Forum Replies Created
I have never built a duplex pair. but I own a pair on the the 1 title, you should be able to get them strata titled and be able to sell them on seperate titles. This is our plan if we decide to sell, there are some regulation on fire resistant walls or something between them. the flip side ios if they are on seperate titles then you will have to pay rates on each block (so 4 lots of rates as aposed to 2 currently).
Why not strata title 1 lot sell them both and put the profits into the other, one rent it out, being new and high depreciation it may work out cashflow neutral or maybe positive?
I think the balance is somewhere in between. We have 7 IP's (built up overthe last 11 years), and most of them are P+I (principal and interest) loans. By paying out fully each property and then buying another paying it off and so on means that as the property values go up everywhere you have a bigger mortgage each time you buy in. if you buy a property every say 2-4 years, the rents come up and make it easier to accumulate more property. you may owe alot of money but you will also have a heap of equity. worst case property values fall 10-15% and you are forced to sell up you will/may come out with some money in your pocket. If you buy IO and are forced to sell up you have no equity more properties bigger debt and nothing to show for your effort.
it seems to take about 7 years for our property to become cashflow neutral.
thanks the NT has a body corporate statement clause that i have asked for as well but i did not know about full statment… the agent did recomend going the settlement agent and pay the fee (he thought about $60)… he did say that the "owner could provide a copy of the minutes from the last agm, but there was no guarentee that pages could have been taken out" ???? which i thought was an unusual statement to make.
I like the idea of the full statement, thanks. I undeerstand that there is little left if any in the sinking fund, it has been poorly run as a holiday unit style complex where the builders sold the units with rental agreements in place and have reinvested very little back into the complex. the building is about 10 yrs old and needs things done now. Dont get me wrong it is ok but looks a bit tired and the pool issues worry me a little.
Thanks for the advice,
I really do not want to sell, but if i sell it to a trust controlled by me I will unlock the equity ( cash in my pocket) and still own the property through the trust with the negitive gearing on the total amount in this case say 450k debt.
The property is in Scarborough and is the jewel in my portfolio, with great cap growth over the last 14 years, and the fact that we lived in it for 10 years should help to reduce the capital gains costs. Hmm this looks like a good option to me I will talk to my accountant and lending officer.The bank has pre approved a 350 k loan, but to sell it to a trust i would get the negitive gearing benefits, well the trust would I spose,
hmmm i need to speak to the accountant i think.cheers[drummer]
just heard that perth has moved up above brissy on median price now 3 rd on list brhind syd and melb.[thumbsupanim]
old format was better, i liked generic topics like “general”. i think it is toooooo focussed towards your buisness, with the first 3 topics locked out to the genral public. [xx(].
that is helpful brucemarg. I will look into it, I have thouhgt some more on it and will probably only strata title before selling.
on the other hand …A good way to create some equity I spose.[gossip]. will have to think some more on this 1.I think you need to look at your circumstances and see what level of debt you feel comfortable with.
For me i like lots of gearing. I am 29 and guess if my property portfolio dramatically dived in value and i lost it all… well i am young enough to start again.[agro2]…. but i look at as a low risk strategey and so far it has paid off really well (just bought my 7th proprerty), worst case senario I sell a few , reduce the debt, and end up owning the rest.
do your research [dead2]on past growth estimate future growth, and if you can afford the repayments ( even with no tenants for a few month, a worst case senario), y not buy?
property is a long term investment (in my veiw) and will pay off.
Just my opinionI live in Karratha 229 km aprox s of hedland. I would be cautious with both port and south hedland due to the fact the bhp iron brickette plant has closed. As far as I am aware there ar4e only a few strong industries there, the port some cattle stations and some mining.
I would be more inclined to suggest purchacing in Karratha as it has a larger industry base, with better facilities. Returns would be very simular. South hedland does not have the prestige of Karratha and often the butt of jokes (personal opinion).
go for CG what is the point in owning property that may be worht the same as what u paid for it in years too come …that is if you can find someone to buy. Everyone seems to believe that by renovating the cheep houses in rural areas they can get great rents or sell and cash in. It sounds like there may be alot of over capitalizing going on and interest rates rise
(and i would like to bet they will within 3 months) there will be less buyers able to purchase.Patience and any well located property will eventually turn cf+ but you may need to wait 5 years or so, and you will have the benefit of high cap growth.
Example 1 I bought in Scarborough WA 7 years ago $126k now worth 300k+ returning $230 a week. Time is the key.
results may vary and this is just my opinion so take the advice with a pinch of salt, what do i care[argue]
Hi all,
my girl friend was very cautious on investing (even though she was a property manager). I convinced her that we buy an ip. After 2 years she could see the growth we had made on paper and was more confident with each purchace after we now have 4 ip’s. If your partners are worried about risking your ppor, just ask, what did we pay for this place? then ask what do you think it is worth now? (may be worht doing research on property.com.au or the like) Then ask what if we had bought 2 of these back then or 3 or 4 etc, it may make it easier to invisage if you put your ppor into the equasion.
just a thought.If cash flow is a problem now how will you finance your share of the improvements to the property? it may add to your problem of greater -ve gearing and -ve cash flow…On the other hand if the property is in a blue chip location, it may be a shame to sell and possibly lose out on longer term growth.
Perhaps you could unlock some capital with a loc and prepay the repayments 3-4 years up front (not sure if you can do this or not) but it may be woth asking the bank about?[dead2]
Aus prop i am with u.
I do not understand the fixation with the short term crystal ball gazing????[argue]. I do not see trading eg(buy and do up sell 1 year later) as investing it is gambling, at least with roulette you can work out the odds.If you buy and hold and use equity to buy more and hold never sell until perhaps retyrement to clear the debt and live off the rental income of the 15 other properties(hypathetically) happily ever after. Maybe I just have a warped Idea? or maybe enough time left to make gearing+capital growth work?[dead2]
I agree, delayed gratification. Not much fun but often nessacary.[xx(]
myoung, even if my propeties go sidewards for 3 years i have still made significant gains, i have locked in for 15 ytrs at 7.4 % I am in for the long haul.
Real $ is not made over night. unless at the casino’s. but property willcontinue to give great growth and security. Boom Bust who cares lonfg term growth will continue… everyone needs a home. and at eastern states pricing more and m,ore will be rented…[gossip]. I live in Wa and it is one of the “untouched” area, better beaches than sydney and property at 1/4 of the price. Opinoin rather than fact possibly???????????[argue) anyway I wish to encourage investors…property will always be “expensive”.
I have 4 ips and search the web every few weeks and am not really ready to buy anther yet. I will buy mid year and hold for ever. just secured 7.4 % fixed for 15 yrs so am in no hurray to to spenup big
HMMM i wonder what type of tennant would be attracted at such cheep rent. And i would also think to myself why are they not buying at the cheep prices? could it be they are a credit risk for the banks?
Or are they casual or seasonal workers who will follow work around the state or country? I would speak to the real estate agents and look at the rentals via the websites to do some research. I would ask what the tennant make up was in the area where the majourity work and earnings etc. They may not tell you the info but it is worht asking.[drummer].
I have not read any of steves books, but have read kyosaki and jan sommer to mention a few. It seems that there are alot of speculators in the forums, people are talking about rate rises, propety prices diving ect… Am i the only person who does not care about 1 or 2 or 3 years down the track. Am I 1 of the few long term investors who looks to history to make me secure? I am not looking to sell but to unlock equity to buy more. Long term property has always been a very good debt. It is one of the few assets that banks will lend 95%plus against, if they are that sure it will appreciate over time then I am happy to trust my judgement that property will grow in value in most if not all capital cities with diverse economies. (eg not places with only 1 or 2 main industries).
Just my opinion.any mistake you learn from is an expeirience worth paying for it will stop it from happening again. Well maybe not that true look at people and credit cards????
destined what a great question.
I started my portfolio at 20. My father died and i had 40 k and invested it in a villa in wa scarborough 126k. it was my and my defactos ppor, after living in it for some 6 years and spending 15k on renos we now rent it for $230 a week. We have bought in Craigie, Joondalup and Clarkson all in WA. I looked for under valued properties ie properties surrounded by expensive suburbs, close to 1 or more attractive things to tennants ie majour shopping complexes, good public transport, beaches etc… I like suburbs like padbury and have spoken to the girlfriend about purchacing there.
Anyway, we have 4 props and are looking for number 5 this year or next.
Started investing in prop at 20.
properties worth 900k loans of 500k
just fixed finance at 7.4% for 15 years with free loc…could go on but dont want to be an advert for a bank.Our biggest problems were 2 fold- All my partners family got very concerned when we bought our second prop (in Craigie) and more so with each new purchase. They were worried that we could not afford them. But it has always been our philosophy if we cant afford them we sell and start again. We are young enough (27+28). But now family and friends r not worried any more and seek our advice on how they can do it. We did it on 28k and 23k a year jobs, it is do able.
The second prob was 2 lots of bad tennants in our Craigie prop. The insurance wiggled out of their commitment[argue]. And the prop has been vacant for 1.5 yrs but we have saved thanks to a big tax refund and r renovating in feb. We had people offering to buy the prop for 150k as is but refused, we paid 133k a bout 3 years ago and now os worth 200k+. Hold for ever is our stratagie- no cap gains and you buy more by unlocking equity.
2nd property purchase 3.5 yrs after our ppor grew in value.then the 3rd 1 yr later and the 4th 1.5 years later.
only 4 props so far. I enjoy the “hunt” in finding properties and managing agents and researching, and looking at home opens etc so i want to buy as many as possible until i no longer love it.[computer]. It is my hobbie[elf].
[medieval]1 tip i have for people out there is to consider getting a job for a govt dept or local shire in a country town. Often you can get housing supplied real cheep with the job. I live in karratha and pay the shire 76$ per week to rent a place that would cost me 350$ plus a week from a real estate agent. If i was in perth 1 of ny ip’s would be my ppor and i would be missing out on the rental income now get. I dont think i will ever leave the regional areas with housing supplied, because I love it here and it is such a great deal.
Hope this is interesting for everyone and good luck with your dreams. Make them happen while you are awake.
