Forum Replies Created
Hi Munno
We put in a colobond fence on our new PPOR, there is a walk way down the side, it is 1.8m high with a privacy screen = 2.1 m high.
You can put it in your self, comes in lots of colours, ring around for prices and check out their web site.
Celeste[biggrin]
Hi all
Buy/reno/sell is my game, I do 1 bed aprtments. I donot have a rule of thumb.
It is project by project, though, I did do a standard budget for a 1bed reno. ie Kitchen/ bath/bed/lounge. which on my 1st one I was under.
I use this bench mark budget when I do my costings on properties that i’m looking at to buy and when I buy I modify it to suit the new one.
The modifications depends on how much I paid for it and how much I think I can sell it for and what profit I want (I work on a minimium profit margin when assessing new properties.
I do not get quotes (they are usually marked up for worst case).
though I have an apartment to do march/april next year that needs new lines ran for either elect or gas (the kitchen has never had a stove/oven? and its 40 odd yrs old, it has stainless steel benchs and a microwave?) I will get quotes, but not from my trady (as he will charge me this) to work out what way to go.I have formulars number of hrs x hourly rate for my budget.
I do all the work my self except plumb/elec.
So, I would suggest you work out the amount you could get when you sell after a reno – cost to buy/sell (puchase/stamp duty etc) – an amount you would like in hand = a rough amount for your reno.
My 1st went like this sell 205-210k – purchase/selling costs 190k – profit 5 – 10k = reno 10k, I went for 7k. The property I was looking at was 180k. I brought it.
I based it on private sale, (tried this, do not like it) when I had finished, the market was dictated a selling price of 225k. I ended up going through an agent and got 240k (a record for the area, apparently I do really good reno’s) – RAE fee 9600.00
I sold for 240k = profit approx 34k
I buy properties around 200k my reno budget is approx 7-10k 3.5-4% and 10% entry and exit fees/ rates / strata fees etc.
The profit amount depends on what your plan is, mine was to cover the wages I was earning working part time, so my profit margin was around 5-10k per property, so I could earn 20-30k per year.
I plan quick turn arounds and more time at home doing the parent at school stuff etc and less stress from bosses.that’s my method, I would like to know how others work it out also.
celeste
Hi all
I have had a look around the web for the same, nil on free (good ones anyway)
I was in Harvey Normans on sat and saw some there, one was about $50 and some in CAD around $150. I am going back next week when iam 5yr old free to have a better look. I let you know if any good.
Celeste
Hi bennelly
most councils/shires have web sites with the zoning info. and info on up and coming development / rezoning etc for that shire.
or you can ring them.
Celeste
Hi Paul
I gave the free line a ring they do not know.
Try ringing head office no. -under contacts (open and scroll to bottom) if its full and you want to go, they maybe able to keep a note of you and let you know if there is a cancellation.
otherwise it starts a 3pm at the convention centre on the friday, turn up and see if there are any no shows or they may squeese you in ?
or we can met for coffee/dinner sat or sun night and I can tell you what happened
Celeste
email me & I will give you my mobile no.Hi Paul
It on friday 27/10/06 until sunday 29th Subject Reno’s development & subdividing.
cost $2500.00 if paid all at once or $2700.00 payment plan ($450 pm)
Apparently you take a bus around the projects they have going then go back and discuss then in detail – thats the bit I like
I have not seen it advertised for a while do not know if any places left. I’ll see I can find out for you.
Celeste
Hi all
Actually I just double checked this on the ATO site last week, due to one of mine having a long settlement.
They say the date you sign the contract or offer/acceptance and I double checked with my accountant.
Here’s the cruncher its both ways when you buy and when you sell.
they call this a CG avent.What you need to watch for is: if you sign a contract to sell in may06 and they have say 21dys for finance and then 28dys to settle (july 06) you will be receiving the settlement monies in the next financial year, but you will have to pay tax on the CG in the
current financial year. Therefore paying tax on monies you have not received yet.I have found that a lot of people think CG tax is 50%? So just in case I will clarify it. CG gets added to your taxable income and the tax is calculated at what ever PAYG rate that takes you to. (Taxed same as if it was wages). if you hold the property for more than 12months you get a discount, you only add 50% of the CG to your wages to calculate the tax.
Also, I would make sure I have at least 1 weeks grace in my calc for the 12 mths, I have heard stories of being 1 day short etc.
Celeste[biggrin]
Hi all
Like I keep saying, work out a plan of what you want $ how you want to pay & or set it up and go to the bank and ask if they can do it.
Always worth a try.
[biggrin]
CelesteHi all
I have a 5yr old and I know the kids play place like jungle gym, tropical twist etc with cafe and party rooms do roaring trade in my area.
must have a cafe for mum / dad
the cafe can also do the in house catering for the parties.
If you want further info how the ones I frequent work I can fill you in.
my email [email protected]
Celeste
Hi all
How about finding out the day they are moving in and organise a basket with themos of coffee / sandwichs / cake / cool drink.
Celeste
Hi all
Just a thought, do not know if legal or can be done.
Can you set up your own company say ” Student accomodation pty ltd” and do your third party lease through it?
Celeste
Hi all
One more thing I do not know wether this is any help, all you can do is ask the bank if possible.
When we built our PPOR we had a building loan, this was a loan approved to a certain amount, it was based on the value of the land and the value of what we were building.
So we had an approved limit, interest kicked when we started to draw down on it ie pay deposit, pay each step to the builder etc.
we didnot have to make repayments until the full amount was drawn and the interest was added to the drawn amount. We borrowed more than we needed, because every new house needs new furniture and lanscaping etc.
If you could prove to the bank the added value of the reno you could add this to the value for the loan.
I do not know if this can be applied to a reno etc or not?
Maybe one of the motgage guys would know or could check it out?
I have found that if I research something and have a few ideas you can go to your bank and ask them. They can only say no. So far mine has said yes. I am getting the int. rate I want with the type of loan I want and I pay only $375 per year for all my loans / accounts and no other fees , only govt duty/taxes.
I hope I have explained it properly.[blush2]
Good Luck [biggrin]
CelesteHi Island girl
Your situation is similiar to mine. I also have a husband who does not like credit, but he is financially aware.
We also have a PPOR value conservately at approx 700 – 800k paid for, on this we have hubbies business LOC 140k, and an IP -ve with 120k equity.
I also wanted to quit work, luckly I receive and income from hubbies business and I only worked 3 dys a week earning 20-30k per year. Hubby doesn’t want me working, but I would go mad with nothing to do. I don’t play tennis.
I came up with a plan to buy 1 bed apartments, reno & sell. The orginal plan was to make 5-10k per apartment 2-3 per year, build up some capital bank free. I talked hubby into it and…….
Quit on thursday( May 06), Friday I went apartment shopping my budget 200k or under. I found a good one put in an offer with a 6 month settlement (they had just signed a tenant for 6 mths) and to my surprise (In Perths red hot market) they accepted.
On the Monday I set up a disc. trust, put the paper work in to the bank for my LOC on our PPOR for 220k.
Then thought what am I going to do for 6 months, I know buy another. this time I had the cash ready, therefore allowing for a short settlement, I found one which from start to finish took me 4 months. I sold in 1 week, making 32k, my whole years wages in one reno.[biggrin]
The one with the long settlement has increased without the reno at least 30k, I got a seperate 100% loan for this one, using it and my IP as equity, I will rent this out for another 6 months to lessen the tax on the profit. Depending on the Market I will either Reno and Sell or Reno and hold.
So now I have more cash to play with, so I have just purchased another it settles in 2 weeks.
Bit of back ground I am a senior bookkeeper I had my own business, and have worked in a wide range of industries and I am very hands on creatively I do all the work on the Reno’s except elect/plumbing.
1st thing I did when my Hubby and I moved in together was get him to set up his own super fund and purcahase some premises, which we lease to the business.
We settled on an amount we were comfortable with as wages and then we put as much as possible into the super fund. Hubby works the share market with the super fund monies.
do some more research on which type of Trust and wether you set up a company as well, for legal reasons. I do not have a company and I lend the money to the trust. apparently this could leave me open to be sued by creditors in the future.
I have read some stuff in these forums that has prompted me to check things out further.
I did research trusts B4 I went to the accountant he thougth the dis.trust was the way to go.
this is a question to TerryW how does a hybrid trust save on tax?
So all I can say is Go Girl Go!!!![biggrin]
Celeste
Hi all
Is there any permit or licences need via the council etc.? Boarding House?
what sort of Bathroom to Rooms ratio do you need?
What sort of Insurance is needed?
Do you furnish common areas ie Kitchen / lounges? T.V / fridge / wash Machine/dryer / kitchen ustensils etc
Parking?
Laundry?
phone / internet ?
There’s are start for replies to build a knowledge base for all.
celeste
Hi LifeX
Thanks for responding, I buy 1 bed apartments and Reno.
They generally have
2 fuses = 1 x power and 1 x lights
gas upright stoves
either gas or electric instant hot water systems.
and have 3-4 rooms (depending on kitchen lay out.)I am trying to nut out a way of getting rid of the up right gas stoves and make more cupboard space and hopefully not run another fuse.
My understanding is,
1. I need a seperate fuse to install the new electric ovens.
2. That this applies for items that draw more than 15 amps ie some air conditioners etc.Questions
1. do I need seperate circuit for
electric hot plates?
Gas hotplates?
microwave/convention oven?
or one of those ovens with the hotplates on top?2. Due to the fact that there is approx. 5 lights on the light circuit
can and run anything extra from this circuit3. how many power points can I run from one circuit?
I think that all for the mo.
Thanks
Celeste[exhappy]Hi all
My comment re: Perth being different to Sydney .
I failed to explain properly, recently I read on this site where some one in Perth (sorry forgot who and which forum, I think it was this one) has purchased at the lower end of the market thinking when the bubble bursts he will be safe.
Other contibutors explained that when Sydney’s bubble burst it started with the bottom end because investors pulled out.
I think Perths bubble will slow or burst for different reasons than sydney and that the bottom end will be safe. Affordability and the increase in the FHOG (I found out it is true about and increase to $14000) will keep the bottom end boyant.
There will always be a market for a good quality property.
Speaking of good quality props, I will post some photos in the next couple of weeks of the prop I just purchased.
The owner had purchases it as an IP to reno & sell. He did and put it on the market, the reno is so bad that he dropped the price 3 times.
I brought it friday – 30day settlement, $20000.00 under market price for one in original condition. I will fix his job (parts of it anyway) and start from scratch in the Kitchen, and I will put it back on the market at least $15000.00 above his original asking price.
I know I can get that price because my last one sold at this price and it is in the building next door.Almost identical apartments except this one has views from the Hills to the City, the internal walls of the apartment have been plastered (usually you have to deal with face brick – very dating) the complex has a pool/tennis court and full time caretaker and it also has the same Strata Management as the 1st and their about to start a major upgrade of the building and best of all it will be paid for from the lease payments from the phone towers on the roof.
Oh by the way I found this on the RE.com whilst playing spider/watching the midday movie and drinking coffee. I only went out to inspect it.(Sorry, I had already done due dilligance on the area and had checked the building out previously, when l was shopping earlier, so I already knew all about it)
sorry a bout the grammar and spelling is bad, my 5 yr old wants to do an experiment she saw on ABC Kids this morning and keeps bugging me. Can’t think properly with her in the back ground
See yah[biggrin]
Celeste
Hi Christopher
What you want is a line of credit, this is a mortgage in most senses.
except it works like a credit card. You have a limit and you only pay interest on what you use each month.It is what I use for my reno’s, the line of credit is on my ppor this is no problem with tax as it is a seperate loan for investment / business purposes only. this way I lend the money to the business and when I sell it gets paid back then I buy another.
Therefore I can make cash offers and not deal with the bank all the time.
One thing though as you can draw on them and not make payments until you reach your limit you can get into trouble.
By trade I am a Senior Bookkeeper so I do know some tax stuff, not to much prop investment stuff though, I have operated on a credit card for 15yr now, I use it for everything and put our wages etc into high interest accounts (we paid the mortgage on the ppor years ago)and once amonth a the very last minute I pay the credit card. I love spending other peoples money for free whilst mine earns more elsewhere.
Anyway when we got the line of credit I started to put our wages etc into it to lower the interest and then pay our credit card each month.
Seems reasonable but plays havoc when tax time comes, because the ato treats the wages in as a repayment and the money out a personal drawings therefore not allowing you to claim the interest on it. makes the interset claimable calculation a nightmare.I stopped real quick and reverted to the old method except I transfer most of the excess funds into the equity line. Where it reduces the interest but we can still get to it if needed.
Celeste
Celeste
Hi all
b4 I moved to Perth, I had a house in Monee Ponds Vic, when we reno’ed it , we found behind the plaster on the inside of the weather boards that the builder had signed his name and dated it. It was 1 month off 100 years old when we sold it. Just missed out on the heritage status.
We sold in 88 last year when I visited I drove past and it still looks good,
Sounds great Good Luck
Celeste
Hi all
Oh dear, you mean I can’t sit in my office surf the net, play spider, have a coffee / choky bikky whilst watch the midday movie to make good deals?
I have to go out into the big bad world???
Who exactly should I talk to and how do you find properties that are not listed???????????[blush2]
Celeste
Hi all
Yesturdays paper & news echoed my thoughts on Perth.
I did not see value in Perth for long term as the rents are to low and prices to high.
But I did see short term gain buying / reno / selling.
I am seeing rents rising in Perth now eg. my apartment in vic park is leased at $120 pw (previous owners lease) this is month 5 of a 6 month lease. rents for this type of prop in the same area are now $145.00 b4 reno – 175.00.after reno
I think Perth will be different to Sydney because the slow down has come about for different reasons. I beleive there will still be a market for properties under $300000.00 fro 1st home buyers and singles, so I feel pretty safe.
I have heard a talk of an increase in FHOG from $7000 to 14000
any one now if this is true.One more piece of knowledge to pass around. My apartments I have been buying at the moment are under 50 sm, my buyer had problems with finance because he was borrowing more than 80% and needed insurance. some insurance co. that issue these policies will not deal with properties under 50 sm. Just a thought if you are buying, you will need to check with your finance/bank
1st b4 looking.[blink]Celeste
