Forum Replies Created
- Originally posted by jhighlo2001:
– does this mean that the livable space would be (100 m sq) – i.e adding up all the rooms (and probably wardrobe space etc..) or would you assume this would include service shafts and wall cavities?
What would you assume?
I assumed it was evrything inside the walls. Eg if
you took out the internal walls and measured it up, also your car space can be included and balcony.Of course sales ppl can give a different perception verbally when pushing the sale.
Originally posted by elika7264:Hi All,
The whole valuation process seems to be rather ad hoc, [angry2]. I was wondering if there is some way of controlling (or at a minumum having some input) into the final decision.
Several years ago I attended a seminar — the presenter mentioned that he used several of his bank’s valuers to assess his properties — over the years he had built up a personal relationship with these guys — also he could via his relationship manager at the bank, request which valuer he wanted to undertake the assessment of his properties. In this manner, he was able to secure high valuations and thereby borrow maximum dollars. [rolleyes2]
Does anyone out there have a similar experience wherein they have some involvement (even if indirect) in controlling the valuation of their investment properties.[eh]
Any advice is greatly appreciated.
Regards
Helen [cap]From experience when the market is moving up, you are likely to score what you consider a friendly valuation, if the market is moving down everyone slips into covering their own butt mode, and valuations have appeared more conservative.
That’s just my perception.
Originally posted by g7:The right investment structure (trust, company), I believe, is as important as the right property. I disagree with your accountant. If he has made good money on property, go with him, if not get another accountant! Hope this helps- G7
Had a client years ago who bought two investments properties with his brother. Spent #### on two trusts, a unit trust and two trustee companies. All excellent advice ..except they were negative geared. Lots a tax losses accumulated for a rainy day. Got around it by lease backs etc., but was a lot of monet for nothing.
Originally posted by yack:I said <<<<100k people a year net migration>>>
You said <<<<For starters they do not reflect migration out …yes it happens. >>>>
My figures are rough and net means in less out – i am not really into statistics.
Sorry Yack, selective blindnes on my part. I just don’t trust the migration figures that are being churned out at the moment.
Originally posted by yack:Dont forget population growth. As property investors we should welcome as much immigration as possible. I am not sure of the figures but I think on average we have about 100k people a year net migration into our great country.
This has also helped the Boom.
I think ppl with vested interests have been playing with these figures.
For starters they do not reflect migration out …yes it happens,
Originally posted by Ibuycashflow:In the past, sharp increases in interest rates have resulted in significant reductions in “new construction”.
When new construction slows, “occupancy demand” for existing properties begins to improve, hence putting upward pressure on rents.
The effect of this is improved cashflow positions which may offset any expected reductions in the property value.
Agree or disagree?
Cheers
JeffIt can also have significant impact on investors depending on the extent of debt in a rental property, as for the highly geared the interest increase has often exceeded the rent increase.
Now the circumstances you are talking about has another rental adjustment, as when unemployment increases (cause thats what happene .. when building stops ) ppl feel if they are going to be out of work they move to the coast, (out of Sydney & melb ) cause its cheaper and you can always go to the beach. This keeps will tend to drop vacancy rates.
This effect holds rents down, until the economy starts to recover, ppl come back to the big smoke for the jobs … and life goes on.
Of course this is all pre Bubble, and we all know that things are different now….only time will tell.
Thanks Kay, very interesting. I live in the NW at Glenhaven (the suburb is actually over a hundred years old, the original post office is a couple of hundred yards up the road .. fell over last year) and the change has been amazing.
We moved there for lifestyle (5 acres ) somewhere to run the dogs chase the snakes (dogs have killed 4 so far ) marvel at the Echidnas ( you know the little spikey moving balls …sorry for the spelling )
Only problem is now is that suburbia has surrounded us. Heavy traffic in the morning, the red army in the mall (the HRT jackets ) every new home in the street is bigger than St Andrews Cathedral ..
Oh well thats progressOriginally posted by Malachii:GMH454 – The tenant had secure tenancy as they had just signed a 2 year lease so there is no way a new owner could have kicked them out. We could only sell the place to an investor.
Very strange .. does not make any sense at all.
Maybe the tennant is just seeking secure accomadation. If bought by an owner occupier what would have happened to them. Are they not entitled to look after their own interests.
Originally posted by Aceyducey:Yawn
Terry, since you’re so negative about it I suggest you sell your your assets immediately & retire to a commune where you will not be effected by the coming crash.
Rates go up, rates go down. Serious investors make money.
And no, you can’t help everyone who makes a bad decision. THEY have to decide to do their research.
Cheers,
Aceyducey
In theory, there is no difference between theory and practice. But, in practice, there is.– Jan L.A. van de Snepscheut
I did not know I said anything about a crash, did not know talking about econimics was being negative. If you can find any of my quotes in this topic as being emotive please post them.( the Banana quote might qualify but it was meant to highlight that interest and international $$ are related, not my view of what would happen )
Having paid 19% I feel 9% is low.I’m not worried.
And as to the commune quote…..seriously…
Quote:Originally posted by westan:. They could cope less with a 9% interest rate than we could.
quote]
Westan agree on that, but we may now have had a break between international rate parity. They are about 4 pts below us, and if that stays as parity if they get a rate of 5-6 % we could face 8-9%
Now something else may happen, but it is a possibilty.
Personally think Greenspan sleeps at the wheel, and they are still in the grip of boom bust cycles. Also part of the get rich quick mentality.
Terry
Originally posted by westan:Hi Jon
i really can’t see interest rates anywhere near that level. Inflation would need to be out of control
Here or in the US ??????
We are not an economy in isolation. If other econmies pick up we could see capital flow out of Australia to such an extent that rates must go up .
Any idea what 45c dollar will do to our balance of payments.
Can you say Banana.
It is not just inflation, although thats all Peter and Johnny would like ppl to beleive.
If the US picks up real speed, we either eat our currency or rates will return to a neutal setting, (or neutral plus 1 1/2)
9% is not high interest !!!!
Terry
Originally posted by butterfly:Iam looking at a property currently owned by a bank.They want to sell then lease back long term.
Butterfly[worried]AND when the bank moves out you will lease to …..who ??????
Originally posted by Yorker:. The region seems undervalued
Depends on how you see the market. Had a client buy in Batemenas Bay last year, it was not cheap, and some of the little cottages around Jervis Bay made their owners millionaires (or close to it )just after the Seachange TV series.
Think it might have already been picked over.
ABC ran a piece on this back in May or June. It actually has population growth, not just price growth. First time in years.
It is the seachange. Mainlanders selling out cashing up and retiring down there. It was described as our equivalent of Florida (no joke..)
Problem is these people need substantial health infa structure, and Tassie has’nt got it. (neither has NSW but that’s a post olympic storey for another day )
Don’t know how they will cope with the cold, have a brother-in-law who bought up in Launceston and he is talking of relocating before he is out of his first winter.
Maybe the smart investment will be an upmarket over 55 complex.
Originally posted by MortgageHunter:Quote:Originally posted by AusProp:People aren’t idiots and will only refinance if there is a clear benefit!
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Simon unfortunatley this is not always the case. Had clients in recently hell bent to refinace there $600,000 mortgage and commercial loans. The new broker had showed them that with his line of credit (1%+ over there current rate ) they could repay there $140,000 home loan in 6 years.
How had he done this, he had lead them down a path by selectively taking their information (they had massively misjudged there current expenditure personal ) producing the result he wanted.
They thought it was a miracle banking product, not the fact that he interpreted that they could live on $50.00 a week.
Yes there are good brokers, and they work very hard in the clients interest but the profession has its share of rogues as well.
Originally posted by Rose:It took them over a week to process my application.
Its amazing how our expectations have changed.
Originally posted by jhopper:I always thought that the selling agent was obligated to submit all offers to the seller.
I’m puzzled by this as I have seen this here often.
My wife and I have our PPOR up for sale, its speculative as the price is very high, agent knows it and knows we are not interested in anthing less than our “floor” price. We certainly don’t need any low offers being passed on to us and wasting our time.
May be different circumstances but if we say we are not interested in offers, why does an agent have to give us some dreamers price.????
Originally posted by kp:can you clarify what you mean by “you get back more in a lower tax bracket”
Its a serious question,Think in gross dollars rather than percentages.
Originally posted by yack:I know where your coming from.
I too hate repairs. But they are a necessary impact of investing. I think of repairs in this way;
1. Have to be done.
2. Get half back on tax so it really costs only half.
3. makes the property better – hopefully less mntnce in the future.
4. Think of the bigger picture – capital gains in 3-5 yrs time.
5. Alternative investments are not as worthwhile in the long run.
6. The longer your an investor the more positive cash flow become the properties.Well said, and you hopefully will have a more tennentable property in the future.
I think you are going thru a unusual timing period, which will even out soon. The next few years may not seem like you are making much progress but when the bbom part of the next cycle comes round (ongoing debate here as to when ) you will be in good shape.
