Pisces- no problem re the communication. I think the problem with pre-reno’s is that it depends on where it is. If it’s in sydney, for example, people often buy the house for land value anyway. I guess it all depends on how much the reno will cost too- there’s always the danger of overcapitalising. And some people like to buy unrenovated because they have their own style/dream for the place.

Not trying to be negative here. Just imagining that these days, unreno’ed houses are almost as popular as renovated ones. I think that probably the only ones that aren’t so popular are ones that need structural fixing up, and that’s for obvious reasons.

Probably the other thing to think about is moving costs, or what it may be like to live in a house where you can’t use the bathroom for however long!!

As for the taxation implications, apparently there are some people who do this for a living- move each year into a house they’ve bought, make it into an IP after a year, and do it again. Could be an interesting life. As long as it doesn’t do your head in [wacko]

kay henry

1HotValuer [hmm]

kay henry

This is name-calling, Acey. You said:

“Kay, no chips on shoulders please.”

However, if you don’t see it as such, Acey, then we do have very different ways of seeing the world. Anyway, I think I’ve made my point.

kay henry

I guess I am looking at the average person who was not born into wealth.

Also, I suggested not ONLY working, but working AND investing.

Acey- that quote:

“it’s a truth that of the 95% of working Australians fewer than 10% will retire wealthy & well over 60% will retire destitute & reliant on the pension.” Dear oh Dear, Acey.. that quote is in every wanna be millionaire ad in newspapers, the quote is as old as the hills (way before self-funded retirement came in) and is really just a fearmongering tactic to get people to buy products/attand seminars. I’m surprised you’re using it without at least saying how old it is. 60% destitute and reliant on the pension? In 2004? Pullease.

kay henry

Sorry Misty- it’s me again! [blush2]

I just wanted to make a quick comment. RE’s don’t do “valuations”- they do “market appraisals”, which really has no validity. Often RE’s will overvalue your IP so that you might sell with them, although this practice is being more regulated now, and the RE can get in trouble if they give you an overvaluation or an undervaluation, so they’re being more cautious. But never take a market valuation at face value. Often bank valuations will come in at a markedly different price than a market appraisal.

kay henry

Misty,

If the current property you’ve bought has been bank valued recently, then the bank probably won’t do another val on it. It depends on how much you want to borrow for your next place. If your LVR is low enough, then you shouldn’t have to worry. In my experience, bank valuations are never usually higher than the property is worth, so perhaps you bought it an an under value price to begin with.

A couple of options to think about. Firstly, you could pump in as much money as you can into your property, to reduce your LVR somewhat, therefore taking the pressure off the valuation. Also, say your new valuation *does* come in lower, at least you’ll know how much money you can borrow, and you may have to just buy a cheaper IP next time.

I too, am getting 2 IP’s revalued currently, and I’m really interested in how that will go- they haven’t been valued before. You can always ring up a local RE to find out how much similar properties to yours have sold for. I find that RE’s are great about that, and they have access to all that info at their fingertips :o)

Good luck with it.

kay henry

Good on you Mini! Congrats on 1000 posts and 4 properties! And congratulations on your new avatar- cute I am seriously goiung to go on an avatar campaign where I nag everyone to get an avatar until they get one to get rid of me

Seriously, Mini- your posts are always enjoyable, and it doesn’t matter on here whether people agree or disagree with anyone. I think the thing is, when we agree, we usually don’t post to say so, so it’s usually the disagreements that become more visible.

Anyhoo- it’s a milestone for you in posts and a milestone in property!

kay henry

Q: What’s the definition of greedy?

A: Someone who has done whatI have done, but I’m not greedy- they are.

Q: What’s the definition of stupid?

A: Someone who has done what I might have done, but I got away with it- by luck. They are stupid, but I’m not.

Q: What’s the definition of someone moral, wonderful and generous?

A: Me, of course!![biggrin]

kay henry

dismith,

Call me short-sighted, but I cannot see any pouncing going on here. Monopoly asked what people would do, and people responded with their thoughts. Presumably, Monopoly wanted to hear people’s different viewpoints. I think the point of this board is to engender interest in all aspects of RE, and Monopoly’s post has attracted a lot of interest. I am sure Monopoly would not have posted if she felt upset by diversity of opinion.

People need never worry about others disagreeing with their perspectives or whatever. Generally, people don’t take others ideas personally, unless it is a direct, mean and vicious attack- and those are never necessary.

kay henry

Hotrod,

I agree that there will always be tax changes. There has been the 2.5% exit tax in NSW. Some people panicked about it. I just see it as everything changing. If one expects to invest for 60 years and not have any tax changes, then I think they need to be a little more flexible and open to change.

When I first started investing, I was on a grand wage of 17k per annum. My then girlfriend was on a wage of 13k. Neither of us was particularly cluey about tax. Obviously, we couldn’t get much back in tax returns either because we barely paid any tax! But at the end of the day, we did well out of those two little investment units we bought- out of little things big things grow, as they say. It all depends on what you’re looking for. I don’t expect the taxation system to work solely in MY favour. Perhaps there’s other priorities that ought better be looked after- public school, health, transport- and even public housing!

So basically, I don’t solely rely on taxatio to assist me. I rely on chucking my wages into the mortgage. I am happy to *pay* for my investments, and don’t expect anyone else to pay them off for me. The tenants assist and so do the current tax laws, but RE is my asset, and I take responsibility to pay for it

kay henry