Forum Replies Created
Chiara,
I have done their bus tour and would recommend strongly that you do a google search on the principal of the company. His name is Victor Ollis.Jacqueline
Kev,
The important thing to remember about purchasing in Brisbane (or any big city) is the land value. It is the land that appreciates over time, as the house actually depreciates (unless you’ve value added through renovations) so when you’re looking at apartments, you need to consider the land content within the purchase price. As a general rule of thumb, 30% of it should include land value. As you can see, the smaller the block the easier this is to achieve.
Brisbane has suffered from oversupply, that’s true, particularly in the new unit market, with record numbers of new flash apartments going up. This has led to a ripple effect on the older units, with more rentals available and thus more competition. We all know what that means for our returns!!
As for buying and then waiting for “things to ease off”, this realistically may take some time, and in the meantime you need to be prepared to be out of pocket significantly. If you can afford this and have faith that cg will reward you in 3,4,5,6…(however many yrs your plan is!) yrs time, then go right ahead. Just be sure to set some risk minimisation strategies in place if you’re on a tight budget eg: fix interest rates, take out IO loans etc.
Not that I have any experience in Brissy units (I have a house up there) but my favourite place is New Farm, right down in the older art deco (smaller blocks) units, walking distance to the ferry terminal and park. It really is lovely down there.
But, hey, don’t let emotion come into it. Property is there for making a profit!
Good luck Kev and Brad!Jacqueline
Though I did not go to your seminar this time, Steve,(sniff sniff
)
I have heard from others who did what a terrific experience it was, and how much they gained from it. Well done yet again for another informative and action-packed weekend! Keep up the great work!Jacqueline
Hey David
As far as finance goes, it is an area where you are usually better off engaging the services of a switched on independent broker, who can sort through your personal situation and present you with a number of choices. There are so many loan products out there and it’s important to get the one that best suits your individual situation. As Steve has rightfully pointed out, it’s not IF it can be done, but HOW.
I recently heard someone say that they’re not going to say they “can’t afford something” (as we all do from time to time, depending on who’s asking!!) but rather, “I choose not to afford it”, as that’s usually the case. Something to think about anywayJacqueline
You go Lance!
It’s terrific to see people like yourself fired up with enthusiasm and drive. We may all possess the knowledge, but it’s taking action that separates the truly successful. I wish you every good fortune (though I don’t think you will need it by the sounds of it ) and have a terrific journey along the way. Go Personal Power!!By the way, just as an aside, why did you decide not to wrap this latest purchase? I am assuming you’ve bought in an area that you’re confident will have good future capital growth?
Jacqueline
David,
If I were you I’d begin by reading and using the services of your local library and bookshop in earnest. Books are terrific as they contain a wealth of information, without the big price tag
Introductory seminars are great too, though be sure about where you want to go and what it is you want to achieve first before you jump right in!Also, if you can get your hands on a wrap pack then do so, as it’s the best way to learn about wraps fullstop. Steve’s kit is concise, step by step and thorough. As I’m not intending on doing any wraps for now, I have some material available for purchase that you might be interested in. Email me for more details if you’re interested [email protected]
Jacqueline
Hi Michael!
I think you would find that, though some solicitors can provide a vendor’s list of depreciable fittings you are actually economically better off hiring a QS yourself to do it, as they will usually place a higher value on such items and find things that you or your accountant may miss. They usually charge anywhere from $385-$800 depending on where you live, and their schedules can make quite a difference to your tax return! If your property is negatively geared, having a QS report can shave even more dollars off your taxable income, especially if you plan to renovate.Jacqueline
Hi Wayne
Have to agree with AD here, in that you can’t learn all about wraps by reading a few posts. Steve McKnight’s or Rick Otton’s wrap products will take you through, step by step, the entire process and are well worth the money if you are going down this avenue. I have both and, though I am not wrapping, consider them to be info packed regardless.
You need to be clear here on your goals. It sounds to me as if you are doing pretty well with this property in terms of return and capital growth. (a property that cost you $80K and returns wkly rent of $170 is actually getting you a gross return of 11%- which is excellent!!) You are more than likely putting money in your pocket on this one, so why sell?
If you need the cash in a hurry, then why not just sell it outright? A wrap is useful for continued cashflow but you are taking your set profit in the price that you put on the property. Also, it sounds like your tenants won’t be able to afford to buy the place anyway. If they are currently paying you $170 in rent and you wrap them the house for $140K at 8% over 25 yrs (with a $7 deposit) then their payments will increase to $236 a week. You need to find someone who can afford this amount.
Just some thoughts anyway. If you want more detailed info on the packs, feel free to email me
Cheers, Jacque
Anyway,Jacqueline
Hey Sooshie,
On our last revaluation we told our lender that we would like to pay for the valuation ourselves, as we preferred to show the valuer through personally. They agreed to this and when the value came in at an unsatisfactory amount, I sent the valuer a two page letter outlining why I considered my house worth $30K more than what he had valued it at. I used comparable sales data, pointed out the errors in his report (he stated the house to be c25 yrs old when it is actually 14 yrs, wrote that we had timber floors when our house is on a concrete slab and didn’t count the study as a bedroom, yet it is big enough to count as one) and sent him some recent capital growth figures to support my case. He rang the next day, apologised for his oversights and wrote me a new valuation for $30K more!
It did help that I managed the process and I would do it again this way. The other thing I did notice on the valuation was that the comparable sales data they used didn’t quote the no. of bedrooms. I found this to be then misleading and told the valuer so. After all, how can you properly compare properties when you don’t know how many bedrooms they have?
Hope this has been of some help.
Happy investing!,
JPGood luck
Jacqueline
OK Steve I couldn’t resist! Just the mention of a reward is making me salivate… (I hope it’s edible!)
Seriously, though, congratulations on getting a forum up and running! I am most impressed and pleased, as the benefits of a forum far outweigh the negatives. It is an ideal place to exchange ideas, network with other like minded individuals and to learn so much!
As for critiques, well you know that when it comes to PC’s, I’m still on L plates so you’ll have to forgive my lack of technical terms improvements. However, the green is very unexciting. I know others have said it but it’s sending me to sleep (too calming!!) Yellow or bright blue would be better in MHO.
Besides that, I like the happy faces idea (very you!) and the split categories at the beginning. Not much else to day except Well Done and thanks for another forum!
JacquelineJacqueline
