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if you are looking for a safe rental income then i would have to recommend the group that rents my property, Homes North. they are a goverment funded, non-profit group that rent to non-rentables, meaning people that have either not paid rent or have damaged there other properties and no one will rent to them any more. sounds pretty scary i know but when you get paid your rent one month in advance on the first of every month whether some one is living in the house or not, as well as any and all damages done to the property (out side of general wear and tear) are covered as well, it makes for a fantasic IP. oh and they also work as a PM for the siimple fact is that you don't need one, they will get quotes for any maintence then pay for it up front and take it out of the monthly rent.
you will not be buying great properties but the rent is higher due to the type of tenent,, and have found it to be a great starting place for new investors,, or people who see a reno or development site in a few years time and just want to hold the property hassle free for a few years.
hello
it is all about balance, if you cant sleep at night due to worry then buy something cheaper, as long as you make a start you will build confidence with time.
Hi, this is someone else's idea but i will forward it.
If you have some good negative geared properties for around $350k with good CG, then buy 2 of them, work out how much money they will be taking out of your pocket, and get a small line of credit that will cover the loss for 3-4 years. By doing this your CG wll out ran your losses by a fair bit. eg. you have a loss of about $15k per property per year, but they rise in value by at least 8% per year (average returns) you will still come out in front.
Try your own sums but it will work out in every area besides a flat line market.
king
hi all,
well since i have never heard of a unit trust before i would like to know everything, how they work with property, how they share risk, what is needed to start one and how much will it cost to keep it (running costs). ?????
surely there has to be some kind of infomation out there on these, how does anyone learn about them.
brain fart, people would learn this type of product at a university, which means that they have to have some information on them. thanks for the brain storm.
GetRichOrDieTrying,
if you have plans on buying a property to live in within 2 years why not just save as much as you can in the place you are in right now, by the time you buy a place, pay all the fees and charges and mortgage repayments you will be worst of then if you just saved the difference between your rent and your future mortgage repayment.
just remember that rent or mortgage interest is just dead money so pick the lesser of two evils for the time being.
hi there,
i heard of this from a friend so not to sure if it will work or not but some one here should be able to correct me if i wrong.
depending on who pays the most tax you or your wife buys the other person out of the IP, putting it in there name only, then use the cash to pay down your PPOR.
the person who did this was in NSW so different laws in different state but it might be some thing to look into.
will cost you some money up front but saved them thousands in the long run.
hi there,
what i did was get on to real estate.com and lookied up previous sales in the area and that gave me a good indication.
bronte,
Have you ever thought about gettig a financal backer ? ths is a person who can see you have a reno gold mine and will pay for the reno's to be done and take there upfront money as well as a large chunk of the profits, but you will not loss anything.
what i would do if i was you would be to grab the phone book and start calling builders in the area and running it pass them, what is the worst they could say……… NO.
if it is in a boom and all it needs is a few touch ups by someone who knows what they are doing then start calling and find someone who can do it, put an ad in the paper "tradie wanted for renovaton partnership, large profits" then split the profits 60/40 or 70/30 and be happy that you got 30% of something, then paying all of everything for nothing.
just something you might want to look into.
hope it all goes wellis buying a house no money of your own really that hard?
hi,
google "pod property" they have done up the documents just that, for a fee of about $350.
hi there,
for your legals under a JV , i was told about pod property, and it seems to be a pretty good set up when it comes to JV contracts, they will try and sell you there loans and other services but they may be just what your looking for. i think they work on a house by house bases.
just google pod property and you'll find them
hi all,
in your situation were you want to buy a property, so it up and sell in your local area and the market is at it's high point then my view would be to start looking but don't buy until you are sure it will work. the saying "the best time to buy property is now" is true but the rest of the saying is "somewhere" so if you do want to buy in your area and you cant find a property that is a great deal then don't buy one. you may find one that isclose to what your looking for but unless it is going to be profitable, then why loss your money when you are getting 8% already.
basically don't buy just because your ready. there is another saying that you as a handy man should know,
"measure twice, cut once"know it will work, before you comment
contrarian,
thats just straight up nasty, just a question for your self, how big are your horns? the way your headed you'll be a defences lawyer very soon.
i must of meet your clan buddy the other day cause he said to me "if you want to get ahead in life, the only way to do it is to take out life insurance on a homeless bum then ran him over and claim!!
i hope they were are both joking and if not, enjoy hell!!!!
but if you want a basic investing stratagy then try mine, find the area you want to invest in then jump on the net and look up the public housing groups that supply housing to unrentables or people with bad rental histroy (don't pay rent or damage the property) and buy a house that they currently rent or a property that they will rent off you once you buy it. (there will be a lot to choose from with the current housing market, one organisation had 600 properties in NSW alone) you should get you normal rental price, or sometimes higher.
now here is how you make it positive geared, because both the rent and any damages are guaranteed under the lease agreement you don't loss out besides basic wear and tear, and because they will do the collecting of the rent and will also organise any repairs needed, basiclly they do every thing a property manager does but at no cost so you are gaining about 5-10% just there. but this is just a short term investment for they will not lease your property for 20 years they will for about 3 years or so, so what you do then is, because the properties are usually of a lower standard you take your positive gains that you made for the prevous years (which should be kept in an off set account and not touched) and do some cosmetic improvments to get CG then move on to your next one.
i bought my first one for as little as $88,000, with a rent of $135/wk paid one month in advance. and the banks love that the rent is guaranteed.
it would have to be the easiest way for a newbie to enter the property market
"DO WHAT YOU CAN, WITH WHAT YOU HAVE, RIGHT WHERE YOU ARE."
i have to disagree with your comment about "there are no +ve properties" i am a first time investor and within 2 days i found 3 +ve geared properties. and that is at 95% LVR and if i dropped it to 80% like steve says there are loads of them but if you want +ve geared you might have to give up CG for a few years.
A lot of people say thet they read steve's book but do they understand what he says about buying in regional towns and to buy for CG or +ve geared. exceptions are every where of course.
i don't mean to be nasty but if your going to claim that you have done something, do it !!
i can read instructions on how to build a model plane once and understand the steps needed and then say that i have read it, but i will know very little about building that model plane if asked to do it in one months time, let alone one years time. true knowledge is something that is practiced daily.
just something to think about.
newbie investor
hi all,
i have been saving for a year or so and saved up about $12k, i have put down 5% deposit, or $4,400 plus all legals buying costs of around $5,000. budget of $10,000 covered it. i offered $82,000 and when they refused i asked for the rent on the lease to be increased by $5 after 6mths so it would cover the increase to $88,000 (or at least close enough). i had a very nice sister tell me that when buying a house for investment you have to realise that if you don't get this property for what you want ou will find another if you keep looking.
now the property that i bought is not in a CG area (small country town (7500 population) north west of NSW) but it is the worst property on the street so with a little money it will make CG but until i save enough to do the renos and don't have the lease in place (or at least have no tenents living in property) i will spend $10,000 or so and use increase in value to buy another until i an part of the 2% of investors who have more then 5 properties.
i am starting small so i can learn the pit falls of investing with out beaking the bank, buying in a different state and buying sight unseen is because of the benefits of the property (rent and damage guaranteed & with some cosmetic improvements needed) but the thing i have learnt is that great deals are out there if you spend some time looking and think out side the box
quote of the day,
anyone can do anything, from where they are, with what they have, as long as they want it bad enough.Jason
if i was in your shoes i would buy 3 properties in neat areas, for around $200k each, only paying them down till they are just -ve geared ($100-$200/yr) and just sit back and let them grow and just keep doing your jobs and living your life. if you can save up $70k and have about $90k in equity, and not made a move already you must be happy with life and are in no real hurry to invest. doing this will give you ok growth and you will have cured the itch that tells you to invest.
and if you do buy multiple properties remember to spread your risk over different suburbs,towns or states. the whole eggs in one basket thing!! unless you know something special of course.
but that is just my view of your situation, every ones different.emmajane06
thank you it is just what i have been looking for!
springwood and roachdale were the two areas i looked at and both had a strong growth history
hi there,
just one question, Why sell?
