Replies Created | Forums | Catalyst | PropertyInvesting.com

Forum Replies Created

Viewing 20 posts - 801 through 820 (of 1,401 total)

« 1 … 37 38 39 40 41 42 43 44 45 … 71 »

Catalyst
Participant
@catalyst
Join Date: 2008
Post Count: 1,404
March 3, 2012 - 4:09 am
Point Piper. Only because if I could afford to buy there I'd be as rich as I need to be. And I'd love the lifestyle of living there.
Catalyst
Participant
@catalyst
Join Date: 2008
Post Count: 1,404
March 2, 2012 - 10:07 pm
Do your own research. Why would someone selling their house care want to do everything for you.
One would assume anyone looking at a house in an area would look where the house is (try googlemaps). and if you don't know what the suburb has to offer and the median prices of the suburb you are NOT ready to go it on your own. These are basics. As for when the house was built. By who?? Does it really matter if it's 70's or 80's at the initial stages of your search. I'd say no! Maybe if you arte looking at 2 year old houses.
No strata fees does annoy me. You do need to know that. Rates? If you want top buy in that area rates between different houses won't vary much. Ask one person and you're done.
Once you get some experience you will be able to dicifer the wank words.
Puting all this info on the add will not get you to ring up. THAT'S the idea. Then they have your number. And they may even care enough to ask you what you are looking for and tell you about something that suits you.
Sitting on a computer is great to START your Due Diligence, but it is not THE due diligence.
Man up or stay with TIC.
Catalyst
Participant
@catalyst
Join Date: 2008
Post Count: 1,404
March 1, 2012 - 5:31 am
While you are working a neutrally geared portfolio may work but unless you follow the Living OFF Equity Model you won't be able to quit the workforce.
A positively geared portfolio can give you enough cash to retire.
Cash will give you a living but it will not make you rich. You also need Capital Growth. If your properties never go up you will always be at the same level of income (assuming rents rise with inflation).
PISTORE you say if you are positively geared just buy another negatively geared property. WHY??? I'm buying as fast as I can but because I buy/reno/rent my LVR isn't going up and I'm actually gaining cashflow each week (AND equity with the reno). I'd rather make money and pay tax than lose money on purpose to avoid tax. If I earn too much I'll just go parttime at work (I don't want to quit as I love my job). Maybe next year.
I want it ALL!!
Catalyst
Participant
@catalyst
Join Date: 2008
Post Count: 1,404
February 29, 2012 - 5:19 am
PISTORE wrote:
The idea with any property investment strategy is to aim for a neutrally geared portfolio.
Really??? What's the point in that? OK if you're working a job I guess but it certainly wouldn't be anyones aim.
My investment strategy is to be POSITIVELY geared. I want to be making money. The more positive my portfolio is the more money in my pocket.
Catalyst
Participant
@catalyst
Join Date: 2008
Post Count: 1,404
February 28, 2012 - 5:44 am
Are you looking for an investment or to live?
Catalyst
Participant
@catalyst
Join Date: 2008
Post Count: 1,404
February 27, 2012 - 11:52 am
The reason you are getting different answers is because your question is not specific, so it depends how people are interpreting it.
If you get approval for a LOC that is bigger than your PPOR worth or the IP worth then the bank will cross them. If you get a LOC from your PPOR and then buy the IP with that LOC then you will own the IP outright and the LOC will be against your home.
If you use the LOC as the deposit then borrow, say 80% stand alone then they won't be crossed (or the bank may try to cross them.
As you see, many variables. You don't say how you are getting the LOC or how you are using it.
Hope that makes sense.
Catalyst
Participant
@catalyst
Join Date: 2008
Post Count: 1,404
February 27, 2012 - 11:44 am
Andrew_A wrote:
I have always received positive feedback about Jacque Parker, I'm regularly meeting potential clients and I'm always asking for their feedback on their experiences if they have employed a BA before.
http://www.housesearchaustralia.com.au/about/
Depends what you define as "west Sydney". She buys in the Hills but not in Mt Druitt. For Mt Druitt and the like go Nathan Birch. For the Hills area and the like go Jacque.
Catalyst
Participant
@catalyst
Join Date: 2008
Post Count: 1,404
February 27, 2012 - 6:28 am
PISTORE wrote:
I don't believe you have to trade off Capital gain for income. You just need to find locations that have both. Sydney doesn't have Billions in infrastructure and Government Spending and nor does it have the same % in population growth many other locations have in Australia.
Your dollar goes a lot further in many other locations than it does in Sydney. You can buy a new 4bed home for the same price that you would buy an older unit in Sydney, and the older unit won't give you the same growth as what a well positioned house will.
That's true. It's all about research. I don't own many properties outside Sydney so haven't done extensive research.
Yes I agree you money goes a lot further anywhere outside Sydney. But newer/bigger does not automatically mean better/same growth. Who says a well positioned new home will give you the same CG? Lots of variables here. Some will, some won't. I think it's a bit naive saying an older unit won't give you the same growth as a new house.
Care to elaborate on some possible areas that fit the high yield/high CG model?
Catalyst
Participant
@catalyst
Join Date: 2008
Post Count: 1,404
February 27, 2012 - 6:22 am
I love lessons learned without having to make mistakes to learn them.
Keep asking and learning.
The saying "you learn from your mistakes" is true but I prefer to learn them BEFORE I make the mistakes. Or learn from others mistakes. This is where forums and meetups (networking) are invaluable.
Catalyst
Participant
@catalyst
Join Date: 2008
Post Count: 1,404
February 27, 2012 - 5:50 am
PISTORE wrote:
Don't limit yourself to Sydney. There's a lot better value around Australia with FAR better rent returns.
Yes you can get better yields but at what expense? CG???
I like to have both yield and CG. I believe Sydney has that.
Catalyst
Participant
@catalyst
Join Date: 2008
Post Count: 1,404
February 27, 2012 - 5:45 am
Most property repots state Gross yield as it's too complicated to compare Net yield (you need to know rent, strata fees, rates etc).
Units often have a higher Gross yield but deduct strata and it can be quite low.
I look at net yield as it shows the true yield./ But having said that I wouldn't buy anything that had any of your figures (unless it had development potential. I want 7% Gross minimum.
Catalyst
Participant
@catalyst
Join Date: 2008
Post Count: 1,404
February 24, 2012 - 6:43 am
Derek wrote:
"Cost base
You must exclude from the cost base of a CGT asset (including a building, structure or other capital improvement to land that is treated as a separate asset for CGT purposes*) the amount of capital works deductions you have claimed or can claim in respect of the asset if:
1. you acquired the asset after 7.30pm (by legal time in the ACT) on 13 May 1997, or
2. you acquired the asset before that time and the expenditure that gave rise to the capital works deductions was incurred after 30 June 1999."
So some posters seem to be missing this point. The amount you SHOULD have claimed on depreciation will be deducted, whether you have claimed it or not.
In other words you are throwing away money by not claiming depreciation.
P.S. Get a new accountant.
Catalyst
Participant
@catalyst
Join Date: 2008
Post Count: 1,404
February 22, 2012 - 8:30 pm
Just don't assume that every block that is over 1000sq can be subdivided. There are a lot of people out there who have bought land (thinking they can subdivide) that cannot be subdivided. Do your homework.
You'd be VERY lucky to get 1000sq land with a house on it for $700K in Cherrybrook. Friends of mine are looking for a vacant block in Cherrybrook ATM.
Check with an accountant when buying also. If you buy the land and build a duplex you'll find you both own both duplexes (not one each).

Catalyst
Participant
@catalyst
Join Date: 2008
Post Count: 1,404
February 22, 2012 - 7:12 am
Qlds007 wrote:
Hi both
1)Yes hate to say going with certain lenders will limit your ability to go forward.
2)1% discounts disppeared around 2 weeks and is something none of the main lenders are offering.
3)In saying this i still would argue why you would limit yourself to one of the Big 5 lenders.
Cheers
Yours in Finance
1) why/how? (genuinely interested)
2) OK that's interesting. Glad I got in when I did.
3) True. There are plenty of options out there.
Catalyst
Participant
@catalyst
Join Date: 2008
Post Count: 1,404
February 22, 2012 - 5:49 am
I think you brief is too restrictive.
The only things I can think of that make NO profit are meetups (of which operate in most cities). Purely gatherings and not clubs.
I go to fortnightly meetings that cost $10 in Sydney. Are they making a profit? I doubt it as the room would be a few hundred dollars. They provide great info on different topics each fortnight. They provide a free blueprint (one on one meeting to discuss how you could proceed in your portfolio). They do have a buyers agency which you can subscribe to if you wish. They show some deals they have made but never push the buyers agency.
So technically it doesn't fit your brief but very worthwhile. They certainly gave me the kickstart I needed.
Catalyst
Participant
@catalyst
Join Date: 2008
Post Count: 1,404
February 22, 2012 - 5:39 am
andy28 wrote:
number 8: Are you suggesting that switching to a credit union would limit your ability to borrow for further investment properties? Is this a real problem?
It shouldn't restrict your borrowing but banks give you a better discount once you have a decent amount with them. By having all loans with different banks you are robbing yourself of decent rates.
eg If you have $800K in loans with the one bank you will get a 1% discount. That's $8000 a year you've thrown away by spreading your loans.
After that go to another bank. Repeat.
Catalyst
Participant
@catalyst
Join Date: 2008
Post Count: 1,404
February 22, 2012 - 5:33 am
Good points Luke. The thing that brings most people unstuck are the floors (not lined to habitable condition) and ceiling height. Quick test. Stand in the garage and put your hands up. If you can touch the ceiling forget it.
Also wall lining. If it's just single brick (as most garages are) it needs to be lined. Not a deal breaker- gyprock is easy to install.
Catalyst
Participant
@catalyst
Join Date: 2008
Post Count: 1,404
February 21, 2012 - 8:50 pm
First- Get rid of your accountant. You need somone who owns and understands property.
I don't understand why you need someone to add up your figures if you've done it yourself (you don't trust your adding or your figures??
Or do you want advice on what to buy and whether it is a good deal? If so maybe use a buyers agent.
Catalyst
Participant
@catalyst
Join Date: 2008
Post Count: 1,404
February 20, 2012 - 5:13 am
Be careful if buying land in both names then building a duplex. You will find that instead of owning one each you will both own half of both. Speak to someone in the know BEFORE you buy the land to ensure to is purchased correctly. Otherwise you may find yourself paying stamp duty twice to change the title.
Catalyst
Participant
@catalyst
Join Date: 2008
Post Count: 1,404
February 19, 2012 - 8:24 pm
Ok realised I answered more for cash flow estimates rather than actual out of pocket.
SO- Interest on money borrowed + council rates, water, insurance, management fees, depreciation.
From this deduct rent. This is your gross out of pocket. You get tax deduction on this (except the principal part if you are paying P&I). As I mentioned do not do this. You will be robbing yourself off deductable debt. If you have no non deductable debt get an offset account and put the extra payments in there. Same effect on interest rate as P&I but you get to contral the money (unless you are hopeless with money and will spend it).