Forum Replies Created
Hi Donna,
Recall an article by Michael Matusik about 10 years ago which stated, in part, that proximity to train stations & other transport nodes (Eg. bus terminus) had a signifcant effect on property values. This was more the case the property was up to 1km from the transport node – the growth of these properties was approx 15% higher than other comparable properties in the same suburb.
For what it is worth I suspect we will see access t0 public transport becoming an even bigger tick in the property research spreadsheet than it currently is.
Hope this helps.
Why?
The underlying reason to 'pair up' is the key.
Being joined at the hip even in a trust needs to be carefully thought through.
If you are seeking a sounding board – find someone who is in the same sphere and meet up for coffee on a regular basis. Share ideas and stay on track that way.
Hi Kali,
Without knowing all of the details it may be to your long term benefit to look at shifting your loan across to a bank.
Grab yourself a decent broker – Jamie has already given you a lot of good advice so give him a call – and explore the plusses and minusses of moving over to a bank.
It may be a case of one step backwards to make many forward.
Congrats on your purchase Dan,
Your buy sounds a little like our first – we had lemon yellow walls with burnt orange bench tops in the kitchen, timber panellng on one wall in the third bedroom with wallpapered large ships on the other walls, burnt yellow carpet throughout and so on.
We painted and profited and I am sure you will too. Start small and within your grasp and work your way up.
Good luck on number 2.
Sounds like cross-collateralisation to me.
If I am right I think you can get a better structure. Structure is more important than interest rates.
Agree with Jamie on deductibility issue.
Hi Nathan,
I assume you would like to build your flat in WA.
Legislation relating to Granny Flats in WA has recently been relaxed a little partially in an effort to provide cheaper housing for the less well off and with minimal Govt assistance.
The WA Planning Commission recently released a new set of guidelines relating to zoning and by extension Granny Flats. Take a peak at these links":
Hi Spearsy,
Some of the issues will remain – particularly those related to market conditions which are always a consideration for 'longer term' contracts.
Have you inspected the block? Often with build contracts there are provisional costs for things such as landscaping costs. If your block has any slope the provisional cost allowance may be insufficient for the block.
Check your inclusions list carefully. Pay very careful attention to the quality of kitchen fitout – you don't want no-name brands for whitegoods. Builders will save money on whitegoods and you may end up with no-name brands that have limited quality or durability. It may be even worth trying to re-negotiate and specify quality brands for such as oven, air-conditioners etc.
Sounds like this is more a house and land deal than off the plan. Is this correct?
tanner892 wrote:I've been looking into apartments of which there are very many in the Gold Coast, resulting in very cheap prices but still with decent rental yield,<snip>
As this is my first investment, does anyone have any major obligations against investing in an apartment in Surfers Paradise?
Hi Tanner,
When looking at yield make sure you look at net yield – one issue with GC apartments is the possible high body corporate fees that are attached with each apartment. So while you may see something advertised with a 'good yield' make sure you look below the numbers to see what the net yield is.
We are currently looking at some GC properties currently in receivership. The initial run through on the numbers makes them reasonably attractive but we are currently looking into the key detail; comparable sales, bank valuations, vacancy rates, strata fees, council rates and rent return as part of the due diligence process.
If you do end up investing on the coast make sure your eyes are wide open and that you have looked beyond the fluff associated with the coast.
Certainly time to take one step back and get the structuring right (from tax perspective and future investments) so you can forward from there.
Even if you need to refinance to 'tidy things up' it will be worth it in the long run. Clean is good.
Hi Ash,
I do recall reading an article written many years ago by Michael Matusik which claimed property located within 1km of train stations, bus transit stations, transport hubs/nodes out-performed the remainder of the suburb by 15% (from memory).
For this reason we tend to start near transport nodes and work from there when doing our research.
Having said that – you need to be a little flexible when sifting through the 'stocklist' as sometimes a true bargain may become available for any number of reasons. Try not to over-analyse things rather get the big ticket items you want in your property, find a location that suits and then look for the gems in your chosen patch.
The interest on the $115K is deductible as the expenses were incurred to buy an income earning asset.
Try and separate the redraw funds into a second facility so it is nice and clean from a record keeping perspective. If you can do this there is no question, from a deductibility, ATO accountability perspective.
Your bank statement/s will verify your claims.
N.B. Not an accountant.
Hasn't that trend been around since time immemorial?
And then there are others who see the value of professional service and knowledge and are happy to pay for it – in some ways this is an investment too.
The challenge is trying to work out who can legitimately charge the 'big bucks'
oc1 wrote:A town planner or companies specialising in obtaining the relevant permits/DA would be the way to go in order to see if you can develop your block and to maximise the block e.g. how many units, highest and best use etcThis is the key to your success – we do some work in this sphere and have had instances where planning departments did not fully appreciate the zoning implications and were able to get additional meterage into the development thus 'maximising' returns.
Hope this helps.
Methane fumes at Cranbourne anyone?
On the other hand all agents/sales representatives are bound by ACCC legislation on a national level and by state legislation/codes of conduct etc.
Apparently they have also traded or do trade as Bhatla Property Group. They have come up in discussions a few times.
Might be worth a search of the forum – top right corner = search facility.
jo660 wrote:oh also, l can only work wth the NAB or the commonwealth bank in the town as no other bank will be willing to lend because of the remotenessThis statement is enough for me – walk away.
As Luke said – if all of the Big 4 don't like the property then potential resale later is somewhat problematic and as a property investor you always need a 'bail out' option.
XDrew's 3 grade of property is probably something he has developed. Having said that I find it hard to argue the logic behind the three tiers of property and you could do a lot worse than use the system as explained.
Given you are working part-time have you spoken to a broker to determine what you can do from a point of view?
You may find finding an A grade property and throwing a bigger deposit at it may give you an overall better result.
jo660 wrote:I was going to put 20K down and borrow the rest.There is growth but yes, its very slow. The good thing (i think) i may be wrong is that there are no rental properties available in this town at all, and the list is very long.
My girlfriend has finished renovating the property and so has a complete new bathroom and kitchen, and carpets.
Hi Jo,
Thanks for the new information.
My numbers were reasonably close so you'll largely be able to run with those to help with your deliberations. They wont be 100% accurate as they are estimations only.
It is difficult to make more learned/informed comment about this property as we don't know enough about you.
Now that may sound a little invasive and silly but for a small group of people this property may be perfect, whereas for others, far from ideal. This is one of the issues property investors need to consider as we are all different in so many ways. For example some questions I have are;
Why are you buying this property? Have you other property/ies? Can you afford more? Have you looked at other options? How much research have you done beyond listening to your girlfriend? and so on. If, without giving away secrets, you tell us more about yourself then the forum will be in a better position to add comment.
Your comment about 'limited growth' is the clincher for me and this outweighs any perceived shortage of rental accommodation in the area. As I said earlier you will need growth and cashflow. Even with 10% growth you will only increase your equity position by $8.5K and your posts suggest 10% is well and truly out of reach.
Have you spoken to a broker? Smaller towns/remote locations often present major issues with some lenders and you may well find you own a property that not many banks will respect moving forward from here.
I assume you are considering buying this property directly from your girlfriend without an agent. If this is the correct some banks get a little nervous if there is isn't an arms length transaction (read agent) involved. Another question for your broker.
