Forum Replies Created
A lot will depend on where you are located. It sounds like something that I've done to help a lot of new investors out, and it can be invaluable to have an experienced person by your side. If you let me know what town / state you're in, I'll PM you some contacts that might be able to help. And I'm sure that everyone else in here is going to have a few names for you as well.
It really depends on which state you're in, and also which agent you are using. I buy a lot in NSW, and I always get my solicitor to handle the contract because he knows how I like them done. It's just a matter of finding the common ground that everyone is happy with. However, in NSW, typically we get to haggle over the contracts prior to signing, rather than having to sign it on the day we accept the offer.
Where abouts are you located?
You're already on the right path, get it valued, get anything fixed. Depending on how much you have paid off, you may always want to ensure that you have your loan account set up correctly.
Also, don't get too carried away with repairs. I know that some people tend to get carried away when doing their tax returns, don't forget that if it's a repair, you may be able to claim it, however capital items can only be depreciated.A common saying is that you make your money when you buy – ie, buying the right property in the right area at the right time. In most market conditions, if you have an eye for it, reno's can work. In some situations, they work very well. However, they also come with plenty of risk, so doing your homework is a great idea.
Work out what you are good at, what you are not. Do your budgets, talk to as many people as possible, and most importantly, be patient. Don't rush into something before you've got it worked out or ir can come back and hurt you. If you don't feel that you want to be so full on, then a simple buy and hold strategy may work.
And if you're thinking of buying and selling to build up more $$'s, don't forget about capital gains tax. Ouch.
FS
Quite a few questions there! Depending on where you are located, it could make a difference. If you buy a PPOR to live in and them move out, you may get the best of both worlds, being govt assistance as well as an investment property in the end, however you may not want to have to move so often and/or lose the place you're renting at the moment.
If you''ve got the ability to pay off non-deductible debt, then haivng a PPOR and paying the debt down quickly WHILE buying investment properties can also work – comes down to comfort – and then utilise an accelerated debt reduction strategy.
I would suggest that you spend some time with someone in your area that really knows what they doing, becuase I can see a lot of stuff that I would be talking to you about, however I can't offer advice on the forum being a planner. It may cost you a few hundred, but could really be worth it. If you post your location, I might even be able to refer you to someone.
FS
A conjunctional sale is where one agent works with another, and they both take a % of the fees. In that sence, it's down to the individual agents how they share things.
If you're talking a normal sale, I've seen anything from 1% up to 3%, dending on the property, the market, and who is doing the selling. Genuinely talented agents tend to charge a little more, beucase they know they can. It's not always a case of getting what you pay for, but it's very property dependant.
If this does not answer your question, you can put a little more info about why you're asking the question and maybe we can help out a little more.
FS
There really is a difference. I've seen anything from a one page spreadsheet to a full, comprehensive multi page report.
Different companies will give you different amounts of depreciation as well, so the higher it goes, the more comprehensive you should – helps if the ATO asks any questions, you have a solid details to go off rather than a cheap spreadsheet.
Reputation means a lot, so depending on where you are, I'm sure someone on the forum could recommend who is best in your area.
FS
Tony and Ed are good guys, and they know their stuff. Probably is one of the better books on the market at the moment.
Regarding your questions, I'd seek some proper advice – could you probably engage someone for about an hour or so and suck enough information from their brain to get you heading in the right direction. It might cost money, but it would be money well spent.
FS
I don't personally know the group, but a few things to keep in mind.
If you're going to buy a property through someone else, do your research. There is nothing wrong with buying through an investment property company, as long as what you buy prepresents both good value, as well as suits what you need in an investment. One of the problems with a lot of these companies is that they have only a few projects that they are promoting, and they try and fit everyone into them.
It's actually possible to have a property cost $0 per week, but it's never quite that easy. You'll have rates due some weeks, so those weeks will be negative, same as insurance and strata fees if it's a unit. If you're income changes, the tax changes and you may end up paying more or less. If interest rates go up, then it's going to cose you more. The number of elements that can chance are as long as my arm – and this will all have an effect.
If you're thinking of buying a property, you can always post the details of the property on here and ask for comments – that way you're getting genuine honest feedback.
Hope that helps a little – looking forward to seeing if anyone has dealth with your particular company.
FS
A HUGE congrats to you – it's hard work and you did it. You are living proof that if you set your goals and work hard, you do get there. Now you're at the next stage of your journey with a great foundation of experience and knowledge.
Well done.
FS.
I know the guys there and I've watched them grow from a tiny operation to what they are now. It's a good story, they cater for a wide range of people and do genuinely have some good deals.
Just like with everything else, if you're good at what you do and you do it yourself, you'll get good results. If not, call in someone that knows what they are doing. However, property is very much down to the individual purchase – you make your money when you buy, you just don't get it for a while. So, they are going to have winners and losers along the way.
Just do your own research, and do it as thoroughly as possible. Just just with that company, but anyone that you buy a property through. They can open a door, but you have to decide if it's the right door for you, and if you want to do it.
FS
I think that reading all the posts on here is pretty close to a course in property investing…
Seminars are good, great even – however a line I give all my clienst:
"Advice is just someone's opinion – that you pay for"
Harlee,
Have to agree with everyone here – some good advice will go a long way with you. There are multiple ideas that you can use to protect your assets, and not the just things like property, even the business can be better protected than how you have it at the moment. There are also other advantages with regards to tax, banking and lending – the list goes on.
I see many clients that come through that are in similar positions – husband and wife who run a good business, but it's all on the line. You do all the work, you take all the risk, and if something were to go wrong, you get the blunt end of the deal – and those that haven't put in the years of hard work walk away with your assets.
It's not a nice feeling, and some solid advice will ensure that it doesn't happen.FS
Hi Matt,
I think that you should probably spend at least an hour sitting down with someone going through the most appropriate structure for your needs. Yes, it will cost you money – but the cost of getting things wrong will make that pale in comparison.
Where are you based? Collectively, we'll all know at least one person not too far away that can help.FS
Hi Badger,
Happy to nominate our firm here
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Follow the links below to learn a little more about us, but we've met a few people off the forums over time, and we always seem to be able to provide the adivce that people are looking for. Also, we're in the Sydney CBD.Cheers,
FS
If I knew a little more about your situation, I could possibly help. Obviously, the more equity and assets you have, the easier. If you want to post more info, or send me a private message – it could potentially help.
FS
Hey there!
Kaplan is great, they are well recognised and have been around for ever. Tibeca took over the securities institute courses, and then merged in with Kaplan, so it's all one bit happy family.
Correspondance is usually the cheapest way to do it, but I've known many people that don't actually finish.
Another alternative is Pinnacle Training – their website is http://www.pinnacle.edu.au. We've had staff use them as well as Kaplan over the years, they're just as good as each other (but I'm sure they will each argue to the contrary!)
Hope this post isn't too late… I'm a bit of a bulk poster!
FS
I'm not sure how much you can borrow, but I'm sure with the right numbers some of the other guys here can help. However from a tax point of view, it's easiest to think of more general terms and define yourself a rule of what is and what is not deductible. I usually use "What did I do with the money?" rule – being, if you used the money to buy something that generates income (investments, business etc) then the interest on that money is deductible – if you used it for yourself (car, home, home rennovation, holiday etc) then you can't claim a deduction.
So, if you move out of this place and turn it into a rental, any money that was borrowe for that property (the rental, not the new place) will be deductible, including the rennovation funds – however any money that was borrowed to fund the new place (the $46k you're going to use as part of the deposit) will not be.
Hope that helps a little!
Hi Kuradji,
I would suggest that you talk to this guy – he's fine for a quick chat on the phone about what you need, and he really is very good at what he does. You'll have to pay him to take things further, but you should be able to get a good feel over the phone if he is the right guy for you.
Property Tax Specialists
Barbara & Co cpa
phone 02 9411 8133
fax 02 9412 2833
mobile 0410 588 305
post: P.O.Box 665 Chatswood NSW 2057
office: Level 5 Suite 509, 71-73 Archer Street
Chatswood NSW 2067
website http://www.propertytaxspecialists.com.au
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