Forum Replies Created
Hi,
I have moved to Melb only 6 months ago.If you are still interested in purchasing an apartment, I would look at the docklands as a possible alternative to southbank. Its a little more pricey but would appear a safer investment.
Although everyone comments on inner city apartments, the QV complex has done quite well and is central (Bounded by Lil Lonsdale, Russell, Swanston).
We have also purchased a unit in Prahran. We are happy with this area and 2brs can still be found for under $300k.
Hope this helps
MatThis is the longest thread in the world!
Oh, I don’t have a car, or bike. Sorry.
But I hire them on weekends for $50 a day! This is my preferred option since my last car was vandalled, hit a roo, vandalled again and then had the seats stolen (Tip to TYPE – R owners, weld the seat bolts to the plate).
Mat
Hi there,
I may have missed something. But CF+ to me means that the regular income less all the regular expenses must be greater than 0.In terms of how great it is, I just divide the figure above calculated for 12 months over the total cost to purchase.
eg Total purchase costs, includes deposit = 100,000.
Total income = 10,000
Total expenses (Rates, interest, maintenance, etc) = 5,000So this is a CF+ of $5000 pa, which means its yield is 5%.
Mat
As soon as you say “its for an investment” you lose protection under the Consumer Credit Code. So Mal can make his programs with the worst rounding errors and also annoy those poor finance mushrooms who need to reconcile the GLs and theres not a thing you can do.
However if you are a consumer, not investor, its a different story, in this case the banks pay $1000 per hour to get the likes of a KPMG or PWC partner in to sign on the dotted line that the system complies with UCCC!
If you have a consumer loan and you find issue with it, take it up with the ombudsman. You may find the lender will cop a nasty fine and Mal will get fired!
Mat
Just wondering…
If you are an agent in Sydney, why do not you have good deals on offer in Syd? I think many on this forum have found them…
Why do you think the Qld and TAS deals are better than what you could find in Syd?
Depends how old it is!
As you can see, by saying “it”, I dont have one! However I do remember how much stuff kids say in Primary and even high school.
They probably dont need to know till Uni!
I think i have seen this issue raised a few times.
Dear Site Administrator,
Please only show forums that people have access to. That way no one will complain when they cannot access a particular group as that person will not see it.This is Steves site! He and his team have been kind enough to fund forums for public use. It would be wise to hide the ones the public cannot use!
Mat
Hey Fern,
This is just my opinion. There are too many factors that influence the sale price of a property. Season is just one. Supply/Demand are others, condition, etc, etc.So any set of numbers you get can be disproved by another set by making different assumptions.
As there are too many variables I would survey agents instead. I would carefully script up some key questions and ask a number of agents. Pose as both a buyer and seller as you may get different answers.
Be sure to challenge it. If an agent says its a “slower market” in winter. What does this mean? Does the price drop or does it take an extra few weeks to sell due to less people shopping?
Mat
Hi Audrey,
I guess if you finally decide you will sell, maybe marketing it differently would get you a better than market value price?
eg. Interstate investors are not always as good as the locals in assessing market value. Maybe find an agent who works with international investors? Disclose everything that is positive about the property ie purchase + reno work and leave out the negative numbers. For the lazy invester it may be enough detail for them and not look for alternate numbers.Or maybe target home owners who are local as people usually are prepared to pay for what they like rather than market value.
Note that none of this is misleading or morally incorrect. Of course if a potential buyer asks the right question you should provide accurate information…
Or…
If you do plan to keep it, assess if renting as furnished helps increase your yield.Or…
What are you currently living in? Will it rent for more? Swap houses for a year or two…Some of these ideas may be silly, but may help you think of other possiblilities.
Good luck
MatHi,
I found this happens a lot with Mortagee sales.I know this is a little sneaky, but I cant see how its wrong. At 10 min prior to cutoff, ask how many offers have been submitted. If 0, then put in a low offer, else put in what you feel is fair.
Also inform the Agent the cheque should not be cashed. On success you will draw another cheque or EFT. Its usually symbolic and they wont try to cash it if you were not selected.
Good luck.
Mat
PS I have only been involved with 3 of these and been outbidded everytime as there has always been at least one other offer! My results should be considered with my comment!Hi Surrey,
Your response is very helpful. Thankyou!Im pretty sure its structural and the engineer will confirm this tomorrow.
Thanks again
MatSadly I have had a few bad tenants and have found the laws are only effective if you PM is effective.
The PM needs to spot the first violation and act on it immediately. No messing around. As tenants always get a second chance once they front up to the tribunal you need to factor this in.
One bad tenant went to the tribunal 3 times and each time was slipping a little more in arrears. This was a costly lesson.
Another bad tenant was put on notice as soon as the law allowed and slippage was not allowed, consequently having a sherif evict her. End result was a few hundred dollars short.
Is this an effective investment vehicle? To each’s own. I think my yields are better than short term trading!
Mat
Hi,
Also check the lease in detail to see how much control you have over tenants (if any) and how much control the lessee has in setting rates.eg YMCA Melb will try and get in students for 6 month leases. Jan to Jun gets good results, then they reduce for rest of year if they cant get a student. You also cop the vacancy between semesters.
You need to take all this into consideration.
Mat
Hi PI.Com,
What kind of studios?
Seviced Apartments?
Furnished Units?
Un Furnished?What type of lease? Standard Residential or leased commercially to a hotel or something?
Thanks
MatHi Toni,
Can you list someone on CRA for non-payment? ie Dishonor without a court order?I thought the likes of Telstra, etc did that all the time. Its a small smudge on a clients record without the need of a court order.
Mat
Hi Deb,
I live in VIC and my bank manager is in NSW about 1200km. Dont let a small town stop you!Mat
Hi Giddo,
I use 2 LOCs. 1 for investments and 1 for personal. Keeping them separate ensures you can claim a deduction on your investment interest and any audit by the tax office clearly shows there was no withdrawals from the investment LOC for personal use.Over the years, for my situation, its best to keep separate accounts for personal and investment.
I try to keep my personal LOC next to $0 and I xfer any surplus cash I have in my personal LOC to my investment LOC there by increasing my equity in my investments for use on future investments.
LOCs vs Offset accounts? If you have a volatile balance (ie share trade or something) I think an LOC works well. Otherwise I think either work well. Note offsetting does not mean principal reduction, however LOC is a higher IR. I would do an analysis on both based on your saving behaviour to determine which will work best for you.
The above is just IMHO!
Mat
Hi terebi,
I just found out that Mac Bank will lend 35sqm and over for 1brs if you find a good deal.Mat
Well actually on second thought I agree too.
You can always redraw from your PPOR for both personal and investment needs, however you should only redraw on your IP for investment needs, otherwise it gets messy with your tax return.
Hi terebi,
I have noticed these. Its good to then look at renting it (ie realestate.com.au – rentals) and you will find there are lots available.Banks are no fans of lending for anything under 35sqm.
May be cheap as there is not a large buyer market.
On the upside, there are plenty of international students and they pay good money to rent off uni lodge or YMCA.
Mat
