Forum Replies Created
Agree @johnnyk when I look back on money wasted on cars etc.thinking that could be an income producing house etc it kills me…..
How does the “Living Allowance scale” work?
Shouldn’t people who have little personal ‘non investment debt’ (eg scrimpers like me who invest a lot of post tax earnings) be judged on actual debt and not “ordinary disposable debt based on total salary” norms?
Reconfiguring it so that loans are P+I @7.25% is fine (and probably prudent considering what possibly could happen over the next 10 years).
Basically it means you can just rely on capital growth to ‘ease your way out” of leverage……based on how its projected to grow also not a bad idea.
Paying 5% in Sydney +gst. Based on posts I’ve seen in the forum this is the norm for Sydney, regional areas etc charge a percent or two higher.
Agree @benny this is ridiculous
@barlow – http://www.blog.residex.com.au.tmp.anchor.net.au/wp-content/uploads/2015/11/Table_1_October_Statistics_Summary.jpg
Sydney 7.06% and 6.32% for the last 10 years……
Good property managers step in and fix issues caused by agents that charge 5.5%
why? 5.5% inc gst is plenty. You only need a book of 175-200 properties in order to be delivery revenue for a FTSE inc overheads etc, this means on average you are spending over 1 day per year on the property.
That’s plenty if you have your processes set up and running efficiently.
Charging more property management fees isn’t going to guarantee better PM’s
uhm those percents add up over a few properties. you wouldn’t suggest not bothering to haggle over interest rates as you wont be holding the mortgage for the entire life of the loan.
yes a good pm who maintains 100% occupancy and gets good tenants/good repair people at reasonable costs are important…..but saying 5% and 7% doesn’t matter as its tax deductible……is silly as it directly affects your potential loan capacity and the result is less properties=less capital growth because you cant service your loan.
1 weeks rental for finding the tenant
5% for collecting the rent (eg 5.5% with gst)They often try and tack on things like advertising fees + account fees + annual statements etc (doesn’t cost them anything so negotiate out if desirable property or bringing more than 1 IP)
negotiate, negotiate, negotiate……everything helps your bottom line.
Do you have a scanned digital copy you can email to yourself? eg as a backup?
my agent just does domain.com.au and realestate.com.au however I don’t pay for this, I’ve negotiated that it is paid for out of their 1st weeks rent for new tenant.
Although I’m come close to being vacant a few times….so far fingers cross I’ve gone straight from one tenant to the next.
I reached out to them and found out that they don’t work in the Narwee area…..
lol emailed back to say its only 15 mins from their offices in mMascot but never heard back……
Shame as really need someone for the 19th of November for an end of lease clean and a carpet steam clean.
as much as a $50B (Yes billion not million) dollar mistake.
Could it really be that high….?
If it is there must be a heck of a lot more “renters” than people realize.
Lol its almost like every second person is a landlord……
@p. Japan has a higher property yield than the various markets in Chin?
I understand the flight to safety and think this is the main driver.
@sitemanager, but the Australian government want the $A to go down…..there are a number of countries all trying to actively drive down their currency in a silent…not really silent currency war at the moment.
That’s why they keep dropping interest rates….to stimulate borrowings….but also to make Aust goods more competitive overseas.
You should see aussie wheat and cattle producers with their USA$ denominated contracts….they are laughing at the moment.
@Russian,
Why do you think interest rates are going to go up if the $A falls?
Corey/Jason,
Because there are non recoverable costs involved in selling/buying real estate.
I don’t know why everyone is so freaked out about mining, its a temporary issue, yes you paid too much but mining will come back, unless they discover a way to get minerals out of the ground without people (robots….but you’ll still need robot mechanics) then eventually China will start buying again.
If you have the ability to service the debt have you considered picking up a few bargains in the same town eg to use the same PM in order to average down your costs?
Like CRJ said above…..in 10 years from now will it matter….the only time it matters is when you are unable to service the debt and get wiped out……even then only matters if you cant start again before you die.
BTW….here is the before so you can see how much work Dixon did since they purchased for $1.6m (eg a lot)
– http://streeteasy.com/sale/816146I’m betting it will probably rent close to $8k a lot more than most rentals in the area but 2 living spaces and 4 en-suite bathrooms is pretty sweet.
take out a fix rate mortgage and hope that after 5 years….inflation on the rent at 3% a year takes care of any increases in IP interest rates…..
this being said its fairly rare to find a CF+ investment property these days, most are CF- for at least the first few years.
really guys…?
If you cant save 20% for a deposit…..then should you really be buying now?
Or maybe you are buying too much house for what you can afford, get yourself into a starter apartment rather than median mcmansion in the perfect suburb.
you can use the equity you build after 4-5 years in the starter apartment as a deposit on your mcmansion or better still keep it as in IP and move into a step up apartment.
Cant believe you guys are professional loan brokers and really suggesting people should be taking out 95% loans based on how risky it is at the moment…….
I know this is going to take the post off topic…..but I feel someone has to be saying it.
Thanks for the reply Dean.
I won’t be able to get a bank loan without the property in my name.If you had the rights to buy the block in X number of years (and most importantly your brothers knew you were paying going market rates for it eg the money was helping your dad out when he retires/goes into aged health care etc) I’d be very surprised if you couldn’t find a bank to loan you 50% on construction of the house eg $175k cash and $175k loan – particularly if your father would go guarantor on it.
The best way to move forward on this is get your brothers on board with the general idea that you are going to buy the 50acre (eg 1/3rd of the farm) and once they are on board then go and approach a bank to work something out. You’re on the right track btw….and better to deal with this now than in an estate situation or later when your father is older/less able to make decisions.
