Forum Replies Created
Hey F;
was the drug dealer across the road from the train station in Frangers?
(just kidding – I love Frangers and hope it goes thru the roof).If you don't want to be publically scrutinised and criticised then don't post. It is an open REAL ESTATE forum.
For that reason I am being nice. I would love to say in my exact words what I really think.
So actually, I am controlling my temper.
You are just trying to flog your stuff, and posing as an "interested" forumite I'm tipping.
If you don't have any helpful real estate advice that's fine, and if you are inexperienced as you say, then ask some pertinent real estate related questions and we will answer them for you.
Here's a question for you then; all of the things you are involved in that we are being endlessly subjected to, if they are so good and you are keen to be accepted on this forum; why don't you donate a free one of each of those products to someone on this forum?
Let me guess; you can't donate one as you won't make any money from that.
Don't donate them to me; I'm probably not your best customer. Donate them to the lady who posted earlier about her sister whose house burned down with no insurance. I am sure she could do with some positive thinking and a great social network right about now.
Let's see how generous you are Rejoice.
My best friend and best man owns a Retravision store in Clayton. If you would like his contact info email me. I will tell him you are on the way and he will look after you.
This is terrible news.
I am sure you will get a much bigger (and better) response if you were to contact one of the high profile tv shows such as "groundforce", "A Current Affair", or "Bachyard Blitz".
These types of shows love these stories and the community usually gets behind it and donates tradies, etc to rebuild.
Unless your properties are heavily neg geared and are costing you money from your pocket each week, then I'd say it sounds like your problem is your personal spending habits.
Having "too much week at the end of the pay" is usually a problem for those with the above problem. You have done well to get 4 I.P's if that's the case.
I don't like to see people sell properties to then turn around and buy more. It ends up costing lots in buy and sell costs. It may be worthwhile to sell one of the properties to free up some equity and pay down some of the PPoR debt.
Have you maximised the cashflows you can get from each property:-
1. Depreciation Schedules,
2. Interest Only loan
3. Have your tax return paid into your pay each week (Section 2021D I think from memory – someone tell me if this is wrong).More guff.
First it was "The Secret", now it's a free upgrade to a social network.
What do you think this site is? It's a social network and it's FREE.Are you gunna post some helpful REAL ESTATE ADVICE on this forum or just bombard us with crap forever?
"reliable" and "tradesman" should never be used in the same sentence, let alone next to each other.
Crashy, it sounds as though you may have been one of those tradies I like to fire from a job.
Why should we offer tradesmen a drink every hour? Will he do a bad job out of spite if we don't? If I get offered a drink by the client (I used to do some tradie stuff too) it doesn't mean "hey; I think I'll do a decent job now, because before the client was nice to me I wasn't going to try very hard".
Isn't the fact that he is getting paid to do a job, and at an inflated price according to your description, enough?
Why should we offer to clean up the mess? They made it and are being paid. I used to do a bit of painting with my Dad – a professional painter; he always cleaned up afterward. He was never asked to, and was always flat out because he did a fantastic job every time. Will the tradie deduct a bit off the price because I helped him clean up? Yeah right.
Why pay in cash – he'll only not declare it to the ATO and go on a camping holiday to Echuca, or buy a jetski with it, and we've funded it through a price gouge.
I'll pay cash (knowing it won't be declared to the ATO) if I get at least a 10% discount off the price.
How about the tradie tries his best to not frig around the client, does a good job and on time as he should, and maybe we will remember him and refer him to our friends? How about the tradie tries to leave a good impression in our mind?
Being a good tradie is not something they might be – it is their bloody responsibility, and we should'nt have to suck up their a**e to get a decent job done for a decent price.
ARE YOU KIDDING ME??
Albert;
you ask what the hourly rate is, when he can start and how long it should take. Not a quote as "crashy the standover tradesman" says.
You tell the tradesman that if the job goes over the (his) estimated timeframe to complete it he won't get paid.
This will sort out who wants the work and who doesn't, and it will make the tradie rethink his time frame carefully if he does take on the work.O.M.G… what next?
You don't need to put down a 10% deposit, and you don't need a deposit bond unless you have no cash to use.
This is just what the agents want you to put down.
They do this so they can then access the deposit and get their commission before settlement.
Many agents Sale Contracts are drawn up with a 10% deposit as standard written on them; so what? It is not a law. I just cross it out with my pen and write in $1,000.
Offer them a grand as a deposit. Of course they'll hate it, and some Vendors may say no, but you're the man with the cheque book and you play your way.
If you are that desperate to buy an I.P that you'll bow to the agent's wishes then you are buying with emotion and not your head.
There is another deal of the century every hour or so.If you must use a deposit bond, and are planning to buy under a trust, I think you can secure the property with your own name "and or nominee" on the contract, then use the deposit bond for the deposit , and fill in the final purchaser's name (your trust) later on near settlement. This would need to be clarified of course.
Asking around on the various forums will usually turn up someone who can at least start you off.
Try Somersoft as well as this one, look in different investment publications such as Australian Property Investor.
Once you know where yo are going to live you can narrow it down a lot.
You can do a lot via email and fax these days. My accountant is in Aus, and I am still able to communicate with him easily to handle the finances, so you may even find one in another city or even another State that will be o.k.daneye wrote:Thanks to those who have responded so far, I am taking it all onboard. I had failed to mention that we would only be looking at an investment property if we can both find extra cash through weekend work, we do know a little bit about this business as we rented out a house in NZ for 5 years whilst living here and after mortgage, insurances, etc we made $10 a week on it, we would need this to be the case here also. We made a large amount when we sold around the $120,000 mark which enabled us to buy here. Our mortgage is under $400 a week and we keep our expenses very low.
We also have money put away incase on situations as you mentioned by blogs if a tenant defaulted on repayments we could take care of it. Anyway we dont really intend of doing anything for another 4-6 months or so, but if anyone has anything to add I am willing to hear it, its all food for thought.First, Sienna said "don't listen to the negatives" and then went on to talk about more positive thinking stuff. That's all well and good, and everyone needs those thoughts, but having positive thoughts and investing with SAFETY are not always a match.
My earlier post was not negative, but advice based on quite a few years of experience and making mistakes that cost money. I and others are trying to make you aware of the dangers and hopefully steering you away from them.Second, the money you have put aside for an emergency will work much harder by being in your current loan. Unless it is in an account or other vehicle earning more than your mortgage interest rate, you are still losing money. It is better to have it parked in either an offset account to your mortgage, or in a redraw facility attached to your loan. This way, it is still accessible in an emergency, but you will have a much smaller interest bill every month to have to cover. You may have to refinance to get this set up, but the benefits will outweigh the initial set-up costs very quickly.
Welcome to the forum SKYFOX.
I'm sure you will learn an awful lot from the guys/gals here.
The strategies you mention are what most of us do and more.
The things you mention that you are planning to do which are probably a bit "muddy" are;
3. I haven't ever heard about a higher rent return increasing the value of a property. Any experienced investor who sees a property for sale with an abnormally high rent return will dig deeper, and will probably already know the values of other similar houses in the area. In commercial real estate there is a value placed on buildings based on the rent return to a degree.
4. Waiting 12 months before drawing on the equity only will work if 2 factors occur in that time;
a) you get sufficient capital growth in the property. This does not always occur. In some places in Aus over the last 2 years the growth has been negative.
b) you can normally only access around 80% of the AVAILABLE equity in your property. This means you need to work out what your loan balance is and subtract that from the 80% value of your house, then you can use what's left. After 1 year it is usually next to nothing unless the property market is experiencing a boom and/or you have bought the property way under the market value.The Contract date when it becomes unconditional.
If you are going to make a loss why sell – do you need to sell it?
Can you move out and turn it into an I.P instead? All the costs are tax deductible, and the renos will provide good on-paper deductions too.
In a flat market never sell by auction. The buyers will only bid enough to beat the last bid – not always what they are prepared to spend.
Go with private treaty, don't spend any money on ads as it is a waste of money – the buyers are already out there looking. Don't let the agents con you.
Put a sign on the lawn, a photo in the agent's office window and one on the internet and set the price realistically and you will sell it in a few days.
Anything with an "R Us" on the end of it you've gotta hate.
has anyone started up "CFP Properties R Us" yet?
I think I'll register the name now – gotta be a winner.
I think merryc8470 is talking about auctions I guess?
The phenomenon he mentioned is classic under-quoting on price by agents. It was made illegal a couple of years ago, but the govt is reluctant to step in and do something serious about it – conflict of interest. sorry; I digress and don't get me started on that topic.
The properties he mentions aren't actually selling above market value and you will find this is true when the Bank does a valuation to approve finance. The properties are advertised lower to create more interest and so the agents can collect names and numbers for future canvassing of buyers and sellers.
If you are looking to buy via Private treaty, then offer whatever you like. The market in Melb is supposedly currently flat, but apparently on the rise in some areas, so you may still find a desperate seller who will accept less if you make a move soon.
The standard low offer is 10% below asking, then go from there, but try 20% on a very short settlement; this does work occasionally.
The worst thing that can happen when you make ridiculous offers is you get into an argument with an offended agent – great fun.
Thanks Terry.
In this order;
1. Your knowledge of property investing and the various strategies, pitfalls etc. Read lots of books, read forums such as this and Somersoft.
2. Your knowledge of the property market,
3. Start searching for a like-minded mortgage broker and accountant.I just looked at the website; looks like any other crowd. Could be o.k. Their rates don't seem that fantastic though.
It does have a disclaimer on the fees and rates page which excludes fees for early loan payment and redraw etc, so the rate may seem low initially, but could end up being no different to anyone else when these fees are factored in.
I also noticed on the home page the loan with 3.99% variable repayment loan for 1st 2 years.
Be very careful with this product.
A zillion people in the USA are now in foreclosure due to this product or one like it.
The way it works is you pay only half (approx) of the current interest rate for a set amount of years. The rest of the interest is tacked onto the loan (called capitalisation).After the honeymoon period the loan reverts to the normal market rate and the loan is more than you began with, which is fine if the market keeps going up, but what if it doesn't or even goes backwards a little, or you lose your job or get sick or, or, or?
For some peole this is a great tool, but for the inexperienced and/or financially challenged (most people like that are the main recipients of these loans), it can be disastrous.
I disagree Simon; they can be both, but of course, there a very few around like that.
I have one, and you're one.
There's two.
