Forum Replies Created
I reckon Mr Michael Carmody will very much enjoy his CGT windfall, especially seeing as though he doesn’t have to give Kev his 50% discount.
Good luck to him though. I hope he enjoys his toys.
I wonder who bought at $ 4.70, and whether are going to be left carrying the can ??
Redwing,
It depends very much on your salary I believe.
This quaint old notion they used to have of 1/3rd for repayments, 1/3rd for living consumerables and 1/3rd for tax no longer cuts the mustard. With tax rates coming down over the past few years and wages rising, the last two components have been dropped somewhat.
My Banker allows me up to 70% of my salary as I don’t pay tax…and the living consumerables never gets above 11%…so there is still alot of fat in there for them to chew on.
In terms of rental percentages, they take
1. 70% on the drossy residential suburbs
2. 80% on the good area houses
3. 90% on my written leases to little industrial tenants
4. 100% of the nett rental figures for the larger national companies on long leases.This helps heaps for your borrowing capacity, and has driven our strategy of late to crank up and find further tenants in the 4th category.
It’s got to the point where the DSR ‘hit the wall’ limit has been removed and now the equity side of things is starting to become the limiting factor for further borrowing.
Looking forward very much to the figures coming out in a few weeks time showing what the property in the West has done.
In the same area for around the same price you can purchase a 5 acre block…that’s 80 or 90 times as much land as those handkerchief type blocks.
With massive depreciation in the value of the new home, I reckon you’d be lucky to see any ‘growth’ for many years…what with the tiny land component having to overcome the big drop in value of the bricks and sticks.
Most professions are accountableNot sure that a massive 5 day course…4 days x 8 hours per day plus an exam on the fifth day…rightly qualifies someone to call themselves a professional.
Maybe – maybe not…depends on your individual opinion.
In the olden days there were only four professions, Medicine, Law, Engineering and Arms. All of these involved 4 or more years study at a tertiary institution, with many exams and demonstrations of knowledge needed.
Since then, it’s blossomed to the point where anyone with a sticker obtained from the back of a Cornflakes box is accepted as a ‘professional’.
With 5 days worth of qualifications, I’d place caretakers (PM’s) in the latter category, and hence my expectations are very very low of their abilities and often met.
Try lowering your expectations way way down and try again.
Jeez, I’m seeing a pattern here tonight about residential property Owners having trouble with tenants and PM’s. Looks like people aren’t having much joy.
How about make your offer ;
1. Unconditional
2. Full asking price
3. CashAt the end of the day, that’s what all Sellers are holding out for.
It sounds as if you are in an extremely weak negotiating position due to your keenness for the property. However, if the dirt warrants it, it can still be a bargain.
Doesn’t sound like they looked after your best interests.I think if you had a frank chat with the Principal of the Agency and push came to shove, I think you’ll find that their number one goal is to look after the agency’s interest first.
The hapless Owner (one of hundreds typically on their books) is not at the top of their list. Maybe about # 4 or 5, for sure. But priorities # 1,2,3 must be satisfied first. It appears to me, as usual, like your priority # 4 got gazumped by one of their higher priorities.
When confronted however, there will be alot of hand waving and shoulder shrugging, but typically they are so beaten about the ears by lawyers and PC correctness, that fact will seldom be told to you face to face.
Maruco, if you are wondering why the Lease agreement doesn’t protect the Landlord, you only need to read the RTA and meet some of the Tenant Advocacy people who carry alot of weight to realise your rights as property Owner are seldom put at the top of the list.
Once I recognised as Owner of residential property my interests were not # 1, everything became clear and stress free. Tactics and strategy therefore changed…job sorted.
Good luck with your struggle.
after all, that is what you are paying a property manager for, so you don’t have to worry.I think this is where most of the trouble originates from. This is an unrealistic expectation placed on the PM by the Owner…I believe as their title is a complete misnomer, yet the Owner believes with that title the PM actually manages the property.
A PM will never relieve you of your responsibility for your property. If the going gets tough it’ll always end up right back in your lap, as we’ve seen on this forum in the past. Reading the PM agreement very carefully, usually one finds many ‘out’ clauses where the Owner is unable to pin the responsibility on the PM.
I believe the job title should be changed to caretaker or something less, not PM, which would ultimately not give the Owner the impression that they actually ‘manage’ your prop. This particularly applies to the typical 19 yr old front secretary who’s been with the organisation 6 months, never owned a property, never rented, yet has been sent on a 5 day course and is now a fully qualified Property Manager.
Just my experience.
I would of placed the $1miLL on Makaybe Diva at odds of $4.Invested $1miLL : Returned $4miLL : Profit $3miLL
My mother used to say “woulda coulda shoulda….but didn’t”.
I note that you put your profession down as a professional gambler, although your post is dated 2 days after the big race. This post event gambling must be a lucrative business I imagine.
I think the mare’s name is spelt Makybe Diva.
hey..do we have a few night owls here?posting around midnight.
Redwing, when it’s midnight on the East coast of Australia it’s not in other parts of the world. I’m 8 hours behind Sydney time at the moment, so midnight posting is the middle of the arvo for me. Just hard to get a convo going ‘cos you guys in Oz all go to bed too early… [biggrin]
You also may want to check the zoning against both the land area and the frontage.
It’s quite common for example, to find older duplexes sitting on blocks that were once zoned duplex, but have since been upgraded to maybe a triplex or even a quadruplex block.
These are usually popular with developers for knock down jobs.
we are never going to agree so I’ll not bore other formumites further since we have detoured from teh original thread. Therefore if you wish to continue I will reply in private.Excellent idea Milly.
Either the topic gets back on track to something remotely related to property investing or I will truly truly truly lock it up.
Which means that the cost for him to go to the toilet is considerable if you conisder how long it takes to go to the toilet. Lets say 3 minutes?? Then if your bill Gates thats $54000. Now if he goes twice in one day then its really starting to add up.Bill would be much better of paying someone to make coffee for him as the investment of paying a person for a full year would have paid for itself after the time it takes to make just one cup up of coffee. Based on about three minutes to make a cup.
But then…
If we use your ‘coffee logic’, it would also make sense to employ someone to carry out the first activity as well. They would also pay for themselves for the year after just the first trip.
I suspect however, at the end of the year ol’ Bill won’t be feeling too chipper… [blink]
scullyman,
Surely it’s a big numbers game. Get the numbers up to a level where they dwarf your private consuming level…and viola.
If you have 5 MM in assets with say 4 MM in debt, and over time the assets grow to be 20 MM whilst you are working and the debt level remains constant, surely it would be reasonable to approach the bank and say can I up my debt levels from 4 to say 4.1 so you can live off the 0.1 every year.
I reckon at that level, the assets might be sneaking along, equity-wise, just a tad faster than you and your partner can consume it.
With security over the props, why would the banks be concerned ??
Being the third child…I can attest…you do survive…despite the lack of pampering the first one gets.
Having 3 girls of our own, I think the third one does OK…in fact gets away with murder actually…
All up, kids are pretty robust and don’t need to be namby pambied like we all tend to do in the Western World.
Geoff,
I was looking at an office block a week ago that had no less than four carriers on the rooftop with their repeater thingies.
It got a little crowded up there with all of their antennae (sp?), along with the cooling towers and the roof jiggy’s for hanging the window cleaners off.
They all had 10 year leases in place, from 2000 I believe, with a further 10 year option at the end of that.
All up, the four carriers were paying $ 70 K p.a. nett for the right to place the thingy there. They took 100% responsibility for it.
Not a bad little earner on top of the +CF rental stream from the rest of the building.
You are correct, this is indeed a nice little money spinner for the building owner.
I’ve run this ‘expense occurred whilst running around chasing new opportunities that you don’t own yet’ claim by my accountant. His response was it would be appropriate given the two following conditions ;
1. Your scale of operations justified it.
2. Apportion the business vs private use of the vehicle and claim the business use sector only. Log book entries required.
Keeping a log book for all non-private usage is a pain, but you get used to it. What adversely affects the % is when the wife wants to go down to the family farm (1,000 km round trip).
Daubing the side of the car with a logo is not necessary to claim the non-private portion of the car expenses apparently.
I believe my Mentor could have been in this position but why pull the plug at 30 ?? I think you are refering to being in a job that you don’t like or have a boss to answer to.
He’s now 66 and intends on ‘working’ well into his 80’s. Why not if you are enjoying what you do. Although I note the fishing trips are getting a tad longer and more frequent nowadays.
Business vehicles were and still are ;
1. A construction / industrial development business with 55 MM p.a. turnovers.
2. A little bit of industrial land appreciating for over 45 years.With 230 MM in property…life is interesting and fun for him…why would you want to give up that ??
Does it ever end…ummm, if you like what you do, I guess not.
Trent,
I reckon this real estate game is simply a numbers game. Very difficult to have a chat about real estate without mentioning numbers.
Do you think at some stage numbers might enter the conversation ??
What are you trying to do exactly ??
Hard to say, one’s looking at it from the human side of things and one is looking at the piece of dirt as a lump of cash ??
When it’s mine, I look at it as a lump of cash. When someone else owns it, everyone has the luxury of thinking, and is happy to go down the “Oh that looks nice, it’d be a shame to demolish that”.
What gets my goat is when the Heritage Listing nazis, without a dollar at risk, use the council’s power to upgrade that “it’d be a shame” to a “you will not”.
Classic case was a few years back when some ‘elderly hoi paloi lady’ objected to a development at the old Raffles location on the river in Applecross WA. She remembered way back when she was a lass in the ’30’s and what a landmark magnificent building it was. The owner of the land remarked that if she liked it so much and wanted to keep it, she was most welcome to buy it off him and keep it as is forever. However, as usual, she wanted to impose her will without having to stump up the $ 35 MM needed to own it. Perhaps back in the ’30’s she could of got together with her friends and instead of living the high life, saved up and purchased the site when it wasn’t so outrageously expensive.
Who knows.
hmmm if time really is money how much does it then cost to*go to the loo
*make a coffee
*watch your favourite TV show
First one – nothing – good value there.
Second one – nothing – good value there.
Third one – I reckon absolutely millions over the years – and that is probably an understatement.
