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I wouldn't buy second hand again. Well maybe if it was a straight run for as granny flat. Too much mucking around trying to get it to fit etc. Look on Ebay though if you want to go second hand. You may not have much close to you but if you do there won't be much demand so you may get one cheap.
We buy new now and install ourselves as the price is very competitive.
Being Rural though would make a difference. But if you are looking at second hand I'm guessing you would put it in yourself. So maybe go to Sydney?, buy it and install yourself.
CGT- you need to OWN it for 12 months to get the 50% discount.
Depreciation report. Won't get much back this year but the report lasts 20 years. Might as well get a little now and more next year.
Sometimes they can do it by photos. But you need to photograph everything you want to depreciate. This can make it a bit cheaper.
Of course he's keen to do it ASAP. He'll get your $20K.
Get an appraisal. Take out selling costs and loan and see how much is left. Tell him you want half of that.HE should be paying rent (at market rates). That should be going onto the loan. Then you pay half of the difference, plus half the rates, strata etc.
Don't let him con you. I'm hoping he's not living there for nothing with you paying half of everything. If that is the case tell him you need to rent it out. Sounds like he's trying to force your hand.startxing wrote:I rang the one just at the opposite of the road that have a For Lease sign outside, the girl told me they have sveral units that is available now, but they are 3 beds, rent starting from $475 per week !! no funiture inside !! 3 bed, $475 per week rent …..
Then I asked how old is this build, she said it is only compeleted couple months ago!
Then I drove around this part of Liverpool and saw a lot of new Apartments in the area, thinking the medium unit price from Investsmart isn't really that close the real market conditions ~ ( just my opinion)
I open my ipad do a quick search for units/apartments for rent in the area, they ranging from $320-370, some goes for $400, all for a 2 beder.
After all that, I park the car in westfield, walk around the area, can't argue with the amount of people traffic flow there, it is like Parramatta, but only bigger. It was during lunch time, people seems friendly ~ no complains ~
I will check out what kind of townhouse/house it is offering in the area next week to make up my mind. Overall, I am satisfied with the place and the price that offered, just don't really think 2+ years is going to be a good factor for wealth creation.
The asking rent is just that "asking". Doesn't mean they'll get it. Especially as the new units are available. With many fdor rent peolple will lower the price to get someone in.
Liverpool may (on the surface) look like Parramatta but believe me it's not.
startxing wrote:Secondly, I need to explain a bit regarding why I want to purchase a OTP property. The reason being I have invested in a OTP property last year, and it is getting completed within the next 6 months, base on the 2nd sales record so far, I have made a solid 10% growth on a 365k purchase, the suburb is Northmead, which is near parramatta. (of course, before the money is in the pocket, we can't say it is in the pocket yet do we ? )As you mentioned- you have made nothing. What the agents sell for is not a reflection of what they would sell for on the open market. People get roped in by the hype- It will be worth more before you settle etc. Northmead (in my opinion) is a growth suburb ATM and I don't think you'll go wrong there but don't ddelude yourselkf to think you could sell yours for that.
If there are more units going up in Liverpool then yours will be the old ones in 5 years time. How will it stack up against the median then? You say the median is wrong but you are only looking at the new units which (based on history) are over priced. As Nathan said there are bargains to be had 1-2 years after these projects finish. People who underestimated the return, over estimated the rent etc (in other words- believed the hype). Then they need to sell. Get a few of those and the price goes down. Simple demand and supply.I'm not against OTP perse. They arte great in a rising market. You just nered to time it right. If the market does not rise you can be in trouble. Eg if the value doesn't come up the bank will not lend you the money. You need to make sure you have extra cash in case. I would not risk buying 2 OTP at once.
startxing wrote:Hi everyone,
First look of the suburb, with house median price at $360k and unit median price at around 250K (from Investsmart), looks very affordable.
price for a proper 2 beder with 2 bathroom at $370k.
So the median price is $250K and you're going to pay $370K. WHY???? If you believe Liverpool will see 10% growth in 3 years buy something below market price now. Great yields to be had too (not on your OTP though).
No! If you buy together they calculate your ability to pay together. You are in effect liable for half the loan.
So with a husband and wife they look at incomings (wages, rent etc). And outgoings (interest etc) to see your ability to borrow.
Yes that's the reason magazines suggest buying in partnership if the bank will not lend you money alone.
In NSW you have to advertise at the same rent. Otherwise landlords could ask for exhorbitant rent and not worry as the tenant will be paying.
Don't like your chances of winning if it goes to court.
I do agree though that they didn't only realise last week that they were having a baby. And if they did why do they need a bigger place NOW if the baby's not even born?Don't forget to take into account that you will pay capital gains tax when you sell the new place if you rent it out first.
Also doing the renos before you move in will increase the capital gain while it was rented so can increase the CG further (if you get an evaluation prior to moving in). In that case you would be better off not getting a valuation. Short term gains can lead to long term losses. Tread carefully.
What do you mean by "I believe 2 years is the minimum"? That you wouldn't be willing/able to move in under 2 yrs?
Lots of things to consider- loans, rent etc.
Your existing PPOR will be positively geared while you will not receive any tax deductions on your new property. This does not put you in a good position taxwise. Change the existing loan to interest only. In hindsight you should have been paying interest only with extra funds in an offset account. That way you could have puuled the money out to finance your new purchase and the full loan on the first one would be tax deductable.
If you do take money out of the existing loan for deposit etc this also is not tax deductable.
If you intend staying in the new purchase put any extra cash into that one (via an offset account is best). Then even if you decide toi move on again you can access the funds and not lose tax benefits.
Or you could buy the new one, rent both out and rent elsewhere (claiming tax deductions). Then you still maintain ther first one as you PPOR and if you move back within 6 years (even if for a few months) you pay no CGT.
Agree with the above. It depends where you want to live. If you want to live in an area that has a low yield you are better off renting and buying in another area. You can deduct expenses etc.
Getting a co-investor for a family home is not worth the trouble (in my opinion). Too complicated with the amount each pays and tax for the other person if you are not paying market rent etc. If it's an investment purely that's different.
You need to look at where you want to live. Work out the numbers and compare it to if you bought an investment instead and rented.
Of course all this doesn't take in peoples desire to own a home to live in. Taking the emotion out of it- let the numbers do the talking.
Hi, the thing is, without attaching it to a wall (structural) you need supports to stop it from tipping over.
My son's friend had a free standing wall made to make the lounge into a bedroom in a terrace in the city. It was like a proper wall but had supports coming out of the bottom to support it. It looked big and ugly but they were happy as they could now fit 3 people in.
Maybe a curtain or a screen?
Send an Email to a depreciator with details of the age of the property, construction, any reno's etc. They will tell you whether it's worthwhile doing. Seeing as you'll only get 6 months depreciation and you will likely sell unless you have recent reno's, or property is near new I'd say you would come out in front (money wise).
I think you need a balance.
Sure lots (me included) wished we'd started earlier but not to the exclusion of living.
You can't put everything off till "later". My wake up call was my friend. Her dream was to travel extensively to Europe for her 50th (I had a similar dream). She got cancer at 48 and was dead before she reached 50.
That year I took time off work and traveled around Europe.You can have a balance of living AND saving for the future. You sound like you are on the right track. Live your life but save on those things that don't give you quality of life (big screen TV, expensive cars etc).
At 21 you still have at least 40 good years investing under your belt. Read, get in there and enjoy the journey. Be careful though it's addictive once you start.
Don't put extra money on the loan if you are going to rent it out. This will reduce your claimable interest. You could put it in an offset account.
Well done. It looks great.
Was it difficult getting a smooth finish on the ceiling where the arch was removed? Did you replace the gyprock or repair it?
It's rewarding isn't it!
Only issue with not using a qualified tradie is knowing if it's a load bearing wall. Not too hard to pick but I've seen people remove walls without the correct beams (or none) and roofs collapse.
Having said that we did ours ourselves. Those bloomin support beams weigh a ton.
What part of Sydney? It's a big place.
What other things are you looking at doing?
I have some tradies out west.
When are they due to be weened from the mother?
You neglected to add management fees. Some of these managed blocks charge a huge amount. Check whether you can lease it independently.
Banks will usually lend 60-80% on that size. Depending on the bank.
Also what's the CG indications? What's been the growth in the past? I know it sounds attractive but you need to look at ALL the information.
You still have a lot to learn. You're ignoring depreciation BECAUSE you're focused on cash flow? THAT can GIVE you cash flow.
Also paying down the loan will decrease you tax offsets. Put the money elsewhere or at least in an offset account so you can take it out if you need to.
Ask yourself why there are so many for sale if it costs nothing for owners to hold them AND why we aren't rushing to buy them.
As it has risen substantially in price I'd get an evaluation. It may not go up in price in the forseeable future. If you don't get the valuation, when you sell they will apportion GST as a %.
The repairs are not claimable.
Once you have a tenant any repairs are claimable against the rent.From the time it is available for rent you can claim any expenditures (rates, interest, repairs, management costs etc).
Good luck. Just keep posting if you have any questions.
