Forum Replies Created
- Originally posted by Marisa:
I will be putting an offer on for $45,000 to hell with it. If it is rejected will actually go up and stay for a weekend with family and really have a good look around.
Cheers.Hi Marisa,
As you know who the vendor is you can now put in the offer you want.
If the REA tells you it was rejected then you can ask the owner directly if he got the offer.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Rob,
In general terms I would suggest put it against home to reduce non-deductible debt – you could always leverage 80% of it on a line of credit for investment purposes.
Mind you in general terms lenders are not really interested in line of credits less than around $20K – a broker will firm up the figure.
But then again you may need a little celebration – so a holiday hmmmmmmmm
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi agordon,
Like the idea of I/O on the block and then put the money you were otherwise going to use as P/I into making additional repayments on the house – provided you have a redraw facility.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Sairah,
You will need to check what size the unit is as anything under about 50 sqm causes some concern for some lenders. They often also have a reluctance to use any growth as security for other properties.
Being a serviced apartment it will attract a higher depreciation rate for the included furniture as such the cashflow shown to you may be a little ‘distorted’. You will also need to find out what occupancy rate the sellers use to calculate the cashflow situatioon and also whether or not this stacks up in comparison to the wider market.
Check cleaning costs and whether or not the rents are pooled. Non-pooled rents may see your unit remaining vacany for extended periods of time and may eat into your cashflow.
Have your solicitor read (you too of course) the management agreement and make sure you fully understand your responsibilities and also theirs.
One question – have you recently come back from holiday in this area?
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Storm,
Re – Wasting Banks Time.
Have you considered contacting a broker – I am sure (given your situation) they will probably also say no – but approach them from the perspective of what do I have to have to get a loan of $X.
This will give you some hard targets and really hone your goals down to the nth degree. It will make the achivement of your first goal so much easier.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Originally posted by Brenda Irwin:Mind you, the instructions say it is virtually impossible to go bankrupt, but I seem to be able to be able to make it a regular occurrance.[confused2]
And when you stop your propensity to ‘go bankrupt’ you may be able to buy an investment property – or two[biggrin]
Congrats on the API articles and your achievements to date.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Originally posted by calvin@thirty4:Quote:This period of time can be extended by up to six years if you move out and do not own another PPOR during this time.Hi Derek, I don’t understand this concept. Could you elaborate, please.
C@34
Hi Calvin,
When you live in your PPOR any capital gains are tax free for the duration of the period it remains your PPOR.
This CG free period can be extended by up to six years if you moved out (work transfer, choose to rent etc) and did not buy another PPOR in that six year period.
Eg I live in my home for 10 years and then go away for 5 years and then sell my property. The whole 15 years is CGT free if I didn’t declare another PPOR.
For full details I recommend a serach of the ATO website and search CGT.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Wayne,
There may be an issue with the block and then the house as they may be considered different CG events and as such you would need to run this past an accountant and/or the ATO.
You would certainly need to establish that you did, in fact, live in the property too. Electricty bills, telephone, rates notices all addressed to you will assist as will your enrolment on the electoral roll at the address.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Wayne,
Given depreciation entitles you to a building claim of 2.5% of building construction costs/annum over 40 years and you have around 15% depreciable plant and and equipment claims eligible over the life of the property I would say ‘Yes – it is worth it’.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Storm,
I can appreciate your frustrations and the desire to roll your sleeves up and get started. In a sense you have already made a significant step – you know what you are wanting to achieve and you have a goal established.
A couple of keypoints;
1. Generally speaking the first property is always the hardest. It just seems so hard to secure.
2. You are considerably ahead of the pack already – the challenge for you is to maintain the desire and focus and to continue to work towards that goal.
When considering student accomodation you will need to look past the attractive weekly rents as in some cases there are extended vacancies between academic years and also within a year if you haven’t structured your rental agreements correctly.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Wayne,
If the house is indeed your PPOR then there is no CGT payable for the duration of time you live in it. This period of time can be extended by up to six years if you move out and do not own another PPOR during this time.
The 12 month rule applies to capital investments and does not apply to PPOR. Any investments held for more than 12 months and 1 day qualify for a 50% reduction in CGT.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi KP,
I am not a wrapper so take what I say with a grain of salt.
As I understand it the Ministry of Fair Trading require you to have a credit providers licence and once you have secured this then you are able to legally wrap in WA.
I recommend a phone call to MOFT and speak to te people there – it is possible thay may also have a FAQ sheet or similar.
If MOFT require you to have $10K in kitty at all times I would ensure that you do – consider this the cost of doing business. Just as people have to have come capital invested somewhere in all (?) business ventures then you need to invest the $10K in your business.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Rob,
Queens Park is one of those classic renewal suburbs and as such there are some ‘scummy’ houses in the area all located on large blocks of land just waiting for the developers to come through.
It (QP) has been the centre of activity for some years now and the pace is gathering rather than slacking off.
It has ready access to the city and is close to some larger shopping centres. Train line runs through the centre of it and this also provides relatively easy connections to all major urban centres within Perth metro area.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Originally posted by Marisa:Hi All
I have found a house, ready to place offer. Many houses in the regional area have been on the market for months and months.Agent tells me to not waste my time, need to be at least $55,000 and he has another person who will snap it up from East if I dont…. Yeah right?
Hi Marisa,
Your first comment sums up for me why I would have great reservations about buying in small regional towns – the ability to sell something quickly is compromised due to their being lower numbers of people. Finding tenants is no different either.
As for the buyer from the east – the obvious question is why is the property still on the market then? Didn’t the Arabian Nights have ‘buyers from the East’?
But back to the what do I do question – as others have said put the offer in writing and see what happens.
I would also approach the Shire and see if they will divulge some details about the vendor – they probably won’t but…………
You may also have some luck talking to neighbours – if the landlord is local they will know who it is – they will probably also know if they are absentee too.
Chances are that selling houses in town for $50K is just a sideline for the REA – his/her income is largely earned selling farms/farmlets/auctions etc
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Redwing, Benson,
The differences in figures between Redwings and mine are because in Redwing’s instance he is quoting FHO who will get a significant stamp duty saving, whereas my figures were ‘savings’ made by other who are not eligible for FHO.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
HI Rob,
WHERE”S THE PROPERTY?[biggrin]
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Rob,
You gunna spill the beans?[biggrin]
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Homer,
You still need to do the required background research about the area and that will tell you things about population movements, employment prospects, industry and investment, infrastructure and so on – but it is the property managers who have their finger on the pulse when it comes to knowing what properties are getting as rentals.
And someone in a competing agency only has the property management rights to gain – the office is not going to get any commision for the sale so in essence their figures are more likely to be closer to reality.
Having said that I have seen written rent appraisals for the same property that do differ, by in some cases, significant amounts – in these instances always use the worse case figure when doing calculations.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Originally posted by Mobile Mortgage:As long as my colleagues and I continue to post in an impartial, professional and helpful manner, then I see no reason why we would not continue to gain the respect and any subsequent business that tends to follow on from our helpful replies to questions asked,
Steven
Hi Steven,
I believe you have nailed it Steven – regular posters will gain the respect and credibility of the masses and as such I would be surprised if much ‘business’ (maybe lots of enquiries) per se will go the way of ‘Leonie’ – and that is not casting any aspersions on her capacity, legalities or skills as a broker.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Homer,
An independent property manager is a manager who is not attached to the selling agent – if they are in the same office it is more likely they will give you a ‘best case’ rental scenario rather than the reality.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
