Depending on what your background and perspective is, a four year lease could be viewed as too short or way too long. For RIP’s, it is quite long, which is great for you if that’s what you want – which it sounds as if you do.

In terms of particulars, I’d ask the PM to include ;

1. An escalation clause every year of x%, maybe 4 or 5, but at the…[Read more]

KLH,

How many IP’s do you intend putting in the trust ?

We currently set up a new company and new trust for each property so they aren’t linked in any way. We don’t want one clown in one property affecting or getting access to equity in another property. This whole convaluted process is surely about asset protection and covering your assets…[Read more]

If you consider your time extremely valuable, just pick up the phone and let everyone else do the work for you.

If you consider your time to be not so valuable, be a TA for most of your pro help with jobs you can’t do, and be busy yourself co-ordinating the materials / cleaning up and preparing the work site and if you have spare time on your…[Read more]

Hiya E Nelson,

We were in your situation about 8 years ago. Bought our PPOR for cash ( to eliminate our NTDD) in a really dodgy suburb surrounded by dross.

We made a serious commitment, despite opposition from family and friends to just get out of there, to hang in there for 3 years so we could transfer the increased equity into another PPOR in…[Read more]

Hmmmm,

This one will take a lot of thought to get to the bottom of. OK, from where I sit here, the only hard fact is the following ;

You had a formal lease between Lessor and Lessee which has since expired in May.

As with all business situations with CIP’s, it depends on what is exactly written in the lease.

Specific questions that comes to…[Read more]

Karen,

To answer the deposit question sensibly, one would need to know everything about the deal, the Seller, their motivation, your acquisition strategy, method of sale, any underlying advantages etc etc etc…

For example, if you thought the Seller was desparate for the deal to cross the line, you might go low ball with a high deposit and…[Read more]

What has caused her to have second thoughts ??

How robust was her initial plan…or is that the reason for the change mid stride ??

Karen,

With our last commercial loan, the timing looked something like this ;

Offer accepted by Seller
Finance clause released 5 weeks after offer acceptance
Due diligence clause released 9 weeks after offer acceptance
Settled 10 weeks after offer acceptance

In terms of due diligence, timing we’ve found depends on two things ;

1. How…[Read more]

Yes, we picked up a very average 3×1 on a good chunk of riverfront property for a modest price. The title is affected by a restrictive height covenant (crippling it by about ~ 300K), but we didn’t pay for any of it, and went into the deal with our eyes wide open. Town planners reckon it’ll cost about 60K to have a crack at removing it, but there…[Read more]

Pete,

Well done. Nice post. Amazing how much of the learning is in the details, that even the best books only skim over. Practical learning and dealing with humans face to face negotiating deals and services….there really is no substitute for the real world thing is there. Getting out from behind the internet and book facade and mixing it…[Read more]

Mary,

I know you only want positive thoughts streaming through here, but really, putting your financial future on ice for 3 whole years whilst you pay off a “bit of debt”.

My question to you is…have you and your partner rectified the lifestyle habits that got you into debt in the first place ?? If yes, I’d suggest you get serious and tackle…[Read more]

I remember being in Yr 12 (and hating it…going from straight A’s to C’s and D’s) when one of the teachers turned around to me whilst travelling on a bus back from a sporting function and asked what are your plans for next year ? I replied I have no idea, except that Uni was definitely out, as all of the big boys at the time (late 80’s) Bonds /…[Read more]

Hong,

What do you mean by ‘Perth market’ ??

When you say the ‘Perth market’, do you mean the ;

1. Little 2 bdrm flat in Yokine
2. Carpark in the CBD
3. 4×2 new house in Scarborough
4. Penthouse in an old block at South Perth
5. Container yard in North Fremantle
6. Beach shack in Mandurah
7. Industrial trucking facility in Welshpool
8.…[Read more]

Good post Endless Summer…whatever it takes hey. I suppose if the internal drive is lacking just momentarily, nothing like an external push to spur you along.

Well we had a bit of a turn up for the books yesterday regarding the prop we just purchased at the top of this thread.

Received a call from the State Govt ‘official property buyer’…[Read more]

No JimboJames…I’ve never had that situation.

Yes JimboJames, you are missing something.

Sounds a bit like the ol’ mechanics car syndrome.

I find it’s the “hidden” price you eventually pay…not necessarily dollars…when you purchase less than immaculate properties for less than top dollar initially.

The options are pretty limited, either pay top $ upfront and avoid it, or pay it later over the course of ownership via lower yields,…[Read more]

Nigel,

You crack me up with your ‘opposites’.

Firstly, you say you can’t get +CF in big Ozzy cities with no qualifications, and now you finally qualify that you are looking at the small first and second homebuyers sector of the huge and varied ‘property’ market.

Secondly, you say you do your own research, but won’t search the posts for previous…[Read more]

Thomas,

If the lease stipulates the Lessor has to pay all o/g’s, I’d move on to the next one.

In comparison, saw another similar cheapy in WA about 6 months ago, it had an asking price of 115K, with the tenant on a 5 yr lease, paying $ 200 p.w. escalating at 4% p.a. and the Lessee paid all outgoings. The o/g’s will kill the deal for you every…[Read more]

No…

I used the money that was earmarked for the Palm Pilot as a deposit on a small +CF flat and do the Grade 6 Maths in my head.

Nigel,

Don’t be so lazy…I’m not about to spoon feed you like a baby.

If you want proof – get out there and get it yourself if searching this forum for the post is too hard for you. You said you were open to learning something new…your lack of action doesn’t support your statements.

If you are waiting for me to lead you to them by the nose,…[Read more]