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  • Profile photo of hwd007hwd007
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    @hwd007
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    June 30, 2003 - 4:51 pm

    Yea I will have done my first 2 IPs within a space of three months, but I have extended my finances as a result and am a little exposed. I will just have to juggle bills etc.. best I can, like delaying payment of them etc.. until I get my 15-15 tax sorted out. One is tenanted, the other settles this week. Both will be negative cash flow. Possibly up to about $70 a week for the two after all tax stuff is sorted out. Well they are brand new and close the Brisbane CBD so hoping to get rent increases within 6 months.

    Yea I feel the same on the point well if I can handle both and then focus on getting better rent for the next tenant terms, then two will be better than one. Worst case I see, I sell one and just cruise with one for 6 to 12 months.

    I can offer some seetners to the tenants, to get better rent, like a couple of ceiling fans at say $500 including installation and put the rent up $10 per week, they will pay off over 12 months then I would get better return. I cant complain, getting $280 a week for a $244K property. They took a 6 month lease so I’m gonna push for $290 end of year.

    Profile photo of hwd007hwd007
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    @hwd007
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    June 30, 2003 - 4:36 pm

    Xena,

    When you say beach fronts have become unafordable, what prices are we talking here ? Do you mean they wont offer a good investment return or are too risky an investment ? or just very expensive ? I’m curious cause I’ve been thinking about investing in SA possibly in 6 to 12 months from now.

    Thanx

    Profile photo of hwd007hwd007
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    @hwd007
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    June 30, 2003 - 4:32 pm

    I’m not sure, but I recon you need to research and find out what vendors or developers have a good name. Check the annual state building awards for a guide. Many of them ( big developers ) wont deal with the buyer directly though, but go through a sales agent.

    Profile photo of hwd007hwd007
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    @hwd007
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    June 30, 2003 - 4:27 pm

    I just had deja vu !

    Anyway I admit I try to buy the roast chickens when they are on sale at Coles. Often after a certain hour of the night. My cat gets most of the good parts, white meat etc.. I get the wings and legs and skin and stuffing.

    Also buy the large sizes, cause the small ones get shrivelled up and tough, as they are all cooked together.

    Profile photo of hwd007hwd007
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    June 30, 2003 - 1:31 am

    Doesn’t kiddie like Kinda Gyms ? He can meet other kids there.

    Profile photo of hwd007hwd007
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    @hwd007
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    June 30, 2003 - 1:19 am

    I expect you will loose much money on this. have you done the numbers ? Off the op of my head, I expect it could cost you at least $100 per week out of pocket. Not to mention the termites and rot. 6 month inpections worry me. The seller is smart. Plant and equip have been fully depreciated. Property growth has been strong and may level. Work needs doing. Good time to sell re-cash and re-invest in somthing new.

    Profile photo of hwd007hwd007
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    @hwd007
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    June 30, 2003 - 1:10 am

    The higher you jump the harder you fall. [:D]

    Profile photo of hwd007hwd007
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    June 29, 2003 - 5:17 pm

    DepPro cost me $440 inlcuding GST I will try the cheaper one next time i.e Washington Brown Depreciation P/L

    Profile photo of hwd007hwd007
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    June 29, 2003 - 5:12 pm

    Surely you make the offer conditional to securing finance and have that stipulated in any contract.

    Yes I would agree with Terry’s advice below. You may need to stipulate successful in obtaining finance at 6% effective rate or under. things like that etc.

    Profile photo of hwd007hwd007
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    June 29, 2003 - 2:49 pm

    sounds about right to me. $1000 to $1500 depends on the factors previously mentioned and the property cost etc.. does not sound too outrageous.

    Profile photo of hwd007hwd007
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    June 29, 2003 - 2:22 pm

    rents not that great there im told.

    Profile photo of hwd007hwd007
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    June 29, 2003 - 2:06 pm

    if you purchase next financial year, im not sure you can claim these expenses or capital costs incurred this financial year. Unless you can claim past years expenses retrospectively ?

    Profile photo of hwd007hwd007
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    June 28, 2003 - 11:05 am

    If you can run 100 metres in under 11 seconds, you may just be fast enough to stay away from the loan sharks offering dodgy loans with dodgy property. If you cant, then you may be in trouble :/ [:D]

    Profile photo of hwd007hwd007
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    June 27, 2003 - 3:59 pm

    Kym so many factors to consider that may impact the gearing aspect of a property, not just whats happening in year 1. Brand new vs old, low capital growth area versus high, so many factors. What may look good for the first few years may become not so good down the track such as a property needing heaps of repairs etc… if you found that you had to undertake $10,000 of repairs on a property that could change your whole situation. If you had a brand new property in a good growth area, it may turn positive geared within a few years.

    So it depends depends depends

    many many factors

    Profile photo of hwd007hwd007
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    June 27, 2003 - 3:29 pm

    Kym negative gearing aint necessarily bad. depends on your goal. Its fine in my opinion if you are focused on capital growth. But if you need cash flow then obviously its not for you.

    You need a property investment calculator.
    Plenty of these around check out a few to compare

    http://www.yourmortgage.com.au/calculators/can_i_afford_investment_property/

    Profile photo of hwd007hwd007
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    June 27, 2003 - 3:19 pm

    Yes well depending on your confidence that may be a good idea. You need a good property acountant, and conveyencor / solicitor specialising in property. Also as mentioned get an independant valuation, i.e not from the company selling. Its worth paying a bit extra to make sure the job is done properly until you build your knowledge. I personally would not buy property from a marketing group promoting seminars etc..

    It could take you 6 months to get up to speed with knowledge and confidence to call your own shots. It took me that long still heaps more for me to learn. Just do heaps of research. plenty of info on the net. about Australian property investment.

    cheers

    Profile photo of hwd007hwd007
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    June 27, 2003 - 2:07 pm

    Gavalynn, there is so much to consider beyond price alone and that simplistic dare I say 11 second rule. The area for one, against the price of the brand new property. I mean you don’t build a 1 million dollar home in noble park and try to rent it out at $1000 per week. I mean anyone who can afford that rent would not want to live in Noble Park. Thats just an example on one of many things to consider. $239K sounds the best option on the face of it. But again you would need to do alot more research and get more info on the property itself. You see $239K for that area and the affordability of the tenants in that area sounds about right, for a first time investment. Does it have ensuite ? or courtyard or balcony?

    I would get more detail on this one. then get back to the forum on it. If you serious, put down a small deposit conditional to accurate market valuation, then get it valued independantly by a professional valuer. this can cost between $200 and $500 but well worth it for a first timer. This will normally include a rental appraisal. Also get an apraisal from the estate agent in the area.

    Dont forget though Stamp Duty around $11,641.94 for the 239K unit making it $249K where as the off the plan unit would only attract minor stamp duty components of around $1500 I think, not sure on that one though, ie on borrowings and transfer fee.

    Before you buy you must ! do the numbers on it. Run it through a negative gearing calculator or two or 3 for saftey. here are a few useful links

    http://www.rhq.com.au/nanango/calcstamp.html

    http://www.yourmortgage.com.au/calculators/can_i_afford_investment_property/

    http://www.yourmortgage.com.au/calculators/

    good luck

    Profile photo of hwd007hwd007
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    June 27, 2003 - 1:39 pm

    So how do the numbers come out ? I assume you done gearing calculations ? whats the weekly cashflow ? I did some rough numbers on it based on a $50K salary and $270K borrowings at 6% and it came out close to zero holding cost. but its rough as I dont have all the facts, but looks like a winner for capital growth anyway at little cost if any.

    Profile photo of hwd007hwd007
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    June 27, 2003 - 1:15 pm

    Hmm thats a good return it seems, though I guess it aint brand new is it? How old is it ?[?]

    Profile photo of hwd007hwd007
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    June 27, 2003 - 1:08 pm

    I wouldn’t touch the display home. Rent guarentee is just a mask. They normally inflate the price to cover the rent guarentee. Also check for special conditions attached to the guarentee. They wont loose but you may. These guys are pros you are dealing with. After year 1 you may own a property that wont rent for what they have covered you in the first year. So many unknowns.

    The other I would consider if it was near new, otherwise for the price well I wouldn’t touch it either.

    If this is your first investment, I would look for brand new 2 bed with ensuite and courtyard or balcony. This is where the market is at for rentals. Aim for somthing under $250K.

    You be the judge though I suggest you do some property market research. If you are bold, head to brisbane if you can get you head around having a property in another state.

    Always get a independant professional property valuation on your first investment, until you know who you are dealing with. [8]

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