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After picking myself up off the floor, I would ask whether he was serious about what he just said.
When he says yes, I would ask him whether his client was happy with getting the sale on the house and happy with the money they received.
If the answer was in the positive, I would ask what the problem was and prompt whether he was disappointed at not receiving more commission.
I would then ask how he justifies $5,000, when the commission he would have earnt on a sale price of $25,000 higher would have only been an extra $625 (Qld).
Finally I would ask whether he would be so upset, if it was him who made the subsequent sale.
Ron
Hi Coopernator
If I could add to SIS’s comments, I don’t know whether the other bank’s will follow suit, but the NAB now has a new policy for Investment Property purchases only – you now need to have 25% deposit for the local loans officer to approve the deal, otherwise the application has to be sent to a higher approval level.
There still may not be a problem, but the higher level officer will assess the application from personal judgement rather than the computer making the decision based on facts and figures.
This can be both advantageous and disadvantageuous depending on individual circumstances.
Hope this helps….Ron
Thanks Mel & Crocco
Ron
Hi Crocco
Does the ajistment income work out to be more than your costs?
Yes, lets hope the teacher has appeared.
This person with 13 investment properties wouldn’t happen to be an ex fireman by any chance?I enjoy reading the API magazine (Australian Property Investor).
It has some great informative stories, but I particularly like reading about other peoples successes.
It costs $7.95 per edition, which comes out bi monthly.
You could subscribe for 12 months for $79. (however this method works out more expensive….can’t understand that?)
You could order by phone 1800888788 or visit their website http://www.apimagazine.com.au
I would have a talk to the local newsagent & see if they can get a copy ordered in for you.[/list]Anyway, enjoy the new year festivities in Weipa….we are in the process of moving house, then head off for a weeks holiday at Caloundra, which will hopefully be a well earned rest after the move.
Cheers, Ron
Unfortunately I didn’t have the property investment bug while I was there.
My family home in Brisbane that we vacated in 1995 & rented out following a work related transfer went backwards in value and stagnated for some 11 years, so I didn’t think we were in a position to buy any property.
The house we rented in Clifton Beach, we paid $310/week and I remember seeing a sign saying House & Land packages for $180,000, so probably wouldn’t quite stack up to +cf.
Would imagine however that capital gain would have been considerable.
The property manager we had was Luke Banfield at Cairns Beaches Realty. His mum & dad looked after sales.
If you do a web search on Carns Beaches Realty you will find their contact numbers.
They may be able to update you on what is happening in current market. Their specialty is the northern beaches area.
I have noticed a lot of advertising in the API magazine on +cf properties in Cairns, however forgive me, but I am a little sceptical about them.
What does your property investment consist of at present?
Thanks, Ron
Thanks Steve….that was my thoughts/logic as well, but I guess time will tell.
Ron
Hello Mrs Crocco
I was in Cairns until last September, we rented at Clifton Beach.
Am now in Bundaberg and enjoying slightly less humidity.
Hope you had a great X Mas
Ron
Thanks Steve
My Dad was encouraging me to look into them with more depth, but I think there would be other properties better suited.
Merry X Mas
Ron
Hi Matt
3 IP’s:-
1 in Brisvegas, 2 in Bundy
Also block of land at Coral Cove, on which I hope to build when building boom eases and I can get more house for my dollar as well as get the house built within a reasonable time to avoid interest and other holding costs without income.Thanks
Ron
1) When you purchased your investment?
2) How much you paid for it?
3) What structure is the investment (eg: buy and hold, vendor wrapping etc.)?
4) What is the weekly gross rent (income)?
5) What your net Cash Flow is?Property 1
1990
$94,000
Buy & Hold
$180/w
$34/w
(current value $200,000 & valuable lesson learn’t here…..property values eventually rise if you hold on long enough)Property 2
June 2003
$125,000 + $20,000 reno
Buy & Hold
$220/w
-$12/w (not allowing for tax deductions….constructed in the month that Capital Building Allowance @ 4% brought in….this was a bonus as I was unaware of it at time of purchase)
(current value $175-$180k)Property 3
August 2003
$165,000 + $9k reno
Buy & Hold
$290/w
$21/w
Current value $200k+Properties 2 & 3 were purchased without +CF in mind and were the result of reading Jan Somers’ book.
I guess I was just lucky that I got marginally +CF on one & marginally -CF on the other.
Capital Gain has made up for slight -CF and tax deductions will make even sweeter.I think the main thing in my situation, was to have gotten back into the market, after seeing property 1 value go backwards and stabilise for so long. (just glad I held onto it….valuable lesson learnt)
P.S. great idea for a post.
Thank you everyone for your responses.
I used to work with someone by the name Phil Johns, thought u may have been the same person….sorry
Phil
Any chance you used to work for NAB?
Ron
Its good of you to offer up your spreadsheet and creating all this extra work for yourself, but please count me in……[email protected]
Thanks
