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There are a few courses around but, like most uni courses, you only get general info. Nothing beats experience.
Megan
http://www.propertyhub.net
Your Investing and Developing Information Hub.As well as all of the personal characteristics (willingness to learn, enthusiasm, passion etc) you need to be really detail oriented. An understanding of numbers is really crucial as your deal will live or die by whether or not it is profitable. You need to know how to do a full feasibility (allowing for as many contingencies as you can think of) and a full knowledge of the process.
Lastly you have to realise that you might look at 200 deals (or even more) before you find a site that pans out – and not sell yourself short just to get one under your belt.
Hope this helps.
Megan
Megan
http://www.propertyhub.net
Your Investing and Developing Information Hub.Contact me by email. Have some wrappers who might be interested.
Megan
Megan
http://www.propertyhub.net
Your Investing and Developing Information Hub.As a mortgage broker, I can highly recommend Kim Burke from Avibe Finance. Investor/developer herself and really knows her stuff!
Megan
Megan
http://www.propertyhub.net
Your Investing and Developing Information Hub.PT and others
All great questions. I too, have a great bank manager but also deal with brokers. I have no loyalty to any in particular – at the moment it’s whoever will get me the best solution for my needs – although I agree that a good broker can be a great ally.
Re: Real Estate Agents – I agree with g7 – they are a necessary evil and you can’t count on them being on your team – in fact, they’re supposed to work for the vendor (although most just work for themselves).
Regarding other advisors, anyone on my team MUST be an investor themselves – my accountant, my solicitor, my broker – otherwise how can they give you advice if they have no “real” experience. It takes a while to find good people and there are a lot on this forum or recommended on this forum.
Don’t let your age or what they think of you get you down. As a female I also get treated with indifference sometimes, esp. from some agents who apparently believe that my gender disqualifies me from making intelligent decisions – esp. if I challenge them or seem to know something of the market. All in a day’s work!!!
Keep moving ahead and you’ll get there!
Megan
Megan
http://www.propertyhub.net
Your Investing and Developing Information Hub.I did hear of another property like this a couple of years ago, also in Brisbane. From my limited understanding, the purchaser was able to purchase it for the full amount of the debt – in that case it was substantially under the value of the land (if I remember it was about 40%).
Seems very much like the foreclosure market in USA although, to my knowledge, it’s not done much here. If the land value is decent, might be worth it.
Yes, check out the “eviction” stuff – perhaps a call to the mortgage holder (bank if you can find out who) or solicitors might shed some light.
I’d be interested to know how you go.
Regards
Megan
Megan
http://www.propertyhub.net
Your Investing and Developing Information Hub.If it were me, I would be buying now as the longer you leave it the more growth you sacrifice.
The above posts are great thoughts.
Megan
http://www.propertyhub.net
Your Investing and Developing Information Hub.Hi All
Couldn’t agree more with everything that’s been said.
Just another point – it’s not only tenants that might sue you. Car accidents, business dealings, employers, etc – it’s a minefield out that and, if that’s not all scary enough, NSW is now the second most litigous state in the world!!!!
Yeah, thanks to all the ambulance chaser lawyers and other of their ilk advertising to sue just about anyone for anything, you can’t have too much protection.
My thoughts – one asset = one trust with a coy trustee. And most importantly, get advice BEFORE you do anything as it could save you a fortune.
Megan
http://www.propertyhub.net
Your Investing and Developing Information Hub.There are a number of threads on this forum that deal with this question exactly. It’s one that seems to come up a lot.
I have a friend who was in her late 40’s and had never owned a property. She continued renting in Sydney, and bought her first investment ppty in QLD, (cheaper to buy/better rental return). 12 mths later, she bought her second (also in QLD). Now she’s up to her third and also has just bought a place to live in in Sydney. She (and I) doubt that, had she gone down the owning road first, that she would have gone so far so fast.
Hope this helps.
Megan
http://www.propertyhub.net
Your Investing and Developing Information Hub.Kasia
Good advice from Arny. Building can be expensive and often more so than you think. It’s not only the house, but the landscaping, carpets, fittings etc that start to rack up the $$$$ and, all the while, you have no income.
As well, not all buildings are worth more than what you paid (land+Bldg cost) when complete so you will more than likely have significant negative cashflow.
Make sure you do the numbers right before you go ahead and, if it all stacks up, go for it. Otherwise, it might be a better idea to look for property that will produce income from day 1 at this stage.
Hope this help.
Megan
http://www.propertyhub.net
Your Investing and Developing Information Hub.Paul
Not sure what your question is but if it is Should I keep renting and buy and IP? then there’s a couple of recent really good threads that talk about this.
Check them out on this forum.
Megan
http://www.propertyhub.net
Your Investing and Developing Information Hub.Scott
The banks seems to have a couple of lending “tiers”. First is serviceability i.e. your ability to repay/lending on income. This is the traditional way or lending and the bank’s first “port of call” esp. for new investors.
Second there is asset lends – where they lend against the value of the asset. The Low Doc/No Doc loans around today live in this area. Banks are less likely if you have no/little track record with them so you might have to try alternate lenders/brokers who don’t seem to have too much trouble.
Once you exhaust the above, there are still ways however it becomes more complicated and creative.
Hope this helps.
Megan
http://www.propertyhub.net
Your Investing and Developing Information Hub.Scott
Good on your for thinking ahead.
Too many people dive in without the right support team and pay the price later on.
My general advice is – find people who already do what you want to do and take their advice.
Here’s my support list:
Accountant – a good one is crucial. Make sure he/she knows and understands property and is a property investor themselves. So many claim to know but, as Weston said, are still working themselves into the ground at age 65!Structuring Expert – could be your Accountant but should be a specialist in this area, usually not the local “JOE”. Could save you 000’s and 0000’s if you get it right upfront.
Lawyer – you’ll need a good one esp as the deals get higher or you get into development. Again, preferably one who invests himself/herself.
Finance Broker – ditto above. Don’t necessarily develop an loyalty to one bank or lender (unless it suits) – in fact, it works in your favour to
have a number of banks/lenders lending you for your portfolio.Financial Planners – have never been able to find one that is any more than a commissioned sales rep for fund managers. They all rabbit on about “balanced portfolios” but not one I’ve ever met has ever recommended direct property (perhaps because there’s no commission in it for them – she says cynically[comp]. If anyone knows a good one, please let me know.
Also on the team – at some stage – valuers, building inspection/pest inspection people, real estate agents and, if developing – architects and town planners.
Hope this helps.
Megan
http://www.propertyhub.net
Your Investing and Developing Information Hub.Cojah
I’d leave the REA’s out of the picture if you can. I find that sometimes the make what could be an easy transaction complicated.
I always prefer to deal with the vendor directly as often a win-win can be agreed upon whereas a REA will often talk a vendor out of a deal because they’re anglng for more/faster/higher commission.
I know that not all REAs do this – and some are very good – but if you don’t know the agent, I’d try the vendor first.
Hope this helps.
Megan
http://www.propertyhub.net
Your Investing and Developing Information Hub.You can claim the interest on your loan that directly applies to the earning of income i.e. if you use 1/3 as office space or workshop then you can claim 1/3 interest.
BUT BEWARE – as is rightly pointed out above, you will open yourself up to Capital Gains Tax if you claim any of your interest. This applies, obviously, if you sell the property however it can be hefty so I would weigh up the pros and cons dependent on your intention for the property.
Hope this helps.
Megan
http://www.propertyhub.net
Your Investing and Developing Information Hub.Yep, I think you are stretching it!
You can only claim costs directly incurred with your income producing activities. The fact you have a child that can’t be left at home alone is not the concern of the ATO. I guess their question is why do you both have to go?
Ditto the dog I would think!
Hope this helps.
Megan
http://www.propertyhub.net
Your Investing and Developing Information Hub.Here’s the way I do it. I always look at outcomes and then pick which best fits with my investment strategy. With $200K you could do one of the following:-
Buy 1 property @ $400K with 50% deposit. In 10 years (hopefully) it’s worth $800K and your asset base is $600 (cost of house less loan owed).
Buy 2 properties @ $400K each with 25% deposit each. In 10 years they’re worth $1.6M and your asset base is $1M
Buy $1.6M worth of property. In 10 years you’re worth $1.8M.
To me, it’s all about the leverage. Having said all the above, of course, I’ve made some assumptions.
1. You can cope with the cashflow (probably will be negative) or have used equity to top up negative cashflow.
2. You feel comfortable with debt (assuming that you do if you’re a fan of Kiyosaki’s).
3. That property will double again in 10 years (I know some people on these forums will argue that point however in my 30 yrs of owning property I’ve found that’s happened to each and every one and only wish I had more!!
4. You don’t want to borrow any more that 80% LVR (because if you go higher you will exponentially increase results as suggested above).There’s a good article in a Property investor mag about 6 issues ago about the whole leverage/using as little cash as possible scenario.
Try to get hold of it.
Just my thoughts, for what they’re worth.
Hope this helps.
Megan
http://www.propertyhub.net
Your Investing and Developing Information Hub.Went to Peter Comben’s course when we first started developing. It’s very good, although very basic. If you don’t know much about it, it can be a great start plus you’ll meet others who do it or are starting out. He concentrates a lot of feasibilities – which are pivotal in developing.
Having now “been there/done that” there is no better learning than actually doing it. I read everything I could and learnt everything I could but still found the first one to be a huge learning curve. Every one after that is still a learning curve because you never get two the same!
Having said that, it’s hugely rewarding and lots of “fun” if your passion is property.
Prospective/beginners developers can get some free info on our site too.
If you’ve got questions, give me a holler!
Good luck.
Megan
http://www.propertyhub.net
Your Investing and Developing Information Hub.Country/regional areas are typically where you’ll find some cf +ve ones – rather than city.
Developing property still, for my money, gives the best returns however, of course, you need to know what you’re doing and do it carefully.
Otherwise wrapping (if you like it) will always give you positive cashflow and perhaps a couple of these might set you up to get into others/more.
Re: the hard money concept, hellman, had a friend try this and he had all sorts of problems with lots of defaults and then messy recoveries. Having said that, there is money to be made if you’re game.
Hope this helps.
Megan
http://www.propertyhub.net
Your Investing and Developing Information Hub.I think you can get these details from RP data, but you need a subscription.
Otherwise try the council although the privacy act may stop you getting the info.
Megan
http://www.propertyhub.net
Your Investing and Developing Information Hub.
