Forum Replies Created
Hi,
I am just curious if Peter Hutchy is still reading his own thread, because it seems like he has no more input into this issue.
Regards
Daniel Lee [specs]Hi, Maxolau
I do not have reno experience. At my current rental, it has a very 80s feel to the place, including kitchen bench tops with a lime green plywood layer on it.
One kitchen reno question on the thin plywood layers on the kitchen bench tops. When you mention replacing the plywood layer, do you mean just simply rip out the old ones and replace them with the new ones that you want?
Regards
Daniel Lee [specs]Hi, Maxolau
I do not have reno experience. At my current rental, it has a very 80s feel to the place, including kitchen bench tops with a lime green plywood layer on it.
One kitchen reno question on the thin plywood layers on the kitchen bench tops. When you mention replacing the plywood layer, do you mean just simply rip out the old ones and replace them with the new ones that you want?
Regards
Daniel Lee [specs]Hi, Ausprop
Don’t suppose you could find the link to that article. It would be an interesting read.
Regards
Daniel Lee [specs]Hi, wealh4life
I saw your estimate a while back. Am not surprised that you got it right.
In my home country of Singapore, the young are also spending quite freely. Many people I know do not have the financial literacy to really become rich or accumulate some serious wealth. Most of my friends in their late 20s do not even begin to scratch the surface of financial literacy.
Personally, my partner and I are new residents in this country and having only finished Uni last yr and lacking sufficient work experience, are still renting and working low-end jobs.
At the mean time, we are saving as much as we can to our ING online accounts, waiting for the day when we can make our move and get our own 2 bedroom PPOR.
Keep your foresights coming, Wealth and every other seasoned investor. I have learnt a lot from this forum.
All the best.
Cheers
Daniel Lee [specs]Hi, Sanjiv
I think the Dandenong area has some things going for it.
The Eastlink, state government marking it as a growth city as well as investing $50million a year for the next 20 yrs (read on the papers some time back).
My view is that not everyone actually wants to live near the CBD. Regional centres around the city actually replace the need to head down to the CBD ( I have not been down to the CBD in a few months already).
I believe it is possible to find the good ‘deal of the week’ anywhere. I live in Noble Park, and have come across deals for a strata-titled unit going for $190k renting @ $200-220 per wk (RE agent estimate), under 5 mins walk to the train station and under 10 mins to the local shopping strip. (Too bad I did not have the money to buy it then.)
All the best.
Daniel Lee [specs]
Hi, Nikki
I agree with many of the comments in that it would be better to hold, collect rent and let your property appreciate further. Especially so if you are not in need of the money.
The population in Darwin will continue to grow and there will always be people looking for rentals. Those two properties can be used as your cashcows to fund further RE investments.
All the best.
Daniel Lee [specs]
Hi, Ty
If I was in your shoes, I would take some time to work through the redundancy and then decide on my next step. Being made redundant is a big shock to anyone.
I have not been made redundancy before, but have met a number of people who have. Many tend to feel a need to immediately do something like start up their own business, citing reasons like ‘since I don’t have a job now, I have the time to do the business that I have always wanted’.
My point is that if you have not been an active real estate investor and have been satisfied with your job all along, being made redundanct is not a good reason to start being one. Is the reason to be a full-time RE investor because of a need to ensure your family’s financial stability?
If you had the planning and desire to run your own business or be a full time RE investor all along, having a paid job is not going to be a deterrence to that goal.
Just make sure you want to go into RE investing full-time because you have been doing that on the side for a long time (thus you would have the capital, skills, knowledge and desire) and know you can (not think you can) survive financially doing it.
Anyway, an initial RE income could take at least a few months before it starts flowing it.
All the best.
Daniel Lee [specs]
Hi, Russ
I agree with many of the comments. Most RE books simply tell you basic knowledge that you would have already known if you have read enough of them. It could well be simply reinforcing the point that you might be down the right track.
Each book would have a particular bias towards a particular approach. I believe it is really up to you to go out there to get some first hand experience and develop you own style. Many of these books streamline the information that one would need to survive and thrive in RE investing.
All the best.
Daniel Lee [specs]
Hi, Ibis
When I started learning about RE investing, I bought the Australian Property Investor Mag and went down to the local community library and looked at their RE investing section.
Many of the available RE investing books in a community library talk about the basics of RE investing as well as intermediate RE topics.
My advice is to start reading lots and after a 2 – 3 months, you will start to understand the basics and more. Of course, continue to check out this forum!
All the best.
Regards
Daniel Lee [specs]Hi, Jimmy
Steve’s books are on positive cashflow RE investment, not on positive gearing.
Made a typo mistake with my previous reply.
Regards
Daniel Lee [specs]Hi, Jimmy
All of Steve’s books are on positive cashflow RE investments, not even positive cashflow.
Start by reading up his first book ‘0 to 130+ properties in 3.5 yrs’. You will get much of his ideas from there.
All the best.
Daniel Lee [specs]
Hi, Milly
With the immaculate house, it might already be at its best selling price and there is not much you might be able to do to release value with minimal outlay.
With the block of rundown flats, a new coat of paint and some general maintenance could quite quickly bring up its value and even rental yield.
Of course, with the house, there is minimal work while with the flats, there is more work to be done. Depends on what you are comfortable with doing.
All the best.
Daniel Lee [specs]
Hi, Gecko
I agree with a number of the replies. Definitely ready up on Neil Jenman’s book. It tells of many tricks that RE agents use to get their listing and commission.
If the agent was really good (and honest) and in touch with the market, he would have told you the realistic worth of your property and chances of selling in the current Perth market.
All the best.
Regards
Daniel [specs]Hi, Dave
Could you send me a link to your cashflow calculator (buy, rent and hold) as well.
Would save me from constantly making adjustments to my ‘imprompt’ spreadsheet.
Thank you
Daniel Lee [specs]
Hi, Guys
After reading the opinions, I just wanted to clarify on redrawing extra repayments and taxation.
The redrawn extra repayments will not be treated by tax deductible, due to the fact that those extra repayment is considered your own private money (Your own earnings).
So, when Row moves out and declares her old home as an invetment property, ATO will then view the interest generated from the remainder of the loan in her old home as tax deductible?
Regards
Daniel Lee [specs]Hi, Guys
After reading the opinions, I just wanted to clarify on redrawing extra repayments and taxation.
The redrawn extra repayments will not be treated by tax deductible, due to the fact that those extra repayment is considered your own private money (Your own earnings).
So, when Row moves out and declares her old home as an invetment property, ATO will then view the interest generated from the remainder of the loan in her old home as tax deductible?
Regards
Daniel Lee [specs]Hi, Gary
Is there a particular time where the Melb / Vic group will be meeting you at the expo, or is it more like a ‘own time own target’ kind of an approach?
Thanks
Daniel [specs]Hi, Pedro
Go to http://www.888abundance.com. Gary Seeto runs the site and he is in the process of setting up Young (at heart) property investing clubs all over Australia.
Regards
Daniel [specs]Hi, Creation1
I agree with Mortgage Hunter. There is no right or wrong answer.
On one hand, you could go for an IP, earn the rental, pay tax and use the rental income for investment. On the other hand, you could get your own place, pay down the place and use the equity from there for future investments.
Depends on you and your partner’s objective.
Personally, I am for renting, but my partner prefers to put our money into getting our own place, and then using the equity to invest.
So, really up to you and your partner, after considering your goals / views.
Regards
Daniel [specs]
