Forum Replies Created
Hi Brisbane 04,
How are your Buffallo properties going? I have heard a few horror stories about property managers failing to collect rent and agents telling lies about rent returns and current tenancy situations.
It would be interesting to hear what your experience has been like. I hope that it has been positive for you.
I went to San Antonio in Dec 05. Unfortunately I didn’t get time to look at property closely because I was there for a work conference. I loved the city precinct and the cafes along the River Walk. Like any large city it seemed to have some dodgy residential areas but I have heard the are some good returns available there.
“Remember the Alamo” Yes, you are sure to remember The Alamo because it is smack-bang in the middle of the Mall.[biggrin]
While I think of it, you have got to go to ‘Fuddruckers’ for a burger (make sure you pump on plenty of melted cheese)[blink]
Philly burgers are nice too.
Better go-I am beginning to salivate.[oink]
Regards
Todd Burns
http://www.freepropertyhelp.com.auI find it relatively easy to find a gross return of 8 to 14% from properties with no immediate work required. (Before anyone asks, I am not going to tell you where because the competition on these properties is bad enough as it is). Steve- Stop buying all of Australia !![biggrin]
My point is you might find a CF+ IP but if you do, you have to be ready to act quickly (without being irresponsible in your due diligence).
It is nett return that counts though. What’s the point in getting 14% gross if half of the return is made up of rates, insurances, sinking funds, body corporte fees, repairs ,management fees and vacancies etc ?
Todd Burns
http://www.freepropertyhelp.com.auHi Stagefright,
Have a talk to these guys, their loan product may possibly work for you http://www.affiance.com.au/Moopa/ContentPage.cfm?&PageID=8BB712D0-20ED-6ABC-20939CED788113C8
Todd Burns
http://www.freepropertyhelp.com.auHi All,
It would be worth calling HSBC to find out if they still take 100% of rental income into account. I’m 99% sure that they use to do it.
Todd Burns
http://www.freepropertyhelp.com.auHi Martine,
My suggestions is find a good accountant that has his/her own property investments and understands multi property portfolios. These matters can be very complex. Once they have worked out your situation, taking into account all income, tax deductions etc, then you will know if you are heading for trouble or not.
Once your situation is identified in detail, you can start looking for solutions and planning your next move. My accountant is in Sydney if you would like his contact details. I send him my financials and future investing goals and he reviews them and makes suggestions.
If you keep investing without working out exactly where you are financially you could have problems down the track.
Just remember “You cannot fight the enemy if you do not know what the ememy looks like”
Hi Seinafo,
I have used a few different depreciation companies. They have all done a good job but I like using Deppro quantity surveyors because their prices are usually lower.
My accountant and Lawyer are in NSW so they are probably not much good to you.
Keep checking out my new website because I eventaully intend to have these sorts of recommendations listed there.
http://www.freepropertyhelp.com.au
Regards
CrusherHi All,
I agree with Redwing that in future you should try and negotiate a $1000 deposit with the RE agent/vendor. The 5% or 10% that RE agents ask for is not something that you must provide. It is just what they ask for. This money goes into a trust account and it is released to the vendor upon settlement (with the balance of your payments from the financier). If you get out of the deal during the unconditional period it should be fully refunded to you (unless the contract says any different).
The realestate agent may tell you things such as “If you put a high deposit down the vendor will treat your offer more seriously” If there is a race on for the property you may choose to submit and pay a higher deposit in case the vendor does believe this.
Asbestos is no big deal unless it is broken up or cut with a saw, then the fine (and very dangerous) particles can get inhaled and stuck in your lungs. If you are doing renos that include handling asbestos it is best to get a professional in because there are all sorts of regulations on handling it and disposing of it.
Also be careful of paint particles if you start sanding. Many old oil based paint contains lead and this is another substance that your lungs will not take kindly to.
I have a link on my website that takes you to the FHOG information. Here it is in case you haven’t seen the Governemnt website before
http://www.freepropertyhelp.com.au/page/page/3033198.htm
Good luck with your property investment.Crusher
Hi 25 North,
I buy API magazine for the information that you are asking about and I think my wife might be getting me a subscription to it for my birthday because she knows how much I love reading it.[biggrin]
I also get Residex reports every once and a while to make sure I’m up on market research.
I have a line of credit loan which accesses equity in our own house. It has 1 main account and 2 sub accounts. I am just about to split off one more sub account. I use my sub accounts to fund deposits on properties and then I get a loan with another lender for the remainder.
The LOC lender will sometimes charge you a monthly fee for each sub account and this can get a bit expensive so make sure you check this out first. Apart from that our line of credit to be very useful and flexible. Now we don’t have to go through application processes and pay huge fees when we need to borrow a bit of money. The interest rates tend to be a bit higher on LOCs but I think they provide some good flexible options.
The great thing is that you can use the money for any worthwhile purpose so you could pull a bit out for shares or go on a holday if you wanted to. I allocate some funds to remain undrawn in case I have to support the rent on a vacant property or do an unexpected major repairs on an IP.
My new website has some tools that you may find useful let me know if you would like any other information on the site and I will try and oblige. The link is below
Regards
Crusher
http://www.freepropertyhelp.com.auHi All,
I agree that there was a time recently where CF+ properties almost dissapeared. I have noticed that they are slowly returning onto the market again though. They are there, you may have to search through creative ways, buy in a mining town, buy in a regional town negotiate the price down or do something creative with the property but the CF+deals are out there. I have a contract on one right now. To get the good deals you have to be quick to act though because it seems that every man and his dog has read Steves book. woof woof [biggrin]
My suggestion is don’t let the lack of CF+ deals stop you from investing. I have had negative geared (sorry for swearing) and CF neutral properties that have given me great gains in equity and eventual profits (way above the money I had to put into them).
Hi Tamtam,
I own a IP at Northlakes (Mango Hill) and use to own another IP at Deception Bay. These suburbs are not far from Caboulture. I bought land and built in Mango Hill a couple of years ago because it was a new estate and Westfields was opening up a huge shopping centre there. My IP has done very well
The Caboulture has experienced the ‘ripple effect’ as rising prices in Brisbane and the Sunshine coast push people out to the suburbs to find more affordable housing. This area has already experienced significant price growth a couple of years ago but API magazine shows median growth over the 12 months to 30/11/05 at only 1.10%. So it has slowed down but I think long term that its capital growth prosects are good.
I guess it all comes down to what you are trying to acheive and where you are in your investment strategy.
I am not sure If Residex has rated Caboulture as a growth area or not. I must buy the next release of predicted growth areas when it comes out.
Regards
Crusher
http://www.freepropertyhelp.com.auHi Brizza,
I agree that you friend should talk to a knowledagble mortgage broker to find out what is possible with different lenders and diffrerent types of loans.
It is worth asking HSBC if their mortgages still take 100% of the investment property rental income into account (instead of 80%). This may help your friend borrow more.In this case, if your friend can get a good rent return, she will be able to afford a better property.
There is also a new loan product out that may be of help to your friend. Go to this link and click on ‘shared appreciation’. http://www.freepropertyhelp.com.au/page/page/2946893.htm
Regards
CrusherReglinda,
Yes, I can relate to you. Three short years ago I was in your exact position. My wife was scared stiff of using equity in our house to begin investing. We now own 4x investment properties and are about to buy our 5th. My wife is now the one who says- “Let’s go for it !!”. Here are my suggestions-
1. Listen to the concerns of your wife and acknowledge that she may be afraid.
2. Try and come up with reliable information that overcomes her concerns and take time to go through it all with her. Don’t rush it !!
3. Come up with ways of minimising risk through the whole property investing process and explain these to your wife in detail.
4. Try and get her involved in property investment education so she gains more knowledge and feels like she has more control.
5.. Get her to meet other people that have been successful in property investment.
6. Start looking at medium cost, reliable, easy to manage property for your first investment- Nothing too grand to start with. This will probably help her feel at bit more at ease. Once one good deal has been done, your wife will probably be much more confident to take on something bigger the next time.
7. Outline the benefits for her- Eg: In years to come the Investment may help pay for the kids education and she could go shopping with the remainder etc.
I hope this helps
Good luck !
CrusherPS: If you don’t use your equity, can you email it to me, I would love to have it [biggrin].
PPS: Check out my website (under construction)you may find some useful tools. Go to the ‘about us’ page and you will see what my wife and I have invested in. http://www.freepropertyhelp.com.au
Hi Salcious,
Yes, I have seen this one on the web and I have done a bit of research on Ingham in the past.
The return on this property is reasoanble if you can get the $410pw rent. The problem is that rates are usually quite high for blocks with units/flats on them so this eats into your return.
I recommend the following (along with normal research)-
Find out if the property is in a flood zone. This is an issue with some properties there (get address and contact council)
Find out if it is practical to put the rents up and check out if the current tenants are on leases or willing to go on to leases. It is fine to say that a review shows high rents can be achieved but is it practical to implement?
The polulation is only about 6000 and some lenders will not lend for populations under 10,000.
I also think it would be worth checking if if Ingham is listed on the top 100 QLD country growth areas with Residex.
I have begun to build a website with property research tools on it if you would like to have a look. Feedback and suggestions of useful content are welcomed- http://www.freepropertyhelp.com.au
Crusher
Hi All,
I found out that there are only 2x local building inspectors in Mt Isa and one is on holidays at the moment (the one that has a digital camera unfortunately)[angry2] Email me if you want their details.
Hi All,
Thanks WD and Ben for your feedback. I will respond to your requests. Keep watching the website http://www.freepropertyhelp.com.au because I will be adding more content soon.
I just received delivery of a recently released book titled ‘How to get rich rewards in Real Estate in 3 years’ by Phil Jones from Richmastery. I intend to post a review on my website as soon as I have read the book. Be patient because the book is 353 pages long and I have to make the time to read it in the midst of my presently busy ( but enjoyable) life. Luckily the font is quite large.[blink]
WindDrifter,
Here is a link to a FREE downloadable Ebook that I found very helpful to get my psychology adjusted before I started investing. It’s big picture information but I am amazed how principles in this book come back to me and help me to press on with investing in the face of difficulties- I’d love to know what you think after reading it.
Don’t be concerned about the shopping cart link (it leads to a site where other books can be purchased) but I promise that the the ‘Science of Getting Rich’ book is free!!
http://www.1shoppingcart.com/app/?af=364744I have just started building a website that you may find useful. I am putting in as many property investment resources as I can so that investors don’t need to go searching all over the internet when trying to do research for property. I am also going to use it as my own property investment research site so I can research from the one browser. I am open to questions, suggestions and general feedback because the site is still in the development stage. http://www.freepropertyhelp.com.au
Hi Investors,
I have read lots of people stating “THE Bank” will not lend me anymore money as if there were only one bank in the world. The mortgage market is huge and competition is fierce. Search around for non-bank lenders, credit unions, non-conforming lenders. Try this link for a list of lenders you will be blown away by the amount of loan options out there (if you do not know already). http://www.cannex.com.auRemember that mortgage brokers have arrangements with a list of preffered lenders and will not have access to ALL lenders and their associated products. So if I hit a brick wall when investing, I ask my mortgage broker first and then I’ll do my own loan product searching if she cannot provide something suitable from her list. To be fair to my broker I always ask if she can get licenced as an originator for the suitable loan I buy.[exhappy]
Try HSBC to increase you servicability. I have been told by my broker that they accept 100% of rental income when most lenders only accept 80%. There are also a host of No Doc, Lo Doc lenders that you will probably find it much easier to get a loan through than a bank.
I sold one SE QLD property recently in order to readjust my finances but now I am holding on to my properties and drawing down on equity when I need more cash rather than selling properties. This saves a lot of buying and selling costs, CGT and other hassles.
A suggestion for the person who posted that he is going to have a BIG captial gains after selling- You may want to consider prepaying interest on another IP loan (if you have one). One can offset the other if they are done in the same financial year. Obviously it would be advisable for you to get some professional financial advice on this but I am just throwing it in as an idea that has worked for me.
Hi Brizza
Last year I was informed that there were only 2x lenders mortgage insurers in Australia. One is Genworth Financial and I think the other one starts with a ‘P’. I was told at the time that they have slightly different rules and one may provide LMI for a geographical area that the other does not. I have a 2005 postcode security location guide from Genworth if you would like me to send it to you.I hope this is of some help. I do not know if lenders have to choose an alliance with only one LMI provider but I too would be interested to find out more on this.[biggrin]
Simon
Apology accepted. No hard feelings. I must add that I am an ideas person who endeavours to find ways to be legally creative in the way that properties are funded. As you know there are lots of ways of accessing loans and the critria can change to include people in situations that would have never been considered in the past. I will however, be more careful in the way that I state my ideas lest they be misunderstood.
Todd
Simon,
No, I am not suggesting fraud so please do not suggest things that I have not stated. As a mortgage broker you should not rely on limited information to rubbish another broker or investor. I suggest you assess your motives before making assumptions and accusing remarks.
I am here to try and help others with my investing experience not pull others down to make myself look better.
Todd
PS: Now I have cooled down I will answer your question- As you have previously stated, there are certain loans that require only a signed and legally binding statement for proof of income. Many standard loans are full of regulations that reduce serviceability because of part use of income streams or sometimes they will not count a legitimate income stream at all. I am suggesting that some low doc loans may allow the borrower to legitimately include these streams of income but as I have previously stated the borrower must make sure that they can actually afford the loan repayments. The lenders know that the risks are higher for them on these loans and that is why the rates are higher. If there are any concerns over affordabilty or risk exposure, seeking the help of a good financial advisor who specialises in property investment would be a wise move.
