Forum Replies Created
Hi Pizang,
At the moment I am buying a brand new positively geared house close to Melbourne with a 2 year lease and 2x 1 year options to extend the lease. I am confident that this will do very well in the long term. I will be getting a 7.5% return + huge depreciation benefits.[biggrin]
Todd Burns
http://www.freepropertyhelp.com.auHi Lake innes,
I think a carefully selected property in Brisbane City or a Brisbane suburb will continue to provide good capital growth and ever increasing rental returns. The rent on my new IP in Northlakes Estate in Mango Hill recently went up $30 after 18 months and it will probably go up another $20 at the expiration of the existing lease.
There’s still plenty of people migrating to QLD so demand is high. Have a look at the free Herron Todd White valuers reports to get an idea where Brisbane is at in the property cycle.[biggrin]
Todd Burns
http://www.freepropertyhelp.com.auCheck out this guy. A friend of mine in England says Ajay is a property guru over there. http://www.phfinance.co.uk/newsletter1809.html
Todd Burns
http://www.freepropertyhelp.com.auYes, it is still possible but a lot more difficult than it use to be. You have to be creative in how you find, fund and structure properties. You also have to be quicker and better prepared than all the masses that are now looking for their magic money making property pill. [blink]
Todd Burns
http://www.freepropertyhelp.com.auHi Lena,
Remember to include land and water rates, insurance, strata fees, maintenance and property management fees in your yearly outgoings.
The property may have some depreciation benefits, especially if built post 1985.
Todd Burns
http://www.freepropertyhelp.com.auIf the property is newish, you may be able to claim significant depreciation benefits. It is not uncommon for a reasonably new negative geared property with good capital gain and depreciation benefits to end up costing $70pw out of the investors pocket. This is $3640 pa but a $300,000 property that increases in value by an average 8% each year would give you $24,000 equity in the first year and this amount would compound for each year after that. (provided you bought in a reasonable area)
Obviously you there is a limit to how many times you can do this because you would eventually run out of money that you can put into support mulitple IP’s. However, over time rent does rise to cover more of the amount that is coming out of your pocket until they eventually become cashflow neutral, positive geared or even cashflow positive.
Todd Burns
http://www.freepropertyhelp.com.auHi Daniel,
Basically, you can get what you ask for. With one of my IP’s – I asked a builder for a price on a house that was ready to rent and had landscaping, fencing etc all completed. He gave me a price that I was happy with, he built it, I paid archicentre to inspect it, the bank paid the builder and my tenants moved in shortly after. [biggrin]
Todd Burns
http://www.freepropertyhelp.com.auIf you want a high yielding online savings account, try Bankwest. They have a 12 month introductory rate of 6.6% rate for new clients.
[biggrin]Todd Burns
http://www.freepropertyhelp.com.auA lot of local councils use this discount method for motivating ratepayers to pay rates on time. It works on me, I don’t want to give them any more money than I have to so I always pay my rates on time and get the discount.
I am a little annoyed that they are trying to play psychological games with me, but hey!! if it works and is ethical , I won’t argue with it.
Todd Burns
http://www.freepropertyhelp.com.auHi Dedfred,
Here’s another option for you- You could buy a block of land and get a builder to construct a house for you. That way you cut out the middle man and you don’t pay developers margin because you become the developer.
I did it this way in a location not far from Morayfield and on completion the market value of my property was about 40K more than I paid for it . You need to take into account the holding cost of the land until construction is complete but doing it this way you save on the stamp duty cost that you would pay on buying an existing property.
I interviewed builders and got references until I found one I liked. The builder I picked did a great job and had his own team of tradesman so he got the job done fast and was very professional. It’s a little bit more of a hassle doing it this way but I saved myself $40k by doing it like this
Todd Burns
http://www.freepropertyhelp.com.auHi Ivan,
Check out my website and look at the information on my reports page. This will give you a good grounding in market research and property cycles. You should be able to find some other information there that will help you. [biggrin]
Regards
Todd Burns
http://www.freepropertyhelp.com.auThe first question is “why do you want to sell?” If you want to invest in managed funds or another investment property you could probably access some funds by using the equity that is in your existing IP, without selling and triggering a capital gains event.
If you desperately need the cash in hand you will probably struggle with finding a legal way to avoid capital gains tax however, there are a few ways to minimise or offset it. You’re best off talking to a good accountant who will assess your personal situation in more detail.
Todd Burns
http://www.freepropertyhelp.com.auHi Paul,
I have some research tools and useful information on my website if you want to check it out. Have a look at the information on my reports page, I think you will find it interesting.
Todd Burns
http://www.freepropertyhelp.com.auYou are heavily leveraged towards mining towns, so I would cash in on the Isa properties and use the cash as a deposit on a SEQ property. You will lose some cash in capital gains TAX but you could consider offsetting this by prepaying your loan interest on your Kalgoorlie and/or Townsville properties before 30 June next year (if lender allows prepay). See your accountant about this. I had to do a similar thing when my savings and serviceabilty were low and it helped me to be able to continue investing later. It’s good to sell when you don’t feel under pressure too. You can afford to wait longer to get top dollar.
If you do sell, I suggest keeping a bit of ‘easy to reach’ cash as a safety buffer. Bankwest have an ‘at call’ type internet banking account that is offering a special 6.4% interest rate for the first 12 months.
If you want to find another property that has some good capital growth prospects then check out the latest Residex country predicted growth report for ideas.
Todd Burns
http://www.freepropertyhelp.com.auThere is not much to speak of on the West Coast of Tassie. The are a few nice places on the east coast that might do alright and Hobart and Launceston are reasonable but there are much better investments here on the mainland.
Stay away from Queenstown (TAS) it is the ugliest place I have ever seen.
Todd Burns
http://www.freepropertyhelp.com.auIt just depends on what is written in the contract. I have seen some contracts that allow the seller to withdraw without penalty. What does your contract say?
Todd Burns
http://www.freepropertyhelp.com.auWhy can’t you unlock your equity? What is the issue that is preventing you from doing it? [confused2]
Todd Burns
http://www.freepropertyhelp.com.auI doubt that you will find a CFP property in Perth. The yields in Perth are generally VERY low because prices have shot up rapidly and it will take quite a while for rents to catch up. I think Perth is one of the most dangerous places to invest at the moment because it has passed Sydney in the affordability rankings, has low yields and is showing strong signs of peaking.
To give you a bit of an idea of where to find CFP properties, I suggest looking around Kalgoorlie in WA or some of the rural or mining areas of QLD.
Todd Burns
http://www.freepropertyhelp.com.auFirst of all I suggest that you find out what information Baycorp Advanatge have on your credit file. They keep the records that lenders access when they check you credit rating. You are able to access to these records as well. Go here to find out more
http://www.mycreditfile.com.au/home/home_default.aspx
Accessing this information will allow you to clearly identify the problems that you need to fix.If you can be disciplined with credit cards and fit their criteria, you may be able to transfer your debt to a no interest rate card for 6 months to give you time to save up to pay it off (or at least a large chunk of it). http://www.citibank.com.au/cardsoffer/offers/goldzero_A.htm Here’s one that has 0% in balance transfers AND PURCHASES for 6 months. If you can’t get that one there are quite a few others.
The other thing that I think is worthwhile and is something that I have used in the past , when money was tight, is this website- http://www.simplesaving.com.au
I hope this helps.
Todd Burns
http://www.freepropertyhelp.com.auI have had an investment unit in Kalgoorlie for about 18 months and it has given me strong captial growth and positive cashflow. It is on a renewable 2 yr lease so I haven’t had any vacancy issues. It is more difficult to get CFP properties now but I believe capital growth will be still strong for a while because of the resource boom. My experience has been all positive so far.
Todd Burns
http://www.freepropertyhelp.com.au
