Forum Replies Created
Hi,
You can add subject to finance. Some may accept it. But you have 5 days cooling off. So you get your building report and pest report done in this time. Worst case you lose your .75% deposit.I think its best to offer low, add in no conditions at all, add in any sweeteners to entice acceptance of the low offer. And then get every inspection done within your cooling off period. That way the .75% is like your option to buy.
Hope this helps,
MatMathew
http://www.arrttt.com
Custom Oil PortraitsWell you cannot stop unethical people doing unethical things. You can chose whether you do business with them. In your situation whether you do or dont you may find the developer gets what he wants. I would guess your land is worth more when combined as 3x rather than on its own??
So I would think I would meet with the developer. Its not a sign that you are weak. Its a sign that you have a good business head. You know the numbers and are willing to negotiate. Even this developer will see a win-win if one can be had. You walk away otherwise and at least the developer understands your position and you understand his. It has to be a discussion with justification for each negotiation point.
And so long as you act ethically, I think you will feel ok about the whole thing.
Well thats my 2c.
Mat
Mathew
http://www.arrttt.com
Custom Oil PortraitsCan I reply a little differently…
You could read all the “learn to swim” books out on the market. Until you jump in the water and try to apply what you have learnt you wont know if you were ready. Then you get out, read some more and jump in again.
The first time there is no right time, but you can certainly jump in with floaties so you dont drown.
Ask an experienced investor to look at the deal with you and then take it.
My first was at age 24, second and 3rd at 27 and now I have 9 at 33.
Mat
Mathew
http://www.arrttt.com
Custom Oil PortraitsHi Terry,
So if I have an account that offsets my loan 100% and if I use that account for personal use, the tax office is ok with this? ie I can still claim interest deductions?I dont have a lot of experience with offset accounts.
My post was just keeping it very simple with not having any bad debt accounts and not mixing personal and investments so it encouranges good saving as well as keeping the tax man at bay.
Regards,
MatMathew
http://www.arrttt.com
Custom Oil PortraitsOr better still just have 1 LOC for investments. All your salary, etc should be in a +ive cash account. That way you are not paying interest that is not deductable!
As you build up wealth in your savings account, xfer onto your LOC. But NEVER EVER xfer from the LOC back into savings!
All the best.
Mathew
http://www.arrttt.com
Custom Oil PortraitsHi everyone,
Thankyou for your posts. I dont mind having lots of loans, but the concept of net loan to net asset value ratio rather than on each loan is what I was after. That way I can change loans, change assets, etc and not have to worry about cross collatoralisation.It sounds like since I last looked a new product has come to market about portfolio management so Im going to start investigating it. Ill let you know how it works out incase it is of benefit to others.
Thanks
MatMathew
http://www.arrttt.com
Custom Oil PortraitsGreat idea! Thanks.
I know that if Telstra cannot provide a phone line then they must provide an alternate at their cost. But I dont think this applies to internet services. Which is the problem.
But I like the idea of lodging a complaint and then progressing with the ombudsperson.
Thanks
MatMathew
http://www.arrttt.com
Custom Oil PortraitsInteresting…. Ive often wondered why we cannot create more endothermic reactions (ie you know when you open a gas bottle and as the gas comes out the valve ices up? thats cause the liquid gas absorbs energy to turn into gas). Cause if we could a fridge could run so much more cheaper!
Also they did a study on 9-11 and they recorded temperature rises on the days after. This was due to the grounding of planes. What they concluded is our polution also causes global shading that reduces the earths termperature.
So they were saying you cannot just stop the green house gasses alone.
Mat
Mathew
http://www.arrttt.com
Custom Oil PortraitsHi Spanky,
Great post.About 3 months ago I researched the idea of installing solar panels on roofs of companies and then selling back the electricity.
Sadly, if I was to charge the same price as coal power electricity payback was 40 years +. Now this does not include maintenance and worse still that solar cells have a life of about 20 years.
So the energy is clean but is still too expensive.
I did not go down the wind power lane as this requires land with optimal exposure to our wind currents.
It is very frustrating when you hear the germans will phase out nuclear power stations by 2020 (I think) and we are now thinking about firing one up.
So as I rent all I can do for the environment is conserve water/pwoer and recycle everything from food scraps to bottles. At least this will reduce some form of manufacturing.
Mat
Mathew
http://www.arrttt.com
Custom Oil PortraitsHi zopm,
I like your style and good luck with your first purchase!Building relationships will certainly help you in the long term.
Mat
Mathew
http://www.arrttt.com
Custom Oil PortraitsYes you are right, if you look at it through your eyes it may be a dud. Thats why some make a killing and others lose money.
Its two things:
1. Depreciation & Deductions
2. LeverageFor starters your 7% loan becomes about 5% once you claim it as an expense on your tax return. So you are now clearing 2% pa which is only payable as GCT when you sell (Assuming you find that property that grows at 7%).
So you are getting 2% for nothing? No you are getting it for the risk you are willing to take.
So that about 8k pa so long as nothing goes wrong. It will pay your expensive entry costs off in less than 5 years.
Note also over time your rents will get up while your LVR improves as the capital grows. Allowing you to move into +ve cashflow and buy more properties.
You cannot do this as well with shares. As LVR is 70% and you get margin called if the investment takes a little dive.
Hope this helps.
Mat
Mathew
http://www.arrttt.com
Custom Oil PortraitsI agree!
Its the seller who is the greedy one. They want to get the best price, however instead on understanding HOW to get the best price, they get estimates from the agent who is offering the best price/risk ratio to win the deal to sell. This has less to do with the actual price that the property would go for.
It wont improve becuase agents need sales for income and sellers pick agents who offer inflated estimates.
Well actually it would improve if there was a penalty clause the punishes the agent selling below estimate….
Mat
Mathew
http://www.arrttt.com
Custom Oil PortraitsI dont know of automatic software but you could write a macro.
eg, download macro scheduler (I think from nonags.com) and it can record your keystrokes as well as read text from the browser. So you could code it to search the web sites and take data from them….
Hope this helps a little…
Mathew
http://www.arrttt.com
Custom Oil PortraitsHi,
I have found domain gets most hits (for rental listings anyway).I read your ad, maybe you need to spice it up a bit.
Its good you have all that detail, maybe its enough for most people to not even bother calling?
I would read a dozen or so ads by RE agents and copy their style.
If you are not a sales man, selling a 600k house is a pretty big transaction for a learner….
I know this does not answer your Q re other sites, however there should be plenty of traffic on domain to get a few nibbles.
Good luck
MatMathew
http://www.arrttt.com
Custom Oil PortraitsHi Draconis,
If you go to http://www.residex.com.au they offer several reports. One report I purchase before I make an offer is their recent sales on the property report (cant remember the correct name).It gives you sales over the last x years, sales of other properties on the same street as well as a rough prediction of what the place is worth.
Its good data to back your rationale on the offer you make. I used it to make an offer on a place in NSW. It was $20k below ask. Vendor refused to accept and so it sat there for 2 months before the vendor realised they were not going to get anything better.
Your could possibly source this data elsewhere, but Im lazy and happy to pay a couple of hundred $$$ for the information!
Mathew
http://www.arrttt.com
Custom Oil PortraitsHi Zopm,
I think it may be a little more complicated then just presenting x% below the listed price.I would suggest the following checklist:
1. Do you know the neighbourhood?
2. Have you assess what appears to be the correct value of the property based on recent sales?
3. Have you considered purchasing a residex report on the property? It will give you sales history, predictions, etc…You never know, the list price may be been poorly set and is already a bargain. If you go too low a more astute investor will pick it up.
Good luck and I hope this helps.
Mathew
http://www.arrttt.com
Custom Oil PortraitsGuru may not be the right word.
For me its all about delivery to promise. So if someone shared a 5-10 year strategy and they were at least 5 years into it and they hit every goal they set +/5% then I would say they are worth listening too.
Why? They are not hit and miss, they dont make money just because. They manage to a strategy and they deliver accurately.
Hi Rob,
Nice website. Good luck drumming up new business.Another source for you could be PMI and AIPM. Have your consultants become certified project managers and you can also setup stalls at the conventions these guys hold or even talk at their monthly chapter meetings.
Im with PMI and there is a strong IS flavour down here in Melb.
Mat
Hey cruiser or should I call you crusher!!
Good luck with your womens group I hope it goes well and I hope you are a little more open to difference of opinion and jest with your fellow members. I’d hate every time you disagree with them that you would call them an “idiot”.
Oh wait… that must be for males only.
Mat
PS I think Im quite smart. I can easily prove my statement earlier. However crusher, I challenge you to prove Im an idiot!Hi alotti,
With what you said in your last post, you need to keep records of when the property was a PPOR and when it was an IP. You need to determine its value at the point you change from one to the other.The govt is not very kind, if you claim expenses and depreciaton when its an IP, they will also expect you to pay GCT on the capital growth during the time it was an IP as well! (when you sell up – if you ever do)
What’s that saying you cant have you cake and eat it too?
Mat
