Forum Replies Created
Thanks for the further advise. Have been looking into it further and it seems that, for us, the most convenient would be using job numbers. Perhaps I have to “train” our accountant a bit more on job numbers?
Ray
To begin and not succeed is not to fail
To never try is to failThanks for the reply. I had a similar problem as this with a business some years ago that had multiple streams and unfortunately MYOB staff couldn’t help, but I’ll try them again.
Ray
To begin and not succeed is not to fail
To never try is to failThanks for your reassuring comments.
All applicants for the property had to complete Tenant Application forms and we checked employment, rental and personal references (of course all references were considered with some level of scepticism as, unfortunately, too often they don’t always tell you the whole truth!). In addition, as all applicants were currently living relatively local, we drove by their current residences to see how they were maintained outside – on the basis that outside presentation can be a reflection of how the tenant looks after the inside of the property and can reflect some of their character.
Ray
To begin and not succeed is not to fail
To never try is to failWe have a property in Donald.
Unfortunately these Wimmera towns are experiencing substantial decline at present and unless there is a great turn around witht he drought there may be more to come.
Homes in these areas can be quite inexpensive to purchase and some are obtaining great returns.
You do need to be extremely cautious though as many are actually overpriced in reality because a number of “city investors” are turning their attentions to these areas purely on price.
Tenants are often unemployed or on fairly minimal wages and therefore there is limited scope for rental increases. There are a lot of homes in these areas which, in picture, appear quite good but upon physical inspection can require considerable repair/upgrade.
You need to be conscious of rental management also. With the property potentially being several hours from where you live it can be a chore/risk if you have to attend the property too often. Some rural agents are ceasing to manage rental properties, which can place even further burden on the landlord.
Sorry if my comments seem all doom and gloom but we are actually quite happy with our property and have good long-term tenants.
The key is to do your due dilligence very thoroughly and to go into it with your eyes wide open.
Good luck
Ray
To begin and not succeed is not to fail
To never try is to failProp is in Victoria, hence, the need to keep room numbers below 5.
Ray
To begin and not succeed is not to fail
To never try is to failThanks Jo,
For a while thought I’d miss-read previous ventures into RP. Will have a look see at Domain and see how I go
Ray
To begin and not succeed is not to fail
To never try is to failThanks for teh responses. Much appreciated.
Unfortunately, the properties we looked at over the weekend (and only 1 was suitable) all worked out marginally CF- (around 0.07% for us) so we’ll be continuing the search.
Looks like we;ll have to go further from Melb than we had first thought necessary – but gives us great excuses for weekend trips!
Ray
To begin and not succeed is not to fail
To never try is to failThanks for responses to my query.
I appreciate that not everyone is after CF+ prop but we are looking to “concentrate” on these in short term to provide a “solid financial base” starting out.
I agree with your assessment of Melton values. Provided the property wasn’t bought overpriced as some PPOR ones are (even today) there is sufficient scope within the value to allow for moderate price drops, but in the longer term prices here will increase at a healthy rate providing quite solid capital growth.
It would appear that at $157k you have done well price wise and congrats to you.
[thumbsupanim]
Ray
To begin and not succeed is not to fail
To never try is to failHi Jaffa,
I know this post is becoming a bit old now but only a “new arrival”.
Have just downloaded your calculator and without having chance yet to really play it looks very impressive – great job.
I’ve only received “Buyer Beware” yesterday and this is a comment /suggestion I have for Steve re that as well; there is no provision where calculating loan repayments, etc for inclusion of the cost of the equity funds if for example you use equity from PPOR. By using such funds they incur interest charges, etc which could turn + to – outcome.
I have no idea how difficult this might be to incorporate. I appreciate that it could even be that I just might not understand the analysis process sufficiently yet.
Anyway, as said earlier great job
[thumbsup2][specool]
Ray
To begin and not succeed is not to fail
To never try is to failfjficm,
I admit to being new to all this (relatively) but I’ve been trying to work out how the property you mentioned in this forum is CF+. For the life of me I can’t. Would welcome any explaination as I’m currently looking for IP’s but with what appears to be much more +CF than yours. If I’m wrong and your prop is CF+ then I will be learning a most valuable lesson in calculating CF.
Cheers
Ray
To begin and not succeed is not to fail
To never try is to failWelcome to the West World.
We’re in Melton and have been for many years.
Whilst prices have increased considerably since we moved here in about 1982, there are not many bargains (as far as Melton market in concerned) now a days.
My first house cost $46,000, second $66,000 (sold for $101,000 about 2 yrs later), third $163,000 (sold for $175,000 about 18 mths later). Current prop cost $93,000 and current value around $180,000.
The market here has started to quieten and buys <$120,000 are quite rare.
Essentially, on the basis of the “11 second solution” it far too late (like most areas of Melb) but otherwise profitable props are still available.
I have had good dealings with Cheryl at Stockdale & Leggo in the past and, at this point, will more than likely use her when disposing of current prop.
Hope this helps.
PS. proper checks on prospective tenants will be your saviour
Ray
To begin and not succeed is not to fail
To never try is to failThanks Steven
Ray
To begin and not succeed is not to fail
To never try is to failThanks Derek
All much clearer and more comfortable. Trick now is to find relevant IP’s. Would you suggest having full extent of LOC available before searching or extend LOC once we’ve begun the journey?
Ray
To begin and not succeed is not to fail
To never try is to failSorry to jump into this one folks but I’m now a little concerned that perhaps I’ve misunderstood our situation. (thank god we haven’t moved forward yet)
we have an existing line of credit of around $25000, of which we have used around $12000. As our PPOR was last valued at around $150000 i take it that we have un-tapped equity of $95000 (150000×80%- 25000) plus $13000 available on line of credit. Let me know if i’ve got it wrong!!
By applying some of the existing line of credit to deposits on IP’s we can claim that portion of interest bill on line of credit on tax. Right???
If we were to extend our line of credit to say max ($120000) would that be a better option than seeking a “new” finance package?
Much appreciate feedback
Ray
To begin and not succeed is not to fail
To never try is to failAt this stage just seeing whats around under teh “11 second solution” (rareties). Given our budget it would appear to be (at the moment) rural Vic or Bundaberg area (based on future proximity). we’re only kicking ourselves that we didn’t take some “gambles” last year when we were there as prices were around 20-50% lower. Oh well, “he who hesitates is lost” don’t they say. It just makes the current search a bit more difficult.
Ray
Lizzie & Kay
Thanks for comments.
Planning to move to Bundaberg (had been Bergara until prices went through the roof). Loved Cairns when we were up there last year but bit too far from aging parents and other family.
Due to (unfortunately) changing circumstances we may now have to put our move off a bit. As a result we may look further to applying our existing equity toward IP’s as a starter
Ray
isn’t it the responsibility of an astute investor to prepare for the changes ahead so that when the market falters he should be positioned to take maximum advantage? I’d be surprised if interest rates go over 10% within next couple of years but am working to place myself to capatalise on those that aren’t prepared for it.
just looking thru forum and came upon this topic and wondered whether there was a concencus on whether it was better to accumulate investment properties while renting or owner occupying. We too are considering a move to the warms and are undecided what would be best – sell our existing residence in Melb and rent in QLD while applying capital to investment props or buy 1 to live in in QLD and “hopefully” have enough surplus for perhaps only 1 or 2 investments. Any comments would be welcome.[thumbsupanim]
Ray
