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God I love this country, where else in the world could you rent out a hole in the ground?
Thes guys could probably help. http://www.depreciator.com.au/driver.asp?page=main/homeIt would most likely depend on the age of fixtures and fittings as I assume the raw construction would be difficult to value.
Good Luck, hope you strike it richHi Gman,
It all depends on what you buy as to how much you will make. Get out and see as many as you can. Check the body corp fees , this will affect your comfort in holding and the resale. High potential rent will boost sale price too, so if owner occupied ask agent for rent appraisal from their PM. Most sales agents have no idea on rentals so ask for something from PM in writing.
Be wary of buying too old especially if a lot of new ones are being built or are planned to start soon.
I find units in smaller complexes sell better unless you have a view. Consider transport, parking, storage and security.
One strategy which I find interesting is to look for a complex where there is a decent amount in the sinking fund. Then get actively involved in getting the other owners on board with spending on improvements and maintenance. This will boost the value without costing.
Look for something with good bones and without any major problems. Cosmetic rejuvenation while living in the property is an excellent idea for tax reasons. It is sometimes possible to cover bench tops and put new fronts on kitchens, much cheaper than replacing the lot. Auctions have good vanities and showers much cheaper than plumbing suppliers.
I saw a townhouse today which has 2 courtyards of overgrown garden and mouldy block walls. Inside is already renovated. About $500 and a bit of sweat over a few weekends and it would be a different place.
I hope this helps.
All the best,
JeffThere's no time like the present.
Don't wait to buy property, Buy property and wait.Hello r1trackday,
There seems to be a few flaws with your scheme, best do some research before you sign on the dotted line. See website link below.
I am of the understanding that you will not be able to get the grant if you buy into your sisters house. I am unsure whether she would qualify either.
For eligibility for the grant- All owners of the home must be an applicant on the Grant application.
Under disqualifying- where there is an arrangement the sole or main purpose of which is to obtain the grant rather than acquire a home.
They can make you repay it if they find out there is anything sus , so best tread carefully.
I doubt it would be legal for you to even have a side arrangement with your sis that you help with deposit , costs and repayments and get a cut when she sells. She will need to qualify for finance on her own though and will neeed to live there for at least six months within twelve months of purchase. So a tenanted property can be bought and see the lease out prior to living in as long as the lease has less than twelve months to run. Then you might have enough to do same with partner and then partner buy a home. This will depend on whether you have any other joint ownership or bills with your partner.
The grant is basically a one off per household(couples, spouses, defactos) to buy a home. I never got it because my wife had previously owned a property years ago with her ex.
The grant has changed a few times so keep up to date on their website and it varies from state to state.
I am of the opinion that they won't be likely to change the rules in the near future.
I hope this helps,
And i wish you well in getting your wishes
http://www.firsthome.gov.au/All of the above plus I like 'streets ahead ' by Wakelin.
You will most likely enjoy reading Australian property investor magazine too.You will find a lot of these and other PI books at the library. The more you read, the more you will find some common ideas you will filter to devise your own plans.
All the bestI'd rather get a library card, read these forums and take a 5k holiday
Hello Reece,
I owned my own business and all of my money was tied up in it. Being self employed and without a lot of value in my plant and equipment, I had little income to show and little equity. As I couldn't borrow enough to buy a house, I looked at vacant land in the areas next to ones that had already had increases in value. My first property purchase was a vacant block for 27k. I spent about a month doing my homework and looked at dozens of others. About 4 months after settling on my block, the land next to it, a smaller block than mine sold for 45k. I got mine valued and was able to use the equity to buy another block in another area for 30k. (this was 2003) I sold the second block after one year (which halved the capital gains tax), for 70k.This is more speculation than investment but that is not the point here. There are many books written on property investment and many hours have been spent developing streamlined strategies on maximising weath creation and minimising tax. I don't stick to a regimented strategy but gain experience from others and adapt it to my lifestyle. I sold the first block last year for 120k. I pay tax and stamp duty but how else will we have roads, schools , hospitals etc ? Admittedly both of these blocks are worth more now but they served their purpose and I like having some spending money sometimes, cashing in and moving to the next pre boom area.
We used the equity in the blocks to buy a home and have since used the equity in that to buy several investment properties. I have other blocks which have doubled in value over the last two years and will be selling them soon to fund some renovations at home and maybe have a holiday.
I am not saying all vacant land is going to be good buying but it may be a consideration if you want to get a foothold in property and don't need any tax deductions,yet.
You say you lack confidence, this will come with learning, just be careful and do your research well. If a deal seems too good to be true , it probably is.
You must be keen doing a double major and still finding the time to read about property. I hope this helps and keep reading the forums, there is a lot of experience on this site.
All the best,
JeffHappy birthday Alex
I hope you exceed your goalsHello Louise,
I was a late bloomer in buying property too, with my first purchase at age 33 but don't think you have missed the boat, there are plenty more boats lined up ready to go. If you are interested in researching and building your investment property knowledge, I have found my local library has many books on PI. Watch out for out of date and foreign info though, same with the book stores. The ones I like I bought a copy for future reference but some are not worth the paper. I enjoy API magazine for its inspiring stories and editorial content on how tos. There is a section where you can order books too and reviews. Besides McKnight, you may like to also look at Lomas, Somers, Wakelin, Spann and Yardney. I also like to read books by Noel Whittaker, more to do with shares but some interesting concepts and he writes well.
If you are going to invest in your local area, the more properties you look at , the better an understanding you will get of what sells quickly for a good price and what sits on the market which will lead you to ask why. Talk to RE agents and get to know the sales in your area. There is often a huge difference above or below asking price as to what a property sells for. This will help you to develop a feel for value adding thus gaining equity. The more you get to know the values in your area, the more certain you will be when the deal you want to jump on with confidence comes along. Going to open for inspections and auctions gets you in property mode.
My wife and I are currently holding 10 properties and only bought our first one 5 yrs ago. We don't follow any strict rules for buying or selling but have developed our own strategy based on what we have learned from others and what suits our lifestyle. So don't feel overwhelmed, just take it one step at a time and act on what you learn as you are comfortable. I find that the most important contacts i pass on to my property investment clients are a bank manager or loan broker, accountant, conveyancing solicitor and building and pest reporter. I don't mind paying top dollar for services of these professionals because I know they save risk, money , time and stress. It is important to deal with people who are experienced in property investment. I myself am a real estate agent but you will need one of those too, even as someone you can phone to bounce ideas off and get data from.
(If one of my sons becomes an electrician, I will be set.)
I hope this assists,
Kind Regards,
JeffHello Hilly,
This is a bit tricky without all of the facts. Keys can be frustrating things at times. Wouldn't it be nice if everyone was just honest and we could do without locks.
You said that you may have damaged the lock when you were there yesterday, so you have had access prior to settlement. It is up to the vendors to hand keys over on settlement either via selling agent or solicitor. If you have written permission to early access and have paid the rent, you would have been entitled to all of the keys for that period. I understand it would be frustrating if you had the time allocated to get in and paint etc but if you go at the agent too hard they might get the vendor to void your access entitlement until they have a written settlement statement from the solicitors. It depends on how watertight the paperwork for your rent for a week period is.
It might be best to see if the agent is holding any more keys(maybe rentals dept if leased through same agency) or if the vendor/solicitor/ rental agent has any more sets. The other thing is to just get written permission via your solicitors to get the locksmith in tomorrow, if you plan to change them anyway. BTW you can get locks now where you have one master key for all properties, which would be handy, especially if building your portfolio.
Hope this helps,
JeffHello Goodenergy,
http://www.mypropertyhunter.com.au/ 0400 201 556
This company operate in Tasmania and are buyers agents. I have not dealt with them so this is just passing on detail and not a recommendation.
Let me know if you change your mind and want a buyers agent in North Queensland
Kind Regards,
Jeffbest to be aware that cooling off penalties were instigated to protect vendors from buyers doing what you are looking at and I am pretty sure this applies in all states.
Verbal offers and negotiating are not binding either way so you could miss out if you go that way too.
pulling out under finance and then buying elsewhere can have a legal implication
Building and pest clauses can provide an out but will cost for the inspections.
The way many sale contracts are prepared and handled, many loopholes could be used to pull out if push came to shove.This is the case in Queensland , where sales agents do the contracts and some I have seen make me laugh.
A good conveyancing solicitor is worth their weight in gold. They will be able to insert clauses as paul suggested with time limit on offer. This will vary from state to state.
Keeping on the agent to act quickly may help, as will correct handling of the documents if faxing.
You are lucky to be in an area where there are so many good deals presenting themselves.
Hope this helpsHello Rohan,
Probably not much help but just a few comments,
I am sure more experienced NSW developers will help you.
It sounds like you need a project manager. This will cost in some ways but also save in others. Good builders are all too busy to do your homework and there is no responsibility on them if things go wrong, unless you are contracting them and even then it is iffy
Buying subject to DA may limit your negotiating on price.
Check with council where services are, moving sewer main can add a lot of cost.
Good LuckHello Brooklea,
I am painting my kitchen in an IP today too. Happy Easter.
Be careful with that old paint more than likely lead based if layers and layers one of them will be.Mask up!
You would be best to talk to your local paint shop like bristol or a similar trade supplier. They will be happy to help and not all treat novices like an annoyance. There are many new paints on the market but for cabinets you will need something hard wearing and probably full gloss. You might be best to see if a cabinetmaker in your area can recommend someone to spray in two pack. If you do the prep it will not cost too much. Otherwise you will probably be best to use an enamel if brushing, it takes a bit of practice to get a good finish though and might be worth paying someone if you are not confident. hope this helps.
and get some aloe vera on your burn, blood sweat and tears is not meant to be taken literally!
have funIs the property cash positive for you or will it be if you sell for your asking price?
If it is cash flow positive , why sell and not keep and use equity for the next?
A good agent will add value far beyond just covering their costs.
Selling yourself has many potential pitfalls beyond price, especially if out of your area.
I would suggest looking on Domain and realestate to see what agents are most active in the area and ring a few after Easter. See which ones call you back within an acceptable time frame. Talk to them about the market and see who is working buyers who are currently looking. The most efficient way to sell property is by exclusive agency with marketing at full commission. This ensures the agent works for you to the best of their capacity and has someone to work with by exposing the property to the maximum number of potential purchasers.
It is all about the end nett result for you, not about how much the agent earns.
A trained monkey could sell property but to maximise potential and minimise streess, get a professional.
Would you fix the brakes on your car to save money?
(yes I am an agent and proud of it)Hello Justin,
I have not used Property analyser but use the others daily. RP and psd are similar, except RP has more photos and has a function for searching properties on the market. This is useful for seeing days on market, price reductions etc.Other software you may find worth exploring is PIA, for budgets,costings etc. There was a trial version on the Australian Property investor website which may allow you to decide if it is going to be of use. http://www.apimagazine.com.au/
One thing I will point out that will be of particular relavence to you if you are going to look at development is that the land zoning on these databases are not often accurate. This is the case in my area where a new town plan was introduced in 05. The zoning info is uploaded via DNR in QLD and only sometimes gets updated when a property changes hands. Some councils have a copy of their town plan available for purchase. This or a close relationship with the council town planner is invaluable. Especially so if you get wind of a property a dud REA has listed quoting the wrong zoning, which can impact on the sale price. All the best, I wish you well and if you want some inspiration , I saw a block recently bought for 1.2M, sold three months later for 5.1M and then sold three months later for 8.4MIt depends on the available stock of properties for sale at the time but in my arket place yes. Building internally is var cheaper than extending roof line. 9internal walls and fit out as opposed to walls, roof, floors, council, draftsman etc) Talk to your agent and ask for some sales figures of 3 and 4 brs. I find that most families want 4 br these days, even young couples with no kids! depending on the demographic, an ensuite could be considered too if you don't have one. You might be better to value add through cheaper changes like kitchen tops and fronts, handles or front fence and landscaping. Get several quotes and weigh it up Some rental properties these days have a spa outdoors or covered built in barbeque, dishwasher which will boost rental at a relatively low cost . Built ins are a big want for tenants these days and secure parking. Talk to local property managers to see what is best for your area.
May your tradesmen show up on time and your projects be eternally completed under budget
all the bestunits in smaller blocks are more likely to rent over large complexes if the market tightens up. is it a good time would depend on how many others are planned or being built, ask yourself ; what are the pre sales like on off the plan developments and what are the days on market for resales.also body corp fees have to be weighed up these vary considerably between complexes. new units usually have lower sinking funds to make the figures add up better for investors.some older units have a fortune sitting in the sinking fund waiting for a push by a few of the owners to spend the funds and get the complex looking fresh. remember too that when property values go up it is the land component that is rising. The bigger the number of units on a site, the lower the actual land component you are buying.
I am in real estate sales and understand what Nat has said to be true. Many agents "buy" a listing by overquoting the potential sale price. This may be the case if you are getting offers so low. The general case for unsold property is down to the way it is being marketed. Professional photos are crucial, as is a good web presence. As the market tightens it is even more important to have an agent who is busy in your local area, they will be in contact with more suitable buyers. Auctions are a clean way of selling but must be done properly by an ethical agent with the sspecific skills required to carry out a successful auction campaign. Auctions are more than waving a gavel around and yelling quickly, the entire process is different.
Sometimes agents push auctions and hope for the best, this rarely works in the vendors best interests. Talk to your agent and find out why they recommend auction. examine the way it is being marketed and consider an independant valuation. it may work out cheaper to invest in marketing rather than drop the price but if it is too overpriced, you may need to do both.Hello Nat,
That emotional attachment associated with renting out a home which has personal memories in it has caused many people heartache. Will any tenant ever have the same respect for the place as you? Try and picture five years down the track, will you regret selling and investing elsewhere or appreciate keeping it and renting. Emotions are ok with people and pets but properties are just properties. I used to have a house (home)which we swore we would never sell. We have sold it , bought better and no regrets.
it needs to be about the numbers unless there are long family ties , in my opinion.
The rent seems low is that the norm over there? Here they pay 300-350 p/w rent for homes bought for 280-350k
all the best
Be wary of buying too old especially if a lot of new ones are being built or are planned to start soon.
