Forum Replies Created
Hi Darren,
I am a little lost with your questions..??
If your current property is worth $300k and you owe $200k then your equity is $100k. If you are looking to purchase another property worth $200k then you need $40k as a deposit. You would then borrow the full amount for your new purchase $200k, the bank uses your equity as security over your new purchase. Your position would then be
Bank Assests : $300k + $200k less 20% = $460k
Mortgage : $400k
Equity remaining : $60kIn the above example, if you had $100k in equity you could purchase a property to the value of $500k and use the entire $100k you have in equity ie $500k @ 20% needed for a deposit = $100k. Keep in mind the bank will still look at your ability to service the entire debt.
Hope this helps?
Cheers
Jeff Aquilina
Need a holiday? http://www.coralsearesort.com email me [email protected] 20% DISCOUNT for PropertyInvesting.com members
Another way to build equity beechmachine is to purchase a property that you intend to live in and obtain the govt 1st home owners grant. Try and buy a 3 or 4 bedroom home/unit in the best location you can afford be sure it is close to schools/shops/transport etc. Then rent the other bedrooms to friends or place an add in the paper or http://www.flatmates.com.au, soon you will find the rented bedrooms will pay for a big proportion of your loan repayments it may even end up cashflow positive, apply all available funds including wages and rent surpluss to the loan, repay your loan weekly, you will soon grow your equity ie the difference in what you owe the bank and the value of your property. Use the growing equity to purchase future properties.
Cheers
Jeff Aquilina
Need a holiday? http://www.coralsearesort.com email me [email protected] 20% DISCOUNT for PropertyInvesting.com members
well done benderfile good diversity and outside the square thinking good luck cheers
Jeff Aquilina
Need a holiday? http://www.coralsearesort.com email me [email protected] 20% DISCOUNT for PropertyInvesting.com members
if you take an interest only load the repayments are apprx 3753pa
insurance seem high at $1000 on $50k investment – does this include landlord protection? If so you dont need to budget for vacancy..??
Try and rent direct and save agent fees..??
based on loan 3753 + rates 1200 + insurance 250 = 5203pa rent at 6760 pa = CP $1557
if you had 20% deposit the number would then stack up even better
borrow $40k
repayments $231.67 pm or $2780pa
outgoing $1220
total outgoing $4000
Income $6760
Return $2760
Return % on investment ($10k deposit) = 27.6% try and get this return in a bank term deposit..!!hope this helps – if your not going to buy the property pm the details and I will..!!
Cheers
Jeff Aquilina
Need a holiday? http://www.coralsearesort.com email me [email protected] 20% DISCOUNT for PropertyInvesting.com members
HI Benderfile
You want to check through the forums over the past few days, the question about the state of the market has been a topic in various forms several times.
Cheers
Jeff Aquilina
Need a holiday? http://www.coralsearesort.com email me [email protected] 20% DISCOUNT for PropertyInvesting.com members
hi beechmachine,
Great to see your starting young.
Do you have any specific questions that we could assist with?
Where are you located? Do you have any properties in mind?
These forums are a good way to learn. Have you read both Steve’s books? They are a good source of information.
Cheers
Jeff Aquilina
Need a holiday? http://www.coralsearesort.com email me [email protected] 20% DISCOUNT for PropertyInvesting.com members
I like the “Worst house in the best street” line and have used it time and time again.
I bought my first property just 4 years ago in a inner city Brisbane suburb, a 2 bedroom unit for just $67k. It was a tired unit in an ordinary block but had good access to transport, shops, schools etc. A lick of paint and the odd TLC job here and tere soon made the place rentable. I now receive $220 per week for it and it’s valued at approx $230k.
Have just bought another property in Adelaide, Beach Front for $250k, its the worst house in an absolute magic spot. It rents for $200pw but the houses each side of the property are 1 million plus properties, hope to develop my shack one day soon into 6 townhouses for $500k each. Moral to the story, sometimes there is more potential than just rental return vs purchase price
Cheers
Jeff Aquilina
Need a holiday? http://www.coralsearesort.com email me [email protected] 20% DISCOUNT for PropertyInvesting.com members
[confused2] sorry I am lost – could you explain in greater detail
cheers
Jeff Aquilina
Need a holiday? http://www.coralsearesort.com email me [email protected] 20% DISCOUNT for PropertyInvesting.com members
Hi Austin,
I would suggest you use a solicitor – mine charges $450 and I know everything is covered. Money well spent. At the end of the process you get a “congratulations” phone call.
In regards to insurance, I use AAMI they have been good to me. I use them for building, home contents, car, and landlord protection. It’s a one stop shop for me and I also receive multi policy discounts.
Good luck
Cheers
Jeff Aquilina
Need a holiday? http://www.coralsearesort.com email me [email protected] 20% DISCOUNT for PropertyInvesting.com members
Hi Vanessa,
4 months..!! That is a VERY long time.
I am anxious when 4 days have past on a vacant property. I would take the offer. The potential tenant appears committed, allow them to make it their “home” and also I like the idea of rewarding tenants.
Some income is better than no income and it would appear you have little opportunity to improve your prospects of sourcing tenants.
Good luck
Jeff Aquilina
Need a holiday? http://www.coralsearesort.com email me [email protected] 20% DISCOUNT for PropertyInvesting.com members
Sal,
Quick calculations
Units (4) $600k vs $600 pw rental, return 5.2% gross
Units (3) $600k vs $450 pw rental, return 3.9% (you live in 1)
House $250k vs $180 pw rental, return 3.7% gross
House $250k vs $290 pw rental, return 6.0% grossOn the numbers if you can find a property for $250k and obtain $290 pw rental income this would be your best bet.
You need to decide what is the purpose you intend to invest.
I have several one bedroom units, they are ideal for single people and / or students, in this instance I believe proximately to public transport is important. I have no trouble with sourcing tenants for one bedroom units. Having said that I believe it is easier to see 2+ bedrooms than 1.
Hope this helps
Cheers
Jeff Aquilina
Need a holiday? http://www.coralsearesort.com email me [email protected] 20% DISCOUNT for PropertyInvesting.com members
is there demand for rental of the garages?
Jeff Aquilina
Need a holiday? http://www.coralsearesort.com email me [email protected] 20% DISCOUNT for PropertyInvesting.com members
Agree with PurpleKiss would be good to have the particpant only forums on a seperate page..??
Jeff Aquilina
Need a holiday? http://www.coralsearesort.com email me [email protected] 20% DISCOUNT for PropertyInvesting.com members
keen to look at a QLD list if there are any QLD investors interested.
cheers
Jeff Aquilina
Need a holiday? http://www.coralsearesort.com email me [email protected] 20% DISCOUNT for PropertyInvesting.com members
Hi Herks,
They are out there…just harder and harder to find.
I have started looking at commercial property, it appears you can obtain better returns in the right area’s this way.
Don’t always have to research for residential
Good luck
Cheers
Jeff Aquilina
Need a holiday? http://www.coralsearesort.com email me [email protected] 20% DISCOUNT for PropertyInvesting.com members
Hi Matt,
Tend to agree that 30 may limit your audience……
I am 31 [tongue] and would love to come along to your meetings……you could possibly hold a meeting in MEL SYD and BNE so people would not have to travel so far, airfares are cheap between these cities, perhaps invite a hotel to sponsor you, they could offer you FREE boardroom in return for you to promote people to stay at the hotel overnight if accommodation in required. You may like to invite a “senior” propertyinvestor.com member along as a guest speaker?
Let me (us) know how you progress….
Jeff Aquilina
Need a holiday? http://www.coralsearesort.com email [email protected]
Yes I installed a splash back in my kitchen, I went to a sheet metal place as kitchen places will cost you the earth. It was about the same cost as tiles. Be careful what sort of stainless you get, some of the cheaper ones don’t hide finger prints that well and your forever wiping it down. Look for a sheet metal supplier and ask them if they have small off cuts you could sample. Use a grey silicon to seal splashback and bench tops etc.
Good luck
Cheers
Jeff Aquilina
Need a holiday? http://www.coralsearesort.com email [email protected]
Hi,
I recently bought a property in Adelaide, a very old place on the Esplanade in Henley Beach. The good thing about Henley Beach is you can still get in a a reasonable price, have ocean front property that is becoming less and less available, I hope to develop the site one day. West Beach which is the next beach south of Henley Beach is even better value.
Hope this helps
Cheers
Jeff Aquilina
Need a holiday? http://www.coralsearesort.com email [email protected]
Hi Matt…..go for it, if you can buy and build and achieve positive cash flow from day one then it is a winner. Make sure you do all your homework though on building costs, like renovating they can blow out….keep in mind repayments will need to be made while the property is being constructed, under most circumstances you make periodic payments to your builder so your repayments will increase during construction. Does your expected rental income cover the time when you will receive no rental income?
Good luck
Cheers
Jeff Aquilina
Need a holiday? http://www.coralsearesort.com email [email protected]
Hi guys thanks for the replies. As I stated “some” brokers do not have the best interest of their client at heart.
True story : my first broker suggested I use the first home owners grant to “get me over the line” even though he knew I was buying as an investment, he suggested I place the utilities in my name and not lodge the bond with the QLD RTA, as far as anyone was concerned I resided in the property….and….as he got even more excited he explained I would also save on stamp duty being a owner occupy purchase..!!
A polite thanks for no thanks was in order.
Cheers Jeff
Jeff Aquilina
Need a holiday? http://www.coralsearesort.com email [email protected]
