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It sound like you’ve got a great deal, however dont screw yourself by getting the lease wrong. As Anubis said do your research, and dont take a shortcut to setting this up either.
You could easily be on a winner, but if something is missed you’ll be reminded often over the next 25 years.
Good Luck…G7
Property $200 000, annual rent $40 000, rental yield 20%… I wanna brothel too![satan]
A good piece of advice I received was when you come across a sudden windfall, pay off debt or do something financially responsible with it, and then forget the money ever existed. I suppose the misery of not squandering it is more than made up over time by giving your finances an extra boost for the long term.
Or if you dont want to do that, give it to me and when I’m done, I’ll tell you what I spent it on.[biggrin]
Hope this helps…G7
These types of investments can seem good on the surface, but they usually come loaded with different fees. Fees like body corp and management can be excessive and quite easily wipe out any sort of decent financial return.
But people do invest in these, at least they know there probably wont be any wild parties. Besides a 7% return on the one you’re looking at is a bit dismal.
Keep looking, the pots of gold are out there…G7
My parents did this a little while ago. My Dad did the framework himself, which is fairly easy, so all up it cost about $460. This included the wood for the frame, the plasterer and the plasterboard. The wall was about 3m long (10ft) and a standard 2.4m high (8ft).
For me, just waiting and watching, ready to pounce if the market takes a dive, ready to jump of a cliff if the market rises, because I don’t own anything at the moment.
Basically I think the market’s got to come back a bit and would then be looking for bargains.
There’s more than one person who’s headed off overseas to rake in the big bucks, which I believe if you can is a great idea.
250-300k is a good starting point, but don’t hold your breath on CG’s like the last few years and yes Brisbane generally seems overdone, but so does a lot of other places. This is where research is paramount.
All I can think of is dont be in too much a hurry, use your escalating income wisely and research, research, research. The market seems quite volatile at the moment, so remember if you cant find anything worth buying for what you want to achieve, then leave the money in the bank.
Good Luck…G7
Here’s a tip that you could use;
This is my 11 millisecond solution. Take the first 3 digits of a house selling price and if the rent isn’t double this (per week), it’s generally negative cash flow.
House $120 000, double the 120=240, if the house rents for less per week than this it’s negative.
Eg. House $85 000, need $170 per week
House $160 000, need $320 per week
House $1 700 000 (nice house) need $3400 per week.Typically people learn the ‘numbers’ by disecting the workings out in RE investing books, like Steve’s. And as you go you get better, faster and fine tune your techniques. This forum can also help too, it’s nothing to get flustered about, as with anything worth knowing it’ll take some time.
I hope this has helped and by the way, I’ll have the wine by the weekend thanks. [biggrin] G7
You might be better off going and finding a few possible deals, thinking of strategies you can use for them and coming back to the forum for advice and opinions on these strategies.
One possible idea is to look for houses on good blocks of land, where the house is close to the front perimeter with a fair size back yard. You could renovate the front, subdivide the back and put a duplex on it. Just an idea though.
Check these guys out, they build duplexes in the area-
Just follow the links to your area and select duplexes etc…Good Luck- G7
Hi John,
I’ve used the Insurance Brokers Aon before and they seemed quite good and comprehensive across a diverse range of insurance needs, you can check them out at;Or you can simply look up insurance brokers in the yellow pages and go from there.
You could get onto a surveyor or conveyancer or something, I’m not too sure, to give you a preliminary guesstimate.
Also there are some very experienced people on this forum that do this kind of thing for a living, so I’m sure they’d be able to help with a heads up.
You obviously needed the valuation to come through in your favour. It didn’t, however as you’re only $10k out is it possible to find this, if you need to, by the time your finance is due?
I hope I’m on the right track with this but maybe a credit card or personal loan to make up the difference. Or you could chat to your bank and broker and explain that you’re $10k out and see if they could swing something?
Banks can tend to be self-serving and illogical when it comes to valuations, you’re not the only one.
Have you considered another bank, or broker?
Firstly you must find out whether the block can be subdivided or not, and if yes, get it in writing.
To cut it into 3 and sell for a gain of say $50k is a perfect world scenario. Your contigency plans if something goes wrong are at least as important as your plans for your initial intention. Get it right, you’ve gained $50k, get it wrong and you could lose your shirt.
I know this sounds alarmist, but better to be safe than sorry.Hope this helps…G7
No, unless you’ve used a service they’re providing, then there’s nothing to pay for. If they send you a bill, turf it or pass it onto Consumer Affairs and find out what they think of investing seminars.
How ’bout the Hawks now?
If we can pump Brisbane by 8 goals, imagine what we’re gonna do to the Dockers…? 80 goals!?[biggrin]
A bribe is a good idea, but a Solicitor’s letter might be even more effective. At last resort there’s always the option of some bad publicity for the builder in question (whichever way you decide to swing that).[wink]
Greg,
The reason it wouldn’t be working is that you need adobe acrobat reader to view the *.pdf file.
You can download a free version at this address;
http://www.adobe.com/products/acrobat/main.html
It’s a handy application to have and seems safe, besides HTW’s report is well worth the read.
Hope this helps…G7
1. Finds property for people for a fee.
2. There aren’t really, if they dont find property that their clients want, they’re responsible for not getting their fee.
3. Talk to other birddogs on this forum and search this forum for similar subjects. If you can find properties that are cash flow+, or ripe for development etc. and you’ve got people willing to take these properties for a fee, hey presto! you’re in business.
4. NoObviously this is a quick gloss over of what it’s all about, but if you’re that interested about it, it won’t be that hard to track down the info you’ll need to get started.
Hope this helps…G7
Looks like you’ve got a pair of demanding, whingey tenants. Or they could have a locksmith as a mate, $750 sounds far too excessive for locks. Or they could have upset someone nasty and are preparing for when he comes looking.
If you keep dishing out, they’ll keep needing new things for the flat. You could always say ‘pay more rent’ or you’re not getting it.
And besides, if they get broken into, it’s their stuff anyway, not yours.It simply sounds like another case of ‘lets see how far we can push the landlord’. I think these people might be on the take.
