Forum Replies Created
Hi Philip,
In terms of a ‘course’ there isn’t a ‘selecting IP’ courses around as far as I know however Steve’s book (pg 37) has a few pointers that may be of use.
Some of Margaret Lomas’ pointers are included in the following thread https://www.propertyinvesting.com/forum/topic/10795.html
There are no doubt other threads also discussing the same topic – recommend a search – left hand side under the forum boards button.
In the end – finding the right property gets down to you knowing what your goals are, you doing the leg work and then identifying the property that meets your goals.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Newgen,
If you used a broker they may well be able to assist with the required information.
If not, ring your loan manager and ask the question. If they are still reluctant then ask them to indicate whether or not, in their opnion, you have sufficient equity to buy another property. Who knows – you don’t ask you won’t know.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Wrap,
Look at http://www.navra.com.au then follow the links ‘news articles’ then ‘latest NFS articles’ and then ‘table of graph of median prices 83-04’
This gives you a 20 year snapshot – Steve Navra argues that any further back than this and your statistics are unreliable because of the significantly changed economic and social conditions as compared to today. He argues 10 years (?from memory)is a little too long ago too.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Lil Man,
As a word of encouragement my nephew only yesterday had an offer accepted on a property in a cheaper area of Perth.
He is 18.5 years old.
I might also suggest you ask for a couple of investment books for your next birthday – Creating Wealth From Residential Property by Jan Somers and Steve’s 0-130 in 3.5 years – both books provide a lot of useful information and will round off your ‘education’.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Originally posted by georgisj:If two people purchase an IP under common tenancy, the legal ownership is 50/50. The deuctions are allowed in line with ownership rights ie 50/50.
If you buy as tenants in common, you can assign whatever ownership split you like. ( eg 60/40, 85/15 etc). There might be some advantage if for example a couple had significant diferences in income and assign ownership to maximise tax deductions.
James
HiMrsSimba,
Just clarifying James points here – income and expenses are appportioned consistent with the ownership arrangements as stipulated on sale documents.
In James example (A owning 60% & B owning 40%) investor A – declares 60% of rental income to their name and also claims 60% of the costs. Investor B declares and claims the remaining 40%.
Common tenancy is sometimes referred to as ‘joint ownership’
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi all,
Typically you do not need or use a solicitor in WA real estate transactions = however Elmar’s situation was based on the interpretatioon of wording one of conditions included with the contract of sale.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
And residential or commerical?
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi all,
Caught this article in Jan 25th 2004 edition of the Age. Thought it may be of interest to the discussion. Once again there is no mention of the leveraging advantages of property and as someone else pointed out to me – nor is their any apparent recognition of renovations, building renewals etc.
2004: property or shares?
January 25, 2004
Richard Webb looks at whether stocks or housing will come out on top this year.
For the past five years, Australian property has outperformed shares by a country mile.
House prices have risen at an annual rate of 17 per cent while shares produced an investment return of less than half that: a little over 7 per cent when you add in dividends.
This house price boom attracted investors and resulted in a disproportionate amount of investment money going into property. By last year, almost half the houses sold were bought by property investors – a record level.
Yet, research by AMP Henderson chief economist Shane Oliver shows that since 1926, the performance of these two investment asset classes has been almost identical – property has risen at an annual rate of 11.9 per cent, while shares gained on average 11.8 per cent.
Further, Dr Oliver found that property had sneaked ahead of shares only in the past couple of years because of the latest property bubble.
As we entered 2004, there were clear signs the housing bubble may have started to deflate – auction clearance rates began to slump, the number of people seeking housing finance started to fall, and the spruikers of highly speculative inner-city apartments all but disappeared.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Nathan,
In addition to Mel’s suggestion about a Depreciation report have you considered completing a PAYG Income TAx Variation (if appropriate) as a means of reducing the impact of the cashflow situation?
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Mike,
As George and Simon have said we really need some more information to give you a reasonable answer. There are all sorts of issues associated with student accommodation some of them negative and many of them positive. I suggest you provide a little more information and you’ll get better answers.
How big is the property? How many bedrooms? Where is it? What rent are you receiving? Ho wmuch did you pay? Furnished/unfurnished? o/seas or local studnets? etc
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Marisa,
I would ask some of the local long time shop keepers/business owners. They will be able to give you an indication of who many houses are empty if it is a ‘smallish town’ – they would also in all likelihhod be able to tell you about length of vacancies and the numbers fo rentals in the area.
You will probably find they may be able to tell you which of the locals have proeprties in town who may also provide you with the information based on their direct experience or at worst point you in the direction of the nearest, and most active, managing agent.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
HI Daaussie,
This month’s API has an article (pg 32) on Commercial Property Investment which may prove useful as a starting point.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi MArc,
Take Two – the names on the title will determine who gets to claim and declare how much in accordance with proportional ownership as identified on the title.
As such shifting the loan into the higher income earners name will not affect the tax situation.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Elika,
A partial list from one of Margaret Lomas’ books you may find of use.
1. What is the cashflow?
2. What is the vacancy rate for the area?
3. What improvements are planned for the area?
4. What is the population growth like in the area?
5. Why do people live in the area?
6. Is the property ‘tenant friendly’?
7. Is there transport nearby?
8. What condition is it in?I would also add questions about the price in comparison to other property in the area, the growth history and prospects for the future, its age (looking for depreciation), access to services and facilities and whether or not the property fits into your plans.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Marc,
Mot sure but I understand there are some states (Vic?) that allow such a transfer under some circumstances. Not sure how restrictive the conditions are and I am sure some ‘locals’ may be able to help.
Any thoughts about the higher income person buying out the lower income person’s share?
Sure the lower income person will incur CGT but they may choose to put the proceeds of the sale onto the home loan and reduce the non-deductible debt. If the lower income person is on low/no income the CGT bill will be negligible too.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Phillip,
Not being familiar with Kiyosaki’s six steps I am wondering if you are after information about ‘selecting a property’ or are you after information ‘about becoming a property investor’
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Huey,
As Marc said get a building inspection done. Sure things may be OK but the cracks could be the early signs to something more sinister. The cost of a building inspection is cheap insurance for mine.
Just remember the REA is representing the vendor and not you, they are not qualified to give that advice and the responsibility for due diligence falls to you. As such I recommend you include the need for a satisfactory building inspection report as one of your conditions should you decided to pursue this property.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi George,
Steve Navra uses a cashbond approach to provide the additional income for increased serviceability.
Recommend a contact with http://www.navra.com.au/ and/or even attendance at one of his workshops (~$190) to get more of an undertsnading of the approach.
In simple terms use equity to purchase a cashbonded ‘annuity (?)’ when then becomes recognisable income by lenders and as such your serviceability increases and you borrow more.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Jon,
The Councils will be able to give you the rates figure and also (which is what you are after) the unimproved value of the land.
Once you have the unimproved value of the land then you can apply a unimproved value/land area = $ sm formula. Eg $50K / 775 sqm = $64.50sqm
Do this with a couple of blocks and you will have a ball park figure for the area in question.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Aside from a swag of performance management agreements, systemic strategic plans and some critical reading of job applications for colleagues I am also trying to get my head around Quicken 2004 Personal Plus User Guide – courtesy of ‘Money Mag’ recent competition.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
