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  • Profile photo of lisabellanlisabellan
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    @lisabellan
    Join Date: 2004
    Post Count: 48

    Hi Jarred,
    I live in WA and bought my first property at age 21. That was a loong time ago lol.
    if you are interested in the Rockingham area, join our FB group Rockingham Property Investors, WA is very cheap at the moment, not sure when the tide will shift, or even if WA is a good hold and wait, but I have several IP’s near the beach. Times are pretty tough right now, but loads of bargains to be had for those happy to wait. All the best to you, exciting (and nervewracking) times ahead :)

    Profile photo of lisabellanlisabellan
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    @lisabellan
    Join Date: 2004
    Post Count: 48

    I’d like to explain further. I have other properties which stand alone with other banks. I didn’t have any funds to pay the deposits on the last three purchases and cross collaterisation was the only way to move ahead. Needs must. I’m aware of the risks and will refinance once the properties have increased enough to stand alone. If there was another way to get a loan without amy deposit or linking another property with equity I’d be very interested in hearing about it.

    Profile photo of lisabellanlisabellan
    Participant
    @lisabellan
    Join Date: 2004
    Post Count: 48

    I’m not sure if it’s a similar thing, but I always use Property A for equity (PPOR) and as I have three properties linked, the bank then links all four together so any and all of the equity can be used across the four. My bank does a master limit which puts them all together and you can sell within this bandwidth. For example, two of my loans were fixed and one wasn’t. I could sell the properties within the fixed period as long as the loans weren’t over the variable’s value. As the variable loan was higher, it covered selling any one of them. Check this is correct before you go with my advice, that was my understanding from my broker.
    Good luck :)

    Profile photo of lisabellanlisabellan
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    @lisabellan
    Join Date: 2004
    Post Count: 48

    Interesting question, now if you sold in a couple of years could you then claim the amount outstanding/remaining on the depreciation schedule in full, to reduce any capital gains or is it lost?
    Thanks

    Profile photo of lisabellanlisabellan
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    @lisabellan
    Join Date: 2004
    Post Count: 48

    Thanks again to you both, I started buying up the units as they came on the market with a view to increase the number and perhaps develop later on. My thoughts at the time were for double stories as some would get sea views. I didn’t know about the extra special zoning David, thanks so much for finding that out, if anything it makes it an even better deal for potential buyers/investors as the total block size (I think) would be over the 1500m2. If I didn’t have to sell I wouldn’t be however the majority of my properties are along that strip and all have potential for value add. One of my houses can be subdivided into two with ocean views so I still have options down the track. Two of the units I won’t be selling, so I still have a foot in the door. Just need a like minded person to start buying them up from now on.
    Benny I’ve already spread the risk with having two properties furnished, I’m a bit risk averse and get too stressed if I can’t forecast my outlay during vacancies, especially now that any shortfall across the portfolio is coming out of my wage with my buffer gone.
    I have a blog if you are interested in reading it….here’s the link
    http://www.yourinvestmentpropertymag.com.au/blog/lisa-curtin/

    Profile photo of lisabellanlisabellan
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    @lisabellan
    Join Date: 2004
    Post Count: 48

    Thanks very much for your advice. I have four villas in the same complex, two of which are furnished as short term accommodation and do well as we have the Navy on our doorstep as well as others who fly in to do business here. I received news this morning that I have a tenant for the unit I’m selling and they are aware that it is up for sale so that is great news and I’ve also adjusted the sale price and will be updating the wording on the ad. Only on a six month lease so that it doesn’t deter a home occupier too much. Having it on the market for a while now, I really needed some rent coming in to help with the mortgage.

    On speaking with my agent yesterday we decided to also sell one of the furnished units as either a business opportunity or owner occupier as the numbers are good and could provide me with some relief for now. My rates, strata and land tax comes out of my own pocket on my seven IP’s as I haven’t owned them quite long enough for the positive gearing we all long for.
    The new furnished unit will be sold as an ongoing investment as it has a company renting it until the end of October then the summer bookings should start coming in, but it’s an ideal time at the moment for me to sell as an owner occupier could buy now and settle when the company moves out. Alternatively an investor could just take it over and let my current PM look after the bookings, cleaning etc as I do now if they want to negotiate on the furniture which most is only three years old.
    I remortgaged about 18 months ago away from one bank to three to spread the risk which allowed me to move forward on two new purchases which was great. I have a great broker, who is always looking for better deals, so my ‘team’ is good. I learned heaps of new lessons going through the review of my portfolio.
    Unfortunately the market has nose dived and not grown as I’d hoped and investing and renovating to add value in the one place has not been to my advantage this year. Also adding to a bit of stress is that the rental market is also slow and reductions in rent to get tenants in has also reduced my incoming funds.
    My strategy has always been to buy and hold however I used my buffer (LOC) as the deposit on my last purchase which has been a warning to me not to get ahead of myself and be greedy. Now it is time to take action to rejig my portfolio to enable me to again move forward at a later date.
    Sorry for the long post, writing has helped me feel I’m on the right track, sharing the bad as well as the good helps us all I reckon.
    Thanks again for your comments, have a great day, Regards Lisa

    Profile photo of lisabellanlisabellan
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    @lisabellan
    Join Date: 2004
    Post Count: 48

    Hi David,
    Thanks for the feedback. I have an older 3×1 villa which sits behind beachfront homes on Rockingham Beach so excellent location, 5 minute walk to the cafe strip and public transport. A great garden so those not wanting apartment living would usually find this attractive. Tenants moved out three months ago and the agent has had it open every weekend since, so can’t complain on the service I’ve received. Recently renovated so nothing more to do and price has dropped significantly to meet the market. Rent was $385 last year and now advertised for $325, a real sign of the times and hopefully one that will rise again soon. Tenants don’t want to move in while it’s for sale so a bit of catch 21. I may have to take it off the market to get a tenant in until later in the year then try again. Here’s the link, I’m not sure what else I can do. I did receive one offer but it was lower than the mortgage so I couldn’t seriously consider it. I really hope things pick up soon.
    http://www.realestate.com.au/property-house-wa-rockingham-121229694

    Thanks again, Kind Regards Lisa

    Profile photo of lisabellanlisabellan
    Participant
    @lisabellan
    Join Date: 2004
    Post Count: 48

    Morning Ms New,
    I live in WA and love it here. There are definately good and bad pockets but you need to look at what the local councils are doing about it, infrastructure spending etc. If you are looking for long term growth then a demographic can change over time and getting in at the low level can reap rewards. Personally I love Rockingham, as close to the beach as possible. I could go on for hours but have a read of the blog and you’ll get the picture. Find a good agent in the suburb you like and build a relationship.
    If you like the Rockingham, Baldivis, Wellard area’s I can highly recommend my agent and property manager Donna Gordin from Home2Home Realty. I’ve been with Donna for 10 years and have no complaints.
    http://www.yourinvestmentpropertymag.com.au/blog/lisa-curtin/?p=1

    I wish you all the best on your quest
    Cheers Lisa

    • This reply was modified 10 years, 5 months ago by Profile photo of lisabellan lisabellan.
    Profile photo of lisabellanlisabellan
    Participant
    @lisabellan
    Join Date: 2004
    Post Count: 48

    Hi Connolly, how did you get on, Im going be starting a Reno in Rockingham shortly. Am interested in decent tradies if you used any you could recommend?
    Thanks

    Profile photo of lisabellanlisabellan
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    @lisabellan
    Join Date: 2004
    Post Count: 48

    I started the process of refinancing 5 IP’s in August last year and had no idea what I was getting into. I thought it would be a quick process to move from my bank because it had put a $2m maximum total loan policy in place which stopped me getting a new loan, even with appropriate equity and serviceability. Last week, 4 banks and 4 (free) total walk through valuations later (lucky me for my patient tenants) I am now refinanced and ready to go again. I put an offer on a house (subject to finance) a few days later as I’d been watching it and doing my due diligence while it was on the market and BOOM! offer was accepted and now I’m waiting on finance approval. Will be a sad puppy if the new bank turns around and say’s no but all indicators so far are good. Old 3×1 50’s house ripe for a reno on a great R40 subdividable (494sqm so 2x220sqm) block 5 houses to beach front with side views via double storey. Intend to demolish in a couple of years so cosmetic reno and bang for buck….tad excited!!

    Profile photo of lisabellanlisabellan
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    @lisabellan
    Join Date: 2004
    Post Count: 48

    Hi,

    I subdivided the same size block about 10 years ago in WA. Here’s the link to my blog which may help you in what needs to be considered. Please note it will be different in different states and might now be outdated. If I can do it anyone can. The original house (owned by my mum) sat on the back of the block.

    http://www.yourinvestmentpropertymag.com.au/blog/lisa-curtin/profiting-from-division-subdividing-one-block-into-two-174205.aspx

    Good luck!!

    Profile photo of lisabellanlisabellan
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    @lisabellan
    Join Date: 2004
    Post Count: 48

    Hi, I use Dale Norman from BDR Business Accountants based in Mandurah

    T: +61 8 95351566

    Email: [email protected]

    I've used Dale for my tax returns for around 8 years and he has assisted me with CGT on sale of properties and depreciation queries and the set up of a short term accommodation unit.. Dale has been able to answer all of my queries over 6 IP's in that time and we communicate via email, including sending my spreadsheets at tax time.

    I'd like to find a financial advisor who specialises in property and Defence Super in the Rockingham area. One who won't try and sell me a product,

    Good luck, regards Lisa

    Profile photo of lisabellanlisabellan
    Participant
    @lisabellan
    Join Date: 2004
    Post Count: 48

    Some property managers are charging a flat fee which includes all letting fees, marketing, inspection fee’s and other admin charges. The ones I’ve heard about are around 16%. DHA charge 16.5% which makes them competitive however Defence housing’s prices to purchase are usually higher than market value which often makes them not as viable as normal investment properties OR I looked at a 5 yr old DHA recently which was competitive to buy however the rent received was $100 less than current market rentals.
    A property manager will usually organise tradespeople, collect rent’s, follow up late payments, do inspections and arrange statements at tax time. Current market percentage rates depend on whether you have 1 or more properties and other negotiations you can make. 9% inclusive of GST is the average in Metro WA for 1 property, on top of this you’ll pay for inspections, letting fee’s, advertising etc. hope that helps.

    Profile photo of lisabellanlisabellan
    Participant
    @lisabellan
    Join Date: 2004
    Post Count: 48

    I recently had issues with my RE withholding funds on sale of property and contacted Arns and Associates in Perth City. They were prompt and the issue was sorted out after a phone call from lawyer to RE. I was impressed by their professionalism and the speed in which they got results. Hope that helps

    Profile photo of lisabellanlisabellan
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    @lisabellan
    Join Date: 2004
    Post Count: 48

    HI, I don’t quote how much loan I’m going to take out as it gives the seller an idea of my financial position and could work against me in negotiations if they think I have funds available. Alternatively it could work the other way if they have two offers and and there’s a chance you couldn’t get finance at 100 or 110% so they may go for the more financial person. I put in 100% loan and advise my bank of the amount I need. no problems so far though it should be noted that you are signing a declaration on the O&A so shouldn’t be taken lightly.

    Profile photo of lisabellanlisabellan
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    @lisabellan
    Join Date: 2004
    Post Count: 48

    Hi, I recently sold 4 units in Geraldton. I don’t live local so having a good property manager was really important. I used Geraldton Property Team, used to be Roy Weston. I found them good, however had to get onto them now and again and rang around to get my own quotes sometimes. otherwise though, over the 4 years I used them I had no major issues. I hope this helps!!

    Profile photo of lisabellanlisabellan
    Participant
    @lisabellan
    Join Date: 2004
    Post Count: 48

    Depending on your budget and the look you want you could check out the local paper's for people ripping out their kitchens to update. A few years ago I bought 2 solid jarrah kitchens for $250 each (I bought one of them just for the benchtops) and put them together to make a large, flash looking kitchen. The house style was older with wooden floors etc so the kitchen fitted in well. I also used a pine dresser in the bathroom, changed the top doors to mirrors, put the sink unit in the top and the bottom cupboards hid the towels etc. We knocked a wall out in the lounge and used railway sleepers as the rsj and they framed the sides of the wall and top which was very effective. You can tile on top of old mosaic floor tiles. Lots you can do if you have an eye for a bargain and good renovation skills. Hope this helps, it's all about looking outside the square. So saying that the flatpacks these days are great.

    Profile photo of lisabellanlisabellan
    Participant
    @lisabellan
    Join Date: 2004
    Post Count: 48

    Hi,
    this one is right up my alley. I have a block of 4 units in Geraldton wa. there are no strata fees. I am in the process of making the two titles into one then into 4. its the only way the council will let me do it. they’re on the market now, if I get no offers then once the subdivision is finished I’ll sell them off seperately.
    here’s the link if you want to have a look….
    http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=103869682&f=30&p=10&t=res&ty=&fmt=&header=&c=14480344&s=wa&tm=1174132335 I highly recommend units if you get a good group. mine haven’t been vacant for more than 3 weeks since they were built in 1991. these were my first investment buy and helped me get over the ‘what if i lose a tenant and have to cover the mortgage’. this way the other 3 help to spread the load. hope this helps.
    Regards
    Lisa

    Profile photo of lisabellanlisabellan
    Participant
    @lisabellan
    Join Date: 2004
    Post Count: 48

    Hi,
    this one is right up my alley. I have a block of 4 units in Geraldton wa. there are no strata fees. I am in the process of making the two titles into one then into 4. its the only way the council will let me do it. they’re on the market now, if I get no offers then once the subdivision is finished I’ll sell them off seperately.
    here’s the link if you want to have a look….
    http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=103869682&f=30&p=10&t=res&ty=&fmt=&header=&c=14480344&s=wa&tm=1174132335 I highly recommend units if you get a good group. mine haven’t been vacant for more than 3 weeks since they were built in 1991. these were my first investment buy and helped me get over the ‘what if i lose a tenant and have to cover the mortgage’. this way the other 3 help to spread the load. hope this helps.
    Regards
    Lisa

    Profile photo of lisabellanlisabellan
    Participant
    @lisabellan
    Join Date: 2004
    Post Count: 48

    thanks Elka,
    The units are on two seperate titles, each 1000sqm, and can’t be sold seperately.
    I’m in the process of amalgamating the two blocks into one, which has just been approved by the WA Planning Commission, then I have to apply to have the 1 title split into 4. I’ve another 9 months to wait for the process to be complete. It seems a funny way to go about it however that’s what the shire in Geraldton said I had to do.
    Rather than wait the required time I thought I’d sell now (subdivision still goes ahead with new owner), pay off my debt and then start again with a clean slate. that way I can also put some funds into my other IP to make it positive geared.
    I think a visit to my accountant is a good idea, I’ll work on it.
    thanks again for your advice

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