Forum Replies Created
Thanks everyone, it just feels a bit weird, one minute I am yeah, “I love nature” and the other minute I am, “as an investor my objective is to make profit, etc”.
L.A Aussie (Marc), thanks for your feedback, agreed, the guy is a stooge… and yes, all I want is not to be part of it… and take my profit. I am also thinking conspiracy theory, LOL…
I am going to sit tight and get the price I want without having to touch the tree. I realise this is not about trusting Mother Nature, is about trusting my experience.
This is why I love property so much; the process is just as exiting as the result.
Thanks guys
Hi Darktrooper, I had a similar situation on a reno we completed not too long ago. A triple garage (very old) with a sandstone floor, very uneven and bits missing, etc. My guys leveled the floor with gravel and then poured the slab on top (mesh and drainage included). The gravel helps drain the water that does not get “captured” by the normal drain and also helps with moisture. I hope this helps.
Happy Investing
Hola atapiap,
Yes, you will need to talk to an experienced solicitor, I can recommend mine, however I am based in Sydney.
Maybe there is still “hope” in getting out of the contract, however it will come down to the contract you signed. A contract needs to have certain things, that every contract should have (cover, section 149, etc, etc, etc), if any of this bits are missing you could pull out, so you need someone with experience to have a look at the FULL contract and see if there is anything missing and “counter attack” there.
Tu ingles es muy bueno, go and see a solicitor and buena suerte amigo
Seminars… his presentations gave him some money for deposits, I attended his very first seminar here in Sydney @ Parramatta, back in 2001 (I think). Easily 100 people in the room, $95 per head, take costs out = a deposit for another property. He still does it today, the man sure knows how to add/exchange value. Awesome stuff.
Happy Investing
Hi Zali girl, the west in on SALE at the moment, leave your cheque book at home and do some research. There are a few investors doing what you want to do, check out what they are doing:
– Purchase price, what are they paying and why?
– Area, where are they buying and what areas they are avoiding.
– What to renovate or not…
It is a BUYERS market out there, for sure…
Happy Investing
Hi Stephen, I am going to quote Martin Ayles (the developer guy that does seminars with Steve), It all comes down to “How bad do you really want it”. Beat the agents, place a little classified ad on your local paper (I Buy Older house, etc, etc), also do a little flyer and drop it on those houses that you think are good to profit from a reno. It takes time and effort, however you only need one, and then another one and so on…
Work you market hard and smart and reap the rewards
Happy Investing
Good stuff Dr Spock, remember to factor in maintenance/repair costs (around 20% rent for older properties), rates, water and insurance. Also if you finance at around 8%, not much room there for cash to flow your way.
Happy Investing
Hi p_mac, I agree with property power. Studio apartment offer very little leverage. As an architect (or soon to be) I am thinking that maybe you could buy a big 5+ bedroom house, do a minor reno and rent by the room. You can continue to add value by including FREE internet, laundry, etc, etc, etc. To use those skills learned in school, the time has come…
Happy Investing
I’d say go for the one that is one year old and try to use this as your negotiation “angle”. In regards to a %, I don’t think you could apply a rate to it, the best way you have is to find out how much other comparables (1 year old with same characteristics) are selling for. Get the selling agent to give you a print out of actual sales data, get them to work hard. Happy Investing
Hi Pirate,
It would be hard to tell because we don’t know how large (sqm, etc) your extension will be and also what fittings and kitchen you will be using. A flat pack kitchen can cost $3K and a designer kitchen can cost $20K. Construction costs are around the $1K (at least in some areas in NSW), maybe work out the area in sqm and apply rate and see how you go.
Get a few quotes and work your budget backwards based on what the local carpenter/builder, etc told you. Get 3 quotes at least. Make sure you don’t over-capitalise. It would not hurt calling the tenant and having a chat to him, maybe a reno of this “magnitude” may not be necessary, just some thoughts.
The rent on your IP seems low (compared to purchase price @ $380K), is there any way you can increase this rent, is this the reason why you want to do the extension?
You do have enough equity on your IP, provided that you have your accounts in order and can “afford” the loan, you should be able to borrow for another IP using the equity for deposit and closing costs.
Happy Investing
Hi Mr property, get a free subscription from http://www.prd.com.au, they have really good snapshots of every suburb. You can get growth over the last 5 years, demographic snapshots, median prices, the lot.
There are a ton of sources you can pay and get the info, I just gave you the FREE way on getting the info. Get the agents to WORK! for the money they get paid.
In regards to growth, I just meant to say that any investment needs to make sense when you buy it. I have seen many new investors buy apartments that cost between $100-$250 per week to hold and they don’t get the capital growth all the “gurus” predicted for the area, and the areas did not followed the same growth pattern from previous years, Sydney is full of examples. Mosman, Sydney, NSW (apartments units) is a good example, units in Dee Why NSW is another great example too, close to the water, Sydney, etc, etc.
I am talking about those that bought at the peak of the boom (2003) and have had 4-5 years of no growth and lots of $$$ out of pocket. I have two “friends” in this situation at the moment, they bought 1 bed units for $380,000 they are now worth $400,000, $20K gain?, no, 4 years of $150 per week negative CF, you do the sums… At the time I was buying what they call “dinky” houses and mine were doubling up in price… By no means I am saying this is what is going to happen in St Kilda , just don’t buy an investment that all you can do to profit is to wait and hope for a gain, I am sure you get the idea…
Happy InvestingHi Ptialv, equity refers to the portion of the property that is yours (in simple terms), in Timbo’s post, he mentions he has got a fully paid IP, so even though this is a good position to be in, he is not leveraging his money. He can use some of that equity to purchase more properties in order to spread risk, grow his portfolio, etc. so this is why sometimes the word lazy is used, because your money it is not working hard for you. I hope this makes sense. Happy Investing
Hi There
Are there any “twists” you can do to the property, if a house, rent by room for example. How about rent, is there room to increase the rent by maybe doing a minor reno, or adding a split AC unit, carport, etc? Just some thoughts…Hi Tim, as you know, moving into a trust will “trigger” CGT as well as other costs. I was on a similar situation a few years back, I bought my first 4 IP’s under my own name. I just kept them and made sure the next ones were under the right structure for me, my plan, etc. (trust). Dont worry too much about this IP being under your name, make sure you see a good accountant to set you up with the right structure that fits you investment plans and use that “lazy” equity to purchase more IPs.Happy Investing
Here is one FREE tip that works ALL the time:
DEMAND a print out of the latest property transactions from the selling agent, they are all subscribed to RP Data, Homepriceguide, etc. Tell them to give you a Radius/street search so you can see what REAL comparables are selling for. If they say no, take your business somewhere else.Happy Investing
No one has “the” crystal ball to tell you about growth in the area and any area for that matter.
Buy it if you can afford it, fits your plan, takes you closer to your goals and dreams and makes economical sense today, tomorrow, next week, next month… etc. The area "ticks off "all the fundamentals of a good area to invest, does it fit your plan?
In regards to getting past/comparable sales, DEMAND from the selling agent, a print out of the sales (i.e. last 3 months, apt, same building/area etc). Any decent agency would be subscribed to RP data, etc. If they don’t, pretend you are walking away and you will see
Happy Investing
There are 3 ways, one is the tips we posters can give you from “cyber-space” (age of the house, etc, etc), second one will be to get a handy man/tradie and ask for a quote (on painting it, etc), they will tell you if it is or not (by the way this is the FREE way, this one will cost $0), and the third one will be to pay $180 to $200 for a builder to do a proper inspection.
If you are keen to buy the property, option 3 will save you thousands and headaches…
Happy investing
Hi Iron Lady, I actively invest in the area. Units and duplexes rent very quickly however they are harder to sell. In my opinion the profile of the Cessnock buyer is still, families looking for the land component (room for toys and for the kids to play, etc). I have done both, units and houses in the area. Heaps of bargains there at the moment…
If you go for the duplex make sure you can “hold it” for a while. This is just my experience. If you can hold them and get a decent rent and depreciation, etc…work out the numbers.
It will also depend on how much you paid for the land (is it a sub division or you bought the land? )
Feel free to give me a call if you want to have a chat about the area, happy to share info on some of the things I have done there, etc.
Happy investing
Hi Chetnik The area certainly "ticks" all the fundamentals of a sound area to invest. I would also make sure to do some research on the area, if you don’t live there, spend a few weekends there looking at property so you will familiarise yourself with prices, how much houses and units rent for, what is good value. Leave your cheque book at home for the first couple of trips, until you see enough properties. In my November 07 Newsletter I have included 3 ways you can get market research for FREE. If buying a property in the area will take you closer to your goals and dreams and you can afford it, do your due diligence and go for it.
Happy Investing
Hi Boshie, Simon makes good recommendations for you. Plenty of things you can do with $200K, however you need to sit down and make a plan, yes a written plan, otherwise every time you hear a HOT tip you will be tempted to follow it and lose track, set your goals and your goals will dictate what strategy to follow, etc, etc. Tonight, sit with hubby, get him a cold one, get your self a nice glass of white and make a planning session, in my experience property it is just a vehicle to help you achieve your goals/dreams.
Happy Investing
