Forum Replies Created
Hi Grant – I've got the 4 DVD Masterclass Advanced Pack. Is this the one you are after?
Regards
Janet 0427 778875 or [email protected]I have a brand new Buyer Beware Pack, never used. Are you still looking for one? If so, I am happy to post to you if you cover the postage.
Cheers
Janet 0427 778875 or [email protected]Hi Paul
Margaret Lomas talks about these types of properties in one of her books (I think it’s her 3rd book but don’t quote me). She gives a run through of the pros and cons and what to look out for.
Janet
The house is located at Manyana, north of Ulladulla. Price is approx $1.2m. You are right about hitting the right market. Our exclusive agency agreement runs out next week so we are looking at a shared listing with a Sydney agent.
Will check out the London and HK sites also.
Thanks Todd. I’ll check those out.
And I sure as hell ain’t moving to the Gold Coast. Can’t stand the place.
Who says we baby boomers are not tech savvy and are inefficient workers, you impudent young whipper snapper! [grrr]
Hi Mitzvah
From what I understand, Steve has discontinued the wrap kit because he doesn’t have the time anymore to provide the 3 months’ mentoring that comes with it. That’s why he heavily discounted the last of the stock. Apparently he will not be making it available in the future either.
Rick Otton has a wrap kit, so you could try his website (just do a search on google). It’s more expensive than Steve’s was, but apparently is very good.
What state is the property in, because the cost and process can vary from state to state.
Start by talking to Council re whether the property can be strata titled. Also talk to a surveyor for an estimate of timeframe and costs.
A lot of questions there, and the only way you’ll get answers is to really do your homework. Talk to Council re the zoning of the land. This will tell you what else can be done with the property if you decide not to operate it as a boarding house. Talk to agents in the area to find out if there are comparable properties and if so, what is the vacancy rate (I wouldn’t rely on 100%), who are the likely tenants, what they would charge for managing it.
If it’s feasible for you to live there and manage it yourself, you could do that. The government sure won’t do it for you and would you really want to hand over control of your investment to the gov’t??? If you are going to use an agent, do your homework and find one that will be on the ball. With this type of property, you’ll have a lot of movement of tenants in and out, so you need an agent who keeps a close eye on the tenants, and is proactive in keeping the vacancy rate down.
Check out the likely maintenance required. Use the services of a builder to go through the property and point out what needs doing and approximate costs. No doubt the property is furnished, so maintaining the furnishings can be another expense.
Above all, crunch the numbers and try to ensure that you don’t overlook anything. These sorts of properties can provide great +ve cashflow, but you’ll have to work at it – it won’t be an easy ride.
Hope this helps, and good luck! Could be a great property!
Janet
I’d get legal advice, perhaps the three of you need to visit a solicitor to make sure the deal is fair for everyone involved.
As Steve says, “are you a property collector or a property investor?”
One advantage of paying down your current loan, then borrowing against the increased value of the property (as opposed to selling it to release the money) is that you won’t incur selling costs. So it’s worth factoring that into your calculations.
Do your numbers based on the 2 scenarios: Reno and sell current house then buy IP, or reno current house and redraw increased equity to fund deposit for IP.
If you end up going for option 2 (ie redraw equity from current property), make sure that you structure the loan for the IP correctly for tax deductability purposes. I would suggest that you don’t just redraw and thereby increase the existing loan. Put the redrawn funds into a separate loan account so that it is clear at tax time exactly how much interest you’ve paid on the IP.
Hope that makes sense.
JanetThanks Mark. If it wasn’t in Melbourne I’d be really interested. Looks like a lot of gear at a very realistic price.
I agree – painting over wallpaper is BAD [angry2]. If the wallpaper starts peeling, it looks 10 times worse than the original wallpaper on its own. Why not just get rid of it now – you can hire steaming thingies from hire places that make the job much easier. Or, if your budget allows, hire someone to do it for you.
As a tenant myself, I always like to move into a place that is freshly painted – but hey, that’s just me.
Hi Beggsy82
Well done for buying your first property at 23! You have a bright future indeed.
What you need to do now is set your investing goals. Start with working out what you want to achieve and why, then set goals that will help you to achieve it. Then, every action you take should be considered with the following question in mind: “Will this action take me closer to my goal or further away?”
Are you planning to sell your home once you’ve done the renovations? If not, perhaps the money put into renos could be better invested in property that is earning you an income. Delayed gratification if you like. Live in a house that is not as nice as you’d like it to be right now, and put your money into investing.
Food for thought, I hope it helps.
Good luck
JanetThe local Council should be able to tell you when it was constructed, as they would have approved the building plans and done the necessary inspections when it was finished.
Janet
0427 778875Hi Yasmina. I just had a very quick look on the web and it appears that Power Loan is a fairly new organisation. Is your husband looking at a job or a franchise with them? If he is looking at buying a franchise, exercise great caution. I’d suggest doing an ASIC search on the directors for a start. Are there other people working for Power Loan that you can talk to?
Janet
0427 778875Hi Misty1,
It used to be that the deposit was put into the real estate agents trust account, and then on settlement the interest was divided between the vendor and the purchaser.
These days, that doesn’t automatically happen, and to be honest I’m not sure why. Something to do with legislative changes to do with trust accounts I think. Others on the forum may be able to shed more light on this. I would discuss this with the real estate agent before you buy or sell. You may be able to negotiate.
The other thing you can do as a seller, is to request that the deposit be released to you before settlement. This has to be written into the contract.
Cheers
Janet
0427 778875Hi Misty
Not all banks offer deposit bonds, and certainly very few offer low doc deposit bonds. I was looking for one a little while ago and the best I found was as follows:
The Deposit Bond Centre. The bond fee was $572 for 3 months (minimum term) on an amount of $22,000. Make your own enquiry to find out how much it will cost you. The person to talk to is:
Kimball Werner
Mostly Mortgages Group
Ph 0412 64 0002
Fx 02 9279 0017You’ll need the following to apply:
100 points ID for each applicant (passport & drivers licence)
Copy of the front page of contract of sale
Copy of unconditional finance approval and/or evidence of funds to complete – cash, line of credit etc
Signed original application & payment details (Visa/MasterCard/Bank Card)They can usually arrange the bond within 24 hrs of receiving the full application and supporting documents. Urgent bonds can be approved in 3-4 hrs.
Also try doing a search on the internet, as you may find others. I didn’t end up needing the deposit bond so didn’t pursue all avenues.
Hope this helps.
Janet
0427 778875
