Forum Replies Created
Hi Byron,
As I pointed out earlier – not a commercial investor but I was under the impression if a property is purchased with lease agreement in place then you as the new owner are locked into the previous agreement.
Is this the case? Your previous post indicated that this isn’t the case.
Derek
derekjones1@bigpond.comProperty investment advice and researched property in quality locations available.
Hi Ref,
I have edited your orginal post (month – foortnight) to assist others who may care to comment.There are a few immediate possibilities that could be worth considering. Some of which may, or may not, be relevant or appropriate.
1. Rent something cheaper.
2. Sell the car and use public or a cheaper form of transport.
3. Convert IP loan to I/O, get a depreciation report (if relevant) and apply for section 15.15 PAYG variation to assist with cashflow.
4. After freeing up spare funds through (3) start attacking your cc debt.
5. Refinance car into home equity loan (with car portion split) to save in repayments. Any savings made this way can be directed to cc.
6. To me selling an asset is the last resport option. Why sell an asset and lose the stamp duty/agents fees etc as you exit and then, at some stage in the future, re-enter the property market.
7. Second job?Derek
derekjones1@bigpond.comProperty investment advice and researched property in quality locations available.
Hi John,
Try the phone 3885 2245
Derek
derekjones1@bigpond.comProperty investment advice and researched property in quality locations available.
Originally posted by jaco22:after reading Steves first book I really want to do something but cannot get it understood by my wife. I suppose I’m somewhat aprehensive myself.
Your collective ‘fears’ are not unusual – I am sure that every investor has these at some stage in their investment journey. Some of the more common reasons for fear I come across in people are not sure what to do, fear of debt, mis and wrong information, a negative psyche, fear of failure and so on.
To assist you in your journey I would suggest that you grab a couple of other property investment books – Jan Somers and Peter Spann readily come to mind. While their investment beliefs are different an understanding of their methodologies will assist you to determine what investment style suits you and your circumstances. There are many ways to invest in property and reading more widely will add to your knowledge bank and improve your chances of success and also resolve some of those feelings of apprehension.
We live on the N/Side of Brisbane own everything but our house which we have good equity. We have both been trying to freehold our home but I think we can move now and build our R/E investment.I need some help pleaaase in getting started.
From your comments it would seem that you do have capacity to start your investment journey.
A large part of your existing equity can be released for deposits and costs on any purchases you do make. In effect the desire to pay down your home up until now has put you in this positioon and has established a sound foundation for the next step.
Up to 80% of the value of your assets (house, land, etc) less any existing debts can be freed up for deposits and costs. Your income will then determine your borrowing capacity.
Once you have determined your borrowing capacity then you know what is affordable and can start the hunt for a property that meets the criteria you have established.
Then you become and investor and continue to leverage your now growing equity into other investments and so on.
It is all pretty simple – after the first step.
Derek
derekjones1@bigpond.comProperty investment advice and researched property in quality locations available.
Hi Sharon,
I am not a commercial property investor so please take what I say with a grain of salt.
Being commercial the lender will require a larger than 20% deposit on this property and will have similar limitations when/if you try to release equity at a later stage.
This issue is a limiting factor that you will need to consider in your deliberations.
As I understand it commercial leases usually include clauses about increases in rents so the capacity to ratchet up the rent from $75-$120 may be one of those pie in the sky dreams. The existing lease agreement will explain whether or not this degree of increase is legally achievable.
Of course then there is the question of whether or not the existing tenant can afford the extra rent and whether or not the current (or believed) rent is within market guidlines.
In your deliberations you will also need to consider the long term sustainability of this particular business and what will replace it if the current tenant closes down or moves on. A town of 10000 has limited scope for new sustainable businesses.
Derek
derekjones1@bigpond.comProperty investment advice and researched property in quality locations available.
Hi Redwing,
Not a broker but has he considered setting up LOC/equity loan using free (if any) equity in property number 1 and then drawing payments from this.
Obviously this isn’t cosher as per guidelines but the issue seems to be greater than this.
The easier option would be to take a ‘honeymoon’ if he is ahead of schedule with repayments and/or speak to the lender and see if they will allow interest to capitalise on the loan while it waits to be sold.
If he is cross collateralised then it is possible that his available equity levels may not be as great as it seems.
Derek
derekjones1@bigpond.comProperty investment advice and researched property in quality locations available.
Hi Terry,
Try the following thread that may get the brain cells turning over.
https://www.propertyinvesting.com/forum/topic/11710.html?SearchTerms=wrapping,tax,wrap
Derek
derekjones1@bigpond.comProperty investment advice and researched property in quality locations available.
Subject to finance by XXXXX or
Subject to finance by lender of purchasers choosing.
Derek
derekjones1@bigpond.comProperty investment advice and researched property in quality locations available.
Hi amynman,
Retirement villages are superficially attractive as the gross rental returns can be deceptive, I suggest you look into the costs and above all search the forum (top left) under the forum boards button.
In a nutshell retirement units are a niche property with a questionnable growth rates and can be difficult ot finance at 80%
Derek
derekjones1@bigpond.comProperty investment advice and researched property in quality locations available.
Hi Tanjoh,
Based on your post I see little benefit in setting up a ‘joint venture’ program. Each couple seems to have the runs on the board in that you each have properties.
If the sole motivation of the ‘joint venture’ is to motivate each other then I suggest you are better off arranging periodic meetings that meet you respective needs.
This way there is no muddying of the waters and mixing titles, loans, incomes, slightly different goals and so on. Such separation allows for easy divergence if ever there was an irretrievable breakdown in the relationship – much cheaper in the long run.
Derek
derekjones1@bigpond.comProperty investment advice and researched property in quality locations available.
Originally posted by Ricksta:Where else can you get a return of 6.75% for cash at the mo.
And that is a tax free 6.75% too.
Derek
derekjones1@bigpond.comProperty investment advice and researched property in quality locations available.
Originally posted by MoJoJo:Gave up on that after I never got that missing paddle pop stick that would have taken me to disneyland when I was 10.
~jo~
Hi ~jo~
I didn’t take you for a quitter – I guess I was wrong [biggrin]
Derek
derekjones1@bigpond.comProperty investment advice and researched property in quality locations available.
Hi Cruiser,
Hey look I profess to being an atheist and a contra investor (as per Mcknight) but I gotta say that’s a big call.
I mean to say you’ve written more here than Steve wrote in the 4 lines and a quote from the book of proverbs included in the acknowledgement.
Cheers
Derek
derekjones1@bigpond.comProperty investment advice and researched property in quality locations available.
Hi Devin,
On the face of what you have said it is apparent that your friend needs a new accountant as he/she seems to be only looking at the individual investment properties from a ‘tax’ point rather than considering the whole portfolio.
As others have said I would prefer to release the available equity and, if consistent, with your friend’s investment plans and debt/risk tolerance levels and ability to service additional loans – invest again.
Derek
derekjones1@bigpond.comProperty investment advice and researched property in quality locations available.
Hi Mcdirt,
Yes sack them now – the story about the PM being ill is all rubbish. A good real estate agency will have someone to pick up the pieces if someone if away, an accountant to process transactions and common courtesy to contact you should things be amiss.
As I pointed put in the previous post they have failed to fulfil their obligations to you and as such can be terminated immediately.
At worst you will have to pay half their management fee for the period remaining on the contract. At best they will not fight and you can find another, more effecient manager.
If you have doubts – this is your property and your money they are (mis)dealing with.
Derek
derekjones1@bigpond.comProperty investment advice and researched property in quality locations available.
Hi Barbie,
The essence of positive cashflow today is that they may need to be ‘made’ – an off the shelf purchase is remote.
For what it is worth I believe that any positive cashflow properties located in regional (remote) areas wouldn’t make good investments anyway.
Derek
derekjones1@bigpond.comProperty investment advice and researched property in quality locations available.
Hi Baloo,
I was going to suggest Navra but closer reading of globe’s post said positive cashflow and I suspect that a lot of Navra’s advice is based on growth first, maximising use of cash and equity and income through shares.
Not sure if that is what globe wants but otherwise I would endorse your suggestion.
If globe is only after positive property then buy as many as you can and keep going seems to be the ‘plan’
Derek
derekjones1@bigpond.comProperty investment advice and researched property in quality locations available.
Hi Barbie,
I suggest you do a search of the forum as there have been some comments and threads in the past.
Kambalda is a mining town that is very dependent on the state of the nickel and gold industries – which at the moment are having their day in the sun.
Long term Kambalda is a very unstable investment.
PS – I have also edited the title of the thread as Kambalda is 600km due east of Perth.
Derek
derekjones1@bigpond.comProperty investment advice and researched property in quality locations available.
Hi Pumpki,
You will need council approval for the granny flat and carport.
As to whether or not this will help you find a tenant – the best course of actionis to talk to your PM and find out what the feedback has been. This will guide you in planning/making any alterations.
As you highlighted though you will need to be aware of not overcapitalising and this is where a knowledge of the local area will come in handy. What are typical properties selling for in Armidale and what features/additions do they have?
It may also be that time of the year and uni studets haven’t yet returned to their new courses.
Derek
derekjones1@bigpond.comProperty investment advice and researched property in quality locations available.
Hi TA,
A number of Steve’s 130 properties were wrapped and as such cashflow becomes a decreased issue.
Derek
derekjones1@bigpond.comProperty Investment Support Available.
