Forum Replies Created
Managed 1 place we owned once and once only. Pay the 10 bucks a week or whatever it costs, its worth it.
DD
Don’t sweat the small stuff,and it’s all small stuff!!
we had a choice of a 20yo sister and 19you brother team renting off us or vacant, we stayed vacant.
Now have a single mother going in that looks like a much better option.
$5.00 less a week but so much safer to have a slightly better tenant.
good luck
DD
Don’t sweat the small stuff,and it’s all small stuff!!
russell first IP is very important as you usually learn all the harsh lessons on this one if not done right. As most (95%) never have more than 1 investment anyway, making sure that gung ho doesnt turn into boo hoo is very important.
Many in here can and will help should you word your questions intelligently and more pointedly than just posting a quick topic.
Do a little more readying of other good investors like Dolf De Roos, and get a balanced view before plunging in too soon.
Dont know about the website but i do know about a tiny bit of caution helping stay afloat.
DD[buz2]
Don’t sweat the small stuff,and it’s all small stuff!!
i get discounts on depreciation schedules. Email me if you want to chat. Also where is the IP if you sell I can find buyers.
I also have currently 11 of 16 townhouses left in Tassie which are break even or better depending on what each tenant is paying.
75k ppurchase $120/rent $1000 rates etc. All via email if yu need it.
DD
Don’t sweat the small stuff,and it’s all small stuff!!
ok mistake 1, if you were intending to rent it out, renovating while you lived there means you cannot claim those renos as oyou werent earning an income from the property at that time.
mistake 2 relying on the good nature of family can only go so far.
We only started investing when we lost my wifes income, 3 years later we have 20 props and dont look like stopping. The key is cashflow. I agree with the others who say too much debt to equity ratio.
Ok if either of your income streams ends for whatever reason you guys are in da kaka. If on the other hand you divested yourself of 1 x 620k investment and bought 5 x 100k investment and had great cashflow then you would look safer and your wife would work on your investment portfolio instead of being a wage slave.
Ideally this will lead to your not being a wage slave and then your thinking changes too and the world looks prettier.
Think of your real options which are many but dont forget, people you love come first.
DD
Don’t sweat the small stuff,and it’s all small stuff!!
all accounts there would make your NZ tax return easier but the question guys was by bringing the cash back here, how can he avoid big bloody fees.
Did I miss something or did you guys hijack this topic just a little?
DD[jerry]
Don’t sweat the small stuff,and it’s all small stuff!!
No, but i know of some nice little units in Tassie that are ripe for the picking. 16 to be sold, 5 sold already in 2 days.
DD
email if interested.Don’t sweat the small stuff,and it’s all small stuff!!
whoa, lets not get too crazy. 115k mortgage would be nothing if you sold you house and moved to a smaller property. As it is your PPOR at the moment there is no cap gains tax to pay so selling is for you a good option. OK so you have your new house wherever and it is worth say 350k. Not only do you still have about 75k cash to play with but also 280k in equity to use for intesments in your new house. So totally 355k as deposits. Hmmmmm, a juicy little $1,775,000 in possible invvestments NOW!
As the loan on your house is solely for deposits you can get it interest only, your salaries plus the surplus seviceability from IO then gives you oodles of yesses from banks and other lenders.
Then you see me and I find the properties.
Nothing could be simpler.
DD[biggrin]
Don’t sweat the small stuff,and it’s all small stuff!!
You want a miracle, and im Melbourne you want cheap trades…….muhahahaha.[blink]
Ok im off the floor. I have exactly what you need, but in qld. Sorry.
Good luck though.
DD[whistle]
Don’t sweat the small stuff,and it’s all small stuff!!
I never worry about that, if I get a better deal and a better percentage with another lender Im there. Shortest loan I have had to date was 3 months before I refinanced. Paid $35k deposit and with a better deal pulled out $30k 3 months later and bought 2 more in tassie.
Do what you want and if you are ballsy enough and do your diligence on other options regularly you will eventually not be concerned with early payouts.
Good luck
DD
Don’t sweat the small stuff,and it’s all small stuff!!
yuk yuk yuk, seasonal with the holiday market. What if we have a 911 or something that prohibits tourism. Standard 3 bedroom “rent a box” investments will always do well in a good or bad environment economically. Dont be a bunny who has to ask for a guarantee. They usually factor the guarantee cost into the purchase price anyway so you are paying for it up front without knowing it.
Your call but it wouldnt be me.
DD
Don’t sweat the small stuff,and it’s all small stuff!!
Do what my sister has done, rent where you want to live for 2 years, buy investment properties as much as possible. Sell 1/2 in 2 years and all the equity goes into new house to live in.
Current borrowings you convert to IO with the investment proportion setup as P+I(deposits) then buy with a different lender using 20% cash deposits from first house. This allows for many small investments which is always better than 1 biggun if the renatal market takes a dive.
A 500k unit in a cbd will be vacant longer than a 2 bed townhouse or 3 bedroom “rent a box” in suburbia. 5 x 100k houses or units/townhouse will be easier on the nerves too. Loose a tenant and only 20% hand in pocket. MR CBD 500k is empty and oops big payment time and its your pocket.
Something to think about.If you have cash, I have some juicy units in tassie very cheap too.
DD
Don’t sweat the small stuff,and it’s all small stuff!!
friends are the first to say dont, but when you make money they say gee you were lucky werent you.
Dont listen to the friend, listen to the smart people in here that share their info or can find you those elusive bargains.
If the place stacks up, bugger the friend, it is not his money and you and only you can sign the contract. What the hell are you waiting for.
DD
Don’t sweat the small stuff,and it’s all small stuff!!
Im with Crest, this has been an amazing boost even challenging me to help with what little knowledge I have from time to time. I have gained enormously from reading and adding to these pages and feel that even if some of the”oldies” aretired of the same topics repeated then maybe they could glean the odd insight from one of the newbies.
Anything could happen and often does. Lets all do what we each feel is right and all will be well.
DD
Don’t sweat the small stuff,and it’s all small stuff!!
A great thread as Im looking to invest on NZ shores before too long. Thanks guys, again this forum proves its worth for regular investors like me.
DD
Don’t sweat the small stuff,and it’s all small stuff!!
Thank god im not alone in whats happening and why Ippy is the place to go. All of the roads, trains and services are going thru a top flight range of upgrades, and it seems to me that you ignore what you have had a bad experience with yourself over time.
I have had probs with 1 or two tenants but it wasnt in Ippy it was in kigston over in logan central. So sure for $400k you could get closer, but for bigger blocks, nice houses and a whole heap of potential cap growth to boot, I knpw where Ill be.
Wish you had asked 2 weeks ago. Had a 3 bedder with polished floors and a sunroom with a 2 bed self contained granny flat and a pool that I just sold for a song at$270k in Booval.
Chat soon.
DD
Don’t sweat the small stuff,and it’s all small stuff!!
Use smoke and mirrors, I do. 80% is the banks vanilla loan threshhold. Above this they get scared and you pay for their mortgage insurance as well as higher in repayments on the property too.
So give them an 80% lend on each and they love you to death. Ok so in a few years you have cap growth, pull the original 20% off title 1 out of the mix and use it again. As you base your 1.5/1 ratio calcs on the full purchase price anyway, what this means is that when you peel out the first title from the loan your new IP is actually mortgaged to 100% of your original purchase price.
If you have done this as your estimate of return, you have enjoyed a buffer off your difference(20% in your calculation model) which to date were covering your initial rates and BC.
When you peel out the original title this is when you should bear the cost of the rates etc in my standard model.
Is this clear? am I confusing you? can anyone explain it to me so I can now understand this? Oh well its fun anyway.
DD
Don’t sweat the small stuff,and it’s all small stuff!!
Again a topic that all investors are different and therefore their portfolio is varied and somewhat different from mine. Yahoooooooo, im so glad to be with such a diverse group here and with different slants on each and every theme.
For me, a positive cashflow proerty covers all costs and gives you $1.00 per year profit.So if your basic equation 2 years ago when interest rates were 5.5% was needing a 7.5% return to cover all costs then now Im getting 6.67% on 1 loan I should get 8.67% as my minimum. Quite unrealistic in this environment.
So, instead of basing it on paying all costs> My calcs cover mortgage and agents fees in needing 7.5% or 1.5/1 ratio on rents. This means I pay for rates/maintainance and body corp out of my pocket. This equates to $2-3K/prop/year so its small stuff. If I find these for myself(which I do), this is the criteria I use to determine suitability of props.
Hope this is clear enough.
DD
Oh yeah and yes Mini will help me in NZ for cash very soon.[biggrin]Hi Mini, love your work.Don’t sweat the small stuff,and it’s all small stuff!!
Gatsby, i had a similar problem. Selling a house srecently that also had a pool the then managers told me everything was ok.
I took their word for it until trying to sell it thru a real estate closer to the property for other reasons, I was told the pool was green, the lawns were not mowed and it looked untidy. Add to this a waft of stale cat food on opening the laundry door, needless to say selling was difficult. Several “what the hell is going on” messages later I realised that 2 staff changes had left me with an “I dont care” managerial approach which had to stop.Recently up there on business I negotiated with another agent for management, gave them my 9 Ip’s to manage, then walked into the other real estate and told them to give the keys to the new guys when they called.
I gave my reasons face to face and always do things this way as it is only fair so hopefully they can deal with the problems in future. They had several small incidents like not passing on urgent messages to others in the office, and on the sales side as well the main agent that all of my clients I had been comfortable to refer people onto due to his professionalism, had misteriously disappeared from the office too.
These sorts of things lost my confidence and now I’m with another agent. It is not a blind decision though, they had already managed one of my properties for a year.
Good Luck.
DD[cigar]
Don’t sweat the small stuff,and it’s all small stuff!!
Depending on whether the bank shades the value down $10-20k or leave it alone as with purchase vals, its the banks call. Maybe you find out which on their panel they are actually using this month as I know that if the valuer has even 1 dispute with a bank hes no longer flavour of the month and will usually be left on the list but not used again.
The only thing that never changes is the fact that everything changes. Life is lie that.
DD
Don’t sweat the small stuff,and it’s all small stuff!!
