Forum Replies Created
Soum,
Have you considered employing a surveyor to check whether the fences that are currently in place actually reflect the parcel of land that you think you are buying ??
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Wayne,
Well done. Congratulations !!!
I’m told Moet tastes OK…
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Wayne,
You said you got a ‘call’….
Is the deal done ?? Do you have a copy of the signed off contract in your hand ??
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Ricksta,
Good afternoon. Yes it is. We bought 2 props. last year whilst ‘in transition’.
Of course, it all depends on the numbers that you plug in for (a) “equity”, (b) “finance needed” and (c) future – reasonably expected income.
Hope that helps.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Wow guys, thanks for the very quick responses.
Perhaps I shouldn’t of confused the issue with mentioning property costs.
The tenants are carpenters / upholsterers and fibreglass boat manufacturers in industrial sheds.
Looks like I need to give them 30…don’t think the usual ridiculous tenancy laws stating 60 days apply.
It’s funny you mention the poor lot the Landlord usually has to put up with Derek…I stopped playing those games last year. The bond is 2 or 3 months worth of rent, signed over to us and put in our bank.
PK, these tenants shall be paying all my prop. costs, not just water. CR / WR / LT / Ins / and renovations. Wouldn’t dream of forking out for those myself. Actually, hadn’t thought of actual water bills, will lump that on them as well.
Thanks guys, still can’t believe the quick response time. [thumbsupanim]
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Foundation,
I believe ‘property’ is extremely productive. Many examples of this can be shown in every city;
Post offices
Local factories
CBD office buildings
Airports
Container yards near ports
Supermarkets
Petrol stationsAll of these one can buy, and serve a very useful and productive service to the economy.
People tend to restrict their thinking to residential only…and call this ‘property’…which shows a lack of experience in the property market if they refer to it as such.
On the counter argument…if you don’t have decent housing, one could say that both houses and units do indeed serve a very useful purpose.
Looking at the long term graphs for property over the past 100 yrs, I have no doubt ‘property’ will continue to rise.
Heck, I’ve jumped in boots and ‘all, so my money is where my mouth is I suppose.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Cheers guys,
Couldn’t stay away…enjoy the interaction too much.
I guess we’ll all just have to toughen up a bit.
Maybe, possibly, I could consider, IMHO, in a roundabout sort of way try and avoid being so direct.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
….couldn’t stay away….[blush2]
Leo,
There have been detailed discussions on this subject many times.
Best thing I’ve found is to give it to the tenants to pay. This does wonders for the cashflows.
Land tax can be eliminated from your excel spreadsheet lines as a cost of ownership. It’s marvellous to delete the line.[biggrin]
However, don’t try this with your residential tenants in Australia…they’ll run a mile. Give it a go if you want, see what type of reaction you get. [angry2]
Would Baloo / aussierogue / Don & Liz and other people on the forum who choose to rent pay it for their Landlord ?? I think I could guess what the answer would be.
As other people have said, it’s just a cost of business…thing is, you don’t necessarily need to be in that particular business.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
JPD,
I’m confused a little as my frame of reference is Comm and Ind. where the ‘outgoings’ are simply the rates/WR/Land tax/insurances etc that the tenant pays. Outgoings doesn’t include interest on the loan.
When you say ‘all outgoings’, are you including the interest or not ??
By the way, do the horses chip in for all the outgoings ??
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
This I believe is the “harvesting of equity in retirement” that the Investors Club founder Kevin Young has been espousing for many years.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Sarah,
I’d probably go the other way and say that over the 8 year time frame with the right technique and determined attitude, your 0.5MM target is probably a tad low.
Maybe sit down and map out a BHAG – Big Hairy Audacious Goal – and shoot for that…if you don’t achieve it, you may still get the HAG, AG or if it only comes together a little still get your G of 0.5MM.
My suggestion to the plan would be to flesh out the “and so on” a bit more. Yrs 6,7 and 8 is probably where all the action is going to take place.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Wayne,
Hopefully the Seller or his agent hasn’t visited this website recently !!
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Well I don’t know Eric….
You’ve got all the information about where you are / where the IP is / what the distance is between them / facilities and services in the town / type of tenant mix / condition of appliances etc.
What’s going to happen if the HWS fails at 10pm on a Saturday night ?? How long are your tenants going to be without hot water ?? What is it going to cost you (in both time and money) to get the system – old or new – up and running ??
Umm…what if you are on holiday and you get a call for urgent attention to something.
Personally, if a PM wasn’t available and you didn’t / couldn’t / wouldn’t deal with an issue, I’d put away something extra away in the budget to cater for the expenses that will undoubtedly flow from these events…
Agree or not ??
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
As a suggestion – zip on down to the Govt printing bookstore and purchase yourself a copy of the Residential Tenancy Act (latest version).
It isn’t that big or onerous, and governs all ‘goings-on’ between Landlord and Tenant within the WA residential scene.
Sit down and have a jolly good read of the Act. You’ll be up to speed in no time – hell, even Property Managers have a crack at understanding it.
You’ll probably discover…to your horror as Landlord…you ain’t in a real good position, and any way you turn…it won’t be quick and it won’t be cheap.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Wayne,
Also wise to remember that you as Buyer have only one deal going on at this exact moment in time.
The Seller also probably only has one deal going on.
The Sellers agent has probably 25 deals going on, and doesn’t want to, or can’t afford to waste time…he will in effect be conditioning his Seller down to get the deal across the line – all to your favour.
Sit tight and let them fax you – verbals ignore. As soon as you you hear their voice, they have effectively lowered the price…
Enough…you’re a big boy, you’ll figure it out from here.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
We’ve done this twice…works wonders.
We’ve paid stamp duty on both occassions, but hey – compared to the advantages..it’s peanuts.
Just paid out our PPOR loan 4 weeks ago and loaded up one of our IP’s by selling 60% to the wife…all lawful and above board – with both the accountants and lawyers blessing (and our double checking of the advice of course)…after all, we are responsible for everything – not the highly paid advisers.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Wayne,
I’ve found being the slowest and most stubborn in the negotiating phase always works best. Being a cat on the hot tin roof is the worst place to be.
By reponding this evening you’ve just cost yourself 1K. Even though you’ve given 180K as your capacity limit – you haven’t specified what your ‘top value’ for the block is.
I read recently that most extremely wealthy people never even enter a negotiation without first establishing that they are willing to walk away from the deal. Have you ??
In answer to your question – it is left open ended on the contract unless you specify an exact time at which your offer lapses. All of my offers carry a time lapse clause…puts the Seller under pressure and limits to some extent your offer being used as leverage against another prospective purchaser.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Wha ??
Sorry pal – I don’t do “assumptions about emotions”…
I’m here to learn about techniques / finances / stories / experiences.
I’m not interested in pontificating about fluffy feelings, hi-brow macroeconomic theory or any other theoretical variables that you have no input or control over.
Too busy making money to continue….
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
roessler,
I know you are new and all, and you are all hyped up and ready to go after your Masterclass, but I get the feeling you and others have just jumped on and pumped out 3 posts for the sake of racking them up…probably because you’ve been instructed to. [thumbsdownanim
I don’t want to sound harsh, but do you have any exciting prop. experience / knowledge to share with other forum members…or are you just going to parrot what you just heard at the class ?? [whistle]
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Michael,
Typically with your developments – do you sell them all / keep a few and rent out / keep them all and rent them all out ??
I imagine the more you keep restricts your ability to fund further developments ??
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
