Forum Replies Created
Hi wezwaz
In answer to no.3 you have to go through the tenant tribunal and if it goes to court the judge can actually give your tenant 3 mths free stay ( in some states) in your property, I would assume that you could only call the police once the court has told the tenant that they must vacate and they still dont.Hi All
Kay if you make extra repayments on your mortgage so that you can redraw 20k for a deposit is the same as saving the money in a savings account when you take this 20k out it doesnt increase your monthly repayments. This is different to equity that you get thru your property increasing in value. To beable to utilise this money requires you to pay interest on it when you do use it. So using equity is not like using cash it is locked up in your property until you sell it or pay the bank for the right to use it.When you borrow this money from the bank it must be making atleast your homeloan interest rate to break even.
I asked about why Dovie8 dont save because from their post they dont say we make extra repayments which is the same as saving, if they do make extra repayments they should have a redraw facility so that they can retrieve that money when they want it without having to refinaance.
ErikaHi Bill and Mini
I would like to add to mini,s we also get the recent sales for areas we are looking at. In fact some agency will send them to you monthly. I have a map of the area I am looking at up on a wall and I put the recent sales figures on the map so when a property comes up I can just look at the map and see what has sold around it and for how much.
erikaHi Dovie
I am also on the side of caution when buying at the moment but the thing you need to look at first is why do you have no cash savings you have had a year since you bought your property to save up. If you are spending all your available income you may need to look at your budget. Even with a cashflow positve property I would still want some money sitting around for those unexpected things that pop up.
Having said all that ( and you get some money in the bank)if you find a property and the numbers work for it why not buy.Erika
Hi All
Freedom to do what I want when I want.
Never have to go back to work.
ErikaHi All
Quick question for 007, when buying a property to do a wrap does it concern you if projected population growth is -ve or is this not of such a concern because you are on selling the property.
ErikaHi Kay Henry
We have had tenants in properties before settlement a couple of times. The rental agreement is always with us from the beginning we paid the letting fee and after settlement we paid the old owners the rent collected during that time. We never had a problem the old owners didnt live there and so were quite happy to have some money coming in.
ErikaHi NKZadar
With a couple of properties we have bought we spoke to the people selling them and askd if we could rent them out straight away no problems any rent collected before settlement went to the old owners places rented from day one for us.
ErikaHi Mel
I think you should be a moderator you impart a lot of knowlwdge and you remember quite accurately what people have written.
Keep up the good work.
ErikaHi Rodster
I noticed the other day when looking thru the resourse section on this site that steve has a book called Wealth Guardian that is also written by Paul Harper. He is an accountant with Jeena Partners in Sydney who knows alot about structures. Might be a good place to start.
ErikaHi Leigh
I am not completely sure but I beleive in NSW that if you have land value over a large amount say 1M that you have to pay land tax on your PPOR.You see these people sometimes on TV who have lived in their houses for 50yrs and it used to be in the back of nowhere and now it is the latest hot spot and they have to sell because they cant afford the land tax.
ErikaHi All
Great question Robo, is this place worth buying for $5/week. Dont forget if the place is vacant, and to Kay Henry “Who cares if you get 10% yield if it’s a good property and you have good tenants?”
What is a good property surely it is one that is either going to give you cash in hand or hopefully CG. Robo has said it is unlikely to give CG so the yield is pretty important, sure you have good tenents now but unfortunately you cant always rely on having them abit like CG.
ErikaHi Still in school
I am with Mel your post is a bit confusing. Why did you have to get the loans in your name with her as guarantor she would still need to sign something why couldnt she sign the original loan doc’s.
Why cant you sell the other properties just because they are x coll, doesnt mean you cant sell them it might just mean the bank wants some of the money.
My best advise is to carefully read all future contracts with the bank so that you know what you are putting at stake.
Why dont you go and talk to the bank about how you can remove some of these properties from being x coll. They may just give you the answer.Hi All
In fact some properties are already cashflow -ve if you use the 11 sec rule.The first house Steve bought and uses as an example in his book would be cashflow neg if you use the 11 sec rule.So people need to be factoring in higher interest rates now to make sure their properties stay +ve.
ErikaHi Kay Henry
What do you mean by a happening area. I ahve family and friends who live there,They have had good capital growth recently, its a nice area that now belongs to Brisbane not Ipswich lots of families.Hi All
Mel i was just making the point that because it is a unit doesnt mean it cant have considerable land value. When we bought 3 yrs ago they were cheap and thanks to considerable CG one of the units is the most expensive property we have. We bought because of the location and the fact that they were very good value at the time.MAny people write that they would only buy houses because of their superior land value it pays to look at all places. We probably wouldnt buy them now as the rental yeild is not high enough but that is a problem in most capital cities.
ErikaHi Shirley
The office of State revenue send you the land tax bill it is assessed on the land value you hold at the 30th june each year. The dept of natural resources and mines values your land and sends this to you, it is the average over the last three years valuations that they tax you on. Our land under our units is worth more because it is in a prime location sitting right on the Brisbane river, where as our houses and T/H are in the burbs. Also our units are only a low rise type and have quite substantial gardens giving the whole complex quite alot of land.
ErikaHi All
We have 6 properties in Qld 2 houses, 2 units and 2 t/houses and we just paid $3300. For Mel’s interest the land value on our units is the highest, not our houses. You get $220,000 threshold in land value before they start taxing you. I am unsure how this is against other states but it now must come into our holding cost equation when we look at buying.The land tax rates quoted by J are what is paid after the threshold is reached.
I would be interested to know what the rates and thresholds are in other states.Erika
Hi Steve
No I am not a property manager I am a property investor, share trader and fulltime mum. My point was that I just consider my PM’s to be apart of my team. I think if you own 1 property in your neighbourhood you could probably mange it yourself but if you want to own multiple properies as we do and plan to keep buying I wouldnt want to manage them as they would take too much time with inspections, mantanence etc. You get value for money when the time you speend looking after them could be better spent looking for more properties or looking after my share portfolio or more importantly with my family as this is why we are trying to become financially free so that we dont have to do all the work.
My PM is presently trying to sort out how one of our tenants can get up-to-date with his rent so that we dont have to evict him, me I am going to lay on the floor and play with leggo with my 5yr old what would you rather be doing?
ErikaHi All
I have been reading this thread with interest. It is amazing that the only thing that PM do is collect the rent. You should be so lucky if that is all they do. That means that they have chosen good long term tenants that fix everything themselves.
I think of our property managers as part of our property investing business what they bring is their skills in that field yes we have had to sack some of them but my part in this business is looking for new properties. Would you do your own maintenance,conveyancing,building inspections, pest inspections? Why is it that everyone thinks they are just as qualified or have the time to PM?
