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What like the sort of info they would require to do the deal and not involve me at all?
If anyone wants more info, they can contact me. I am happy to provide info, but I dont want to increase my competition in buying the property!.Hi Dan
Why don’t you ask your conveyancer to recommend someone from the area you’re looking at
Ask how long the 5% net return is gauranteed for.
There are also charges for maintenance and 101 other things that can erode this return.
Magnetic Island is one example. (Promises 7%)It is only partly commercial.
6 tenanted residential units
and three shop fronts, two of these are tenanted.Yes,
This can be arranged through a solicitor.
Should you do it?????
That raises too many questions.Or jump right in and buy 40 $50K properties.
40 Properties with an average +CF of only $20 is $800 per week.
And I can tell you, I have no properties returning that little.
There are +CF deals everywhere, and many that have good CG poptential too.+CF – positive cashflow
CG – Capital GainAre you looking for +CF or CG?
My finance broker (who is also a guru) recommends them.
I have had no actual deaings, I am told they have sourced +CF properties in the pastI take my daughter (3.5 yrs) on inspections when my son is a little older, he will come too. When I ask her (Abygael) how many houses she wants to buy she replies “all of them”.
We sit infront of our PC and look at property together (as a family) for hours.
Within our families there are considerable property assets, my kids think everyone has lots of houses.
So incredibe wealth will be normal ie it will be abnormal not to own a property portfolio.
I think that is cool.Where are all those people who are looking for a +CF deal?
Hi Lumwood
Our strategy is to buy within 45 minutes of a major centre in a town that hasnt been touched with the growth wand.
This does involve many hours doing RESEARCH but it does pay off – in some instances very well.
We relocated to regional NSW about 9 months ago and found a place to live 45 mins out of town. Upon a bit of research and talk with the locals etc, we have sealed 3 deals within this town.
The major town centre has been a big growth town and the place where we live has very limited rentals, so finding tenants is no problem, especially when you compare it to the prices in town(basically similar to Sydney prices). Plus travelling 45 mins for country people is considered pretty normal – some travel for 1.5hrs to get to town to work. When you think about it, most city people travel this as well – the problem is that they just don’t move much due to being stuck in traffic!
The first house we bought was tenanted before we finished the renovations. The tenants were keen to move in so we arrange to finish the inside of the house for them to move in and are currently now re-painting the outside for them. As Steve would say, it was a win/win situation.
Our most recent one in the same town was a great deal and our best yet! On for $55K but got it for $27K due to some renos needed and the buyer was desperate to sell as he lived in Melb and didn’t want the hassle of having to worry about it(deceased house). Even after the renos ($5K-10K at the most) the house is still an excellent positive cashflow. We already had a prospective tenant advise that they want to move in – and get this, they were happy to do the renos on it for us if they could move in as soon as it’s finalised. Again we have arranged a win/win situation where they will pay the full rental each week with the real estate agent and we pay them back half of that amount to do the renos over six months(of course we pay for the materials but $60 a week for labour is pretty good and saves us having to do it this time – plus his brother is an electrician and his nephew a builder, what more could we hope for!). By arranging for the rent to be at full cost from the beginning, we avoided the problems of the tenant wondering what it will be once the renos are complete – he knows what he’ll be paying from the onset and we’re arranging a contract for the work to be done over the 6 months – so again another win/win situation.
So Lumwood, providing you’re prepared to do the research, there’s plenty out there for you to grab with a positive cashflow. Make sure you do the research though as you don’t want to purchase property in a dying town
I would be happy to hear from anyone interested.
While I’m on a roll, why not take the amount of the net cashflow that the ATO will want, pay it off against/on your Clovelly mortgage and then redraw the amount (tax liability) come June 30 2005?
Tax is paid and you have reduced you non-tax effective interest billAccountants are not always property investors.
Isnt it all about a positive cashflow?
If this was my portfolio, I woud be renting it.Do you have any propetry that is sightly negatively geared (with good capital growth prospects?)
Are you recognised defacto in the eyes of the ATO?
There are lots of ways you can minimise the tax you would be liable for, this is what your accountant might be better at doing. I only take advice from people who have done what I want to do, or achieved what I want to achieveI pay my conveyancer for this sort of advice.
Given that both stakeholders would be entities, could they just be on the contract the same as if they were just two people? I dont know.1.Find someone who has done what you want to do. (not an armchair expert)
2.collate information to assist in your decision making/risk management.
3.Set a year, date and time for when you will sign your first contract.
If this works well repeat the process. If not, review, refine, and go again.These things take longer, and cost more than you plan.
I swore I would never get into another property that required work – That lasted for about one month!.
Make sure you know what you are getting into. There is nothing illegal about taking a town planner out for coffee, or lunch.
Much of what you want to do hinges on what council will accept. make sure you are in a strong cashflow position before getting into this.can you put up an internal wall to make three beds from two?
How old is the decor? Can you paint and throw on some new handles/fittings?
If the zoning is village and the block is big enough, you may have a dual occupancy option (two houses connected by a breezeway or something like that)using one of the many free houses for removal.Again if it is village zoning, what is the demand for commercial property in town? a few hundred dollars for DA might inmprove your returns with a commercial tenant.Thanks. Is there a central point that you are aware of to source a money/equity partner?
Jenny
