Forum Replies Created
Yes know the rules as a landlord, but importantly know your tenants rights and rules…because you can bet they will.
Check out the Resdidential tenancies for whatever state you are in, all sorts of info, as does fair trading web site.
Keep good records,
Vett your tenants
have a lease
have a property report completed
make sure you lodge a bond with the bond board
give receipts
be accurate in your record keeping
try and remain removed emotionally from the experice
be warned, if self managing, you will get the calls! That can mean no peace and you phone number is out there and open to abuse.there are heaps more, but I am brain dead
Update the lights – new lights (kill those old oyster lights) look great
Solar hot water/solar systems, may not be as economical as you think. I tried to seek out the following for a house I was going to build and the architect said dont bother!
It takes absolutly years to recoup the cost of a solar system for eg hot water.
enviro cycles, eg enviromental loos, might benefit some, but you need a certain size block and not all councils permit the use of these.There are new loos out now, dont cost much as the plumber! but they are smaller cisterns, and have the half flushes which are even more reduced….well my new loo works great.And I mean smaller flushes
Spose you can always use the brick or two in the cistern…
Air conditioners are a selling point, but can be costly if not operating correctly, clean filters, and where possible minimise use. Better still close the blinds and open the windows!
Some dishwashers use less water than a full sink and you can load more in them than a sink full!
Where possible, recycle washing machine water either for the next load, or as in GREY WASTE on the garden, cuts the watering, reduces water rates, saves time, feeds plants.
turn off and unplug electrical appliances, they all draw power even when not in use
Its called RISK factor
1)The lowest risk being government bonds etc
banks
as the risk factor increases, so to does the potential gains or losses.So for example, residential property returns are lower, there risk might be medium, as opposed to commercial properties which are higher risks.
Domestic shares are less risk than international shares and so on.
The above are generally put into an order from low risk to highest.
AS others have mentioned, the commercial aspect might provide better returns (and greater risk factor!) but be warned, it is harder to lease, more costly to operate, can sometimes be difficult as the tenant might be a company not an individual and there you can open a can of worms….shelf companies, no asset companies…a web of umbrella companies and trusts.
Mind you thats at the big end. just my observations….
Elves
HECS- I hate this subject, as a sole parent I couldnt afford to pay it off and get a sizeable discount, and when I went into business I had to pay it off with interest as my income increased.
It is not immoral to do what is necessary financially, within the bounds of the law or the powerful ATO.
I work with peoples incomes, trust me, there are many people out there living the life of Riley and paying no tax – legitimately
It is like the rule: 80/20, can be applied to many things, from 80% listening to 20% talking (for counsellors), or like those that earn the highest wealth, pay the least tax etc etc, or that 80% pay tax the rest dont, please yourself….
cheers
elves
I think I answered some of the questions-
as I said I used the equity in my own home and I dont necessarily advocate this
and it does depend on the bank or broker you go to as to what they will lend, and yes it is possible to get 100% finance, they are out there.
cheers
I agree with Simon, you cannot IMPROVE the property as I understand for taxation effectiveness LOL
I too used the White Knight paint on my kitchen.
clean uncluttered homes cost nothing, and bring more prices, de-personalize.
Negotiate commission with agent, nothing is fixed.
Remove all rubbish, keep grass cut, cover weeds, straw is pretty good as is newspapers
People often like an unpainted (freshly) home, so they feel they can barter the price a bit, and personalise to their own tastes, so think about the need to paint, if paint isnt in bad condition. You might save money and time.
fresh natural smells are more appealing than on the nose odours- real estate trick, bake cakes, have coffee on the stove, put lavender in a room when viewings are being held.Simple but effective. As are fires in cold regions, some people love open fires.
recylce your food scraps, helps the garden- composting
sorry if some have already been mentioned
Elves
oh and the daily tele’s money and you section was talking about Robert K’s latest book, you know other peoples good luck stories….
trouble is, they dont tell you the bad luck ones…..LOL
“how on earth do you get a loan”
1) Marry a rich partner, preferrably with one foot somewhere else!
2) try investing other peoples money and hope you don’t get caught out (not advised)
3)get down on your hands and knees and bake cookies for that loaded aunty
4) get power of attorney over someones finances….only joking, but I have seen this happen!
5) better still keep working until you earn enough from positive cash flows, that the banks fall over you!
cheers
Different loans for different scenarios.
I have I+P loans, but my accountant wanted me to go with IO’s.I personally prefer to see a reduction in a loan. I wish to hang on for the long term, and I dont need any quick sales or cash injections.
My bank manager was happy with either…wonder why? LOL
I do not dump cash into investment loans, that defeats my purposes. I dump cash into my own mortgage. Saves me interest that isnt helped by MR TAXMAN.
I would use an offset account for my own mortgage, but not for investments.
As for interest, make sure you have room to move. And consider fixing rates, even if those are slightly higher, if say your income may be restricted and you have no room to move, means no nasty shocks for a period of time, downfall obviously is if rates drop.
But I’m ok mate!
Hi Freedom
if we all had a crystal ball……
do some research, pays off in the end.Cheers
No privacy laws exist for a reason. You have an out, but make sure you add, re bank X as someone else said. I normally list my bank and you have a limited time to do this in.
So long as you are well informed, friendshmmn? there is no friend in business, dont short cut. No matter how good the friendship, things like this can be a killer.
pay the 400 or whatever for pest and building, it takes days for this, often less time than finance. Seek independant advice, but thank your friend.
My opinion anyhow.
cheers
hi, big ask!
Search the web for real estate, try real estate.com.au or domain.com.au
Personally I buy. Some rent because it gives them more freedom and they arent up for all the associated costs, you must consider your own circumstances.
TAX structure depends on your circumstances, consult a financial advisor or accountant.
Positive cash flow properties give you income, income is what the financiers love when looking to finance properties. It depends on your circumstances as does all of this. Some prefer high capital growth as opposed to positive properties. It really is your choice.
re interest rates, shop around, they vary. Check out the canex rates….gives comparisons. However there are lurks and perks according to what industry you are in. eg some bansk give lawyers special deals, or builders, or those with incomes over $X.
With some banks they havce premium packages, cost $X a year to have, but give additional discount on interest rates and sometimes free cards (no annual fees) and lower rates on those than normal.
It really does depend on your personal situation and your income levels and what you want to acheive.
cheers
Hi
I have three loans for investment properties.
I used equity in my own home to fund this.
I also had 100% purchase price PLUS costs, eg solicitors, pest and building reports, stamp duty etc.However, be warned, your circumstances must be considered, not just serviceability, but other things too.
I went through a bank.
I don’t necessarily advocate using your home as equity, incase you go down, your home might go too.My own situation is vastly different from yours. Consider all options including interest only loans to get you started.
I found the first home to be the hardest to get a loan for (maybe the female myth still exists?) despite a good financial position and I don’t mean wages.
After that the next three were easy.
cheers
I wouldn’t buy that one. But then again, it would have to be cheaper than builder a one bedder? or even a brick workshop, or garage.
Doesn’t appeal to me.
Cheers
There are more issues than meets the eye.
As for financing problems, they must tell you that really, because banks generally do not provide finance for the likes of retirement places, call it age discrimination….whatever, but I was told there would be problems. (I mentioned this in another post somewhere)
cheersps how to i use the faces?
A friend of mine, bought two properties side by side to do a development up the coast, with zoning for 8 units. Excellent fitouts etc in each unit (dont know why really, but they say its a selling point) upper storey units to sell for the higher price as we all would figure.
Fully financed etc, they ran into problems laying foundations, then xmas took over and new year, some rain, budget has been blown out. However they envisaged once untis were sold that they would clear over 1 million. Not sure how this is panning out, but there have been some incredible hidden things, not least councils.
I was told $1000 recently for pricing BASIC.
cheers
Elves
slower growth, but faster than elsewhere, slowing down
not boom, just my opinion
elvesI have been to see Margaret and her franchise seminar, some time ago. I was interested in opening a franchise myself, but I pulled out.
The fee they charge, at that time, was quite large and I rather not get into this. I am led to beleive that fees they charge (unless revamped) are available as an ongoing service and not one off and not to be recharged when you change things. However this may have changed.
Anyway, the property register is a way of finding properties when you dont have time to look. Like everything, you decide.
We can all start a business, earn money and spend or invest.We probably might be able to right a book, advertise, get tv rights,lets say you try this search.
Go to either ACA/nine or Today tonight/7 do a search on a guru, or a book, and I will tell you, timing is part of the deal to selling, and promoting and then what we used to call companion selling. Sell a book, sell a concept, sell another…whatever.
I found in reading some books, they are basic, they say basic and simple common sense things, and I can tell you, revealing trade secrets is not one of them- well not from what I have read anyway.
I dont think people get where they do by spreading the word…..there always has to be that secret ingredient, like a good chef and a good recipe, they never tell you that secret that makes the deal a good one.
I think I better call myself skeptical!
Elves
I couldnt find the thread/messsage so I thought it was removed.
I will add this. There is another web site that offers positive cash flow properties, you have to send details, but I didnt pay any fees,and I get email notification of new properties.
You can check the property register, you can ask area, for instance in this case: Town and beachfront was given to me.
A property register is not a new concept, what they get out of it, commission, fees- onsellers essentially.
cheers
Elves
