Forum Replies Created
Yep, used them 3 times. I have only worked with Graham Turnbull and he was always on top of things. Can’t say anything for anyone else if he is not with them anymore.
Cheers
KrisI too am starting to think Newcastle is a good option. For me, it is strong CG I'm after. Shahin, would you consider the inner east, specifically The Hill district a good option for strong growth over the next 5 years or so? As a feel I'm referring to 2 bed units in small complexes, with the option of renovation at some point. Or for the same buy in (around the 300-350k mark) would it be more likely that say Parramatta, inner west would make a stronger gain in this time?
And would the "profitability comparison" be likely to change between the two after 5 years so say 10 – 15 years, as in as time goes on would it be likely that one or the other could pull away substantially in regards to CG due to scarcity or market trends.
Interested to hear your thoughts…
That is one of the articles. I didn't really say what I was thinking with my original post. What I mean is, given the likely future trend of higher density housing would it be prudent to buy into existing "quality" (not new) medium density stock, or, big blocks with the view of turning it into medium density given the cost outlay to develop in comparison to just purchasing exactly what the future demand will be in an existing premium location that would require minimal extra outlay (renovation) to meet trends as they emerge.
For example, take $1M. In 10 years time would you have been better off buying 3 x 2 bedroom apartments in say 1km radius of Parramatta CBD (medium density blocks) for $300k each, spend 30K on each to spruce up and keep within demands. or, spend $500k on a property in say St Marys, Penrith, (west) and $500k or there about on adding 2 x 2 bedroom units/villas. Think 10 years on and which scenario would have you better off? and also least risk?
Hi Redrager.
Orange in my opinion has run it's race as far as any quick gains or high yield are concerned. Don't get me wrong, long term it's a fairly safe bet of returning 6% PA as it has done for a long time now across the board, slightly better in good areas. But as far as the hotspot chasers paradise it's over. Right now, for the last 3 months the rental market has softened and people are starting to drop rents in all but top notch properties.
Mudgee from what I can gather is still a possibility but very hard to get into at the moment with little to pick from that's worth while. I haven't done extensive research on Mudgee so don't take my words on anything. I think a lot rests on what actually goes ahead there in the next 12 months or so.
Hi Mark,
I don't know much about Melbourne in general so can't comment on Frankston's viability. What I can say is you seem to have the same idea as me in looking for some where that would suit student needs at the moment but also has the potential long term to be developed in some way to create a profit with leasing to students a means to manage the holding costs in the mean time.
I have been investigating more in regional centers to keep the purchase prices down.
This will be my first proper attempt at property investing so I can't give you any killer tips. One thing I do need to nut out is a strategy for dealing with the regular vacant period in December. That does put a dent in the cash flow for the year…
Cheers
Kris
I am looking more specifically at the timing and leasing to students exclusively, forgetting about demand from other demographics for a minute.
My question is do you need to have a property available in December to draw interest from students looking to enter a lease for the following calendar year, or is it more than likely that you can successfully attract leases through January for a February start to the school year?
Is there anyone out there that does have a property that they let exclusively to students? I'd love to talk with you.
Lets just say I'm a slow learner. Turns out I haven't actually been reading the posts or reading the right ones for that matter. If I had of understood how simple financing was (in regards to the correct set up and reasons behind it) and where to look for deals I could have started long ago.
Anyhoo, we live and learn. I guess the important thing is the torch is lit now and I've made the step to engage with people like yourselves. You would be surprised how clouded you judgment can get talking to the wrong people who have the undying belief that you work hard smash your mortgage and raise your family. I was of the belief I was doing well (relatively speaking). Thanks for putting on the blinkers for me.
Great help Jamie, it's appreciated.
Terry, thanks for your expertise on land tax. I hadn't thought of things that way. It would make a lot more sense to get a few properties under our belts and utilise the benefits as indeviduals before creating companies and the like.
The little ducks are starting to line up.
Cheers
KrisThanks for you response Terry.
Trusts and companies are a potential mine field. Do you tent to get charged more for land tax?
Also, if there were plans to enter into syndicate arrangements would it be better to include yourself as a sepparate entity to the "family" arrangements. ie a different company contributing interest to a trust that holds the syndicate assets?
Cheers
KrisThanks Jamie, I was hoping you would be the first cab off the rank to lend some advice being a Canberra man like me.
What figures are required to determine borrowing capacity? Our combined income is 140K
Am I correct that this is what you mean;
1.change current loan to IO (this would be a loan with residual of 240k so we would only be making repayment on interest amount on 240K) Is this right?
2.Pay remaining (of what we currently pay as principal) into the offset (does this have to stay there for tax purposes or can it be used for renos to this property or personal use?) Also does the interest get calculated on the 240k minus what the balance of the offset is? I'm assuming yes but want to make sure.
3. Apply for an (equity?) loan with the same lender against the equity in the property. would I be correct in saying that give the figures of assumed value of 500k with residual of 240k. 80% of total being 400k and difference to 240k being 160k. Taking this we "should have" access to a maximum of 160k equity? If this was the case would we be taking too much of a risk to pull out this amount (in your opinion)
4. use this equity loan as the deposit and costs facility for future IP's.
5. apply for IO loans for balance of new IP's. Should these loans have offset to enable equity draw out or not?I have been thinking of approaching the purchases through a trust with a company as trustee (wife and I as directors) Would this be a wise way to approach things or could it have a detrimental effect on borrowing capacity?
Does anybody know if Heritage is a lender that will conduct pre application valuations? Is this something I should organise? I assume this should be the first move to see where I stand exactly.
I really should have been asking these questions earlier.
Cheers
Kris
