We have put an offer on this working farm through our company – I hope that is the right thing to have done? Does anyone know of any consequences of our company owning this farm?

Vyvyen, all of these are very good questions and should definitely form part of your due diligence prior to an offer being made.

If your offer is accepted by the…[Read more]

Firstly Dazzling — yes I should have said about the 3k refund in the initial post – was distracted by a crying baby and had to cut it short…. not all of us have hours to surf the internet everyday – like your goodself!!!! I just read a post where you had spent the last 90 minutes surfing for commercial property! You must have alot of time on…[Read more]

Hi renand and welcome to the forum…hope you have a good time.

You haven’t asked a specific question so if you’ll indulge me, a couple of comments / queries if you will ;

1. How much extra on top of the normal purchase price did you pay for the rental guarantee ??

2. How much did you learn through the process of purchasing ?? With…[Read more]

We also looked at the fact that if the relationship does not work out, we still have an investment property.

It’s not real clear, but I presume that you are not talking about your relationship with your daughter, but your daughter’s relationship with some unnamed third party ??

Do you want to specify exactly what your situation is…are we…[Read more]

Great to hear from your Gatsby…what work are you doing exactly over there ??

Did you take your barbell and bench press over there with you, or are you lifting enough heavy things…how’s the diet ??

Hi Anita,

A few things I’d check before proceeding ;

1. If there is a 5 yr lease in place, the CIP should be sold as a “going concern”, and hence the asking price should be 169K only…no GST applicable.

2. The rent appears to be 7.7% gross, increasing at CPI. I’d be very wary of what your nett rent is going to be, now and in 5 yrs time. You…[Read more]

Len,

Mathematically, if you are trying to divide something by 0 you get infinity.

In this case the % return is a joke and best to forget it. Concentrate on the numbers, not the ratios.

Our latest deal did as you describe, borrowed the lot plus expenses and it is +CF…but working out all of your CoCR and all of that other accounting toss is…[Read more]

Well that adds quite a new slant on things doesn’t it ?? Anything else relevant to the situation…’cos that 3K GST refund was a biggy, and makes the whole handling of the bond situation by the PM make perfect sense now.

I’d suggest the agent has you completely over a barrel, and therefore you have lost all control in the matter. Your PM and…[Read more]

Originally posted by landt64:
Hi Dazzling,
I read a lot of your posts, and it sometimes appears that you are quite scathing of investors who buy residential property. i do remember an earlier post of yours that talked about your father-in-law telling you that commercial property, and not residential was where to make money. Since you seem to think…[Read more]

I would like to think that all employers are human

Munjy, I think you’ll find most employers are not human. Their surname is usually Ltd or Pty Ltd and hence “feelings” and all of the emotive stuff trying to be introduced to bring it back down to a human level, is very very difficult to fit inside the Financial Director’s excel spreadsheet…[Read more]

Hi,

By your question I interpret you mean the residential housing markets in Sydney and Melbourne and maybe Brisbane. I have no clue about these ‘markets’ whatsoever, but I suspect if you pick through the bones you’ll find some gems even here..

Fortunately, there are many markets that have nothing to do with those mentioned above and they are…[Read more]

1. Locate and purchase absolutely disgusting, filthy neglected hovels with lots of land for very cheap prices.

2. Get friendly with a bobcat driver and use him and his truck to clean up the mess.

3. Negotiate and sign up Lessee’s on decent terms.

Hi Jen, good to hear from you. What’s up ??

The wife and I are trying to be as self sufficient as we can possibly be, mainly to get all of the lessons learnt (there’s a few) in the kitbag for future deals.

Not for everyone mind you, but this is what was involved ;

1. Purchasing – dealt direct with the Vendor, no agent involved (he was in…[Read more]

Hi Westan,

Great topic.

Our last deal that settled 6 months ago looked a bit like this.

Capital
Purchase Price….$ 2.27
Loan……………..$ 2.39 Borrowed the lot, plus expenses
Interest………….$ 171 K p.a. (7.15% fixed 5 yrs)
Land Value………$ 2.10 (92.5%)
Buildings Value….$ 0.17 ( 7.5%)

Income
Just signed up two separate…[Read more]

Yeah fernfurn,

Had this happen before to me as well.

Back when I used to buy houses the agents would always ask with a smirk on their face “What do you intend doing with the place ?? Are you going to live in it or is it for investment ??”

Foolishly I answered them in the early days, and summarily got kicked in the teeth too many times by them.…[Read more]

Fantastic story flatout….I really enjoyed that and related to it very closely with our own journey and relationships along the way.

We both started off in meaningless labouring jobs, saw that wasn’t leading anywhere fast and said goodbye to all family and friends and choofed off to the other side of the country and both picked up valuable…[Read more]

I think that you can tell a lot about a person from their car.

Absolutely…and I’m only 30 days away from realising my dream of purchasing a beat up 1960’s F150 with all of the extras…like scratched panels, rusty hinges, uncomfortable bench seat, big wide mud tyres, cobwebs on the side mirrors, worn through floor matting and a really…[Read more]

Connecting the sewer would be handy but would it make the property more valuable?

Connecting the large block to deep sewerage makes it more valuable…you need the title on deep sewerage to do any development.

My understanding from the Water Corp. brochures we received when it went through, was that you had a 5 year time limit in which you had…[Read more]

Hey PK,

I think that’s a bit unfair. Everyone that’s replied to the thread has pretty much stated that the flyscreens in themselves are not a big deal.

The much larger issue in principle about who pays for what and who is responsible for what warrants a healthy debate, surely…and adam’s question definitely asked about this, even to the point…[Read more]

Sorry chaps – I’ll not be knowing…

If I had to have a stab in the dark, I’d say Brent when clicking his mouse button didn’t activate it…either way it doesn’t matter to me. Does it concern anyone either way ??

Why don’t we simply ask Steve or Brent….if it’s an issue. Fellas ?? Any clue ??