Forum Replies Created
Hi J,
On Bretts recommendation I used LLew Enynon from Eynon Business Consultants – yes he is a JET! Lllew invests heavily in property himself (millions $) and is a gun when it comes to structures. He Set up a company and trust structure for me and spent hours with me explaining all the benefits etc. He is well worth the money!!! just say Dan from GEIKO Investments Pty LTY referred you and he will give you a good deal.
Dan
Good to hear from you again Brett,
Perhaps you can give me or post the domain name of your web site. It sounds like a fantastic resource!Hear from you soon
DanDean, it is getting harder (not impossible though) to find cash flow positive properties that meet my criteria in Rockingham. Capital growth prospects are strong through to 2007.
Thats why a property investment group is beneficial, as we can utlise our resources together to take advantage of the wealth of Perth Property opportunities.
Give me a mail at:
a “WA Property Action Group” has now been formed and I am confident that many exciting opportunities await us.
i am also going to the seminar night on tuesday. what are other peoples experiences with this seminar info. has it been useful?
Tails277,
everyting in life has a risk – even walking across the road to get to my bustop to go to work in the morning has risk. So to talk about not wanting to invest because you have to put in some effort, in my opinion is more risky than the risk itself.
I live in Perth like you and have bought in Bassendean (11km from city). It is cashflow positive 3×1 and i bought it for $88k.
Yes the property market is overheating and its harder, but focus on getting the purchase price down rather than getting higher rents.
Its good to be sceptical but not negative. Sceptical is better than blindly following.
I am 25 and i am more scared of retiring without enough money to survive on rather than worrying about the hassle of having to arrange to get someone to fix my tennants broken door or do some repainting.
I hope that you have an alternative plan to provide money in retirement because the government isnt going to support you.
(no disrespect intended.)
DanTails277,
everyting in life has a risk – even walking across the road to get to my bustop to go to work in the morning has risk. So to talk about not wanting to invest because you have to put in some effort, in my opinion is more risky than the risk itself.
I live in Perth like you and have bought in Bassendean (11km from city). It is cashflow positive 3×1 and i bought it for $88k.
Yes the property market is overheating and its harder, but focus on getting the purchase price down rather than getting higher rents.
Its good to be sceptical but not negative. Sceptical is better than blindly following.
I am 25 and i am more scared of retiring without enough money to survive on rather than worrying about the hassle of having to arrange to get someone to fix my tennants broken door or do some repainting.
I hope that you have an alternative plan to provide money in retirement because the government isnt going to support you.
(no disrespect intended.)
Dani agree that you have to manage forex fluctuations, however, will be interested in this idea. If you were talking big dollars how about setting up a REIT (US Real Estate Investment Trust)?
PS tell me more about the student accomodation strategy?
Hi Tails,
Welcome to WA land of the reasonably priced homes!
$250k could buy you 2 cash flow positive properties 15-20km from the city (east and north are 2 hints for you).
cheers
Cryptic Danthanks Al,
just to clarify though: could you please explain what you mean by split banking??
thanks in advance
DanThanks to everyone for their thoughts and replies.
My problem is not the LVR but my Debt Servicing Ratio (DSR). So to clarify, banks will accept a guarantee from a Company structure and not take into consideration its DSR? Therefore, as long as there are guarantees in place, the bank overlooks the DSR of the individual?
cheers
Danyeah and what about Debt Service Levels? meaning, why would a bank lend money to an entity (ie company) that doesnt as yet have any income? how does the bank protect their risk exposure??
If you are on an income of only $30,000 the bank isnt going to care what guarantees you give for the trust/ company, no matter what deposit you have right?????????
Hi Key,
Thanks again for reply.
But i dont think i fully understand how a bank will lend more money to you as a guarantee to a trustee versus in a personal capacity. Isnt it the same thing as far as risk goes for the bank? I.E. isnt your Debt Servicing Ratio and Loan Value Ratio the same regardless of structure? Or dont the Banks take into account the loans you have guaranteed in calculating you DSR? therefore, you only have to ensure that your LVR is less than 80% in any given structure?
Key or STEVE please help!?
warm regards Dan
Hi MoneyTree,
email me at
we can run through a few real life case studies. I am no expert – i only have 4 cash flow positive properties, but if you are willing to take the time to email me you are more than welcome to bounce investment ideas off me.
cheerz
DanHi Key,
thanks for the reply.
How is it that you “are able to push the boundries”? by having a Corporate trustee for a Discretionary Trust?
cheers
DanHi money tree, what is the suburb called where you are looking? Is it near a capital city? why are you investing in that particular area?
PS i would buy all 3 properties if they would fit your investment objective and goals (and if you dont have a goal WRITTEN DOWN yet, then i suggest you do that before you start investing.good luck and best wishes on your journey to financial freedom.
DanEdited by – [email protected] on 17/01/2003 5:14:19 PM
Hi Nathan,
on my calculations you are getting a good 8.5% gross yield.
To boost your cashflow you need to take into consideration the “non-cash” deductions that the Tax man allows you. Ie Depreciation benefits if the house is built after 1984 and also the 5yr write off of borrowing costs (inc stamp duty).
Also you are making your calcs i assume based on paying principal and interest off. Only pay interest off, as principal repayment are not tax deductable.there are other issues to consider with regards to what you can and cant claim in tax so i advise you speak to a tax specialist before investing.
hope this helps
DanSIMPLY STATED:
My Tenants are my Investment as much, if not more, than my investment property.
They provide cash flow. If I just wanted property as the asset I would errect a monument to myself on the busiest street at the busiest intersection. Sounds silly but its the tennant that makes or breaks, right?
So what i do is keep them happy. I gave a gift basket hamper and a carton of beer/ or bottle of wine to each of my tennants with a card saying “we commend you for the exceptional way you ahve handled your rent account this year – and look forward to being of further SERVICE to you next year”.
I even go so far as to providing 1 free white good (ie dishwasher) to long term tennant if they stay for extra 2 years. i get happy tennant plus depreciation benefits on the whitegood plus increased rental potential attractiveness of the property.
Its all in the tennant happiness management system.
cheers
DAnMy Bank (Commonwealth) has a policy of only revaluing once a year. I recently purchased a property which i knew was around 20% below average market price (based on my prior research before entering into the deal!). so this is what I did:
1. Approached the CBA and asked if they could revalue the property. They said no (per policy -was worth a shot though)
2. Asked what valuers were on their “panel” of approved valuers
3. Commissioned the valuer myself- asked for a “free and fair market” valuation. cost about $200. Make sure you get an “extension of liability” clause in the report – allows you to take it to the bank.
4. Made sure i was present during the valuation and pointed out all the positive features of the property (even how quiet the street was at night versus the streets around other areas of the suburb.). Valuers are human and price homes in a band of valuations. If they feel warm and fuzzy over the features of your property they will tend to place the valuation at the top end of the band.
5. Valuation came in at 30% more than my purchase price.
6. Took Val to bank and had refinanced.
7. Was happy.
Hope this helps.
Dan
Hi Steve, thanks for your reply.
What do you mean by the banks self insure? does this mean that mortgage insurance is negotiable??No ZS i didnt catch the ACA article on Perth Suburbs, what where their recommendations?
