Forum Replies Created
3 negs
37 years old
7 years investingThanks Matt
kay henry
Jeff- sounds like a huge project- you must be brave to take it on
It’as interesting, Jeff, that you talk about when yo first bought property. I knew bugger-all about property when me and my gf first bought in 1997- we bought a couple of units together- this is what I didn’t know:
* About depreciation and 1985/1987 allowances
* about sq metres and size of units
* about positive gearing and rental yields
* about determining hoh BC fees should be (on the unit I sold last year, my annual fees were $350- hehe- pretty cheap [blush2])
* about using equity (I thought you paid the whole property off- a la anita bell)Basically, I knew really nothing when I first bought (I’d read only Somers and a few other books). So I use my new knowledge to buy better. That means I now can determine *value* more than I could in the past. I have no regrets about the purchases we made in 1997, but it’s weird doing something you don’t really know much about.
Who knows, Jeff- perhaps in a decade’s time, I’ll be doing projects like you’re doing. But I would have to learn so much more, to move out of my current buy and hold units mode
Best of luck with your project, Jeff- sounds awesome kay henry
hehe yack- funny
your kids will be outside the Ball, staring through the window panes, hoping that the good folk inside the Ball might toss them some bread and dripping for their supper. [laughing]Enjoy the Ball
kay henry
Baloo,
I hear ya as to why you are holding off. For me, though, it is about purchasing in a flatter market- not for CG- but to buy properties that are now affordable (and were inaffordable during the boom). Because I am not purchasing for growth in the next few years (I doubt there will be much growth personally), then i’m also a little more focussed on yield, whereas usually, that ia a minor consideration for me.
I’m happy to purchase and then wait out 7 years or so, whereupon my property will be well in the process of being paid off, and may have achieved some CG. Actually, i am not hugely concerned about CG or yield- i just like owning properties- hehe. I’m a collector
kay henry
depreciator- I’m freaking!!
Do you mean i need my QS reports done by 30th June to claim for last year’s purchases? I really need the deductions for this past financial year, as I have a CGT bill, and need to reduce it.
Am I able to get QS’s done in the next couple of weeks before I get my tax done and still claim?
Thanks in advance
kay henry
Angelcake,
Here’s a reply I wrote last night to someone who asked a very similar question to the one you have asked. I’ve edited out the irrelevant bits
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I think there are heaps of positive geared properties around. Well, cheap properties with rental potential of 10.4% So you buy a property in a rural location, for 50k, and rent it for $105 a week. It’s not hard to find them.
I haven’t gone down the rural property road, but I bet could still fine 40 properties on the net within a half hour that could have rental potential of 10.4%. It’s whether you want to go there or not.
But just because I don’t go there, doesn’t mean that they don’t exist. How many towns are there on realestate.com.au? thousands and thousands. You can find those kinds of properties in an instant. A spotter will check out the properties for you, if you want to pay someone, but any person can find them themselves, independently.
kay henry
Da Man,
I think there are heaps of positive greared properties around. Well, cheap properties with rental potential of 10.4% So you buy a property in a rural location, for 50k, and rent it for $105 a week. It’s not hard to find them. It’s whether you WANT that kind of property or not, that is the question- and it seems you don’t, so there’s the answer
Develop your own strategy, and then stick to it if it’s working for you. I haven’t gone down the rural property road, but I bet could still fine 40 properties on the net within a half hour that could have rental potential of 10.4%. As I said, it’s whether you want to go there or not.
But just because I don’t go there either, doesn’t mean that they don’t exist. How many towns are there on realestate.com.au? thousands and thousands. You can find those kinds of properties in an instant. A spotter will check out the properties for you, if you want to pay someone, but any person can find them themselves, independently.
kay henry
Priced at 130k and rented at $180, I might find it worthy… but with a lot of Q’s to determine whether I’d buy.
How big is it? Studio? 1 or 2 bedroom? (I would not buy a studio, personally) How many sq metres?
How old is the unit? If it is post 1985, you can up the yield by using depreciation benefits.
As others mentioned, what are the body corporate fees? and management fees?
Any special levies planned? This can be checked in a BC inspection report. Special levies might be incurred for upgrading to equipment (eg gym equipment…) or for any building defects not covered by building insurance, or not taken responsibility by the builders. You could also have a special levy incurred, for example, on some kind of “improvement” they might make to the place- cement rendering to the outside of the building etc.
Car space? Is it registered to your particular unit?
You might also think about how many units there are in the complex- small is better… large generic apartment blocks have resale value issues.
I personally think rental guarantees are pretty good. the “local business” though… is it viable for the future? you could probably have a snuffle at their annual report or something to see if they will be still floating for the future of the guarantee. Will the increment to increase rent be linked with CPI? Or some other measure?
So many things to think about
A reno’ed warehouse can have it’s own “style” factor that can be good for resale- sounds newish.At the price, I’m guessing it is regional?
Ask any further specific questions about it Miler, if you wish to, on the forum, and the unit heads amongst us can attempt to answer them
kay henry
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