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Great responses, thanks for the time taken guys.
As stated earlier I have dealt with MB’s before but purely in a owner occupier mindset. I would have assumed that strategy and the properties you buy has an impact, but I have clearly underestimated how much of an impact, all part of learning I guess.
Again, thanks for the responses.
Really? I can entirely accept that may be the case, and evidently is, but how do you approach the market as an investor if you cant work out your capacity? Do you just put in an offer and work out if the banks will lend later?
It may seem like a stupid question, but my experience is purely owner occupier so its all a bit different.
I can very easily set up a budget and work out my capacity for repayments but that means nothing to banks and their lending criteria.
Thanks Corey,
I’m really trying to figure out a ball park figure, ultimately it will depend on the property but I’m not really sure where to look until I have some idea if my potential to borrow. The info Richard has provided is exactly what I was after at this point.
Cheers.
Thanks Richard, very helpful.
Id love to take these off your hands. Im in Ipswich but I would be willing to pick them up today if youre available.
What suburb are you in? Im on 0448952858. If you msg me your number Ill give you a call.
Concrete is better, but I would say that, Im a concreter.
For comparison concrete is around $50 a square metre, more from a big company and less from a dad and dave team.
Stepping stones and gravel would be very easy to do yourself, depending on access. Just level the area and remove any grass/weeds and put some builders plastic down to stop them coming back, place your stones and backfill with gravel.
Just be careful with drainage, you need to make sure it wont become a big pool of water but also not too steep otherwise the gravel will follow.
Firstly I have to say thank you to you all. I really appreciate the responses and this forum is obviously a great knowledge builder. I have broken down the points to respond and clarify.
You haven't indicated what sort of income you are on.
I am on $70,000 and my partner is on around $20,000
I would suggest meeting with a good broker
Im halfway there, I met a broker, but even with my limited knowledge of structuring I feel like he doesnt grasp the ideas. Hes a disciple of the negative gearing strategy above all else which I think has limited benefit for someone in my income bracket. I think its time to broaden my search.
determining if serviceability or security is the hurdle
This is a great point and I guess thats where I need to look now. When you say security do you mean that banks prefer certain types of security or are you simply referring to the LVR and potential growth? My outlook thus far has been to get something that is minimally negatively geared with the aim of positive returns in the medium term. How would my situation RE financing impact this? I guess my question is how do I determine which is my hurdle?
Gus your first entry is mired in confusion.
I guess its a mix of inexperience and hesitation. I am currently researching all I can and at this point I can only rule out strategies I dont like. Also I think most would agree that the first purchase is one of the biggest, given that its all ahead of me and if thie first purchase is not a good one, it pretty much ruins all future prospects of growth. In fact it is 100% of my portfolio.
In my view you have set up the discretionary trust a little early, as half of the benefits you can get as a tax deduction happen at a personal or owner level
The reason i set up the trust was to direct any future income to my partners name and avoid stamp duty from transferring it over later. Any purchases I do make I hope to hold on to forever so buying in the trust from the beginning seemed logical. The only tax deduction I was aware of was depreciation and deductible interest which I had assumed were all legitimate deductions within a trust. I am aware that losses cannot be distributed but they can be deferred to a later financial year inside the trust. If there are flaws with this thinking I would be very grateful for your advice.
By doing this i also increased the rental yield
This is exactly the sort of project I would love to sink my teeth into. I guess its a matter of spotting that potential in a property and within budget.
I guess my journey from here will be to continue saving, get some good advice and research value-adding techniques that suit me. Thanks again for you responses.
I guess thats what my question comes down to. Am I better off looking for good growth on my first property in order to expand the portfolio or should i look for good returns. I guess the ideal would be to value add and look for both but I have found it hard to get any info on splitting to dual occupancy or subdividing. Is there a good starting place to get this kind of info re value adding. Ie where do you apply to (certifiers or councils direct) and what kind of costs are involved, and what kind of things to look for in a potential property.
