Hi,
Razor Ray’s initial question concerned the advantages in setting up a trust. Although the replies have been interesting, I felt some detail was missing.[blush2]

Are trusts always the optimal solution? Are there any negatives associated with trusts. I have heard about hybrid trusts — what are they?[worried]

This afternoon I ordered Dale Gatherum Goss’s publication on trusts and will purchase a copy of Nick Renton’s book. But in the interim I really would welcome some tales from the trenches in terms of your experience with trusts. Are they worth it. Have they proved tax effective. Any and all thoughts would be welcome.

Thanks.[cap]

Hi,
first of all you need to select an area rather than attempt to cover all Australia.[blink] Visit this location and get to know prices (in other words, what represents value for money in your price range). Then speak to all the agents — identify one or two who you believe will work in with your requirements — not flog any property, but meet your clear specifications (as detailed as possible). [biggrin] Let the agent know you are a serious buyer and that you might make a number of purchases in a short time.

Make sure you spend as much time as possible on the web understanding the market. See if any of the agents in the area have a newsletter — often a useful way of keeping up to date. Before you fly interstate ask the agent to send you photos of the property (interior and exterior, especially kitchen and bathroom), rent history and recent sales data on the area. Check out council plans for the area etc.

If the agent does attempt to sell you unsuitable properties,[baaa] move on to the next one until you find someone who understands and supports your needs.[thumbsupanim]. Above all it is you who must manage the process. [rambo2]

Hope this helps.

Helen [cap]

Hi,

why not concentrate on an area or region rather than trying to locate properties around Australia. [blink][blink] Then if you find a few of interest, hop on a plane over a weekend and follow up. The advantage to this strategy is that you will build up some relationships with local agents; also you will develop a level of understanding of property values in an area and know if you have found a great investment or one which is mediocre.[biggrin]

Once you feel you have exhausted one area, pick another and start the process again.

Hope this helps.

Regards,
Helen

Hi,
you have to take the good with the bad.[tired] In some years expenses per property are hardly anything, but next year the onslaught is neverending. With a smaller property, painting, new carpet plus usual expenses (council etc) can wipe out profit for the year. Its happened to me twice. You just have to take the highs with the lows — and always have a little something in reserve to deal with the latter.

In relation to costly repairs.[thumbsdownanim Firstly, an older property, particularly a budget one (your word), will tend to throw quite a few repairs at you — and these tend to be the more expensive ones such as the plumbing referred to in your post. My second comment is, who did the building inspection. Weren’t any of these things identified. [surprised]

Perhaps next time you are in the market for a property consider something built in recent years? Also I would have a chat with archicentre — tell them about the problems you are experiencing — ask them if they should have been identified as part of a building inspection.

Hang in there. It really gets better.[biggrin]

Hi,
why don’t you start talking to a few agents to check out the good and bad areas to invest in. Give them an idea of what you are looking for and see what response you get. See if you can get back copies of the Midwood report — will provide some useful background data on Rockhampton. Will also give you some idea of other areas to invest in. Speak to the town planner regarding issues such as flood plains. When you get to Rockhampton, don’t forget to speak to the locals. Often the best source of advice.

Lots of luck with your first investment property. Enjoy the journey.

Regards,
Helen

Hi,
couldn’t buy sight unseen — too conservative. Going the buyers agent route is OK although I haven’t done so. I just feel if you spend a great deal of time looking into an area, and then additional time searching for the right property — then a site inspection seems a logical conclusion to the process. Web advertising can be misleading; agents on the ground want a sale for their vendors. Nobody cares if you buy a lemon.

Anyway, given the differing views expressed it seems that a number of members on the forum have had a great deal of success with acquisitions, sight unseen. Each to their own.

Regards,
Helen