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Doing the same with land subdivision, getting plans and permits and then the surveyor draws up the boundaries, it goes to the council and titles office.
the surveyor tells me it takes 6 to 8 weeks.
I then have to get the front house revalued for tax and bank purposes.
doing 2 at present and for the first time, so I am learning, but absolutely worth while.If its structurally sound (build inspection), they can be great renovators, and often have a lot of character.
As long as its not in need of having to replace just about everything.I agree soma, any form of trading has an element of gambling unless: you have exeptional discipline, the best of money management and stop loss skills.
I basically have stopped trading, it ended up being too stressful, if the market is bullish, as at present, the risk becomes to high for my liking, with the index trading.
My sister is persevering and using Gary Stone’s Osprey system, and CFD’s, she tells me its the best trading system she has ever come across.
I shall reserve judgement until she has done it for 6 months and made a consistent profit.
Even then, I am not sure if I want to go back to that sort of stress.Check what other similar properties are yielding, it seems a long time to not raise rent.
I have a suspicion, that managers are very conservative with rentals, as they wish to have tenants in place and collect their share, rather than have the place empty for too long.
I have had the same issue.
i have recently raised the rent on a couple of my exixting tenants, despite protests, my warer/council/insurance rates are rising steadily. we should at least keep up with CPI.Personally, I would say forget it at that price, you can get similar info and packages much more cheaply, most of the money goes bach into the pyr., oops sorry, network top guru.
I’ve been to their presentation, I am sure my report is still in the system.
Those sorts of things are a plague, designed by the archetypical american profiteer(but only my opinion).I have a property settling next week, where the sellers wants to stay on another 6 weeks.
I have asked for 6 weeks rent in advance to be paid on the day of settlement.
I will not charge a bond.
I have asked to access the property to show prospective tenants through in that time.
My conveyancer has also put in a legal agreement that we do get vacant possession at the agreed time and that they are liable for any property damage, eg broken heater in that time.
This protects both parties, its not a formal lease, but I think an excellent idea because potentially these people could become squatters if some formal arrangement is not in place.
You have to remember that you are running an investment business and keep everything legal for the sake of both sides, otherwise you never know!Government interference with market forces doesn’t work.
Trying to abolish neg gearing will put rental through the roof as has happened previously.
I don’t think buying your first home is more difficult, the first step is difficult at any time.
It wasn’t easy for us initially either.According to residex, getting harder and harder to find.
Excellent comments M & K, as always.
I think one or two average priced, cash pos. properties on a fixed int rate should be ok.
The cost of running a SMS fund can be considerable and will be proportionally less the bigger the fund.
I agree, this is a case for “good” and proper finacial advise.
If you are working for example you can salary sacrifice huge sums into super at a tax advantaged rate.I would avoid like the plague, as an investor.
You are going to be paying for all those amenities by huge and ever increasing body corp/sinking fund fees.
you are up against a huge no of gold coast apartments, they plan to build at least one dozen more in Southport.
See my comments re anything “managed”
We had a beautiful Mirvac Main Beach apartment, sold it after 2 years with minimal capital gain, just covered cost.
The outgoings were about 6000 p.a in b/corp, rates etc.
don’t buy anything like that in a big complex, buy LAND VALUE, here you are just buying air.
See whats happening in the Melb Highrise market.
Stick to the “mums and dads” suburban home, I know it sounds cliche but thats what people still look for.
Just brought one in a lovely village called Canungra, foothills of Mt Tamborine for 250.000, swimmingpool, landscaped, beautifully presented, 6 years old, it doesn’t even need painting.
Tenants are ready to move in at 240 per week on the day after settlement.I previously spoke at length about our very first investment in 1997.
A serviced hotel unit in QLD, 105,000, promised a 7% return.
Current state: probably complete capital loss and yearly losses, body corp, etc, interest etc.
My estimated total loss to date: $150,000++ not even contemplating the cost of lost opportunity!
There are about 85 other unit owners in the same position. Some own 2 units. About 3 owners are broke, not even the bank can sell them.
We know now through our very helpful body corp manager that this sort of investment up and down the QLD coast has an almost 100% failure rate.
If you ever decide to buy anything “managed”, please check and double check and get absolutely competent commercial legal advice.If possible, avoid altogether.
The whole resort is now for sale.
Also remember, this sort of investment once brought is almost unsellable(no liquidity).
I am now forwarding info to Slater /Gordon solic, who tell me they have about 200 such cases in QLD on the books.
Its a case of trying to find if anyone was negligent and if so, who has the deepest pockets to compensate.
I do not expect that this will amount to anything and from previous experience, consumers really have almost no rights.
Therefore, the more you can educate, inform and discuss, the less likely are you to be ripped off.
There are a huge number of rip off merchants out there.
Unfortunately, we have now learned a tough lesson from our initial state of naievity and lack of experience.
I agree, it shouldn’t have to be that way.Agree totally, they never seem to consider the real cost of renov. eg buying/selling.
By the time you add in taxes, well is it really worth it. All the hard work you have put in and the interest you have to pay to service the loan.Please note I am not ANTI SUPPLEMENT, there are clear indications for supplements in a number of cases which are health related, nutritionally deficient etc.
The issue relates to selling grossly overpriced, network marketed vits/antioxidants to your average healthy population on the premise that they help prevent ageing, cvs disease cancers and who knows what else.
the evidence to date is not conclusive for or against, so I hope you are selling it based on that premise.
there is also a placebo effect of wanting to believe it does some good, hence you feel better.See: The Medical Journal of Australia, 4th Aug ’03,vol 179, no 3, p.170
This was a literature review, ie numerous articles were checked, no conclusive evidence to recommend either for or against supplement/antioxidant compbination.
There you go, who is low on facts?I’ve used CBA LOC for many years now, no complaints at all.
Citybank: a broker tried to flogg this product to me several years ago, don’t know why, since it was more expensive and no better than CBA product, why go to the headache of changing.
Brokers get a hefty commission and trailing commission.
I am a gold customer of CBA, its been great, personal lender, discounts on loans, insurance, no loan establish. fee etc.Offer people enough money and they will flog/market anything. Dolf DeRosses’ product was previously discussed and is grossly overpriced, well you’ve got to pay the pyramid or it will collapse don’t you?
The products being flooged may be ok but grossly overvalued and nothing you cannot buy in any shop etc.The excuse for not selling them in the shops is, that they would then be even more expensive, well come on! Read the asic web page on network marketing and listen to the markeeters hype, so what’s different.
I have heard the argument of leverage, eg Bill Gates’ employees working billions of hours to pay his billions of income. Ok at least its transparent and he was genius enough to come up with a product that has pretty well changed the world.The network scheme(scam)I attended is flogging vit supps/antioxidants.
If you read the latest Aust. Med Assoc. Journal there is still no proof that they work.
so I am going to sell a product that may or may not work and its only costing you $80 per month, but its the best of the best- really who are you kidding?
That’s about 2/3 more than the most expensive brand on the shelves.
Oh yes but its got triple amount of the good stuff, compared to the other products and has the best quality control in the world.
Well, I suppose it means, your body is going to put out even more of the vitamins then with the other products, that amounts to pretty expensive urine!Oh yes, but this is not Amway, its perfectly legal, you can live your dreams.
Passive income for life.
It starts to worry me even more, when someone we last spoke to 15 years ago rings up and professes deep concern for our financial well-being and he has just the right product for us to make us wealthy, well who needs enemies.
Yes, call me a sceptic.Network marketing: fine line between that and pyramid schemes.
I went to one presentation and goodness me, how are people sucked in!
we bolted right the other way.
Beware the american hype and excuberance machine, they know how to suck you in and spit you out!
Not saying there is anything wrong with your particular comapny, just be very careful and check out the ASIC web page on that any other investment “advise” and “scheme”. I am sorry to say making money and holding it well is one big hard effort.dealfor free make their money on the spread.
Blsck boxes and share trading don’t work for 90% of people, see my other email.
Comsec, lev Equities and Macquarie bank are offering no money down, 100% geared share portfolios, cost 14-15% for interest and hedging (buyng puts).
I am looking into it now.
check it out under protected portfolio loan on commsec.com.auWell, becoming an investor does need some minor detail, ie cash!
How are you meant to get cash without a job?
I am now, after some 25 years! in the workforce working only part-time, writing silly emails!
Investments are only now allowing me the luxury of foccusing more on our assetts and associated compliance paperwork and exploring other assets and income streams.
My work has allowed me to do this and not the other way round.
I continue to work part and my husband remains in full-time work.
Could you maybe become a mortgage broker? Just for a start, I couldn’t think how anyone could do this long term.
It’s always hard to make a start. Can you work on a voluntary basis some where, just to gain experience and add to your CV?
I hope yoou can find work soon!
By the way, Managed Investment act, if you want to set up a managed fund, the compliance costs are huge.I believe in risk management.
Property: cash flow pos, or extra land to subdivide and act as a buffer in case values fall
2.shares: insure them against crashes as you would insure your property, car, health etc.
Ultimately, when I am old and doddery (I hope not too soon), I would like a hassle free income stream, eg a share portfolio, I can write cov. calls against it and collect dividends.
Who wants property and tenant hassles then, you want to be travelling and or looking at the sunset on your verandah.
Currently looking at getting into a hedged share portfolio, as all we have is property.
Sorry, I am sure I am out of order talking shares in a property site.
By the way, forget share “trading”, CFC’s, unless you are: 100% disciplined, unemotional and have a sure fire trading system.
I am speaking from many months of stress and thousands of losses, thinking share trading had all the cash flow answers.
