Forum Replies Created
Hi guys,
Please keep in mind that not all banks/financial institutions offer 100% offset accounts and also the interest rate will be higher if you are doing IO with a 100% offset account.
Please feel free to correct me if I am wrong.
Cheers
PaulHi Disprinforte,
You must be in a good growth area or done extensive renovations if you bought you house for $415k and think you can sell it for $500k?? That a 20% increase in 1 YEAR!!! Why would you want to sell your house?? Seems very strange to me
Have you actually had it re-evaluated or where are you getting these figures from?
Cheers
Don’t be a TOOL HookhamC.
These forums are for helping people, if you don’t know what you talking about or your going to be a smart-ass then go somewhere else.
I get offended when people try to comment on stuff they clearly don’t understand.
I actually am a structural engineer and know what I am talking about. Not my fault if your just an IDIOT!
Hi,
I agree with tools that this is not the case.
However, as a structural engineer, double brick houses will require a lot larger footings because their is a smaller tolerance for movement in the footings to prevent cracking.
However, if you have non-articulated double brick house then it may be alot harder to find a builder because it is almost impossible to stop the brickwork from cracking due to brick growth or foundation movement.
I recently designed an extension to an existing dwelling and as the engineer we still added clauses in our design that we cannot gaurantee the brickwork won’t crack. One way to prevent cracking is to use older bricks, this prevents the likely hood of the bricks from “growing/expanding”.
For example: (AS2870) Brick Veneer has deflection limit L/400 or 30mm, full masonry (no articulation) has L/2000 or 10mm limit.
Hope this helps understand why.
Cheers
Paul[suave2]Interesting topic…
Does anyone read FINANCIAL REVIEW – Smart Investor???
They often have companies that offer that exact thing. However, the return is around 9.75% based on a 1yr term deposit with a minimum $5000-$20,000 deposit.
Has anyone dumped money in any of these before???
For example:
Fincorp – http://www.fincorp.com.au
or
Wright Patton Shakespeare – http://www.wpscapital.net.au
or
City Pacific – http://www.citypac.com.au
I think it was the City Pacific PDS that I was reading, but it says no entry or exit fees if the money stays in the term until maturity, however you read the fine print and it has a 3% commision on any profits it makes… That would mean I would be better sticking it in a 6.1% net saver account at the NAB with no risk…..
Has anyone dealt with either or these three companies before??
Any help would be greatly appreciated.
Cheers
Paul[suave2]
Hi James,
Firstly congratulations on taking the step to buy three investment properties. I believe that the buying costs to buy the properties and the high selling costs you pay to sell the property makes it not worth selling the property unless you absolute have to. You would probably pay $10,000 + commision to sell the property which makes it not worth it.
Also, in 10 years you would have paid 20+% of the property off and the rental yield would have inevitably improved which may turn the property cashflow positive.
I would definitely be holding the properties now you have invested a lot of money into the properties.
Cheers
Paul[suave2]Hi CT,
I have actually done quite a bit of research into shares as well as property. In fact, while I was in Adelaide I attended a 6-week course at a company called “Trading School” on Greenhill Rd, however they taught more about trends which don’t suit the cheap “10cent shares” as much as your top 200 bluechip shares. So its a different type of trading.
One is for short-term holding of shares and one is for long-term growth and sometimes dividends for the return.
However, I will look into the free courses through ASX you mentioned. Unfortunately, at the moment I don’t have very much free time, and I don’t have the internet at home so I can’t spend a lot of time on the net – thus the reading of books.
Anyways, did you know the answer to any of my questions or were you just suggesting going online and doing these courses??
Thanks,
Paul[suave2]
Hi Richard,
I am 22yrs old and am looking at buying 5+ properties over the next 10years. I also already managed to save $25k in 13months of working and that includes living away from home.
When you talk about making sure you get correctly setup for the long haul how would you recommend setting everything up a single male which great dedication, ambition and self-control if I were looking at buying multiple properties over 10yrs?
Cheers
Paul[suave2]
Hi Kum Yin,
I lived in Port Noarlunga (borders Christies Beach) for 5 years and i’m currently living in Victoria for 12months. However, all the areas around Christies Beach (Hackham, Morphett Vale, Noarlunga, Old Noarlunga etc) around priced around 180-220K for a nice 3BR house.
My personal opinion is that if you can find the right place in the southern area then you will get steady growth with 5% gross return.
That my 2c worth….
Hi again,
I forgot to mention Wallaroo on the Yorke Peninsula – I am 95% sure their is a new marina being built their as well. I know that vacant blocks (~600sqm) one or two streets back from the waterfront were selling for around $65,000.
Cheers
Paul[suave2]Hi Art,
I’m sorry to bust your bubble but their is no inland marina in South Australia. Their is a new marina being completed in Port Lincoln, but most of those properties have already been sold, their is a new marina/subdivision someone in Port Adelaide that has been advertised for a while.
Just before Christmas their was an article in the Advertiser about a proposed inland Marina on the Yorke Peninsula somewhere around Corney Point but that was just a proposal/thought and I don’t think that would go ahead any time in the next 15 years.
The only inland Marina (as in on a river) in Australia that I am aware is the one here in Mildura on the Murray River. Which is nearing completion of the construction stage and soon residential and commercial properties will begin being built. Only 15 allotments have been put up for sale so far and they went within a day. (I know because the engineering company I work for did the design of the civil works.)
Hope this helps a bit.
Cheers
PaulHey mate,
Looks like you are doing very well to be saving $2k a month? Can I ask what you are doing to be able to save that much a month and go to university?
I graduated with a engineering degree in 2005 and if i’m a total tightass can save about $1800/month but thats in the months when I don’t have to pay car rego, insurance, sports registrations etc..
I presume you are living at home living off your parents. Once you get a full-time job you might have to stop living off your parents so living expenses will go up (as I have found in the past year).
Anyway, good luck. Setting goals in the first part of a long-term goal.[suave2]
Hi Enigma,
I’m a structural engineer and have dealt with these types of problems before. Their are two options in this situation that I generally use. Firstly, is to total remove the inground pool (a bit expensive).
I generally call up a low strength concrete (say 2-10MPa) which for your information 2-3MPa is about the hardest you’ll compact soil. This will cost about $40-$80 per cubic metre and you simply pour it in until it fills the pool. It should be very easy to work out the size of the pool and get a quote to do this.
However, you will still need to get a geotechnical report (its about $350 for soil classification and single borehole in Mildura, Victoria).
However, as Tools suggested any footings around the pool will need to be founded below an imaginary 45degree line from the base of the pool so that any fill material doesn’t interfere with the natural ground material that the footings will be founded into.
Hope this helps and that it makes sense!
Cheers
Paul[suave2]Hi guys,
I just thought of something. Can you pay yourself a 10% property management fee and/or charge yourself and hourly fee to look after a property? So therefore you could still claim 10% PM fees? If you think about it, by doing all this work you are losing money/time that could be spent doing something else. Therefore could include it as earning a wage could u not?
Please clarify this? Does it change if its in a trust as opposed to your own name? Could you legally pay a family member to look after my properties instead?
Cheers,
PaulHi Richard,
Just clarifying: So to avoid x-collateralisation in the example you made you would need 3 individual loans?? The existing loan on the PPoR, the $40,000 equity from the PPoR and then $160,000 for the IP?? Is this correct, and how would you then go about paying off all these loans?
Do any incur extra fees and interest rates or anything?
Cheers
Paul[suave2]
Hey Wayne,
Thanks for your response!
Just to clarify, so those costs include closing costs when you purchased the property, ongoing mortgage management fees etc??
Did it also include the interest on the loan because that would probably be the largest thing??
Cheers
Paul[suave2]
Hi Wayne (& Lisa),
Firstly I’d like to say a HUGE congratulations on what you have achieved so far. I don’t think their would be many people in Australia that would be in your position at 26yrs old when you did it all yourselves!
Just a quick question: You mentioned that you bought a couple of vacant properties obviously for CG purposes. Did you find it hard to service the loans for these when you weren’t about to recieve any rent or anything? Is their anything that the tax man or you can do to help service a loan on a vacant land? Can you qualify for FHOG on a vacant land if you don’t see it within say 12 months?
Any help on the advantages of buying vacant land over a house would be much appreciated!
Cheers
Paul[suave2]Yeah, its called re-financing….
However, you might want to talk to an accountant to make sure that the increased interest that you are paying on your IP will be tax deductible.
Cheers
Paul[suave2]
Hi,
Unless you bought property 5yrs ago when it was still possible to find cashflow positive properties you will most likely find that you will have to work full time to maintain the repayments on the loan because it is VERY unlikely you will find a property that pays for itself and can allow you to stop working.
I personally didn’t find Steve’s book hard to read at all. I was actually slightly offended at how easy he makes property investing sound and his simple examples that simply don’t work in the real world. It just gets me annoyed when he says buy a house, it will go up 10% every year blah blah blah and it 6 six years you should have a portfolio worth over $1million dollars.
Anyway, good luck with property investing but be very careful to make sure you do your due diligence and check numbers on everything.
Cheers
Paul
Hi Ray,
I thought you said a good return?? That rental return on this property is only 5.94% plus I would need to come up with 5% closing costs and it already needs work.
Sorry, but it doesn’t sound all that great to me. I can get 6.25% interest for leaving my money in the bank at the moment with no hassle.
Thanks anyway
