Forum Replies Created
For manangement I am so happy with Ipswich Rentals and Sales. Ask for Angie and Liz. We have 7 with them after another agent had so many staff changes and inconsistencies it was costing us.
Been with Ipswich Rentals & Sales since May and they have already proved their worth. PM me for further details.
DD
PS146 Certified Financial Planner
Don’t sweat the small stuff,and it’s all small stuff!!To Yack, we moved to Coffs in June 2004 after putting our PPOR in Sydneys west on the market in March, it only settled in Dec so 9 months to sell is NOT out of the question and although Poochi may be right on as far as timing, he/she has done extrordinarily well to have paid off their PPOR for $530 on an income of $38k
Well done Poochi, great result on that one.
DD
PS146 Certified Financial Planner
Don’t sweat the small stuff,and it’s all small stuff!!Anubis anyone in here who actively has a bubbling property portfolio and says they have good cashflow, isnt doing it right. We have several ip’s and all the rates and BC fees and maintainance and stamp duty and legal costs and building and pest reports and travel costs and course fees…………you know what I mean.
Many people looking long term forgo their cash now for cash later in a growing portfolio. All investing isnt roses, but to run the ship a bit tight for a few years means its easy sailing from there on, I’ll happily be cash poor right now.
DD
PS146 Certified Financial Planner
Don’t sweat the small stuff,and it’s all small stuff!!HI Hobart, look north young man, not too far either as Launceston, with another 260 jobs from the Optus sim card activation centre relocating there will add impetus to this market. All local indicators there are that another $20-30k surge for the entry level $100k market will occur soon.
One indicator was 57 land blocks sold at $125k each in a 3 week peried a few months ago, north of the city. With existing houses available now for this price range and building costs increasing, I would expect that $20k cap rise in the next year looks quite reasonable.
OK so with your $175k to spend, get 7 x $100k houses with a $20k deposit and this leaves $35k for costs. Loan on each would then be 80k each with rent achievable of $160/wk this means 10% gross to cover your butt for the next years speculation.
At the end of 12 months your capital gains tax is only on 50% of the profit so should this market have peaked by then sell some and pay down the others to make them more positive.
Steve, the management of properties in Launceston averages about 8.5% +GST so you may need to adjust your cash on cash a bit from that. I achieve 7.7% inclusive for my clients but thats a special deal there and not the standard.
Good Luck Hobart, hope this helps.
DD
PS146 Certified Financial Planner
Don’t sweat the small stuff,and it’s all small stuff!!If you have bad expectations, irrespective of the cost of the property, congratulations you will get what you hope for, bad tenants or vacancies.
We have several really cheap townhouse which have tripled in 3 years. 1 Bad tenant in the townhouses in that time and landlords insurance covered the shortfall. No biggie. Any good property manager will get you onto landlords insurance as they get you a discount and a fee from the insurer for setting it up.
Win win, and you can sleep at night too.
DD
PS146 Certified Financial Planner
Don’t sweat the small stuff,and it’s all small stuff!!Great to see Steve in the posts. It is imperative to put a thermos of coffee next to you and start reading. There are too few hours to not start asap. Get some Dolf DeRoos books too. I’m sure Steve has them on his shelves as do I.
DD
PS146 Certified Financial Planner
Don’t sweat the small stuff,and it’s all small stuff!!Great Couples are great because they bounce their differing opinions off each other and come to the middle ground without a death in the family.
With all the couples we have talked to about property over the years, it is plain to see there is always(well 99% of the time) one convinced that sitting on your hands will see you cap in hand to the government for retirement money where the other partner thinks doing anything is risking the house.
I am blessed that originally I was the slow starter out of the box, and the wife was the one attending seminars and attempting to get me out of the JOB(just over broke) mentality im not too proud to say, took me a bit of time to snap out of.
Now we are both committed to goals and reassess, as Westan and Derek do, our direction and focus every few months to make sure we are both on the same page. With a partner that is negative, see it as a challenge to solve, every no gets you closer to the next yes, and each problemis one less you have to face tomorrow.
Any true success is from perserverance, so please don’t give up. Keep leaving API mags around, printed posts on the wifes desk, and get to seminars and dinners where appropriate. It is your dream, which you wish to share with her so just keep at it.
Good Luck
DD
PS146 Certified Financial Planner
Don’t sweat the small stuff,and it’s all small stuff!!Derek again has nailed it. You need to have the relevant”runs” on the board and experience in your own portfolio and qualifications(although thats a mute point to some), to even start assisting others with their investment purchases.
My suggestion is that you pick an area, research it to death, talk to agents, buy them a coffee and discuss infrastructure and developements happening which will affect your target area. Spend time at council and reviewing local newspapers. Contact the Chamber of Commerce regarding information on industries in the area. Endless bugeyed hours in front of a small screen doing research, find a mentor if possible to encourage and guide your efforts.
Then start again. Do it all again, get your own strategy and portfolio in order, then use your knowledge and any qualifications to help others.
Easy, its only taken me 4 years intensely doing this to be where I am now, and then you can have a small modicum of satisfaction you are actually getting there.
Good Luck
DD
PS146 Certified Financial Planner
Don’t sweat the small stuff,and it’s all small stuff!!Thanks to all here that have recommended me as a “birddog” or “Buyers Agent”. It is so hard to find any qualification that actually covers all aspects of how we help others invest. The best recommendation I have had was to complete the PS146 ASIC certified Financial Planning Course which I am pleased to say I finished in December.
It is the only nationally accepted qualification that allows me scope to help people in all states of Australia. I research deals in only a few areas and like Minimogul and Castledreamer dont do it all alone. I have agents, solicitors, brokers, building and pest inspectors, depreciation specialists and tradespeople in each state I deal in to supply information and assistance to my clients as required.
I have had a personally quiet investing year in 2004 as my wife and I have purchased our dream home and have reschuffed our portfolio to pay down our PPOR before investing heavily again.
As most of our success is due to dealing with professionals at every stage I agree that specialist information and services are essential to succesful property investing.
I dont know everything nor do I profess to. What I do know is what works and what doesn’t. Thank you to those few that question the right we all have to help others as to me it only reinforces my belief that I operate ethically and fairly with all.
Again special thanks to Foston and Minimogul for their kind words of recommendation, and I am always available for a chat at any time.
Cheers
DD
PS146 Certified Financial Planner
Don’t sweat the small stuff,and it’s all small stuff!!Showme each state is different and dont think you have to sign with standard conditions either. I always cross out 90 days and write 30 days in qld and cross out clauses i dont like, they sign them or dont get the business. Usually you can get some flexability but WA is a unique case.
The agents all think they are gods gift and when deregulation came in a few years ago all their pricing went up not down as in all other states.
Tassie I have just negotiated a management rate of 7.7% in Launceston for my clients and this is unprecedented. Usually 8.5% +GST there and some as high as 10%+GST. At these rediculous rates you have to ask whos investment is it after all.
I hate ripoff agents and love professional good service at a reasonable rate. All fine tuning of our portfolio before the next flat period is prompting this and with the tsunami effects not showing for 6-12 months, the gloom merchants out there have not yet begun to sprout their “woe is me”. Sort out your own house before the coming firesales.
Sorry to be a bit dark as im normally a bit happier than this but lets all be a bit thoughtful of losses, not only human but fauna and flaura too.
DD[confused2]
PS146 Certified Financial Planner
Don’t sweat the small stuff,and it’s all small stuff!!yep thats sure going to help a novice investor. Bloody stupid to start a completely new learning curve in trading when they have already got a start in property. Yep go reinvent the wheel and then start from scratch. Sounds like a great move to me.
DD[blink]
PS146 Certified Financial Planner
Don’t sweat the small stuff,and it’s all small stuff!!Usually when you change agents you have to pay for the 30 days to the old agent for the management. Usually you arrange with the new agent that to get your business they have to forgo their fee for the same 30 day period so you dont pay management twice on the same properties.
I did this recently with 7 properties in Ipswich and the new agent Ipswich Rentals and Sales were brilliant. Angie and Liz are great!!!
DD
PS146 Certified Financial Planner
Don’t sweat the small stuff,and it’s all small stuff!!Hi Snowy, I have info that Queenbeyan with the new Military Headquarters nearby will be the hot suburb fpr the next three years, nearby areas like Jerabombera which has a new supermarket and pub are doing exceptionally well too.
Good Luck with finding property with good cashflow there then it will be touch.
DD
PS146 Certified Financial Planner
Don’t sweat the small stuff,and it’s all small stuff!!Cashflow is King,Queen, and the rest of the deck if your effort income is finite as most are. Get a good neutral/psotive investment now and with its equity in a year or so repeat ad nauseum until all the incidental cost and rates on each property get you to the same $70.00 a week negative. See how much better off you will be then as all of the costs are a tax deduction and will add to your abaility to handle the costs ongoing. Then as rents increase you become less and less negative and finally these properties then pay for 100% of their own costs. Once you have achieved break even holding several properties you have so many more options you wont know yourself.
Several small investments in different areas are a damn sight less risky than one big one. Different locations maximise growth potential and smaller loans mean vacancies affect you less.
Rent in sydney is cheaper than the mortgages there now so rent where you choose to live and then invest where the growth is.
Good Luck and happy hunting
DD
PS146 Certified Financial Planner
Don’t sweat the small stuff,and it’s all small stuff!!I have only found the quarterly info about average rents and vacancy rates on http://www.quartile.com.au they do a market summary every quarter you can review online. Hope this helps.
DD
PS146 Certified Financial Planner
Don’t sweat the small stuff,and it’s all small stuff!!Kate you are not mad!!!! We started when our daughter was on the way and have not looked back since. We recently sold a “dog” investment of ours that was dragging us down a bit too. Never be scared to make choices that change who and where you are because stagnation helps no one.
If both are negatively geared, why not sell both, find suitable neutral or positive properties and never look back. We now have 2 kids and have had enough success that we now live out of Sydney and love the lifestyle change for the better.
Continue to think outside the square and you will succeed. Family is all important as well. After all, they are only little once.
Take care and happy hunting.
DD
PS146 Certified Financial Planner
Don’t sweat the small stuff,and it’s all small stuff!!or to make matters worse, think entry level properties, add value like carports, paint, carpet air cons and then get the higher rents to turn a neg to a positive cashflow prop.
Bought a unit in december for $95k with $95/wk rent, spent $5k, noiw gets $150/wk. This leaves you paying your rates and body corp fees, but $2000/yr approx is a damn site better than what you have.
I suggest sell the ‘dog’ and get three small investments. This will allow you to spread your risks and give you 3 potential areas for capital growth not one.
Go forth and buy houses we all need updated vals.!!!
DD
PS146 Certified Financial Planner
Don’t sweat the small stuff,and it’s all small stuff!!First thing to think of is if you turn it around in 6 months all of your work will be for next to nothing. Why??? Capital Gains tax. Keep it for a year minimum and you get a 50% break on Cap gains tax.
After 12 months you are only taxed at your marginal rate on 1/2 of the profit. So you can make good $$ if you do the reno then either live in it or rent it for a further 6 months before selling.
Secondly, if you get it tenant free and do the reno straight away you will have all of your reno classed as capital improvement, which means you cannot claim it on tax until you sell. Should you have a tenant in there for 6 months first then do your reno for 6 months it can be classed as repairs and claimed in this years tax.
I personally want the money in my pocket and not the tax mans.
Good Luck
DD
PS146 Certified Financial Planner
Don’t sweat the small stuff,and it’s all small stuff!!I disagree with Derek regarding quantity surveyors or depreciation specialists, we have 3 houses in tassie which only cost us 72k 88k and 105k respectively.
Always get a depreciation schedule as we founbd whti these three, the one that cost the most isnt the best for depreciation. The 72k house got us 3k first year, 105k got us 2300 and the 88k got us only 987 first year. All are different as most investments are so always get a schedule done as even if you only get a starting point of $900 year one which deminishes, it costs you $600 in total.
Ok you make 300 first year 270 next year etc etc. No biggie, its 300 you dont have to find for tax, the $600 paid is a tax deduct as well so its a win win. ALWAYS get a schedule done no matter what age or condition, you may be surprised.
DD
PS146 Certified Financial Planner
Don’t sweat the small stuff,and it’s all small stuff!!Mate, any deal not on paper is not a deal.Before signing a contract, get the tenant to agree to the money and get them to sign an agrreement stating that. Pay them by cheque so that when they bank the cheque it is further proof of agreement and any court will then back up your application to remove tenant.
Its all small but it all helps. Next time, good to hear you are already thinking of next time and how smooth that will be after this one.
Onward and upward.
DD
PS146 Certified Financial Planner
Don’t sweat the small stuff,and it’s all small stuff!!
