Forum Replies Created
If you know how long the property reno will take advertise it as available after the date that the reno will definitely be finished.
Why? -you have the property available for rent and on the rental market , also you will reduce the down time on your rental income as you will immediately have a tentant ready to move in when the reno is finished.
I have done this twice and had tenants that have been happy to wait until a date when the reno is finished. Drawbacks are you may have a delay in the work and have problems with the expected completion date and you may not be able to ask top price of rent as Work isn’t finished to show tentant.If you own the home you cannot claim any repairs, insurance, council rates,interest on your loan as tax deductible expense. Plus side- no capital gains tax is incurred on primary residence when you sell it some time in the future.
Idea – Sometimes the local paper for the Northcote Area is a good place to start looking for a painter rather than the Yellow Pages.
Anyone who can afford to advertise in the Yellow pages is fully booked with work usually and may not be interested. I have used a firm in the past called the Grey Army . They have since grown into a massive francised network of local places. Take a look at http://www.greyarmy.com.au/. Jims is a possible place to look at also, they do more than just mow lawns see
http://www.jimspainting.net/. I haven’t used their services before but as I stated they do more than just mowing of lawns.
If you are not from Northcote contact Leader newspapers and see if you can get a copy of northcotes Local Paper. If you are using a real estate manager ask the property manager if they can organise the painting.
Make sure you have the property advertised as available for rent if you are planning on renting the property. Just make the start date for a tentant as the date you know you will finishing the planned works.Negative gearing is you making a loss in the hope that you will make a capital gain later on. Why I say loss is for example say you have to fund a loss of $10,000 a year you will get back approx $4700 on the highest tax bracket. So you lose $5300 to get $4700 as a tax refund. Which was lost in the original $10000 loss. If you want to reduce your income for the medicare levy surcharge threshold, the loss is added back onto your income to calculate the medicare surcharge liability. Same goes for social security income calculations. I discovered the drawbacks when I became a University student and had no income and had a negatively funded investment. Also you need to factor in how you would manage with funding an increase in loss if a rise occurs in interest rates in the future. Depreciation is another aspect you need to consider into your decision.
If they make a capital gain this may be deemed as income by centrelink and any pension payment might be affected. This ramification may not have been considered !
ask the bank for a ist of their panel valuers and pay for them to do a valuation and hope it is higher.
There is an good article on what to look for when selecting a quantity surveyor in April issue of Australian Property Investor magazine. I think it was April could have been March, it would be a good idea to check it out before investing in buying a copy at a newsagents.
Good views of coal and gas powered power stations. Traralgon has a paper mill that occasionally creates a noticable odor in the air. Excellent Hospital in Traralgon, Shopping centres in Traralgon and Morwell. Employment may be a problem as State Gov privatised SEC that used to provide a lot of employment and doesn’t provide as much now. Not sure on warrigal except that it is not near the coal powered plants .
The stories usually involve you getting in your time machine and transporting yourself to the time when the people purchased their properties before the last property boom !
Start with buying a magazine called API – Australian Property Investor
In the back it has the information you are looking for.
Also the Land Valuers office in your state might have the land value data in Victoria they have 10 years of data..Infrastructure!!! Echidna Infrastructure !!!! [strum] [strum]
The state government has entered into a private contract for the building of a Toll Road to link the Eastern Freeway with the Mornington Peninsula (Frankston)
Frankston also has a train line…
Frankston has a Hospital.
Frankston offers employment from Dandenong, Cranbourne, Frankston – Lots of Factories – industrial (Tentants can afford to rent)
People will not buy into Frankston at the moment so the price will stagnate for now.
The question is Will history repeat itself ?
Frankston had some incredible price growth last property boom in the order of over 20% per year.
I remember when the median price was 120,000 in 1995I previously sold a property with a lease and the new owner was happy to receive rent until the lease expired. I would talk with the tenants offering to halve the rent while the disruption is going on and promise you are not going to hike up the rent because of the improvement and that you want to increase the sale price rather than the tenants rent.
maybe the local council could forward a letter for you to the owner
Why petrol increases inflation.
When the oil price increases so does the cost of paint. Paint is made from oil. Synthetic chemicals are made from oil. The food you buy has to be transported using diesel in a truck. Does the truck driver pay for the increased cost of the diesel or does the consumer have to pay more for the food. In the long run the price of food increases rather than the truck driver going broke. The bricks, wood, roof tiles, bathroom fixtures, carpets, wall paper, ect travel by trucks. When a worker goes to the shop and buys less food for their wage they ask for a wage increase. If there are more jobs than workers and a wage rise doesn’t occur, the worker moves to another higher paying job. Increasing interest rates makes business invest less which cools the rate of expansion of business thus controlling inflation. Unfortunately it also creams anyone who has borrowed lots of money at cheap interest rates. I dread the adverts at the moment that offer 100% finance for a home purchase as this doesn’t leave room for any interest rate increase. In 1991 interest rates were 18% !!Another reason why interest rates going up controls inflation.
When our interest rate is lower than another country investors take their money out of australia and invest it in the other country. This movement of money affects the exchange rate and causes imported products to increase in price. As we purchase more imported products than we export we increase the balance of payments deficit meaning we borrow more money from overseas. Also our exports become cheaper to oversea buyers and less money is recovered back into Australia. This is what caused “the recession we had to have” P.Keating 1991 . . Keating floated our dollar and didn’t take into account the effect the movement of money had.Having worked for 12 years and being passed over for promotion my thinking changed to I and B .( B is for business. )
Kay has a point about not enough workers. But we can always import them.
The government has shown that not having enough people to do a job is not a problem when providing Technical Schools wasn’t important 15 years ago. I cannot understand how there could be a shortage of skilled trades people now. It’s good that we now have an over supply of University trained people compared to available jobs in Australia. Keep up the good work , we can always rely on our governments to get the levels right between supply and demand in the job market .I have come to the realisation tht we are trained to be good employees rather than good investors by the school system from the age of 5 onwards to become good employees rather than good investors.
Dr X.
Having read rich dad poor dad I see it from a different view. The people who complain about money are in the E Quadrant. This is the employee type of person. You on the other hand are in a different quadrant of thinking know as I . I is for investor the person that can see that we no longer live in an industrial work force but rather in an information work force.
The E’s think differently to the I’s and it is extremely hard to get E’s to shift to I’s in their thinking.
How will the E ‘s feel when they get laid off unexpectantly some time into the future?
How long will the E’s survive without a steady wage ?
By you renting out properties you are providing a service. You are the one who has to replace faulty items in a tenants house.
You are the one taking a risk by borrowing money.
The higher the risk the greater the return.
What risk are the E’s taking and what return do they get ?If you are going to be a wrapee be careful .
What happens if you default in payments later on down the track?
You might end up losing all your payments depending on the wrap contract.
Usually a wraper sells the property above market value, so it will take a time to gain enough increase in value to cover the added profit margin in the purchase price.Termites are on the rise even in Victoria. However a pest inspection may not find termites and you may not have any comeback. On TV they suggest a full report but read any fine print to see if there is a no liability clause protecting the inspection person.
What about using a ferret with a collar and string attached . They eat this sort of thing and probalby will clean up a body and leave only the bones.
Read this in a book – Ferrets eat rats, road kill, rabbits , chickens, ect
I haven’t tried this but I know the book recommended feeding road kill to ferrets.
