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daniellee
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@daniellee
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March 11, 2009 - 2:06 am
Hi, Wealth4life
Why do you say that the market will improve to July before taking a dive in August?
Another round of bad news from big business? End of the increased FHBG?
Regards
Daniel
daniellee
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@daniellee
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March 6, 2009 - 1:54 am
Hi, Jye, Cldy
Simply, you have two choices.
Get emotional, accept that this property will be your new home, and cough up the extra money; or Move onto other property that you think you could make into your home, and put in offers there.
That was what we did back from May 07 to Aug 07 when we were PPOR hunting. Saw several places that we really liked, but because we were going to make this PPOR into an IP in a few years time, we moved on when the price was not right. Finally got a place that we make into our home now.
My personal view is that there are currently still a lot of vendors who have high expectations of the value of their property, read on the papers that the values on the lower-end are holding up, and thus keep on asking for generous buyers to pay the asking price.
Keep looking elsewhere.
All the best.
Daniel Lee
daniellee
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@daniellee
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March 6, 2009 - 1:44 am
Hi, Yan
At the end of the day, you should still include property, in addition to equities (and hopefully a business) as part of your wealth-creation strategy. Like some of said here, better to lose that 0.25% and treat it as a lesson learnt. You will make back that lost money with the next purchase.
The lesson is to ensure you have viewed enough inspections and auctions to have a strong idea is that what is an acceptable price for a property. In the current economic conditions, it is better to go conservative, offer a lower price, and risk being rejected by the many vendors who still have high expectations about what their property is worth; then to overpay.
All the best.
Daniel Lee
daniellee
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@daniellee
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March 3, 2009 - 5:42 am
Hi,
I read a quite a number of investors locked themselves in with the Westpac (I think it was them) 4.99% Fixed 3 yrs loan, when it came out few weeks back.
Personally, going to ride the variable rates for a while.
Regards
Daniel Lee
daniellee
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@daniellee
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March 3, 2009 - 5:19 am
Hi, Yan
Perhaps what is lacking is proper research on your target suburb? We bought our PPOR in Nov 07 and am looking for our first IP now. However, there are loads of FHB going around bidding for whatever they can get their hands on, so we have to thread carefully. Did your initial research into the area indicate that the price for the property that you wanted was worth $500K that you offered?
Alternatively, one safe guard is to put in a clause that the purchase is subject to a successful valuation at cost or higher; as suggested by Steve during his recent webinar.
Regards
Daniel Lee
daniellee
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@daniellee
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March 2, 2009 - 5:37 am
Hi, SHales
If you ever watch the show Idiocracy (an Amercian show produced in 2007), it will scare you even more.
I highly recommend you watch it.
Regards
Daniel Lee
daniellee
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@daniellee
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February 27, 2009 - 2:47 am
Hi, Young Investor
I agree with the brokers here. A mortgage broker, with experience in active RE investing, will be able to provide you with good advice on loan and portfolio structuring. Of course, you have to find a good accountant to help you with your tax-returns, etc.
Also agree that it is pointless to walk into a bank to negotiate, unless you can offer $750K – $1M in loans as business to whoever you speak with. Even then, it still depends on a banker with experience in dealing with RE investors.
I enjoy seekign help from mortgage brokers too, but my problem is that I tend to do lots of research on the best loans for myself on the side, so usually by the time a broker comes back to me with suggestions, I would have found other loans that are more suitable for my situation and gone ahead.
Regards
Daniel Lee
daniellee
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@daniellee
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February 27, 2009 - 2:38 am
Hi, IP
Do you mean:
1 – We get the quotes for the work we want done, and decide on the best ones;
2 – Source all the 2nd hand material we want the tradies to use, while allowing them to purchase brand new material if needed;
3 – then simply hire a PM to manage the process, while giving him the authority to contract other licensed tradies if needed?
4 – Agree on all these details on what the PM has to do on a contract?
Initially, we though of simply getting a PM to do all the organising of labour and sourcing of material. Is that also a viable option, although a more expensive one?
Clearly, if we do more of the work, it will be cheaper for us. However, we are only free on the weekends, hence the 'get the PM to do most of the work' idea while we managed overall 'strategic direction'.
Regards
Daniel
daniellee
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@daniellee
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February 27, 2009 - 2:19 am
Hi
interesting… an accountant told me just 2 wks back that he was told by a contact that their research pointed to the ASX falling to around 2800, and that is supposed to be the bottom it can go.
Did not really believe the accountant initially, seeing how the ASX sat pretty at around 3400 for wks… with more bad news coming in and now that the ASX has hovering around 3300, I am starting to wonder.

Does not matter… still putting in offers for IPs as we deem fit.
Regards
Daniel Lee
daniellee
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February 27, 2009 - 2:10 am
Hi, Joyce
Personally, anything between 5 mins to 10 mins walk to the train station is ideal; that is about 400m to 800m, or 5 mins per 400ms.
Not much structural damage can be achieved by the vibration of the train passing by; the drought and drying up of the soil can do more damage to a house though.
As for trams or buses, I agree with IP Freely; 2-3 mins walk or 200ms to the tram / bus stop.
No more than 10 – 15 mins walking (800 – 1200ms) from a major shopping strip or minor shopping centre with around 60 shops.
Regards
Daniel Lee
daniellee
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February 27, 2009 - 1:42 am
Hi, IP
Thanks for your input. That clears up a lot of doubt for me. I went to the Vic Building Commission website and checked out a couple of the licensed Builder Domestic Managers / Unlimited, but was not sure how to proceed or ask.
I read in SS that a license PM will charge between 20-30% on the total reno cost. We are currently looking at properties that are about an hour's drive from where we live, so we are not going to be there to open the door for tradies and close when they leave. Plus have to work, so time is an issue for us.
So, it is safe to say that one we have worked out what we want, the PM would be able to provide us with a cost plan / estimate.
What about sourcing for material and tradepersons? The PMs would know where to go to get them? If I stated that I was happy using 2nd hand material, would they go and get it for me?
Does anyone else have any suggestions?
Thanks.
daniellee
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@daniellee
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February 25, 2009 - 12:38 am
Hi, Lokki
Nancy Keep invest in regional areas and has a couple of positive cashflow IPs, if that is what you are specifically looking for.
However, a few of the forumites (including myself) have had dealings with her, and the generally feedback is that you have to ask the right questions to get the right answers from Nancy. She will simply respond to your questions and nothing else.
My experience was that perhaps I was not asking the right questions, hence did not really get what I wanted. Still, it cost me $180, but I look at it as a lesson for me to be very well prepared with a list of complex questions to maximise the meeting with any accountant.
Fortunately, I found another accountant with the right kind of experiences that I wanted.
Regards
Daniel Lee
daniellee
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February 23, 2009 - 6:02 am
Hi
An update on my last post.
I believe these 'project managers' that I refer to all called Registered Building Practitioners, registered with the Building Commission of Victoria.
Was thinking of getting a 'Builder Domestic Manager' to manage the reno for our IP. Anyone has had experience using one ot these RBP?
Regards
Daniel
daniellee
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February 23, 2009 - 1:37 am
Hi, Richard
I am of the thinking as well, that a broker providing such low prices would be spending minimal time on each client, and not keen on providing value-added services.
Also, my feel is that companies like YourShare would be good for those who have the time to find out / work out the best investment options for them, and think that their own work is better than what a professional advice can provide, and do not want to pay more than required and want to claw back as much commissions and fees as possible.
Regards
Daniel Lee
daniellee
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February 23, 2009 - 1:32 am
IceCool: I will PM you. Always good to meet fellow countryman who are interested in PI. Will trade some info and take it from there.
Plasticscalpel: When we went to Nancy Keep, she took that approach of letting us speak and responding to our questions, so we got out from that meeting what we asked her. Still, perhaps it was because we were not asking the right questions to start with. Clearly, she must be good for the advanced investors than for newbies like us.
I am surprised she charged $220, because she charged us $180 for the first hour as we were new clients.
Oh well, I am satisfied with the current accountant at the moment, so lets see where it goes.
Cheers
Daniel Lee
daniellee
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February 23, 2009 - 1:11 am
Hi,
Was doing a search on a similar topic, as my partner and I are looking to purchase our first IP and it will be reno job.
Our target suburbs are easily about an hour's drive away, and we do not want to be personally managing every bit, having to drive to open the door for tradies and all that. So, time is more important to us and we would be happier overseeing the big picture. Of course, we are also happy to source for cheap material on the weekends, but clearly, our time is limited.
How do we go about finding a 'project manager' or company that acts on our behalf? Do we simply approach a number of builders, or are there companies who specialise in this reno upgrades and charge a fee to do all the running around for us?
We live in Melbourne. Some advice on how to go about finding a 'project manager' would be great.
Thanks.
Daniel Lee
daniellee
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February 20, 2009 - 10:00 pm
Hi, guys
Interesting topic, as my partner and I are looking at doing a reno for our first IP as well.
Did anyone see the Better Homes and Gardens last night, where they set a limit of $500 to do up each part of a house? Was amazed that they could do up a garden simply for under $500. Makes me think how many people will be keen on trying their hands out.
To me, the way forward wil be to tackle the harder projects that require a lot of work, as that will deter your average person from having a good. Still, that means simple cosmestic jobs are not going to cut it as easily as before.
Regards
Daniel
daniellee
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February 20, 2009 - 9:50 pm
Hi,
Time to give an update to this thread.
As mentioned, I met up with this knowledgeable accountant who helped us with the DT. The DT Deed was set up by a Sydney law firm called Hunt & Hunt, which TerryW tells me is a good firm and does good DT deeds. We got all the paperwork signed on Thursday 19th Feb and am now working on the IP loan.
The icing on the cake is that the whole price cost $1505 only, for DT with Corporate Trustee including advice and free 1st hour. Almost $1K cheaper than the first accountant who quoted me.
IceCool, here are the details of the accountant.
George Psiakis
Phone: 03 8545 8588
Located in Oakleigh East.
There are a bunch of old-timers who have been around the block a few times, and seem to give the appropriate advice when I ask, either they are good, or I am still asking the wrong questions.
Personally, I am from Singapore, right south of Malaysia. Not sure how you imagined I was from Malaysia, as I do not recall leaving my country of origin. Anyway, I will be attending the March APN meeting at whitehorse Rd, Nunawading, so if you are attending and see a geeky Chinese fellow, that's me.
Cheers
Daniel Lee
daniellee
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February 20, 2009 - 9:30 pm
Hi, Richard
That was what I was think as well, that you get what you pay for. Unless there are brokers out there providing solid advice at cut-throat prices.
The staff from YourShare told me that they are starting up a new mortgage division, and have partnered with a mortgage broker who has agreed to go with their business model. That got me thinking that if their broker was rebating 50% of all commissions and fees, then they would have to do volume work in order to earn their profit, so how much time can be spent advising individual clients.
That was why I wanted to find out from the fellow forumites here if anyone would go for such a service over their preferred broker who has hopefully been providing good advice to you; considering the amount of rebate is not small amount too.
Regards
Daniel Lee
daniellee
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February 16, 2009 - 11:01 pm
Hi
Should have given more details.
The brick oven is located in the kitchen. It is one of those small ones. I have attached the link to a photo of a similar oven.
http://www.nomadpizzaco.com/oven.html
The oven in this property has been disused for a long time, so the family 'rendered' the inside of the oven and placed a small microwave oven in it. I found it hilarious at the time though.
To me, it seemed like a waste of space, as the microwave oven is angular shaped by the brick oven was dome-shaped. As the oven is built into the structure of the property, removing it would be expensive. Best I have thought of was to built a specially shaped drawer to fit into the disused oven and convert it into a cupboard
Has anyone come across such a situation and what did they do?
Regards
Daniel Lee