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mathewc73
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@mathewc73
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Post Count: 241
May 8, 2007 - 10:13 pm
Be the first to ask for an "indication of the price range". Give the impression you want to know if its something you would like on your radar or not.
Some will tell you, others will request you submit your offer.
mathewc73
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@mathewc73
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Post Count: 241
May 7, 2007 - 11:04 pm
Hi,
My first property was a unit at Mermaid Beach, Q. It was in 1997 just before the market took a dive so it took me quite a few years to recover. A house in Q at the same time would have caused the same problem.
Units are great. Statistically, in most areas they do not appreciate as much as houses. But they are an almost set and forget investment. Houses can take more work, depending on their age and quality.
If you want to use your first property for bigger and better things, just ensure it is a quality property. Key indicators, look at growth for that type of property, rental yield, vacancy rate, the town it is in, etc, etc.
Regards,
mathewc73
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@mathewc73
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Post Count: 241
May 7, 2007 - 10:44 pm
Hi Luke,
These guys are right not all planners will be able to advise you on property. However they must provide advice that is best for your situation so they will tell you up front if they can help you or not.
To learn more before you just contact any planner go to: http://www.fpa.asn.au/
Im not a planner, but I work for AXA and from my experience it pays to do your research to find a planner or group of planners who are best suited to solve your situation. Most larger firms have introduction sessions on a regular basis. Find out when these are on and attend and then after the session ask your questions to see if they are a right fit.
Regards,
mathewc73
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@mathewc73
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Post Count: 241
April 30, 2007 - 2:20 am
Dom,
Unless someone was deceptive in the deal, honour your contract. Dont screw others around because you made the mistake.
Im sure you dont tell others when they are underselling to you to think twice.
Regards,
mathewc73
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@mathewc73
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Post Count: 241
April 18, 2007 - 3:51 am
Testimonials are good after product selection. So if you select your product, what ever it is, using facts and logic. You would want to ask "So what do people really think". So instead of a pre-fab testimonial, the most valuable ones are where you structure a few questions and ask a few selected users of that product yourself. Even if it was the seller who chose those users.
Now there is real value.
mathewc73
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@mathewc73
Join Date: 2005
Post Count: 241
April 18, 2007 - 3:45 am
Well you're all wrong!!!
No wait a minute I think thats wrong… You're all right! and apoligies to those who would be offended by such a personal attack.
Regards,
mathewc73
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@mathewc73
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Post Count: 241
April 13, 2007 - 2:49 am
Are you debating about whether to kick the tenant out first or sign up a PM?
If you sign up a PM they will kick the tenant out, and if all damage not repaid, will list the tenant on their database which is a good thing for all other PMs out there. Its also a good stick to ensure that the tenant does pay up.
Regards,
mathewc73
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@mathewc73
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March 23, 2007 - 3:02 am
Baba,
Best way to avoid x collatoralising is to take another loan out on the other property (required as a 2nd security) and using this money to contribute to the purchase of your current property. In total your LVR will remain the same.
Thats the simple view, Im sure the MBs on this site will correct or provide other approaches.
Regards,
Mathew
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mathewc73
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@mathewc73
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March 12, 2007 - 2:00 am
Most people are lazy so reaseach potential BCs first and highlight their benefits.
If you live in the building, and its not too big, do a door knock. You will either find out if they live there or if they rent, if they rent you can get the contact details of the property manager and you can sell them the idea.
Once they are sold you can be sure they will recommend to their landlord to agree with your proposal.
If you have 30+ residents it is very difficult. (having seen one fail first hand).
Good luck
Mathew
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mathewc73
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@mathewc73
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March 9, 2007 - 8:37 am
Hello GC,
Given that most times paid for renovations on IPs dont really get a corresponding rent rise, if I was in your situation I would probably make it a PPOR. Spend the next 12 months fixing it up on a shoe string budget (call in all those favours!).
After 12 months consider changing it over to an IP (get it re-valued and a depreciation report) and then buy another PPOR.
When you are low on cash I think your own time is your most valuable value adding approach.
Good luck with it.
Mathew
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mathewc73
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@mathewc73
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March 1, 2007 - 11:59 pm
Writing covered calls always seemed a contradiction to me as writing the call assumes the market wont rise, yet owning the share assumes the market will rise. Why would you have capital in a market that you assume wont rise?
Mathew
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mathewc73
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February 22, 2007 - 11:53 pm
Hi Dan,
Im not a stats guy but I do remember last year everyone said prices will remain relatively flat, they also said that the year before and the year before that. Actually I think that has been the prediction for about 5 years for Sydney.
I was concerned too, but I beleive with the stength of the economy (exports), low job vacancys, etc. I cannot see how prices can fall. Everyone still has too much money.
If rates rise maybe 2-3 more times I think that will trigger falls in property and make life hell for PPORs
My logic is probably totally flawed, but thats my opinion [specs]
Mathew
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mathewc73
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February 19, 2007 - 10:04 am
Thankyou for your responses.
Love my Car I have a question. How can you keep the land tax threshold though a company structure? I though companies as well as almost all, if not all, trusts do not get the threshold.
Im looking at an annual bill o ~$7k so Im happy to try alternate legal approaches.
Thanks
Mathew
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mathewc73
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February 17, 2007 - 4:14 am
Hi Mark,
I hear you saying your mother is stubborn but at her point in life, I think my strategy would be around capital and income protection which may or may not include a strategy to purchase more properties.
What if in exactly 5 years time property prices halve in WA due to a resources recession? How is she protecting her nest egg?
To me it sounds like an exit strategy should be worked on.
Maybe you can sell it: in that its okay to purchase another so long as you can protect what you have first?
Maybe work backwards from what her income/investments would look like during retirement and how a new purchase would impact that?
Well thats my 2c. Here are my ideas to your Qs:
You can own any % of the property you like its about balancing gearing with cashflow. I like a balance that leaves me at least cashflow neutral for new properties and in the +ve for my older ones. That way if I lose my job or something I dont stress (not that Ive lost my job… yet ).
Can she leave work or support another property? You need to do an income and expenses anaylsis. You will figure it out based on that. If the net income from my properties = 60% of my work income, I would leave work tomorrow and focus on business opportunities!
Mathew
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mathewc73
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February 17, 2007 - 3:06 am
Thanks Terry.
Has anyone challenged their land value and won? How did you do it?
Has anyone requested an exemption and won? An exemption that is not stated as being an example that you can use?
I need to find ways to challenge it, I want to keep all my property in NSW but land tax is a very terrible tax. I see it rather as an erosion tax is you cop it regardless of whether your property value rises, falls or does not make any income.
Maybe a legal person can answer this?
If I try to request an exemption on the basis that I will be forced to sell thus removing available rental stock from the market. Do you think it could cut it?
Thanks
Mathew
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mathewc73
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@mathewc73
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February 15, 2007 - 11:23 pm
Hi Greg and Mr Purse,
Chatswood is a nice, low crime suburb about 5 train stops north of syd. Its a main train stop and there are lots of high rise residential developments going up.
It also has a pretty big westfield. It is currently undergoing a revamp.
Demographically its a strong asian town as well as elderly who still own their beautiful 1920’s houses on large plots of land (these are usually $1M+).
I did not use a lot of stats for this purchase as its a personal one to live it so it had to feel right. I purchased into a low rise (8 story) complex. As the new units come onto market I dont think this will impact my unit as they are $600k + (mine was 470k) so its a different customer band.
Its a strong suburb with money so I expect my unit growth will be above the sydney suburbs average.
Yes I know I am now limited as I have just ploughed my money into a kind of liability. But it is personal reasons to own a place. And also I think you get a better outcome now if you can afford to buy rather than rent. The rent stock is low and what comes up is pretty average. As the demand is high you cannot even get the landlord to touch it up for you.
I was lucky as the place I bought has just been fully renovated. There are just some minor changes I need to make and its home sweet home.
If you are thinking of investing in this area. I would:
1. Get growth stats over the last 10 years to confirm you are happy with it.
2. Get median values to confirm it meets the type of renter you want
3. When you find a place, get a residex recent sales report on it so you can set the right bid price.
The area I usually invest in NSW is Narellan, Mt Annon, Camden way. The right suburb in that area has worked well for me over the last 10ish years.
Hope this info helps, not that statistical sadly.
Mathew
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mathewc73
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@mathewc73
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February 14, 2007 - 4:35 am
Generally the BC admin just administers. There is usually a chairperson and board that consists of owners and they, along with all owners have the power to give any direction to the body corporate administration, including sacking them.
You just need to determine what rules apply. For example the BC I am involved with would require me to get 85% support of all owners if I want to do significant things.
This is my limited understanding, so I would have a good chat with the chairman. If there is none, vote yourself in!
Mathew
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mathewc73
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February 14, 2007 - 4:29 am
I hit the pavement last Sat and inspected 4 units. 2 were really good for their rental ask. This was also reflected with 20+ people all inspecting it.
Out of the 4 I put in 3 applications. Out of the 3 I was 1st place on 2.
But on the same day I happened across a recently renovated 2br unit for sale at a good price. So I bought it instead with the condition I can move in prior to settlement!
It will probably cost an extra $130 a week compared to renting, but the quality is much much better!
Mathew
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mathewc73
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@mathewc73
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February 7, 2007 - 4:16 am
Great points raised here. Keeping it simple (without mortgage insurance):
1. Bank only lends 80% of the property value (70% for commercial)
2. Your income must be able to service the loan
3. These parameters vary a little from lender to lender
They are the only 2 levers you have. But you have many options on how you work each one and these are covered in the creative investing forums, etc.
Its how you work these levers that makes every investor in this forum unqiue.
And leading on from this you are right its not how many properties you own. Its:
1. How much equity you own
2. How much net income you derive
Mat
Mathew
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mathewc73
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January 23, 2007 - 3:15 am
From my experience, an experienced agent will be getting you to sign almost immediately after the vendor accepts the offer to ensure the deal is sealed.
As far as I can tell there wont be much recourse from the vendor if you withdraw your offer. More so the agent will kick themselves for not getting you to sign .
Mathew
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