Forum Replies Created
Funny thing is that even though a valuer is doing a value on your property, you cannot even see their report as it belongs to the bank even if you have paid for it.
This smacks to me of banks massaging the figures to best suit themselves. Gee what a surprise.
With a bank listing three valuers they may actually due to how “massaged” in their favour the vals from that person comes in, the bank may actually only currently use one valuer.
In a tight market this collusion is worse as with fewer properties the valuers are more bank driven than market driven. So if Bank X says submit 10% below real value, guess who wins there.
Until the property settles you are stuffed anyway, as all of the completed deals are reported 3 months historically, so if you have just completed the reno, good luck in getting anything near the new true value before a further 3 months has passed. They may review, or you may just get a different lender, but break costs and setup fees are big considerations to see if it is worth it.
Not as clear cut as you first may have thought.
Anyway, whatever you do good luck and every success.
DD
Buyers Agent (Dip Financial Services(FP)
Don’t sweat the small stuff,and it’s all small stuff!!Ok so you feel a bit nervous about helping a friend. Dont be. As long as all the details and the contract goes through a conveyancer/solicitor by both parties its legal.
You have to give your friend an invoice for the fee they pay you and declare it on your income for tax as it is an earned amount from effort, yours.
If you are introducing parties to a contract you are in effect supplying information. As long as these guidelines are kept you should have no worries except where you will find buyers for your friends property.
Give a few basic details here and someone will tell you how cashflow positive the property is and therefore how easy to market in here and other similar sites.
Whatever you do, do not give advice as this would be in breach of the PS146 ASIC guidelines. If you just pass on details of location, fees and charges, rental details etc without a recommendation either way, it is only research you are getting paid for.
Good Luck
DD
Buyers Agent (Dip Financial Services(FP)
Don’t sweat the small stuff,and it’s all small stuff!!The funny thing is that with a multiple dwelling situation of more than a duplex(2) and definitely 5 like you suggest, mortgage insurers will knock it back as a bad risk.
It is not a standard deal and with a trust as well, good luck.
Have any of these lenders suggested the additional charges for reading your trust documents and the delay in approval of finance that this usual entails.
Again……..good luck
DD
Buyers Agent (Dip Financial Services(FP)
Don’t sweat the small stuff,and it’s all small stuff!!As a buyers agent it is in the best interest of my clients to have the deposit in their own accounts and not the coffers of the agent earning them interest.
My clients put down $500 for all queensland deals, tassie its either $1000 or $2000 and WA its $1000.
Anything more is BS and the agent guaranteeing their commision is already in their hot little hands as soon as possible. Balance on settlement.
Do not be duped into believing anything else as it is not required by law and you actually include it as the payment condition in most contracts.
DD
Buyers Agent (Dip Financial Services(FP)
Don’t sweat the small stuff,and it’s all small stuff!!Sorry, not in Darwin. If you need help SEQ, Tassie or WA, I can help.
DD
Buyers Agent (Dip Financial Services(FP)
Don’t sweat the small stuff,and it’s all small stuff!!yes be on the ame page first. One of my clients got to the contract stage and other half pulled out sighting parents “word of advice” as reason.
A lot of time wasted there. Back to square one for them sadly. Get it all in writing first so there is no he said/she said later.
Its all good.
DD
Buyers Agent (Dip Financial Services(FP)
Don’t sweat the small stuff,and it’s all small stuff!!Michael It is so good to hear my thoughts regarding fin advisors coming from someone else. I am qualified, but refuse to link my services to an institution which claims independence, sells only their products and never advises to buy direct property. A managed fund with 5% property is as close as they go. Please……save us from those smiling insurance salesmen with a new name.
I, like you,do not offer any services here as a financial advisor, but I list my Dip Fin Services(FP), so as to be clear to others I am somewhat knowledgable in the field. My services as a buyers agent is to supply information that each client can make their own decisions on.
Telling the facts and not the percieved facts is somewhat dangerous, but I’d rather loose some clients than mislead them as to where I am coming from.
DD
PS146 Certified Financial Planner and Buyers Agent
Don’t sweat the small stuff,and it’s all small stuff!!Some lenders have reduced the LVR to 60% or over to attract LMI now so dont be to upset if you get a little surprise.
All you can hope for in SEQ now is a property that is the right price so when you do a reno it pcks it up to at least 7.5%, this with a depreciation schedule covers most costs if not all.
With the purchase pricing on units/townhouses taking a $20k hike in the last 2 months I’m finding it increasingly hard to still get these bargains for my clients.
Good luck
DD
PS146 Certified Financial Planner and Buyers Agent
Don’t sweat the small stuff,and it’s all small stuff!!Founbdation thank you for not doing your usual copy and paste jobbie in reply to my post. It is most refreshing.
If you have a problem understanding my posts then just flip past them as I try to flip past yours in an effort to stay away from the usual dribble.
Forums are just that, a means for people in different locations with a similar interest to chat and share their views.
Obviously this is too hard for you to do nicely. Sure I like the Logan area but im sure as hell not alone. I also like Ippy and Coffs and Launceston and Perth and Cairns im researching at the moment. I have a vested interest in making money as i thoght that is what we are all about here. Cross fertalising ideas and assistance for the greater good.
Go bury your head
DD
PS146 Certified Financial Planner and Buyers Agent
Don’t sweat the small stuff,and it’s all small stuff!!Oshen well done for travelling against the flow. Just Over Broke(job) isnt the way to go so find new friends that have portfolios ans support where you are at. You do loose friends and the “you must have done something immoral or illegal” crowd can simply disappear.
Be happy for at least in here most of the people are happy to encourage others.
Happy hunting
DD
PS146 Certified Financial Planner and Buyers Agent
Don’t sweat the small stuff,and it’s all small stuff!!Well done Tina, you seem to be making those sometimes hard decisions. Our strategy is to buy 4 and sell 1 every year. This shows as income for the new loans if done right and refreshes our portfolio as well.
As last year we bought a biggie(PPOR) we sold off 5 ip’s to get the mortgage down to something reasonable. Since then we have bought 2 and sold one to refresh our portfolio.
Always looking for a good deal and glad to help others with ideas as well. We did the big ask of ourselves as to which to sell last year and it wasnt easy. We have done it though and have moved on with a cleaner portfolio and a lust for more property.
We settled on one 3 weeks ago and the wife says ok where next. We treat it all as a constant evolution and the 4 steps forward one back keeps us mentally aware of all of our portfolio and whats performing and what is not.
Dont be afraid be decisive. Once you have made those all important decisions take a deep breath and do it without looking back.
Best wishes and keep moving onward and upward.
DD
PS146 Certified Financial Planner and Buyers Agent
Don’t sweat the small stuff,and it’s all small stuff!!Marissa is right a cheap air con can add $10/wk to rent as well. So $500.00 for a 1.5 split system and $450 back to back install gets you a $10/wk hike which gets paid by the tenant in 2 years and its your tax deduction too.
DD
PS146 Certified Financial Planner and Buyers Agent
Don’t sweat the small stuff,and it’s all small stuff!!Foundation, I have found you to be quite negative to a lot of forumites on a regular basis. We all have differing opinions so lets all be happy about it and move on. Good you have an opinion and share it but we all would like to do the same without a few slices being requoted and belittled as you dont agree.
I feel that Det shoud have a go and not listen to chicken little shouting the sky is falling again and again.
goto LJhooker logan central, Logan central first national and look at the percentage of sold properties there NOW. I dont requote people but you really do get caustic after a while.
The market for townhouses is in a bit of a surge there and a lot of people are catching this wave now. Cap gains an issue, I dont think so. Projections on the townhouse and unit market has them averaging $157k by december and the cheapest is $120k now so with this figure being a struggling $100k 2 months ago it seems you may not have looked as closely as you should have before doing your one line misquote then hassle of all and sundry.
Det, do what you want but do something. Minimogul is right(again) about not being shy and getting into it. I wont be waiting and bought another townhouse which settled 2 weeks ago.
I reno it when the lease expires in July. Have a go.
DD
PS146 Certified Financial Planner and Buyers Agent
Don’t sweat the small stuff,and it’s all small stuff!!G7, no wonder you picked an icon with a frown. Not only is the Logan town house market kicking and I mean kicking along quite nicely thank you but with the announcement of the brizzy/ippy road expansion finally to take place, a lot of eyes have headed west.
With one 15 story tower approved for Ippy and another 3 on the desks of the council right now, its a brave man who says cap gains is dead.
Go look at a few of the Logan and surrounds agents and see the under contract/under offer on 6 out of 10 on their pages and things hotting up.
Average t/house in Logan is now $120k which was barely scraping $100k 2 months ago. Maybe in the area you buy in its a ghost town for deals tright now, but my neck of the woods is doing quite nicely thanks very much.
DD
PS146 Certified Financial Planner and Buyers Agent
Don’t sweat the small stuff,and it’s all small stuff!!Guys as houses in SEQ have gone to a slow crawl over the past 12 months, the number and consistency of sales in the unit/townhouse market has not slowed. There was a stall only until the interest rates have gone up. Now that happend recently the uncertainty for a lot of investors has deminished and this had added urgency to their step.
What I am seeing is that with the 1200 new warm bodies arriving in SEQ per week, the slow down of new houseing and the prices being $100k plus higher for houses over the last three years, the uunits and townhouses seem to be the first to kick ahead. I have seen a hovering about the $100k mark for a good 3 months without much happening. This in the last 6 weeks has changed with increased volumes of sales and prices firming to now average $120k entry into this constantly under pressure market.
Ok we all have differing opinions in here and thats great. But if someone cries out “the sky is falling” just one more time I’ll scream. In some markets, as always be cautious, but dont sit on your hands and suffer from analysis paralysis again. You guys nearly missed the last upward trend so be open to what the market is actually doing NOW.
Next issue of API has a reno special to add value and rent to your IP’s. The reno kings feature as do 4 examples of yours truly.
Sorry but im excited to be in print. Thanks guys.
DD
PS146 Certified Financial Planner and Buyers Agent
Don’t sweat the small stuff,and it’s all small stuff!!Any 20k i spend would be on a deposit on a $100k property to sell later to buy PPOR. So the $20k could get you more than $65k and the deal is if you have enough $100kers then you can have choices you otherwise would not consider with only 1 IP.
Basic curtains for sure, what if a tenant has a party and the curtains get damaged or the place gets broken into or tenant does a midnight flit with your curtains and other non fixed items.
All horrowr stories you wouldnt want to happen and sure you have insurance but 1 bad tenant and your $2k blinds could need replacing anyway. $500 for curtains is more than enough.
Good luck.
DD
PS146 Certified Financial Planner and Buyers Agent
Don’t sweat the small stuff,and it’s all small stuff!!my PM said I would never achieve $150/wk in my pet area, now the latest reno has nabbed $160 they mumble something and change the subject very quickly.
Good Luck and try anyway.
DD
PS146 Certified Financial Planner and Buyers Agent
Don’t sweat the small stuff,and it’s all small stuff!!Derek the impossible is achievable on $5k and some imagination. The lift a small place gets from some really simple things like a rangehood, bathroom exhaust fan, toilet seat(white and clean) and a new shower head(low flow). The rangehood for $89, the fan for $15, the toilet seat for $20 and the shower head a furhther $20. The paint for a 2 bed townhouse should be around the $600 mark including brushes and rollers, tiling kitchen. laundry and 6 tiles for entry area, try $217 for tiles and $300 to lay by a fantastic professional who cleans up too.
Carpet for a lounge and 2 bedrooms upstairs $900, new curtains custom made and installed $560, new clothes dryer for $ 350 and a new vanity for $280 with taps for $55 the set.
Sparkie $300 fixed a lot of small stuff too, plumber did all that was needed and a leaky sink too for $380 and you do get a lot done and all in 1 week and damn, there is change from your $5k reno.
I got a $50/wk rent hike too so all you think can be done , can actually be done. If you think it cant then…………..oops.
DD
PS146 Certified Financial Planner and Buyers Agent
Don’t sweat the small stuff,and it’s all small stuff!!My sister has a house at bathurst, she and her husband moved to Port macquarie and rent a house. The one in bathurst they refinanced and bought 2 more IP’s. For them to own the house in Port would cost them $800/wk mortgage and they are also in their 50’s. As they rent it for $270/wk while they run with these IP’s they are saving a whopping $530/wk in servicability.
Ok so they want to buy a ppor eventually. If the market goes according to plan then in 5 years they sell 2 of the three IP’s and have a massive chunk off their neww ppor paid instantly saving them years of repayments.
Not only do they each get tax benifits from having the IP’s, they have piece of mind as they are already living in the right part of the world for them, and all without a huge mortgage as a stumbling block to their future happiness.
To me this is way too conservative but its them not me, so I help them achieve their goals I get warm and fuzzy anyway.
So just another alternative or slant for you to look into.
Whatever you choose, happy hunting.
DD
PS146 Certified Financial Planner and Buyers Agent
Don’t sweat the small stuff,and it’s all small stuff!!with a verbal agreement in place it is imperative that you get an agent to manage the property and do an entry report asap. If this cannot be arranged then the next best thing are the building and poest reports as a starting point.
With the low rent its either too good a tenant and thats got to be a very hard thing to convince me of, or they are willing to stay at current market rates. I have done this in both SEQ and Launceston in tas, where the tenant has been there so long they class it as theirs.
If you have to do a reno on the place, send them on a timeshare bonus week while you do the work. So they get a week off and you gat time to paint carpet tile and fix the niggling things. End result is the tenant loves you from day one. You get the place revaled and go again after repairs and everyone wins.
It works as long as the tenant agrees to take the time out and is ok to have their stuff in a garage for a week while they are away. Dont be afraid to ask these questions they may get a yes.
DD
PS146 Certified Financial Planner and Buyers Agent
Don’t sweat the small stuff,and it’s all small stuff!!
