Forum Replies Created
Bear- maybe you need a push.
If you get the chance go to a Chris Howard weekend. VERY motivational and free. They do have extra courses you can sign up for but there is no hard sell.
I highly recommend it for anyone who has lost direction and needs some rahrah!! encouragement to get moving (whether it be losing weight, investing, or just sorting out your personal life. He's a great inspiration.You know the saying- If you fail to plan, you plan to fail- TRUE!!! And read my signature below.
I'm still perplexed as to why you bought into this complex in the first place. Why would you sign up to buy a unit when you didn't know which one you'd get?
Surely this isn't the only accomodation in your area????
Anyway- are the bins easily seen? I thought you meant they were under your unit. If they are in an area sitting under the balcony I wouldn't want it (as a buyer or a tenant). Have you walked past garbages in units lately?
Qlds007 wrote:In regards to the FHOG you can actually move into the property one day short of the first year that the property was available for occupation or the property being ragistered in your name and occupy the property for 6 continous months.You do NOT have to move in within 6 months.
You are correct. Thanks for clearing that up.
I think they mean they rent at their principal place of residence. Not that they own it????
GWing- So if you move in straight away what's the talk of CGT? And why do you need to apply after the fact? You still haven't made it clear.
tiger_ra wrote:yes but its in hopes of making $2 extra in the future!Hope is not a strategy.
tiger_ra wrote:If i can manage to buy at a 'discount' AND 'value add' (through renovations) targeting a 4.8% yield, would this seem to be a smart enough move or it is still a less than desirable time to buy considering we are in a flat market. I would still be in a negative geared situation….Yes buying at discount and adding value are great ways to increase your equity without waiting for it to "maybe" happen. Why would you target 4.8% yield? That's like targetting getting 50% on a test. If you buy under market and add equity through a reno you would also increase the yield. Aim a little higher (at least 6%). Personally I wouldn't bother for under 7% unless it had development potential.
Reach for the stars- You may not get one but you won't end up with a handful of mud.
I meant I would have bought something that wasn't small and wasn't above a garbage room. In other words- nit those.
Why did you have to choose between 2 units- both of which were not ideal? There are millions of units- why those?
But if I HAD to have one I'd say the bigger one. You can change lots of things easily but not size.
Bought something that wasn't small and wasn't above a garbage room.
There are a LOT more than 2 units out there.I'm a bit confused. You are building and you will rent it out when it's finished THEN move into it?
If you intend to move in within 6 months of completion then you can buy it getting the FHOG. If you move in after 6 months it's too late, you cannot get the FHOG.
Jins13 wrote:If someone gave me something on a silver plater and said here you go, with nil effort on my part it leaves a sour taste for me.
Just to add to, taking short cuts which you have done very little homework will leave an undesirable result.So you don't believe in Buyers Agents then?
They can hand me a good deal on a silver platter anytime they like. I'll have no sour taste. I have bought through an agent and it had a VERY desirable result.
Also if I see a deal that I can't follow through with I'm happy to let friends that buy similar properties to me, know about it. Similarly a friend once rang me about a property she couldn't buy because of finance, asking if I'd be interested in it.
I didn't say Sydney had no problems. I just think it's ridiculous to make broad stratements about the "Australian Market". There's no such thing in it's entirety.
As for me I'm a very willing player. Spectators can't win. Bring it on.
sapphire101 wrote:Current owner may allow early access to get your money. Sounds like a good swap. Yes you are correct in that if the settlement does not go through, besides the usual financial problems, you will walk away from your renovation and have to pay to get it into a livable condition or back to where it was, plus costs to date.Sounds grim, but if you've done your homework the above situation wouldn't happen.
Ian
http://www.theblockblog.com
Free Property Information, Tools & Resources for Investors with a Sense of Humour.Any amount of homework cannot guarantee it won't happen.
The owner (seeing a wonderful house) may decide that they want more and try to pull out. Sure it's not likely but can happen. As long as you are aware of the risks VS the gain.
Great if you can get it but at the end of the day you are spending money on someone else's house. Insurance? on something you don't own? Public liability if someone is injured? A few things to consider.Kaylah wrote:I agree Freckle.People have relied on Capital Growth to sustain their property portfolios and in a stagnant market people are going to have to sell because they used their capital to cover the mortgage payment short fall. This has caused an increase in properties being sold with very few buyers in the market due to financing difficulties. I know in the area I live, property prices have returned to 2007 prices. People who bought after this period have lost 10's thousands of dollars in capital.
I believe the market will be flat for a long time, but there are great deals out there if you can finance them! Buy and hold strategy is always the best if possible.
Where are you talking about?
Certainly not Sydney. We're moving nicely thanks.Yes there are lots. What strategy are you looking at (or just general).
You could go to the Think and Grow Rich in Property one (in March I think). It's free and has various speakers. You also get free books and DVD's. Just don't get hyped up and pay thousands for courses. Think about it and do some research first to ensure it's right for you.There are a few meetups also which are great for networking. I go to one in Parramatta every fortnight if that's near you. They have a meeting, information topic then people chat. $10.
PM me if you want details.There is also a meetup group that meets every 1-2 months (usually in Chatswood). Free just likeminded investors chatting over drinks.
Networking is THE most valuable thing IMO.I love it when people that can't make a particular strategy work say it can't be done.
Well move out of the way while those that can do it do it.
This is my strategy ATM and it's working nicely for me thanks. My portfolio is CF+ and my LVR has not increased with my last 4 purchases as I buy under market, reno then reval.
novice100 wrote:Also I forgot to mention that an identical unit in the complex sold for $650k in October 2011 so I presume this problem did not deter the buyers then (the report was written in July 2011 but the legal scion started in dec 2011)Maybe that buyer had the same mentality as yourself. ie buy regardless of the unknown future of this property.
There are no guarantees when buying a property but I like to have as much information as possible. I would never buy something where I don't know if I will need to spend thousands of dollars the year after I buy it.
As I said- wait until the owners get the bills then see who can afford the special levies (if any). Not everyone has $$$ laying around.
If there are defects in the building I'd be more worried about lawsuits. If a person was injured the insurance may wipe the claim.
Give it up. There are MILLIONS of other properties out there. A new one will come along soon.
I know I've missed out on many "one off" deals only to find another the next week.
Wait to see what happens with the claims. Others will want to sell if the issues arrise and you'll get a bargain. Remember there are 100 in this block alone.
You're kidding right? You're thinking of buying a property that "may" have to self fund $1million in faults.
And you're willing to overpay for the privilege.
I'm surprised there aren't more for sale.
Before self managing you need to know the rules.
Do you know your rights? The tenants rights?
If there's a problem are you able to represent yourself in court?When there's a leaky tap etc the tenant will ring you. Are you OK with that? Are you willing to contact maintenance people? Do you have numbers on hand for emergencies? plumber etc. Sometimes tenants are great, but sometimes when they know they have the owners number it's very easy to ring you for the tiniest thing. PM's often deal with small issues without having to involve you.
Sure when things go smoothly it seems like easy money for the PM but when things don't that's when you appreciate them.
I'm not saying don't self manage (I do for some of mine- due to poor PM's) but know what's involved before jumping in and trying to save a few dollars.
It's a personal thing really. When I retire I'll self manage all the close ones.rusty05 wrote:We've just been approved for a 0.9% discount with Westpac on a loan of over $800000 but the broker is hitting them up for 1% because the LVR is only at 42% – Worth a shot.on $800K you should be getting 1%. I'm getting 1% on less than $800K with both Comm and St George.
Flea2575 wrote:Hi
I am going against the grain here and as a newbie investor myself, I have decided to enrol in a course for a few reasons. I have been reading a number of books over the past year and just found that I had information overload. As an experienced investor, you may be able to sort through all the messages, but for me, I found that one expert was saying one thing, another something else etc etc. By going through the course, I am able to get a few fundamentals in place to understand what each of the books are saying (then I can determine what method will work for me). The forum is a great place, but again, everyone is saying something slightly differently and being a very active forum, my head was spinning.
Alternatively, there is mentoring available, either Nathan Birch, Lomas (through her Destiny Financial Services I think) or the Results course where you can bounce your ideas off an experienced investor to ensure you are implementing what you have learnt correctly (and yes I realise these services are putting money in other people’s pockets but the alternate cost could be much heartache).
My 2c worth.
Yes it can get that way with so many different ways to make money in property. A year is not a long time to get your head around investing in property. You need time to look at each strategy and see how each really works and what's for you. You need time to research areas as well.
Enrolling in a course will not help you decide on a strategy (IMHO) as the course provider will teach you their way of investing in property. I don't know (enlighten me if you do) of any course that teaches all the strategies and how each on works, in order that you can decide what's the one for you.
Just the same as paying for a mentoring program IS choosing a way to invest. Nathan's approach is buy under market, increase equity and aim for CF. Lomas looks at high yield but tends to negate CG. Others advocate blue chip inner city high growth but negate yield.
What's the course you are doing? What's THEIR strategy?
As I always say -NETWORK. It's free (often) and you get to see people putting their money whewre their mouth is.
So you bought a property that will lose money so you don't have to pay so much tax? I know lots of people do it. It's called negative gearing but it's not for me. I like making money.
The more you pay off the less tax you claim as a tax offset, but the more you pay off the less interest you pay.
I'm hoping you are paying the extra money into an offset account and not directly off the loan. By having the offset account the extra money you pay is yours to withdraw as you see fit. Down the track you may want that money to buy another IP or even a home to live in. You can take the money from the offset without losing tax deductions. If you pull it out of the loan to by a home you lose the tax deductions.
