Forum Replies Created
Thanks for your advice Scott
G,Day Karen
Glad your excited – you should be too I have actually been for an inspection through this house and for $260000 you got it for a steal. Median rent for the march Quarter ( http://www.rta.qld.gov.au) for a three bedroom home in Mackay is $380 a week, I rent out a two bedroom house in Bucasia for $300 a week ( not a new place either) – I't would be safe to say that you could rent this place for at least $350 a week.
Well Done
Positive cash flow property is basically using an on paper deduction to turn a loss into a profit. i.e. – claiming Capital Works Deductions ( cost of building the house) as well as claiming depreciation on fixures and fittings – you will need a quantity surveyor to do a depreciation schedule up for you. If you want to claim Capital Works Deductions the house must have been constructed after 1985. Be careful investing in towns solely dependant on mining in order to get positive cash flow.
Do yourself a favour grab a couple of books such as How to Create an Income For Life ( Margaret Lomas) + 0-130 Properties in 3.5 years ( Steve Mcknight) both great books about positive cash flow properties
Spot on Mystery always more rewarding when you reach a stage where your confident enough to find an investment property using your own research. Doesn't hurt to have a good relationship with real estate agents but bugger paying for anyone to do what you can do.
Mystery wrote:Correct me if I'm wrong, but if you take the time to research property investing over a few months, read books, join forums like this and read magazines like API … Then why would you need to pay others to make decisions for you and hold your hand.Maybe I'm just old fashioned, but for me part of the enjoyment of property investing is the research and taking responsibility for my actions, …. after all it is me that is investing a few hundred thousand each time I purchase.
Maybe I'm just out of touch with the new property investors ways.
G, Day Carlin
Taking snippets from an article I read from an investment magazine – "Fixed rates are not solely influenced by the RBA – they are also influenced by those who are investing in the fixed rate wholesale market. Fixed rate loans are largely funded with money raised by lenders in global financial markets, plus a retail margin, plus a margin for risk. Variable loans are influenced by the official rate set by the RBA, plus a retail margin added by the bank"
So in answer to your question. I'f the RBA does lower the cash rate further this may not be enough by itself for banks to lower the rate of fixed loans. with less competition in the lending market at the moment (loss of ST George, Bank West etc) they can afford to be greedy.
Well first of all although you have both lost your jobs which is devestating enough – your fortunate this happened before you purchased your property, even if it was positively geared or positive cash flow lose a tenant or they dont pay their rent you would be up shits creek. They say unemployment should peak by the end of 2010 ( who knows) 8 to 9% so it could be a hard road ahead. You already have $70000 worth of managed funds. I'f it was my money I would go to http://www.ratecity.com.au/term-deposits/ and put your $100k into the best short term deposit rate you can find ( not very good at the moment) – You got plenty of equity to buy property when your job situation improves. Alternatively if your paying rent – or a mortgage on a PPOR and having trouble making ends meet might be an option to reduce the mortgage on your Investment Property – wont be any tax advantage if your not working. Hope this helps.
PS: I work in the mining industry so my working days may also be numbered – plan to become a professional surfer if I become unemployed just need a board
Sure can when I was working for a house removal/ re-stumping company we moved two houses onto the one block. Big block about 1200 sqM but this was approved by council before we began – they were going to rent both out. The main issue with the investment property I bought was no access or vehicle parking for the rear dwelling. As for do councils have different criteria for development approval – not sure sorry – best to make an appointment and find out exactly what you can do. Good plan though keen to do something like that myself but the piggy bank has dried up.
Yes Richard your right they would have to cover their cost somehow – more or less just commented about exit fees because of the story I read on news.com.au- Failure to pass on rate cut angers Government
- Cabinet examining ways to increase competition
- Could consider banning bank exit fees
THE Federal Government is considering banning bank "exit fees" to help borrowers frustrated by the failure of lenders to pass on interest-rate cuts.
my answer not completely relevant to your question.
But just a word of warning to abide by any local council rules/regulations when relocating or building another dwelling on your block. I bought a place one title has a two bedroom house in the front and a 2 bedroom unit out the back. house is classified as a semi – detached dwelling. All parties are supposed to be related ie: family or company and both dwellings can only be rented as one entity – even though they have seperate power and phone connections. Land area is legally large enough 820M but there is an issue with access to the back unit so it can never be classified as a duplex.
G,Day Everyone
Had a visit from premium finance last year after receiving a phone call from them – not sure how they sourced my phone number. Remember being impressed by the figures they presented me with and the offer of showing me a number of properties in Brisbane that I maybe interested in. I didn't take up their offer though to much of a sceptic and seen to many stories of people being burnt before.
My point is educate yourself about property investing read lots of books, internet, investment magizines – look at relevant statistics that may relate to your decision for purchasing a property and listen to what experts ( people that have a substantial property portfolio) have to say. Then if things go wrong you can kick your own ass for making the wrong decision rather than blaming a third party. If things go right which they should if you have done your homework then you can listen to your friends and family tell you how well you have done when they thought you a fool for the risk you were takin. NOT sure if I have to kick myself yet – I do respect and trust my accountant.
Would be interesting if the government passes legislation to ban bank exit fees – would make the banks more accountable for there decisions not to pass on rate cuts. Would definitely create more healthy competition between lenders maybe improving the services they provide and reducing fees.
G,day
Diamonds??? See if they will pay you with alcohol and I will come and have a drink with you
G,day Karen
This is my first post to this forum and would like to let it be known that I am not a property expert but rather have gained some general knowledge about property investment through research on the internet, books and investment magazines. All the information I have read indicates that before the economic crisis Brisbane was forecast to have steady returns of 10 to 12% growth per year. Brisbane has a severe shortage of houses relative to demand and this will continue into the foreseeable future. There are numerous infastructure projects underway and Brisbane and the city has a healthy population growth all positives signs for purchasing an investment property. My friend who moved from Mackay to Brisbane about 10 years ago has just bought his fifth investment property he opts for the more affordable suburbs purcasing two houses in Zillmere one in goodna and two in ipswich ( just purchased a 3 bedroom gable style queenslander house fully renovated for 355000) and assures me he has no problem finding tenants and has received good capital gains – had a few problems with a tenant in the Goodna house.
Dont discard Mackay though house prices have virtually been stagnant here for the last three years ( this is my home town). Bought an investment property here in July last year it had been on the market for roughly 2 years. initial asking price was $370000 ended up buying the house for $330000. A two bedroom house with a detached two bedroom granny flat out the back – combined rent of $570 a week. Mackay was set for a mini boom before the economic problems so the papers said, so it is likely this delay will strengthen the next boom when it eventually comes.
Cheers
G,day Karen
This is my first post to this forum and would like to let it be known that I am not a property expert but rather have gained some general knowledge about property investment through research on the internet, books and investment magazines. All the information I have read indicates that before the economic crisis Brisbane was forecast to have steady returns of 10 to 12% growth per year. Brisbane has a severe shortage of houses relative to demand and this will continue into the foreseeable future. There are numerous infastructure projects underway and Brisbane and the city has a healthy population growth all positives signs for purchasing an investment property. My friend who moved from Mackay to Brisbane about 10 years ago has just bought his fifth investment property he opts for the more affordable suburbs purcasing two houses in Zillmere one in goodna and two in ipswich ( just purchased a 3 bedroom gable style queenslander house fully renovated for 355000) and assures me he has no problem finding tenants and has received good capital gains – had a few problems with a tenant in the Goodna house.
Dont discard Mackay though house prices have virtually been stagnant here for the last three years ( this is my home town). Bought an investment property here in July last year it had been on the market for roughly 2 years. initial asking price was $370000 ended up buying the house for $330000. A two bedroom house with a detached two bedroom granny flat out the back – combined rent of $570 a week. Mackay was set for a mini boom before the economic problems so the papers said, so it is likely this delay will strengthen the next boom when it eventually comes.
Cheers
