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I agree with Scott. Selling agents often have NO idea of rents (honest ones will tell you that).
You need to speak to someone in the rental section.We went to Brussels, Brugge and Ghent. LOVED Ghent the most. I could easily spend more time there. I'm off to Europe in April but East side. Next year we're going again with friends and they want to go to Belgium. May just have to go back for a quick visit.
No. The vendor is only allowed one vendor bid. If it was $370K it would be no use saying $500K. They put in the bid in the hope that someone (or the original bidder) will put in another bid higher than theirs.
You only know how low they'll go when they say SOLD!!
Please let us know. Or if you are not bidding yourself tell us the address and I can look it up on RPdata.
P.S. Sorry to hear about your dad.
AND- I LOVE Belgium (except that I put on heaps of weight while there). Damn those frites and mayonnaise.
And chocolatesOk some people only count the 80% loanm in their calculations but I add EVERYTHING I have spent as the deposit etc has come from somewhere and represents lost income from wherever it was.
I add- sale price + legals + stamp duty + reno costs = total outlay.
Multiply this by your interest rate pa. I don't pay P&I. If you are worried about out of pocket expenses either should you. Actually I wouldn't recommend it to anyone.
Add to this council rates, water This is your gross outlay.
Take away rent minus management fees.
This is your net outlay (or income if CF+).
I don't add depreciation as I see this as the icing on the cake. I like mine to be CF neutral or close without depreciation.You won't have time to get a professional to tell you whether each property is feasible. It will be gone.
Depreciation varies a LOT. We reno houses- new bathroom, kitchen, new paint, carpet, AC and usually get $3000 the first year.Hope that helps.
Good points Derek.
Not everyone is against negative gearing. It sometimes serves a purpose. The thing people are against is buying a negatively geared property JUST to get the tax benefits.
Some people like to buy in certain areas that they believe will have higher growth. These areas can have low yields so they buy in the "hope" that they will gain with CG. It's not my strategy but others swear by it.
As Derek said- there's no magic number. If it suits your portfolio go for it. Too much negative CF will limit your ability to grow your portfolio (until the CG kicks in). Some buy a mixture of CF+ and CF- to ensure serviceability.
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).
OK. get an asbestos specialist in to see what IS asbestos. Not all fibro is asbestos. As I said it is rare for a whole house to be asbestos.
There's a BIG chance that only the kitchen and bathroom are asbestos. If that's the case you can remove the rest yourself.
I understand you not wanting your family there but people SEVERELY over estimate asbestos effects.
There are MILLIONS of people that worked directly with asbestos and only a small % are affected. I'm not saying take the risk (I wouldn't take my kids on site). Just putting it into perspective. And of course wear a mask when doing any renovations.
You are not a tenant as you are not living there and you are not paying rent.
Contents cover will not cover your contents if you aren't living there.
Never assume current owners have insurance. Also they may not want to claim on their insurance if it doesn't involve them.
Always get your own as soon as you exchange contracts.worldinvestor wrote:HI ShaneMy brother in law is trying to sell a property, he has had 2 offers both deals fell over, apparently once both buyers found out it had asbestos walls they pulled the pin.
What State are you in, as I may be able to recommend someone who can remove the asbestos.
Personally I would get rid of it.
That's just ridiculous. 90%+ of houses built before 1980 have asbestos in them. Unless the whole house is asbestos. That's not so common.
New home buyers are scared of it though. So if that's the case it's understandable. People are VERY uneducated when it comes to asbestos. Never mind- more bargains for me.
I have an asbestos guy in Sydney who is reasonably priced.$10K is a lot of money. Is the whole house asbestos? That's pretty rare. Find out. You may not need to do the whole house. Ours have been bathroom and kitchen only. Is that price strip out and regyprock? If so it seems like a decent price for someone else doing all the work. Then it will be like a new house.
We rip it out if the room needs it (eg bathroom) otherwise we leave it. But last house we sheeted over the kitchen (lazy).
If there's no Body Corp I assume there would be no minuted meetings so you wouldn't get much information except for moneies in the accounts.
Is there a strata company? If so get the owners permission (letter) and make an appointment and go and look ast the books. They usually charge a nominal fee ($30).
If there is no money in the admin fund or the sinking fund (which is highly likely) the first thing everyone will need to do is pay a year in advance of enough fees to establish them. So add a few thousand $ to your price. If there are no minutes you don't know the condition of the building. It could be falling apart. Maybe get a building report (I don't worry with units but you get the info from the strata report).
If they are selling them all of, maybe they have had one done?
If you don't mind give me the address I can look it up on RPdata to see if it's right about one owner. You can PM me if you don't want to make it public.If you don't know what it means you really MUST get your solicitor to look at it. No time? Send it to him. He can read it and get back to you. I sent mine a contract Monday morning asking if there was anything scary in it. They rang back Monday lunchtime with an answer.
I wouldn't risk my money buying something that may be a dud. If you can't do anything with it or sell it, what's the point?
What do you mean by "one side" is vacant? One house is vacant?
Is it 2 separate houses or one split in 2? Makes a big difference.
He'll work something out? haha. Why woul he tell a complete stranger about a deal that could prpfit someone hundreds of thousands of dollars.
You're dreaming!!! It looks better for them if there are a lot of people there (especially one that gets the auction started).He can't work anything out.
I f you bid you MUST have 10% deposit WITH YOU. Do you have $30,000 for Sunday?And a lot of bank repo's want 28 day settlement. Are you SURE you can get the remaining $290,000 (with stamp duty etc) in that time. If not there are penalties. Check the penalties on the contract. You may end up losing your $30,000.
Auctions aren't a good idea if you don't know the rules.
Withdrawing the money to invest is not a problem as it will be for investment purposes. It doesn't matter whether it comes from the redraw or offset.
Where you come unstuck is when you turn your PPOR into an investment.If you want to buy a new PPOR and pull the money from the existing PPOR it could get sticky.
Speak to a property savvy accountant. ASk how many properties they own, what their experience is, etc. Some can do basic stuff but have NO idea when it comes to the small details.
Where are you located? someone may be able to recommend someone. I'm in Sydney and LOVE my accountant. He gets me heaps more than my last guy.
booge wrote:I'm taking the plunge again! Nathan Birch is having an investment night. This one's free and less than 2km from my house. I figured i've got nothing to lose but time on this one.Nathan's an inspiration. AND he doesn't push for sign ups and the like.
Well here's my take on the Reno Kings 7 Killer deals presentation. Small room (200). They said it was oversold but it wasn't full.
It opened up with 2 guys running SCREAMING, rev up stuff. Reminded me of The little Doer "WHERE DO YOU GET IT!". That was turn off. I know it's supposed to rev people up. The deals they had done were interesting in the fact that they showed what might have been a sticking point. That to me was valuable because most people just tell how they did it and what was good.Then Geoff Doidge came on (SCREAMING as he came down the aisle). As you can probably tell by now- I hate screaming. He was supposed to be on for half an hour (in which time he earnt $67 from his investments???). For the first 10 minutes he went on and on about his first tenant (BIKIES!!!) and how they had grease in the house and didn't mow the grass on and on and on. My note pad says boring. STILL going on. And I posted a message on Facebook while he was talking about how I wish I was outside in the park that I could see from the window).
Finally he got to the bit about earning $1,065,025pa in rent and paid NO tax. They kept mentioning this, and the fact that he has $27m in property.
So in the end he earned $1,230,000 gross. He paid $946,000 in interest. So actually he only earned $284,000 net income. So factor in depreciation etc which is why he paid no tax.Morning tea was nice pasties. More about the 7 deals. I learned a bit here about pitfalls which was incitefull. So was it worth the $48.50 (half with friend $97) and half a day of my life? Not really. I think if it's a speil for their course they shouldn't be charging for it.
They couldn't even give away a book. They kept waving their books around. One lady answered their question and they put the book on the table. One of the other guys said "I think she wanted the book". He ummed and aghhed then reluctantly gave it to her.
Seminars I've been to always give away their books (even if it's a free seminar).And who was the guy sitting out the front at the desk???
Welcome. What are you hoping to learn from the forum? Have you purchased property or hoping to get started?
Bit hard to say whether it will be easy to rent without knowing where it is.
If it's in Sydney near the CBD no there will be no worries. Some places are 28sq.
Other areas of course will differ.OK maybe approach the bank with you proposals and see how you go.
You can try to negotiate terms and still go to auction (eg deposit, settlement time etc). Not sure about a laneway though as I'm assuming another party owns it.
Sounds a bit tricky but if it's worth pursuing go for it.Anyone who bought property based on what the Real Estate Agent says is a fool waiting to be had.
It's as simple as reading the contract. All the information is there.
Reading the contract will tell you how big the block is, where it is, boundaries, water etc.
Not 1-1. They have regular meetings. They try to sell you their OTP investments in Queensland.
Save your money. There are many threads on this in various forums. I'm not going to hehash it.
