Forum Replies Created
Hi Soum,
If you are buying the land separately you enter into a sale contract and settle on the land first. Later, when you find a builder, you enter into a contract with your chosen builder.
If on the other hand you a buying a house and land package you could well sign the ‘lot’ on the one occasion. Nonetheless, depending on the contract, it is likely you may still settle on the land first anyway.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Originally posted by darrynp:i have thought a little about the bird dog arrangement, and thought that something like this would be perfect to keep the ball rolling and giving me some good experience, as i am only 19, so still very very inexperienced.
Hi Darryn,
So you want to be a bird dog as a means of getting the ‘ball rolling’ – if this is the case you have an instant issue with credibility.
Not meaning to be harsh but I for one would not even entertain using someone who isn’t a proven property investor.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Originally posted by Knowitall:I also offer the estate agent cash if he can get me a cheaper price.
It is illegal to for an agent to receive a payment from the vendor and the buyer. REA are employed to act in the interests of the vendor not the buyer.
This is all a piece of fiction.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Here are some comments that may be of use to you.
https://www.propertyinvesting.com/forum/topic/16406.html
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Hi Pinny,
Just because one person says that selling assets is a ‘good thing’ doesn’t make it right for everyone and for every property. While Steve has suggested that people do some ‘selling off’ there are many worldly wise property investors who prefer to invest for the long term.
Without meanign to sound rude or arrogant I would recommend reading a little more widely to see what other ‘experts’ are saying.
Without knowing your timeframe and particular circumstances and goals etc it is difficult to give definitive comment, but if you believe that in 10 years time you could repurchase this property in Melbourne for the same price as it is today – then sell. But I believe you will be sadly mistaken.
That is why I suggested that you lock in the current value of your property with a line of credit and look elsewhere – provided you stay within your means of course.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.There are, as far as I am aware, no further developments since ASIC got involved and pending the outcome of those discussions i will lock this thread too.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Hi Pinny,
The critical questions that need answering are what did you want from this property when it became an IP and secondly what would you do with the proceeds of the sale?
I assume that the property is in a large or capital city and there the area has sustainability – in otherwords do not jump at shadows and ride out this patch of herd mentality. The property will still perform in the long run.
I would strongly consider establishing a line of credit secured against this property and use these funds for other investment purposes. Obviously this is must suit your plans and goals but it is a thought worth considering.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.See
https://www.propertyinvesting.com/forum/topic/16494.html
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Originally posted by Fin:In previous places I’ve rented it has always been calculated simply by:
Weekly rent is $400.
4 weeks per month = $1,600 per month.Your landlord is right (although being a little pedantic about the extra little bit) – using your 4weeks/month means there are only 48 weeks in a year and as we know there are 52 weeks in a year.
Annual rent is 52 X 400 = $20800.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Hi Tracka,
I would go direct to the architect and ask if their plans are for sale either through the house owner or through them. Copyright can be a little problematic and I am not sure where the plans stand in terms of copyright.
For me I would consider them in the same category as wedding photos – you pay the photographer and the photographer owns the copyrights to the photos as it is their skill that has been used.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.These comments were originally posted by ‘Ian From Brisbane’ – I have moved them here and deleted the other repeated thread to keep things orderly.
Derek
Hi!
I don’t know Sydney locations well at all, but from what you’ve said, I’d rather choose a better location than a better building, especially if getting tenants is not going to be an issue.
And if you get a good price then it’s always a good time to buy
If they are listed at $525000 then I would start my offers somewhere below 500k.-Ian
Hi Dazzling,
If you are talking residential I would agree with PK’s comments.
The irony of it all is that we have to give 60 days notice and the tenant only has to provide a 4 week bond. And the reckon landlords get all the advantages.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.I recommend Jan Somers & Peter Spann stuff – it all helps you to develop an understanding of property investment.
Some of the stuff will be read more than once (it is in my house anyway) and will prove invaluable in the long run.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Hi CR,
I prefer to keep things simple – I have an excel spreadsheet that tracks income and outgoings for each property.
Come tax time I take the sheet into my accountant and give him the information.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Originally posted by jcls79:Well, I’ve got some ideas (with budget of $5K) to increase it to 200/week but want opinions of fellow forum contributors:
1) pave backyard so as to minimize maintenance by tenant?
Negligible benefit for a tenant.
2) replace old A/C unit at each room with central A/C that saves electricity bills
An evaporative unit would put you back around $3K+ excluding removal and/or fitting costs.
Ducted reverse cycle units (if that is what you are considering) twice/three times this figure.
3) take out carpet and tile the lounge and hallway
I am not sure that a 25% increase in rent will be achieved through the combination of the suggestions – not will you fit many of them within the $5K budget.
Your PM will know what is achievable – and based on their comments you may be seeking a rent rise that isn’t sustainable in the local area.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Hi Leo,
Just remember land tax is levied on the unimproved value of the land so you need to only look at the land value from a tax issue.
As well as having different ownership structures you can also buy property beyond your state’s boundary. Research threshold levels and various ownership structures and you can minimise land tax.
It is also important to remember that when it comes to property investment – land tax is only a cost of doing business.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Originally posted by Hugo:Before I read your book I thought negative gearing was great because I did so well from it with my PPOR. It was only after I read your book that I realised you have to make a loss in order to get a tax deduction. I now realise it only worked for me because I bought at the right time and the place appreciated so much in value.
You still doubled your asset base – what is the problem?
The other option is to sell it and look for better income producing assets. What do you guys think?
And lose the future growth – nah. Hang onto it and if you do want invest use the equity as leverage into other investments.
Steve thanks also for recommending Mark Unwin. Unfortunately I live in Sydney. Can you recommend anyone up here?
Ed Chan at chan-naylor.com.au
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Try this thread for some thoughts on a range of books.
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 Hugo,
I have to agree with Padmaa – why make something more complex than it needs to be.
From a strictly financial situation you would be better off living in your house.
The downside of this arrangement is that your soon to be wife will be the only one eligible for tax relief as it is only her name on the property titles.
The other keep it simple option is to rent your house and plough the rent into your soon to be wife’s property. Sure you’ll pay tax on the profit from your house but it will help to reduce the non-deductible debt sooner.
Really you need to do a lot of maths (and negotiations with the new wife) to work what is best financially from a long and short term perspective.
For instance my brother-in-law has just bought a very expensive property overlooking the beach. For the first two years they will be renting it out so that they can claim tax and plough all the savings into the loan while it is tax deductible.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Originally posted by aranieri:I purchased Steve’s first book a couple of months ago and I was suprised at the common sense approach and the 11 second second solution. I felt this was the strength of the book and its property investing philosophy. However, in practice, locating properties using the 11 second formula has ended up in remote mining towns such as Mount Isa and Kalgoolie. Being from Melbourne, this is far away and somewhat risky according to my accountant and lender in what has revealed overheated mining towns driven by the resources boom.
Common opinion in recent months is that buying an off the shelf, ready to settle property that meets the 11 sec rule is now less achievable in Australia. Obviously as you indicate they can be found in more distant locations.
Whether these make good investments or not is up to the individual – I for one would question the long term viability and sustainability of such investments. Try selling a $50K house in a town that is dying without doing your money.
One question I would ask of you – are your advisers (accountants/brokers) property investors. Without them being property investors too you may find they will hold you back through their possible ignorance. As a broadbrushed statement you will be better off, long term, with advisers who also invest.
I also have noted in the forum that references are now being made to Steve’s latest book and probably looking beyond our shores to New Zealand. Steve’s latest newsletter also discusses the possibility of selling property due to rising interest rates and cashing in rather than buying property altogether. Also, the latest book seems have lost the simplicity of the first book and is now proposing more complicated theories probably suited to a select few that have the time, prior knowledge and experience and cash flow to explore this.
Has the 11 second solution run out of puff and had its course?
The second book seeks to highlight that ‘good’ investments can be created out of something that no-one else wants, Or out of something if you approach it a little more creatively.
In essence this gets back to the initial point I was making – off the shelf cashflow investments in quality locations are hard to come by. So approach your finding from a different angle.
I am now a confused prospective investor and alittle sceptical.
Welcome to the world of property investment. A lot of people find that the initial stages are somewhat confusing and go through precisely the same stage you are.
I suggest a step back – think about what it is you are trying to achieve and then work from there.
You may also find that reading other material by the likes of Peter Spann and Jan Somers to be of benefit. These two author provide a different perspective on property investment.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.
If they are listed at $525000 then I would start my offers somewhere below 500k.
