovated places go for. It's hard for an agent to know because they don't know the quality of your work. You may say "new kitchen" but it may be a cheap laminate one.
Also you'll get different rates from different agents. Some are lazy and rent cheap so they don't have to do any work. One we did, one agent said $300pw. There was NO WAY I was renting it for that./Another said $330-340. We put it on at $340. First person that saw it took it.
Whenever I've asked the agent they always saysa price. But when they see it finished they go WOW! you'll get more. We have always got above average rent for the area on our renovated houses. We do a great job (even if I say so myself) to a high standard. Our last 4 have rented to the first person who have seen them (we ask top rent for the area).
Hi Catalyst
I disagree. As a property manager prospective landlords often consult us for advice on renovations and possible rental return. At Realmark, we work quite close with our sales department to help investors with such projects. I personally am very active in advising my clients how they can add value and increase their yields.
regards
Verity
Sounds like you are great at your job but unfortunately you are in a minority. Just because you do it doesn't mean everyone does. So you can disagree with me but what I said is based on my personal experience and that is fact (for me). Many agents I deal with don't know what the other department are doing. One place I bought the agents hadn't transferred the rental over. Silly me assumed that as it was rented by the same agent it would be done. The sales team didn't think to notify the rental team. Then they were surprised when I rented it with another agency. They still ring me everytime I buy a new property to see if I'll go with them.
Poor communication (like between your sales and Pm team) is the number one complaint in the industry. You definitely get what you pay for. Unfortunately there are some agencies out there who let the reputation down for the rest of us who actually have a career in the industry – not just a job. I am also an investor with two properties under my belt so a little personal interest in these matters helps! Your welcome to contact me in the future if you like
Yes poor communication is a big problem. Not MY sales and PM team thank goodness. I have bought properties off them (I buy for price not who's selling it). Mind you I have achieved some great bargains because of bad sale people.
I'm picky with my PM's. A poor PM can make the difference between making and losing money, not to mention the hours of wasted time and energy fixing unnecessary problems. I'm happy with the PM's I now have (the ones I wasn't happy with, I got rid of).
Where are you located?
Catalyst
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March 16, 2012 - 6:19 am
VerityHodge wrote:
Catalyst wrote:
You can do that but I find mostly Real Estate Agents don't have vision. ie -they can't see what it WILL look like. Look on the net at what's available for rent. That will give you an indication. Look at what renovated places go for. It's hard for an agent to know because they don't know the quality of your work. You may say "new kitchen" but it may be a cheap laminate one.
Also you'll get different rates from different agents. Some are lazy and rent cheap so they don't have to do any work. One we did, one agent said $300pw. There was NO WAY I was renting it for that./Another said $330-340. We put it on at $340. First person that saw it took it.
Whenever I've asked the agent they always saysa price. But when they see it finished they go WOW! you'll get more. We have always got above average rent for the area on our renovated houses. We do a great job (even if I say so myself) to a high standard. Our last 4 have rented to the first person who have seen them (we ask top rent for the area).
Hi Catalyst
I disagree. As a property manager prospective landlords often consult us for advice on renovations and possible rental return. At Realmark, we work quite close with our sales department to help investors with such projects. I personally am very active in advising my clients how they can add value and increase their yields.
regards
Verity
Sounds like you are great at your job but unfortunately you are in a minority. Just because you do it doesn't mean everyone does. So you can disagree with me but what I said is based on my personal experience and that is fact (for me). Many agents I deal with don't know what the other department are doing. One place I bought the agents hadn't transferred the rental over. Silly me assumed that as it was rented by the same agent it would be done. The sales team didn't think to notify the rental team. Then they were surprised when I rented it with another agency. They still ring me everytime I buy a new property to see if I'll go with them.
Catalyst
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March 14, 2012 - 9:59 am
Yep, I agree, Nathan's great. Honest, straight talking <moderator: delete language>. He gave me the push I needed to go from casual property investor to being addicted (in a good way) LOL.
And you deal with him. Not some salesman that works for a company.
At least one of the companies you mentioned is just a house recycle factory. Knock em up, spit them out. Off the plan (that they often commission. Be VERY careful with these big companies.
Catalyst
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March 13, 2012 - 10:51 am
Terryw wrote:
I would imagine that your interests in the property would be treated separately.
If you are renting the property out after establishing it as your main residence then the CGT exemption could apply if you have no other residence which you are classing as a main residence
Unless they are living together? Say if he was renting at her place?
Wouldn't it then be treated as a spouse and the exemption lost? Or isn't it that type of friend?
Catalyst
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March 12, 2012 - 7:33 am
haha. All these first time posters who just happened to find this forum and coincidentally have all bought though the same place. WOW!! I'm amazed What a coincidence.
You must think we are a dumb lot. This sort of thing would ensure i NEVER looked at this company. If they need to stoop to this level to get recommendations there must be something wrong.
And that's my heads up.
Catalyst
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March 12, 2012 - 5:43 am
The Dark Knight wrote:
I've just organised to get a flat pack kitchen for a renovation.
WHY???? I would never buy a flatpack kitchen. Too much hassle and wasted time.
Splashbacks aren't that hard. As long as you can see straight it's only a few rows of tiles. I've done a laundry and would have a go at a kitchen now. Look up Youtube. I'm sure there'd be a video. That's how I learnt to cut and put up cornice.
OK, seriously where are you located? Don't stress. It's not too difficult.
Catalyst
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March 7, 2012 - 5:34 am
There are a lot of factors to take into account.
for example where you live. If you want to live in an area that has a low yield you are better off renting and buying an investment property in an area with a high yield.
Eg house to live in may be $500K to buy. Rent may be $500pw. You could buy that house and save $500pw
But if you bought 2 IP's (at $250K each) you would bet $700pw rent from them. So you are ahead $200pw.
Rough figures but you get my drift.
Catalyst
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March 6, 2012 - 8:44 pm
I've seen quite a few go on the market at the reserve (sometimes higher) because 70% of people don't like auctions so there is a chance they ill get it in the open market. Just keep your eye on it.
Catalyst
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March 6, 2012 - 5:32 am
Correct ygue. But at some stage the bank has to sell it. If you are interested, let your bid be known. Revisit them and see how it's going, letting them know your offer still stands. Doesn't sound like you'll get a bargain though if value is close to the reserve. You never know though.
They may get desperate. And they will chase the previous owner for the difference (unlike in America).
Catalyst
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March 3, 2012 - 4:14 am
Laury wrote:
Man up or stay with TIC
Always liked someone who calls a spade a spade!
Yep that's me. Glad I didn't cause offense. I sometimes go overboard. I met some TIC people at the property show last year and thought I might go to one of their meetings as I find networking very rewarding. But the meetings seem to be geared at beginners and the get togethers seem to be on weekdays in the daytime. I still work so not suitable for me.
Where are you situated Laury? and where are you looking? I'm in Sydney.