Forum Replies Created
I found the report very comprehensive and accurate. Last year I had an independent valuation done and think the details provided today were spot on. Thank you very much for prompt reply and accurate information.
Markat
Email MeHi there
I am new to forum but am at the same point as you TRAKKA. I have just listened, relistened, read, reread, all the information on structures and using them again and again so you are not maxed out…..obviously of great interest to me as this is exactly where I am at…..
Somehow from what I read a lot of people on forum term "maxed out" to mean that you actually are in no position to afford more property. We are a family on low income and the only reason I am where I am is through investment….and my effort to better our situation. (I do not think there are many others in this position on the forum or in the program but could be wrong here).
Essentially we now have over 1 million of assets and an LVR of 50% which will go lower to 25% when I sell the current development I am involved in. (in broad figures)
My next move is to buy and buy again, but organise the structure and finance correctly. I am finding this very difficult to get around (in my mind…. as I don't fully understand the concept) and b) when I ever declare income banks/lenders are not too willing. When they check out my accounts and LVR and properties….they are all smiles…..but not so happy when it comes to income. Of course, I have done no doc, low doc and standard loans to get where I am. But how do we repay, meet repayments I factor it into the project costs and loan pays loan…. if you get what I mean.
The language I use and how I understand it….may not be easily understood…. but I get it in my brain. I think I am having a mental block to Steve's concept because it sounds too good. Obviously he has an income to get the first structure/loan up and running to then use over and over again? I also need to know how to get the equity to "generate income"…..sounds complex and I am probably just stupid. Obviously I am selling, but that released profit, and by the time all is said and done, and you write down the profit for tax etc. the income doesnt sound like something the banks would loan on anyway.
I guess I should be doing multiple developments at any given time…which is good in theory and I feel confident I could do just that…..it's just the structuring/finance. I have done it all wrong as in have 1)PPOR in husbands name (he is the main breadwinner) 2) IP 1 in his name 3) development in both our names which we are selling….
PPOR valued at 500,000 no loan (once development sold…drew down on loan to finance development)
IN 2 valued at 350,000 with 130,000 loan
DEV 1 valued at 220,000 loan at 127,000
DEV 2 hope to sell at 370,000 and loan at 270,000DEV 1 and 2 in partnership – 2 couples.
Guess I'm not much help but I was interested to see that you are at the exact point I am…..
Markat
Email MeI agree. Adelaide has had some good growth while the eastern states have gone backwards, and there doesn’t appear to be any signs of it slowing. I reckon it will continue to grow and there are still some good buys to be had. Cash positive could be a bit difficult though.
Markat
Email MeHi just logged onto your site. Have done similarly and have a lot of equity but not good income to service loans. I have gone 50/50 on a house/land development and am building on the back block with a friend. My accountant reckons we have to be GST which up to now, haven’t thought about as an individual investor I haven’t ever sold or had “turnover” from property.
Notice you sold property you had 50/50 with girlfriend. Was GST an issue. Do you claim GST in your property deals.
Sorry I am not with it on this issue of GST does anybody have tips or sites I can look at. Can’t find much on forum about it.
Markat
Email MeIf you can see the roof from the road (i.e. house is set down on the side of hill) then it will definitely improve value. But if you can’t see the roof (visually) then possibly not. They are ugly as hell. Still the outlay will probably not be realised in the short term. We had an ugly one that could be seen – it also needing repairing. Not too many people willing to repair asbestos. So redid it. In Adelaide. It costs 13,000 and that included disposal of asbestos roof (which amounted to about 3,000 and special suits have to be worn and it has to be disposed of in a different manner). I found the big roofing companies were a rip off with their quotes and a small one man band outfit got the job in the end. Adelaide prices are possibly less. Our house was possibly bigger – 4bedroom- two bathroom large living.
Markat
Email MeMy sister was just investigating a subdivision in North Sydney. Large block, two titles, plus a house. Seemed a really good buy and easy chop. She likewise gave me the story that she would have to put a road down etc. before she could on sell (i.e. there is already a dirt road). So it seems there could be some truth in what you have learned.
Markat
Email MeHi
I am a real non conforming one. I didn’t qualify for any bank loans (and knew I wouldn’t) but have gone with a non mainstream lender. Am happy with result. Set up ABN overnight – purely to get No Doc loan and only needed to have it 24 hours. Interest rate is 7.8% which is higher than average – but at least I got a loan and I know I will be able to justify additional interest paid in the long run. So the 2 year rule did not apply – but I definitely needed to have an ABN. It took a little longer to get my ABN number from the tax office than envisaged (i.e. 1 week) but other than that hunky dory.
Markat
Email MeI agree with the 5-10km comment. My feeling for Adelaide is that the outer suburbs have experienced great growth (and possibly have reached their peak) and that the inner suburbs are the next to spike followed again further down the track by the outer suburbs. Mt Barker (as an outer suburb) 30kms out is going to continue to grow and is the fastest growing suburb (in Australia?/Adelaide? can’t remember) and has all the markings of continuining in that vein for sometime yet.
I would still go for inner suburbs though. Clapham is a good one at the moment and also the inner west.
MARKAT
Markat
Email MeThanks for that tip. Will definitely look into that one as it seems exactly what I am doing on a gut feel – that is feeling okay – but needing a little bit more concrete figures to feel entirely confident.
Thanks
Markat
Email MeIt’s called “Adelaide”! Property can still be found at a reasonable prices south of adelaide. You do have to do your research and be quick off the mark. i.e. purchased this with a cash offer, and before it hit the papers (off the net)…… etc. etc. I am happy to sell portion, for 180,000 with current house which I have done a small reno on…. it will help fund, my building project on the back block! so if you want the sea views, and a block to build on, or with a current house (small shack is more of an apt description) at land value….. reply!
Markat
Email MeThanks all for your contributions. Sorry for lack of response before now. I am stoked however, with your suggestions. The No Doc was an eye opener and I have gone down that line……
I have added already to the portfolio with another 200,000 debt (to add to existing 130,000 = 330,000) and property worth 200,000 that can be subdivided. I am thinking of building and subdividing as a quick option. Property has sea views and is within 1/2 hour of major city. Think I will be able to make dollars in this way….
What are your thoughts, on what one lives off? I am currently living off loan + supplemented by small income. I am happy with this at a certain level. i.e. all loan (and I would be worried) and small amount (no more than 10,000 a year, and I am happy) because I figure this is the very minimum I should be making from property. Is this logic flawed?
Thanks again ALL
MARKAT[exhappy]Markat
Email Me
