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Sorry, I failed to mention that the front house is being used to secure a number of other loans. Therefore this is not an option.
You will also need to factor in other expenses such as council rates, maintenance issues, land tax, water levies, vacancies and the like. This may well put a dampener on the idea. But good luck with it. You may find it a better option to borrow on the equity you have in your existing house.
HI Wayne,
I simply print all of my forms off this website. I am in Victoria so, if you are elsewhere take caution. http://www.consumer.vic.gov.au I currently manage 3 of our properties, 2 of which require little or no supervision, money is direct deposited into our accouny each week/ month. The other one is a headache and I am now placing it in the hands of a property manager. I just lose patience too easily for some of the matters that arise. Good luck, and if you need any help don’t hesitate to contact me.
CK
Need the purchase price to assess properly, and also any immediate repairs that need attention. Are you aware that you usually can only borrow 70% for a commercial loan?
Hi there,
Steves first book I believe explains everything from start to end. It was this book that inspired me to add a further two properties to my portfolio within weeks of picking it up. Do yourself a favour and buy it and then come back to his latest book.
Cheers
TerryW hit the nail on the head. A solicitor comes in handy when a property transaction become messy. Ie. Problems with title transfer and settlement disputes etc.
Offer $270K in writing first, this shows that you are serious. Verbal offers mean very little to real estate agents. If the offer is in writing and rejected you will usually get a counter offer from the vendor. If you don’t get one, ask the agent to re-contact the vendors and get one. Good luck.
I also manage 3 of my properties. I was in real estate sales for a couple of years and picked up on the basics and kind of thought the same way as you do. $30 is far better in my pocket than in somebody elses. You have far greater control on what gets repaired and what doesn’t. Some rental managers will just do whatever the tenant wants in terms of repairs and send the landlord the bill, which I personally would not cop. As mentioned earlier, keep meticulaous records and you will be fine. Don’ be afraid to make that phone call to your tenant about late rent. After all, it is your money. I enjoy tracking who has paid what and knowing what kind of repairs might be coming up. Good luck with it.
I would definitely be using the equity, to buy again. This is assuming that your 1st investment is positive cashflow and not a drain on your income. If the property in negatively geared there is only so many properties you will be able to service from your income. Great job on the deposit and paying down the loan. Keep it up.
Thanks Richard. I booked in this afternoon to see an accountant about the big picture. Appreciate your thoughts.
Hi there,
I also have bought a couple of properties in rural areas. Buy price was $54K and rent is $100 per week (cheap rent for the area). It has potential to do up and achieve a higher rent which I will do upon expiry of the lease. The town has approx 4,000 population and extremely low vacancy rates which is why I purchased in a town with such a low population. Again, as mentioned many many times, positive cashflow deals are made, not bought! But there are some exceptions. Good luck and do your due diligence thoroughly.
Hi there,
I personally would buy a property in need of TLC on a long settlement with potential to increase in capital over a short period of time, do a cosmetic reno and get out in time to make a handy profit if possible shortly after settlement. Not the ideal time in the market for this strategy, but there are still loads of opportunities out there. Good luck!
Hi,
Try Miranda Conveyancing in Patterson Lakes. They are fantastic and have completed many smooth transactions on my behalf. 9773 3647
Hi there,
As an ex real estate agent I was expert at this kind of stuff. It sounds like it is a deceased estate or an ex rental that is waiting for some kind of work to be done. As mentioned on another post RP data is good, but just an old fashioned knock on the next door neighbours door is a good place to start and costs you nothing. Most people like a good gossip and will be more than happy to help you out. They should at least be able to tell you when they see the owner there most often. Good luck!
Hi Crum,
You may need as little as $1000. As advised already, get yourself a good mortgage broker and they will soon let you know, if you can borrow the amount required. Ie. Service the debt through your existing income and also make sure it meets valuation etc. Good luck with it, sounds like it could be a good buy.
Hi Sanjiv,
I live a short distance from Frankston (Chelsea Heights) and have seen the suburb and surrounds grow over the past 5-10 yrs. Frankston North has always had a bad name in the area, mainly due to many old housing commission homes adn rough by nature! However, in saying that, some of the homes in the area are bullet proof. The are solid and generally attract a good rent. As Dom mentioned, there are positive cash flow opportunities and many many neutral investment properties. Homes in Frankston North were selling for around $60,000 less than 5 years ago and now sell for around $180K upwards with the odd bargain around. This growth should continue and as development takes hold in the area in line with the huge upgrades proposed for the area, purchasing here is also on my agenda. In terms of what to buy, I will be looking for an old house with an opportunity to subdivide. Hope this helps.Thanks Bridgebuff. More good advice. I think I will allow them until next week to come good with some cash and if not, send a 14 day notice to vacate fpr rental arrears.
Thanks Wylie, I keep a database with all correspendance and phone calls made to tenants. Good advice. I am in Victoria FYI.
Hi Peachy,
As an ex estate agent I know from experience that some vendors get very nervous about accepting an offer with no money down. I am in Victoria and $500 was usually enough, however, the initial deposit has no advantage to the estate agent, so try and listen to what the agents advice may be as they will know what their client would prefer.
Hi Kylies.
It is a dual occ site. Front house to remain. The land val for this particular site is around $90,000. I think I would be going for a full doc loan as I am not self employed. I assume full doc would give us a better interest rate? Serviceability shoudn’t be a problem. We plan on renting it out and rent has been estimate by a property manager at $270-$280p/w. Help is appreciated.
