Forum Replies Created
It is a residential tenancy, leased to a company.
All things are possible to the person who believes they are possible.
Whateve the mind of man can conceive and believe, the mind can achieve.
Napoleon HillI don’t need to worry about the previous water bill as this was paid by the previous owner.
The bond will probably cover the repairs but not the outstanding rent.
Oh well, at least we know where the business is and can send in the sherrifs.
Later………
All things are possible to the person who believes they are possible.
Whateve the mind of man can conceive and believe, the mind can achieve.
Napoleon HillI generally use IRR as a measure for all standalone properties.
Need to make some further assumptions.
rates & management fees 10% of gross rent
maintenance & insuracance 5% of net rent
2.5% capital depreciation of full $100K outlay
all tax based on maximum 48.5% rate ($80K is $10K above maximum rate now but will be phase in point for the maximum rate in the future)
rent, maintenance, management, insurance increase in line with inflation.As no money outlay from our pocket I assumed the $5000 overand above the price borrowed to be a -$5000 initial outlay.
Will have cash flows of:
Year 0 -$5000 (purchase)
After Year 1 +$374
After Year 2 +$856
After Year 3 +$938
After Year 4 +$1023
After Year 5 +$49377Thus get a 64% IRR, not bad at all for a $5000 investment!
CPI adjusted amounts for the above:
After Year 1 +$365
After Year 2 +$815
After Year 3 +$871
After Year 4 +$926
After Year 5 +$43642or the equivalent of $41620 all in today’s $, a nice tidy sum.
Got any more of these sure fire money makers????
All things are possible to the person who believes they are possible.
Whateve the mind of man can conceive and believe, the mind can achieve.
Napoleon HillNot sure about SA but I thought if you made a written offer then it hasd to be presented in all states.
A verbal is worth what it’s written on, absolutley nothing.
Put it in writing and then everyone can see you’re serious. Either get the agent to write it up, fax it to you to sign and then send it back. You get you friend to do it with a pro forma and then you send it to the agent.
Maybe with the low offer yo can have a high non refundable deposit if you are certain with your finance and the property is otherwise sound.
I’ve heard stories with the market the way it is now, vendors have been going back to low ball offering buyers to get them to buy after all as there has been no better offers.
If you think you can you can, if you think you can’t you can’t.
two? ewwwwwww.
nothing said she was changes into clean undies??????
L8r………..
If you think you can you can, if you think you can’t you can’t.
oooooo another -ve geared argument [exhappy]
I guess it all comes down to losing money now in the hope property prices go up or making money now and hoping your property does not go down in value. To me, the second is my choice, at least I know what I have in my pocket each month (I never want to sell). Forking out money from my pocket each month on a prayer is dodgy.
It isn’t all too hard to get +ve CF deals. Just think outside the square, they are not all in woop woop and are little #$^& boxes. Steve’s book has lots of method tried and proved.
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If you think you can you can, if you think you can’t you can’t.
It will end up being a flip, a first for me.
Found out the Vendor was in a tight posi when the agent rung me up (I get on quite well with the guy) saying his Vendor is going nuts and was chewing him “another one”. First time in 20 years he’s had anything this bizarre happen to him as a REA.
Agent basicly was washing his hands of his Vendor as he thought contract had come to an end with the conditions in it.
He turns around with the two new contracts and says no commission and he’ll go back for another 5K on both offers. How sweet it is!
Discussed this with my accountant and even he was scrating is head as to how I walk away with a nice sum in my pocket WITHOUT owning either proerty in the end?
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If you think you can you can, if you think you can’t you can’t.
BIR = Building Inspection Report
The property is being onsold immediately at a profit with the Vendor paying all commissions, SD and taxes.
Later………..
If you think you can you can, if you think you can’t you can’t.
Quite correct Monopoly.
My post was firmly tounge in cheek regarding my dad being pissed!
Should have used one of those smiley thingies………
If you think you can you can, if you think you can’t you can’t.
To my thinking “retire” means that you don’t have to work for someone else or even yourself to survive.
Would essentially come down to enough passive income to meet all you expenses, or sitting on your bum all day and the money would still come in.
Hoping to do that by 40 (currently just gone 37).
I currently consult and think of myself as “semi retired” but this could be “retired” to some people.
To put all this into perspective, my father at the age of 65 has just “retired”. Gets $30K from annuities and part pension but still needs to work part-time for a company to earn a little extra to make ends meet. Boy, is he gonna be pissed in 3 years when I kick my heals up and play more golf than him!!!!
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If you think you can you can, if you think you can’t you can’t.
Most developers will be squeezing as much out of a development and as such will maximise their return for the smallest lot possible. It is also sometime dictaed by government.
I’m currently working on a JV for a large national developer and the government agency tendering out the development stipulate how much of each lot size shall be provided.
Duplex lots are generally in difficult to fit into two normal lots that could be marketable. A duplex sized lot still allows 2 dwellings and sometime provides affordable housing in certain developments.
Anyway, that’s my take on it.
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If you think you can you can, if you think you can’t you can’t.
Hi
from what I recall the population in Katanning has been steadily declining over time as businesses and industry (what i’m not too sure) moving elsewhere.
Later……….
If you think you can you can, if you think you can’t you can’t.
Hi Leigh
The main issue was the dodgy plumbing (shower outfall out onto the backyard!!!!) and internal wall changes (some appeared to be load bearing!). Costs to fix these up probably up to %$5 to $10K.
The other issues was the construction method which would really pose no barrier to termites getting into the place, cha ching!
Adding these up add looking at the age of the properties (25 to 30) it was just not worth the hassle.
BIR also said that building would need extensive work initially and planned and programmed maintenance over time, cha ching!
Who in their right mind wants to get into a deal that will be costing money from day one?
I’ll just keep on looking. Someone will probably get suckered into these properties as they had high yields (12%) but by the time all the maintenenace and repairs were added there would be little left over (if any) to put in your own pocket.
Later……….
If you think you can you can, if you think you can’t you can’t.
Hey Kay
Still keen on CF+ and they are getting difficult to find (quality ones that is) but I’m sure that they’re there. Been wanting to get into LO’s/wraps seriously as these seem like the way to go in any market, your game your rules. B&H’s with higher yields are getting few and far between except where you want to start accepting dodgy props.[blink]
I’m sure I p$@@ed off the agent as he said the probs were minor and I should call him to discuss the reports. Minor my foot! [grrr] Withdrew the contracts a few minutes after reading the reports.
Later……..
If you think you can you can, if you think you can’t you can’t.
Hi Deanna
If my map reading is of the same standard and if it is where I think it is be carefull.
Drove through there 6 months ago and the local word was not good. People were selling up and moving to greener pastures.
Later………..
If you think you can you can, if you think you can’t you can’t.
None of my “money” in the deals.
$40K of collateral on the +CF using the -CF collateral or something like that.
Looking about 60% ROI and I think a very similar IRR (from memory).
Later………..
If you think you can you can, if you think you can’t you can’t.
Hi Marisa
Happy to……..
Make ~$25K from 5 +CF B&H’s and lose ~$5K from a -CF
Later………
It is probably being autioned as the owner can’t be located or contatced or is not willing to sell to pay for it.
Could always try though I guess???
High reserves, greedy owners, desperate agents………………..
Another story I can relate from my wife.
She went out for breakfast on the weekend with her friends at a place on the beach advertising breakfast for $17.50 ON THE WEEKEND as a special.
They have brekky and proceed to pay the $17.50 only to be told there is a 10% surcharge on the weekend and the cost is $19.25, what?! No amount of trying to argue would get the point across about having it advertised at $17.50. She also had a discount voucher but “apparrently” you could not use it for brekky (this was not mentioned on the voucher).
She proceeds to make a scene (she is good at that and a bit Jim Carreyish at times) and proceeds to clean out the complementry mint jar as she leaves to the complaints of the manager. She argued there was nothing there to say how many she could take and stormed out!
Needless to say she won’t be going back there again.
Oh she did pay before leaving.
Later………..
