Forum Replies Created
Hi mango,
I’d also like to do credit checks and maybe even police checks on potential tenants.Can anyone post who they do checks with.
Plain old phone references have got me into trouble so far.[cry]
lifexperience
sairah,
If you’ve been burnt. Then you must have the invaluable experience of knowledge and mistakes. This should skyrocket your progress and get you on the right track, if not quicker than early starters.GO for it.
[drummer]lifexperience
he he he
lifexperience
Ok, Yeah, yeah.
I’m have only just started using an accountant, and wasn’t sure what the deal was.Thanks for replies.
[vanish]lifexperience
You made me laugh bbruham. Nice one.[thumbsupanim]
lifexperience
Jerry,
If you negative gear properties and bought pureley for capital gain, then you would definateley be at the mercy of market fluctuations. DING DING DING DANGER.[smash]However, If they are cashflow positive, the properties are bought because they are good value, and return cashflow.So buy as many as you can, whatever the market.
If you were geared to the eyeballs, you could lock in fixed interest rates and be safer.
During a boom, when houses are expensive, interest rates are low.
During a bust, when houses are cheap, interest rates go up.
Win/Loose either way.
If every property you buy makes money, why would you stop? [smart]
lifexperience
Gatsby,
I’m hearing you. I’m but a young 26, and i am working flat out between a job and setting up properties in the small window of opportunity between periods in my life of PARTY and A FUTURE FAMILY(maybe).I have dropped most of my social life, time with close ones and a lot of more enjoyable but often self-indulgant past-times.
This is all done in an effort to free up more of my time later on to spend on the most rewarding parts of life. Instead of slaving at a full time job just to make ends meet.
If you love them, let them go. And if they are true, then they will return!
[angel]lifexperience
That’s a property that would require a large income to service repayments (at 6.5% = $625p.w. just for interest…phew!!!). I would of thought that the type of person who could afford such a place would normally be able to get cheaper traditional finance (this eliminates most wrappee applicants).
Who were you hoping to attract to such a property?[eh]
Answer this, and then focus on reaching these people. ….Maybe professional investors that wan’t a fancy high capital gain property to live in. but don’t wan’t traditional finance eating into their investment equity.
good luck [hat]
lifexperience
Allan,
Try looking in the Australian Papers Classifieds under Money/Finance.Here in Melbourne, Herald-Sun, The Australian and the Age. are the main papers.
Also check our Yellow Pages (business/telephone directory) under “Finance”.
[cowboy]
lifexperience
Hidumadiscount,
I am considering a joint venture soon too.Do a search for partnerships, joint ventures, partners, etc.
My accountant suggested two ways
1. Tenants in Common – simple!
or
2. A unit trust owns the property and you split the units between you and your partner, this could be through a family trust/company or your own names.
Find a lender that will do a split loan, and this divides up the loan however you want.
BEWARE. I have been warned that you must expect the relationship to go sour and have a lawyer write up a document that outlines each partners responsibilities, entitlements, expenses, entry and exit conditions, and anything that might come up. Circumstances always change.
BEWARE. I beleive you will both be responsible for the entire amount of the loan if the other defaults! You will also have your total lending capacity reduced by the full amount of any loan, yet only be receiving the benefit of 1/2 a property.
[dead2]
lifexperience
The aim is to get a property for minimum initial outlay.
If you use a lender to obtain over 80% of sale price, you pay Lenders Mortgage Insurance.
If you get vendor financing 20% or more, you may pay a bit more for the property (compromise)
Kay,
If you needed to sell a property which you had paid most of the mortgage off, would you sell if the only offer even close to your asking price required you lend back 20% of the sale to the buyer at a reasonable interest rate (secured by a second mortgage to the same property). Or would you wait for an outright buyer.How about 1 month later, still the same situation.?
How about 6 months later?
Any thoughts?
To Anyone, How would you feel if someone offered to buy your house, but asked you for a second mortgage on 20%?
lifexperience
Felicity,
Did you encounter any other hiccups with your deals.Could you give an example. I am just wondering whether i am stepping out into relatively unchartered waters.
Anyone else done this, it would mean almost 100% gearing, but would surely speed up process of acquiring cash+ props, waiting for equity is a bit slow lately.
[hat]
lifexperience
Make sure the dirt is built up around stumps likely to collect water.
If the water forms puddles around stumps, this may speed up rotting process.
[cowboy2]
lifexperience
Thanks Mortgage Brokers, you guys rule.
Felicity,
What were the terms you could find for vendors leaving money in the deal. Second Mortgage, separate Loan, interest?Terry,
What do the banks you mention need to approve a loan when there is money left in the deal. Will they still do 80%LVR of the TOTAL sale price?[sunny]
lifexperience
Chat would be cool[thumbsupanim]
lifexperience
Phone Bill dropped to $136 (optus), and i have been making a heap more calls. Probably used $50us Dollars in this time.
I agree Karlsav, it is much more reliable now.
With the gprs connection, i can see how many 1cellnet credit i have.
It’s worth a try guys, if you are patient. GPRS is no good for calls on the run though.
[juggle]
lifexperience
I recently signed contracts on a property and then found out the stumps were rotten. They didn’t budge on original price even though i did have a clause in there for acceptable pre-purchase condition report.The rough quote for stump repairs was about $5000.
I got underneath and with the help of my dad (civil engineer), poked at every stump with a screwdriver about 6 inches below ground level (being very careful to put dirt back how it was….critical!!). And made a plan that showed only 10 stumps really needed doing.
The cause was a sloping block, and some minor digging will fix the water flowing under house when it rains.
I have bought stump preserver for $60 to treat each stump. Maybe a weekends work.
And a stump re-blocker just quoted me $660 to change the 10 stumps.
So for a bit of poking around and a weekends work and $660 (claim on tax), it sure beats the $5000 original quote.
[hat]
lifexperience
Karlsav,
You beat me with figures, I am waiting on next phone bill still. No 1Cellnet(2months ago)was $240 Last phone bill was 1/2 and 1/2 1cellnet=$175 (using sms still) My next bill will be mostly GPRS connected calls.Yup,
I have the GPRS connection.
To make a call with NOKIA 6230, it takes45 seconds to log onto 1cellnet and access
10-15 seconds to type in number and call(quicker if you are phone savvy)
10-15 seconds to wait for satellite to call back.
Then you hear other persons phone ringing.
REMEMBER, you still have to pay for 1cellnets call rates in addition to phone bill. This is in US Dollars, so be aware!!!!!!!!
Karlsav, what are the current join up fees? I started as an ORIGINAL affiliate for $150 BUT STILL LOST $30 OF THIS TO SOME THINGY I DON’T USE.
[greedy]
lifexperience
Kay, simon, thecrest, vicgirl, jo.
Thanks for guidance and support.Rabid Nazi hmmmmm.
I am going to be firm, and say NO if necessary.
I am going to be firm, and say NO if necessary.
I am going to be firm, and say NO if necessary.
I am going to be firm, and say no if necessary.
I am going to be firm, and say NO if necessary.
I am going to be firm, and say NO if necessary.
I am going to be firm and say NO if necessary.
I am going to be firm and say NO if necessary.
I am going to be firm, and say NO if necessary.
I am going to be firm, and say NO if necessary.
I am going to be firm, and say NO if necessary.There! lines should do it. [cowboy2]
lifexperience
Suzie,
I know that slapped in the face feeling. I just had my first centrepay pin pulled yesterday.What was the lesson you have learnt from having compassion override better business sense?
I am still struggling with this, (and seem to keep getting slapped in the face) (see my soft landlord post)
Go suzie, this episode will make you stronger.[daisy][daisy]
lifexperience
