Forum Replies Created
- Originally posted by Aceyducey:
Frankly I’m finding now that I’m getting to the point where the deals come looking for me.
Get the networks & knowledge in place.
Hi Acey,
I dare say one of the reasons this occurs is because you know what your investment goals are, where you portfolio currently stands, your borrowing capacity and so on – and as such you are in position to reasonably quickly say ‘yes’ or ‘no’ – thereby enhancing the value of your networks.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Calypso,
Be aware that the name on the lease (yours) is liable for any debts and expenses incurred – as such there are some ‘legal’ type issues that will need to be addressed in order that your interests are also protected.
The presence of the third party (you) is the reason behind the agents being a little reluctant to enter into such an arrangement on behalf of the landlord.
A question – why would a student pay a higher rent than the market rate if they sub-let from you?
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Marse,
Are you considering loose blue metal stone (AKA crushed granite usually used as the outer surface on roads) – if so make sure you have the stones well retained in the driveway otherwise they will be spread all over the yard by years end.
For me a better option may be blue metal dust – which is the fine crushing of the same rock material – it tends to bind much better and is less prone to wandering all over the yard.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Originally posted by Ticky:They stated that this invoice from the plumber was the icing on the cake having several had prior complaints about charges.
Based on this comment methinks the PM has been asleep on the job too.
But all said and done in the grand scheme of things these bills, albeit we don’t like paying for them, are part and parcel of property investment and need to be allowed for.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Karl,
Do you have $2K in your credit card – given the urgency of the situation this may be the most convenient option.
Otherwise get in touch with your lender/broker immediately and see what they can do – personal loan, extend line of credit etc
Also get in touch with the vendor explain the situation to them – while they may not be in a position to help – at least have the courtesy to explain the hold up. They may be able to delay settlement so that the additional funds can be sourced.
I would also be dicussing the issue with the manager at the point of error (solicitor?) to ensure they pay any penalty costs.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Kaiah,
I am in agreeance with Yorker.
At this stage it appeas as if you have read one book (apologies if this isn’t the case) which advocates one investment strategy.
I would suggest you read Jan Somers book ‘More Wealth From Residential Property’ to provide a contrarian investment strategy and will provide some balance to your knowledge base.
Then you will be in a better position to work out which strategy, or combination thereof, suits you and your circumstances. Once this has been determined you can target your learning in this area – read this community, talk to people who are investors and so on.
After this you’ll probably find that there is no need to pay $000’s of dollars for a seminar and the money can, instead, be directed to a property somewhere.
Having said that. if you do spend the money and do something with the knowledge then it may well be money well spent – the key issue is doing something with the knowledge.
Ultimately you only become an investor when you own that first property. This is usually the hardest and some people cannot overcome this hurdle.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Jseses,
The key point is to know what you are looking for first – otherwise it is highly likely that you may miss ‘it’ anyway. As such it is important to have some key attributes you require in your property as this will also help narrow down your search area.
Once this is done you can then use the Internet and scan papers as you are already doing but the better deals generally do not hit the advertising media.
The better ‘deals’ tend to get offered to people who have developed a business relationship with an agent who fully understand that persons criteria and will ring them when such a property comes onto the market.
Other people employ the services of buyers agents and the like to do the leg work. Whereas there are many others who prefer to do the legwork for themselves.
If you are looking for positively geared property then you will have to extremely hard.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
HI Mydral,
Yes – refer to page 60 of the Tax Pack.
As for a trip to inspect an owned property costs would be apportioned in relation to the amount of time spent with the accountant. Eg a 10 day holiday with a morning at the accountant wouldn’t be fully deductible.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Bennido,
Using a LOC and another loan as you described is the same outcome as total borrowings of 100% for the property.
This strategy suits me and my situation and isn’t, in my opinion, that uncommon.
While a property may have high loan value ratio borrowings – the more important loan value ratio is what gearing level does your portfolio, rather then individual properties, have.
For me I prefer to do this instead of using cash – which I have left parked in an offset account which is linked to my home loan – thereby reducing my non-deductible debt.
There are some loan products around that will lend 100% in a single loan – with restrictions and extra checks and balances by the lender.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Marisa,
The REI seems to think MAy was a little quiet in the FHO neck of the woods – but now the reduced stamp duty has kicked in there is an expectation of a second wind looming. That and the general belief that the economy is chugging along seem to suggest that parts of the market are still going OK.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Mum,
The key point is that a broker has access to a range of lenders and should, if they are any good, be able to extend your borrowing capacity because they are not limited by their employers rules.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Mathew,
You could do a lot worse than Dale Gatherum-Goss at http://www.gatherumgoss.com – contact details are on the website.
Bear in mind Dale has written two property taxation issues books. Even if he isn’t ‘central’ his expertise negates any inconvenience reulting from his location.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Ausprop,
PS – There is a Strata Management Book available for purchase (~$30) that may be a good investment if they are DIY managing.
The book can be found in good newsagents – the author often has a piece in the RE section of Saturday’s West. Sorry details escape me at the moment.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Ausprop,
Just postulating here but ……..
Given the majority of the owners (and by default – the body corporate) have approved a raise then all owners are responsible for their share of the debt.
If there us no formal decision making process or commmitee strucuture in place then I would suggest that this should also be a priority.
In the meantime I would seriously consider getting a quote and paying for the correct insurance anyway – split three ways the difference may not be too extreme. Argue the toss with the other two owners later. At least I would know that MY assets were covered.
Gentleman’s agreements are fine – when all are in agreement but when they are not………..
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Originally posted by calron:What is the problem with presenting a proprty investment opportunity so that interested parties may have the chance to check it out??
Hi Calron,
Based on this comment of yours when you refer to the post as being ‘an opportunity’ confirms that it was indeed, as I suspected, an advertisement.
That and reference to ‘looking for shareholders’ giving out details about the ‘value’ of the project and expected returns – really does, for me anyway, confirm my initial decision was correct.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Hot Rod,
Individual property prices can go down as the final sale is dependent upon that seller and buyer at the time.
There was an article in the weekend press (Age(?) Can’t find it now – sorry [dunce]) that listed around half dozen examples of property resales that showed a decline in ‘value’.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Calron,
I have removed some of your posts as they are nothing more than seeking funds from readers of this community.
I have left the edited initial question remain as there may be some people who can direct you to more appropriate places for private investment funds.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi All,
No question that using your home as security for investments needs to be carefully measured and assessed.
But consider the alternatives – Saving a lump sum using the dollars left over after the ravages of the ATO can create a (sometimes insurmountable) hurdle for would be investors.
An evolving school of thought is the wise investor uses their equity to hold a larger (but still measured and carefully assessed) capital base than would typically be otherwise possible.
But then it is all about different strokes for different folks.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Rohan,
I recommend a read of the Foreign Investment Review Board (FIRB) for accurate information.
Web address is http://www.firb.gov.au/content/real_estate.asp
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Hotshot,
Doesn’t really matter whether you use gross or net income the final relational effect (percentage wise) will be largely very similar aprt from some vagaries caused by changing tax threshold levels.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
