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I have found that country areas provide the best opportunities for cash flow positive, however you do trade of capital growth for it, which hasnt been such a bad idea for late.
Shame I have to sell mine.
You need to be careful about wanting to do renovation while in the rent period because at that stage you dont own the house, and if you reneg on a deal the landlord can be left with a renovation they didnt want, wasnt done properly or painted in a colour they hate.
I understand your concept, but you need to be careful of the legals around what you can and cant do. On that kind of money, it shouldnt take you long to save a deposit.
So are you wanting to be the person who is renting with the intention to buy?
What area are you looking at, and do you have any kind of deposit?
That makes so much more sense if its for erection only.
Since it is for erection only, and Ive put a few up in my time you really cant put a kit shed up in better or worse quality than the next bloke since they are so "bolt together" and screw the tin on. Ive seen some real rough people put a kit shed up and havent been able to fault them in the end because they are that simple once you have done one or two.
In this case, I would pick the one that will let you sleep best at night. If the extra $1,000 will keep you away more than the possibility of it not being as good of job, then the decision is made.
I know a $1,000 is a $1,000, but on a shed that size and the concreting involved, its not a real big percentage of the purchase price.
Normally the manufacturers have their own "accreditated installers", how did they go for price? Only reason I ask is if you have put a few Ranbuild sheds up, the easier they get, the cheaper you can do them for for example.
I personally never ask people to match.
You have to be prepared to wear quality for price, and I personally find it insulting when people come back and say "we know you do good work, can you do it cheaper because someone else is prepared to."
How would some of you feel if your boss came in at annual review time and said "look, you are an excellent worker and your quality is great, but Sammy over there is prepared to do your job for $10k a year less, so are you interested in a pay cut?"
Instead, when I seek quotes I tell them I will be getting 3 quotes, the other two are just as reputable and I will be going with the lowest price. That way, everyone knows where they stand.
I do the same when I quote on work, I tell people that is my best price, and its up to them, but I dont work for nothing.
Based on the above prices, it must be a pretty damn small shed.
I witnessed them take 42 weeks to complete a house, and their answer was "the contract said 300 working days, not my problem".
A lot of extra rent was paid in that time considering the local guys are knocking them out on average in 16 weeks.
Sub par quality and now they are on the verge of going belly up.
Terrible service.
Let me get this straight. You believe it to be worth $330k, you are even happy to pay $330k, you think it could easily fetch more than $330k, yet you want to play games in the hope of obtaining a 10% discount on the price when it says offers above $330k considered.
Sounds to me like you have no idea whatsoever and think you are entering the world of investing with poorly thought out tactics. They never accept the first offer anyway when you low ball them so much.
If you think its a bargain at $330k, buy the bloody thing. Stop the games and grow up a little. If you dont know how to negoiate a price, pay someone who knows how to otherwise when talking with the agent they will have sussed you out in 10 seconds flat and you have lost your position.
Google and:
<moderator: please see link for article. It was too long to cut and paste here. Thanks>Aussies, be warned.
http://www.jenman.com.au/news_alert.php?id=94Your loan is for $150k. You get to claim the whole interest on that loan against your rental income.
Take a loan for the full $150k, dont tip any other money into it. That way you are maximising your interest deductions.
Only pay the loan off at the bare minimum, and use any spare income/rental income etc to smash your current home loan since there is no tax deduction for this.
You will also be entitled to claim for 50% of things like rates, insurance, minor repairs etc.
If it was me, I also wouldnt be to frightened to put some personal things in there, like shrubs, touch up paint, minor hardware expenses you use for home in as a rental expense.
Just ensure your loan is in your names solely, and hers in her name solely.
Also note you may need something other than a simple contract of purchase. It shouldnt be the same contract say your husband and you used to buy the home, I cant remember what they are called but it makes it much more structured in who owns what.
For example, with you and your husband, both or singular are responsible for the repayments.
With you and your sister, you dont want to be responsible at all for hers.Portfolio PI wrote:Lucky I Guess wrote:Hi Josh,Ive been reading your travels, and I was wondering whether will be expanding your areas of expertise to other mining areas.
I for one have been looking very closely at the Oaklands Basis and am thinking this could be a place to sneak in on the ground floor.
Do you know much about this area?
Hi, I am definitely interested in finding out about that market/region, however time restricts me currently to do so whilst my focus and core business is throughout QLD. I am keen to hear the underlying fundamentals of what is happening there though. Thanks!
Hi Josh,
In the Oaklands Basin there is a Coal and Allied tenement they have had for years, holding about 1.4billion in thermal coal. They had a price on it of about $880mil but got no takers, so they are thinking about developing to enhance the opportunities to sell it.The main player is Coalworks. Floated a couple of years ago as its major project, 822million tonnes of thermal coal with plans for a coal-to-liquids plant to produce 6% of Australias fuel consumption there from it.
All looks very strong, I hold some real estate there, I was curious as to what the experts think.
I felt it was worth a strong look out due to it being in its infancy the pricing and opportunities are so cheap.
DYOR of course.
Cheers,
Lucky.Hi Josh,
Ive been reading your travels, and I was wondering whether will be expanding your areas of expertise to other mining areas.
I for one have been looking very closely at the Oaklands Basis and am thinking this could be a place to sneak in on the ground floor.
Do you know much about this area?
I tend to lend myself to potential mining towns, where the outlay is very small.
I remember people telling me I was mad about investing in West Wyalong a few years back. The housing was dirt cheap, in inside of 4 years I doubled my money on one property, almost tripled on another.
The one place now that has my attention is Oaklands NSW. There is a Coal and Allied mine there undeveloped with a price tag pretty hefty as they didnt want to just offload it for nothing recently.
Coalworks is doing studys, completed drilling a while ago and want to develop a coal to liquids plant.Once again, another pretty cheap town close to regional centres Albury and Wagga (In between), strong farming employment to carry the rent till the mining starts and potential for growth is pretty significant.
Even without a capital gain from mining the rental returns are somewhere from 6% to 10% depending on what quality house you get.
