Forum Replies Created
Hi Radek,
A few points come to mind.
1) I cannot understand how a locality with 30000 people is all ‘affected’ (from a real estate market pointof view) by local indigenous people. In my experience there may be suburbs that have a stigma – but a whole town?
2) If the stigma has affected the market sentiment at this stage of the game – is this likely to be continued when/if you look to sell, refinance or rent? Will this create major difficulties for you?
3) What does your research show?
4) If you have doubts now – how will your sleep at night test perform – post purchase?Most councils use the unimproved value of the land to determine the annual rates bill. As such they may, depending upon, privacy legislation etc be willing and/or able to give you the information you require.
I have found in the past the councils I have spoken to have been forthcoming with this information.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Hi Tj,
Welcome to the forum and congratulations on having paid off your home. This does put you (equity wise) in a position to start investing.
However the critical information missing from your previous post is that how do want to use property as your chosen retirement vehicle. This piece of information will help you to determine which property is most suited to your needs.
I would suggest that your first appointment shoudl be with a licensed mortgage broker as this will enable you to determine your borrowing capacity – which,in turn, determines your budget limit, which then narrows down your search patterns and areas.
I would also recommend you read a few books from the following thread – this will help you to clarify your own direction.
https://www.propertyinvesting.com/forum/topic/6845.html
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Hi Khalida,
As Eric indicated a cashflow property exists when income exceeds all expenses. Some people also include (others don’t) tax savings that can be available through depreciation.
A property shouldn’t be considered for cashflow alone – there are other factors to be considered when selecting property. Also do not neglext opportunities to improve yourcashflow after purchase and/or for rent increases to incur thus making the property cashflow positive at some stage in the future.
When buying a property you will need to have about 20% for a deposit and a further 5/6% for costs. These funds can be drawn from savings (a slow process) or from equity or from a benevolent family member/partner and so on. The 20% can, in some instances, also be reduced to considerably less if you are prepared to pay LMI.
As for the booklist suggested by Red – here it is
https://www.propertyinvesting.com/forum/topic/6845.htmlDerek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.HI Nathan,
My suggestion would be to use the funds to release mum as quickly as possible from ‘guarantor’ status.
How you do this is a little difficult given we are not familiar with the property’s specifics.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Hi Maria,
Pools can increase a gross rental return but yes there are increased costs incurred.
I would suggest that as landlord you should be responsible for maintaining the pool – just add a premium to the weekly rent to cover those increased costs. If you use a pool service agreement with a local shop then there is minimal impact on you or your tenant personally.
It is also very important that you ensue safety regulations and requirements are strictly adhered to and attended to if required. As a fatality in your pool could see yourself answering some tricky questions in court. Not wanting to be alarmist but extra diligence on your part, as a landlord, would be advantageous.
As for increased tenantability – ensure your leases expire in peak pool season when demand for a pool is at its greatest.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Hi Peter,
Good point about the questions being ‘genuine’ – we have had some people ask question ad infinitum and for little apprent purpose. While we do our best to answer all questions fully it is interesting to see that parts of audience start turning off as the questionning continues.
And yes, Gavin, there are many seminars out there that have ‘worth’ to different people. A broad education is highly commendable and can help different individuals find their own route to success.
For instance I have found Steve Navra’s seminar extremely beneficial, I have listened to Ed Chan and got some useful snippets from him, have heard Jamie McIntyre (a little less), and have others talk about specific topics – it is a rare seminar/speaker that I took ‘nothing’ from.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Hi Hugo,
I haven’t used them but would make the following comment based on a quick skimof their website.
It appears as if they offer a broking service – something the brokers who contribute to this site could do.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.all of the above
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Hi Bwendan,
I made some suggestions of questions that should/could be asked at a consultant level on this thread
https://www.propertyinvesting.com/forum/topic/4680.html
Obviously some of these are more suited for one on one conversations – but they may get you thinking.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Originally posted by MiniMogul:all of them went up more than 100 percent in 18 months.
Don’t they say ‘one sparrow doesn’t make a summer’?
If long term sustained growth is so good why is it that property in smaller towns/regional centres etc is generally cheaper than cities?
And while percentages sound impressive – raw dollars are equally as important.
And – if someone is spotting (whatever) in a smallish location it is possible to manipulate the market to create such results.
Speaking from experience we did it for our members in a suburb of Perth and also within another similarly coonfined area in Perth.
We ‘took out’ a great many suitable, right priced properties in the two areas and then left while maintaining the services to our purchasers.
All of a sudden there is nothing suitable left at the previous prices, people are paying the next tier of price, property sales stats are up and real estate agents start talking the areas up and the areas gain a momentum of their own.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Hi Ambo,
As Surrey has indicated the price is not agreed until both parties sign off the contract of sale or whatever it is called in your home state.
Up until the moment that both of you sign the contract and agree to all conditions anyone can buy it. I wouldn’t hand over my deposit until this point in time.
Not only do buyers face this situation you also can have a property sold out from under your nose if you fail to fulfil any of the subsequent conditions such as X days to unconditional finance etc.
It sounds as if you have fallen in love with this property and that you are being manipulated by the agent and/or buyer.
Make a business decision – move on and find something else – there will be a something else.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Hi Arthur,
Apologies in advance if some of my comments and/or questions seem a little harsh or if they are off the mark – they are not intended to be, just trying to help you overcome your frustration/s.
I wonder if you are coming across as a bit of a ‘tyre kicker’ when talking to agents. It is possible they sense this with your questions and/or do not believe you are serious about property investing.
Whether or not this is the case only the agent (and you) would know. It may be appropriate to ring one of those agents you have previously been in contact with, and with whom you felt you developed a rapport, a remind them of your earlier conversation. Remind them that you had previously discussed property X and that you identified a number of features (have these ready) that you were seeking in an IP. Then steer the conversation onto well what else do you have like this and you may find things develop a little more in your favour.
Now, I am not saying you should do all of the chasing and ringing, you shouldn’t but there does come a time for you to demonstrate you are serious (are you?).
It is possible that the distance between you and your preferred properties is causing some anxiety that is reflected in your questions and/or tone of voice.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Hi WW,
What is it that you want from a financial advisor – most FAs I know and have met want to flog me a managed fund that puts money into their pocket.
Bear in mind most FAs are salespeople – even those attached to a bank and have very few qualifications and/or interest in property investment.
If you are after a Perth accountant – I use Patrick Thatcher at RMG Accounting.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.And the amount is apportioned amongst all lot holders in accordance with their share of ownership.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Hi Moolah,
You do need to consider the tenant market in yoru area and what you will do if the new tenants ever wanted an unfurnished place.
We ‘target’ the international student market and fully furnished our place for around $8K three years ago. We didn’t get to the linen, crockery, cooking gear and cutlery stage but were prepared to do so if necessary.
After furnishing our place our rent went from $220/week to $300/week and any subsequent vacancies have only been 1/2 days at most.
Our unit is one of the few furnished ones in the complex and as most international students do not travel with their furnishing we are ahead of the pack (so to speak)
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Originally posted by JLtarra:Although this sounds great in theory the problem we have is how is that becoming financially independent when you are always in growing debt? Looking forward to opinionated responses!
Hi Jltarra,
Steve Navra also uses a similar strategy.
As Dazzling said the key to the success of this is to have an asset base large enough to sustain your lifestyle.
The other key is to spend less than your assets grow.
It is all about positioning yourself in preparation for leaving the workforce before you do. I guess you could almost, at a pinch, call it retirement planning.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Hi Loanwolf,
We use a lever arch file for each property with a section for body corporate stuff, rental stuff, loan docs, settlement papers and a misc section.
In addition we keep second lever arch file into which we place all receipts and monthly statement records. This is divided into sections with each property having it’s own setion. When filing these docs we keep the statements and receipts separated from each other.
Sitting alongside this we have an excel file for recording the ins and outs for each property. This keeps a summary of the numbers and is handed to the accountant at tax time.
We also do data entry at the time the statement arrives or when we make payments which is done via scheduling facility that exists with Internet banking.
In all instance we file in reverse chronological order as it is quicker and easier.
The key is handle each piece of paper only once, deal with it straight away and it doesn’t seem onerous and keep it simple.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Hi Martin,
If it is a common driveway I would think it reasonable for all lots in the strata to share the costs and management of the common driveway.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Hi Ranae,
Just be careful that in your pursuit of a cashflow positive property you don’t end up buying somewhere near the ‘blackstump’
There are a whole range of factors, beyond the cashflow position, that need to equally considered when choosing your property.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.
