Forum Replies Created
Hi Pagan,
Recommend you do a search of the forum. The search facility is located under the ‘forums’ buttin at the top left of the screen.
I will aslo move this post to heads up.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Call me a sceptic if you like but you but it sounds as if you have have access to a ‘group of experts within the firm’ and yet you want our opinion too. Mewonders what the experts in the company are doing.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958HI Sweet,
In the main you can forget about finding such properties on the web.
If you are serious about investing you need to identify your preferred/suitable areas that meet the two financial constraints. A possible starting point is to identify areas with median prices around the $100K mark, cross referencing this informatioon with more desirable areas to identify your chosen localities.
Once you have done this network heavily with agents working in the area. If you play your cards correctly it is then possible that they may contcat you before a property is listed.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi all,
Further to this subject here is an article in today’s Age that may be of interest.
http://www.theage.com.au/news/business/resolve-to-plan-to-get-rich/2006/01/15/1137259944606.html
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Originally posted by danandang:Definately have the investment properties in a different loans to your principle place of residence. The deposit amounts will be added to the loan against your existing ownerships. I guess you can account for this and that section of your loan can be dedicated through your accountant for investment property purposes. All a bit messy but should still work.
Hi Danandang,
Just a point of clarification here – do not have investment and personal expenses (ie IP and PPOR) in a single loan.
If for example you have $80K (PPOR) and $20K (IP) in a single loan and you receive a $50K windfall you cannot simply pay this amount off your PPOR to leave a $30K (PPOR) and $20K (IP) situation.
After paying the windfall the ATO will now see your debt as being $40K (PPOR) and $10K (IP).
For this reason it is wise to split your loans into investment and personal. It makes bookkeeping much cleaner.
And Mini – do not fear raising your level of investment debt. This is additional money that is working for you, not against you. All you need do is make sure your debt level is financially and emotionally affordable and manageable.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi Phil,
It sounds as if your lenders have cross collateralised all of your security to the eyeballs.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Can’t vouch for accuracy of figures but you asked
http://www.realestate.com.au/cgi-bin/rsearch?a=loan&t=res
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi Aukssie,
While the numbers may appeal you also need to consider financing such a property. Lenders tend to consider them as riskier investments and generally only lend around 70% (give or take a little in a changing market place) so you will need to consider this too.
Capital growth is problematic as you canonly resell to investors thereby taking potential homeowners completely out of the equation.
I recommend you do a search of the forum and read a few of theprevious discussions. The search faciltiy is located under the forums button at the top left of the the screen.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi Hobe,
There is also the Brisbane Investors Group (BIG) which holds regular meetings. A nominal fee (and I do mean nominal) covers room hire etc.
I suggest you PM sunstone to see when the next meeting is scheduled. You can also do a search using the forum search facility and use either sunstone to see what topics have been previously covered.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958$600K also seems a big first step, especially for someone who appears (from your post) to be a first timer with limited funds.
I recomment starting with something less complex and work from there.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958This one?
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Provided the no advertsing line is crossed.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Originally posted by vpas:Have this property in WA (I’m in victoria) since April last year. Its in a small mining town. The agent is terrible doesn’t communicate and there’s no other agency there to go to. We have had one tenant who skipped out on a 6 month lease. Its been empty over 4 months (not long I know) .
Hi Vanessa,
I am certainly not putting more boots in when you are down but this property has been vacant for ~50% of the time that you have owned it.
I hope this reality check helps in your decision making.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi Vanessa,
Originally posted by vpas:Have this property in WA (I’m in victoria) since April last year. Its in a small mining town. The agent is terrible doesn’t communicate and there’s no other agency there to go to.
This is one of the problems with small town investments – one agent and a limited potential tenant base. That is why I prefer to invest in larger cities with the ‘security’ of many tenats and many employment fields.
We have had one tenant who skipped out on a 6 month lease. Its been empty over 4 months (not long I know) . potential tenant but they offered $10 /week less and offered to upkeep the property for us and clean it up as the last tenant left in a mess.
Sorry, but four months is a long time.
For me $10 less/week and the offer given is much better than no income whatsoever. Of course just because the tenant offers to clean up doesn’t necessarily mean they will but it is better than no tenant whatsoever.
If we accept this offer then the values go down to 4.5% and 10.7% respectively. We were thinking that because this is a 6 month lease, to increase the rent by $5 and then apon renewal another $5.
CCOR with some money is better than the CCOR on no money so to me this is a no brainer take the agreement while it is on the table.
By ll means you can try to increase the rent by $5/week but in essence over the course of the year this will only total $260/annum (less tax). This is really small fry stuff and there are bigger fish to be caught.
I’m not sure whether to sell the property now and if I get the price I’m asking for will get around 11.5% CoCR. Should I stick with it for another 12 months and see what happens?
You need to go back to the original reason for buying this property. If the reasons remain the same and the property is delivering teh goods in accordance with the goal then retain it. If on the other hand it is not delivering the goods then get out when you can. Small, single industry towns are problematic as investments.
Your experience and advice would be greatly appreciated.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Originally posted by Blue Ship:However I do own my home outright and I am thinking of downsizing the home. Drastic step I know given that I can borrow against the equity – but I am in an expensive home and I may be able to find one that is quite good enough and really free up some actual real money.
Hi Sandy,
Good luck on the pursuit of your goals but the reasoning behind this comment has got me a little puzzled – I appreciate that I am a little simple sometimes but……
You indicate that you own your house outright and yet you say that you could free up some cash by selling this property.
I assume by this you mean that you will have cash to put down as deposits. I wonder if you have considered the amount you lose in agent’s fees and stamp duty on the new property. I would also say that (in generally terms) a quality property in a quality locality will usually out perform a ‘downsized’ option. In effect this means you could also be giving up future growth (and investible equity) as well as the amount you lose on agents fees and stamp duty.
Might be worth thinking this through.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi Austin,
While I know that some people swear by self conveyancing I come from the other line of thought.
A professional lives and breathes conveyancing and as such mistakes are less likely to lead to problems later on down the line. Even though there are no guarantees with a professional you could seek some recommendations from forum frequenters – word of mouth is pretty powerful.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi V,
While the temptation is there to go out and get a property on the double it sounds as if there are some issues that you need to put in order first. Getting a few of the taxation, superannuation in order first may be in order.
I recommend that you see an accountant to get your tax affairs in order (I assume late returns?). An accountant is the person to see for tax matters.
A financial planner will be able to help you for superannuation however my experiences with financial planners has been less than satisfactory. Most financial planners have limited experience or knowledge about property investment and are employed as salespeople in managed funds and the like.
Sure they have a piece of paper saying they are PS 146 compliant and can attend to the legislative requirements and obligations but are they suitable for a property investor? In my opinion no.
By way of example I am currently working with two financial planners and showing them how they can accumulate a property portfolio. Seems strange, but true.
I suggest you jump onto a couple of the financial planning course provider’s websites to see what the relevant course content is. You may be surprised.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958HI Robi,
A few things you can do – ‘encourage’ partner to seek additional employment. According to the stats it seems jobs are a plenty in the outside world so this could be the ideal opportunity to explore new fields.
I would also arrange an immediate appointment with your broker/banker to see what your options are in terms of meeting your obligations or not. Given the long time frame between contract signing and settlement it is highly likely that the bank will do another assessment soon anyway. It is essential that you and your partner get on the front foot with this issue.
Andf finally – consider the option of borrowing additional funds (if able to do so) so that you have access to additional money to help you with the loan repayments. While this may not be a sustainable course of action it may buy you some time so that you are not forced into a fire sale scenario.
Certainly worth a look.
Really important that you do see your broker/banker.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958HI Regina,
You will need to find the original document to see who, what, when, where etc were agreed upon. The original agreement should also establish what obligations you have (if any) should you purchase the property.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi Kriscot,
Just getting valuations done and shoring up my position ready to purchase within two/three months.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
