Forum Replies Created
Hi attrill,
Thats interesting. The lease option price is based on market value, not whether the client is making money or not.If you can prove the market rent should be higher than you have a good case to reject their offer.
It must then go to some sort of tribunal?
I have not gone through the process with hotels but do have some several commercial leases and I cant see how the lease option could be based on client profitability.
But thats not the point. I agree with current comments, you have 100’s of independed thinkers (lessors) vs the 1 hotel which makes it easier for them to change the lease.
Mat
Hi Lena,
In my opinion this is a very good option. You can also claim expenses and depreciciation once you change your PPOR into an IP.This will give you a further boost of income at tax return time.
The only challenge I think you will find is the lifestyle one. Although on paper it does not really matter if you rent or own, emotionally it does. In your PPOR you can paint a wall or hang a painting and you can live how you chose (make reno, etc). In a rental you cannot and you risk eviction at the term of the lease (although unlikely).
Good luck
MatDeveloping is not, but particular collaborative approaches (like this one) are.
Simon dont be overly upset not being invited to exclusive womens business.
While women continue to behave in an unequal way then society (or men) will continue to treat them as unequal (just like all the other monority groups who feel they have a right to exclusivity)!
One day I hope all these groups understand the true definition of equality.
I still love women are am more than happy to share my toolshed!
Mat
Hi Wing,
Cant help for that suburb sorry. I would suggest go to http://www.residex.com.au and buy one of their reports.Mat
Sorry, to throw a spanner in here, but the agent is full of garbage.
His prime driver like all sales is $$$ for the least effort.
So why would he negoitate down a fee? Then when you agree to a fee, why would he waste a lot of time negotiating a best price for you? What is the incentive?
I see no difference. Unless commissions are structured in a way with incentive then you will never get the best results.
Is it possble to agree on FMV, agree on a base commission and then an incentive bonus scaled to every $ over that FMV it sells for?
Noted this is me talking from dealing with sales agents in wealth, life and commercial lending – not house selling.
Mat
Thanks for the post purplekiss.
Well I posted this thread at end of May its now mid Sept and I have had not problems with arrears. So yes it appears to work for those who cannot budget properly.
Mat
Ok ill start:
1. When the property requires attention the agent acts on it.
2. When there is trouble with the tenant and rent stops the agent is on it immediately. No nonsense.
3. When I have questions about reno work or ways to improve the property or rent the agent makes those recommendations promtly and offers indicative pricing.
4. The agent has excellent trades people
5. When Im looking for another property in the area, the agent is willing to inspect (even if competitor selling agent) to ensure its right for a rental.
6. The agent shows a very clear understanding of price movements in property value and rental values as well as vacancy movements and tenant quality (or quality of location).
7. The agent collects a fair fee and does not have a schedule of fees 100 pages long.
8. The agent acts with integrity (ie discloses kickbacks, does not do mates rates for known tenants, etc)
9. The agent is trying to continually improve their business. They seek recognition by industry awards, feedback from customers, etc.And I actually do have 1 agent who does this!
Dont want to put a dampner on this, but the way I understand it the credit card is not the vehicle to save the money. It just defers 1 month of interest in the credit card balance.
Eg if you spend:
Jan 1000
Feb 1000
Mar 1000You could pay directly from your LOC, or put on the card.
If on the card, you LOC will feel it something like:
Jan’s 1000 in Feb
Feb’s 1000 in Mar
Mar’s 1000 in Apr.So you have not really saved much (IR = say $1000 at 7%pa divide by 12). However you have increased the risk of paying a rediculously high IR on the card if you miss the payment due date.
I hope this makes sense!
MatThe Govt can always put a tax back in later. At least with other investments, although you are taxed, you can exit when you dont like the situation anymore. Cant with Super.
Happy birthday Mr Gen Y! And may you not follow the same path of the many Y’s and expect that richness will come to you!
Good luck!
This is kind of what I said in the other thread on this. After living in St Marys (quite close to St Clair) for 2 years I cannot see that an average 3 Br house would ever be worth 450k (from the pic that is an average house!). Its just not a 450k suburb. So to take this case and talk about a crash should be embarrasing for the owner as they paid way too much when they purchased it.
I think its a very abnormal distortion and should not be used as evidence. Id rather look at the median house value movements in the area (ie Residex) which would then at least smoth out the abnormal.
It really depends. In addition to Selling stuff, I would suggest:
1. Look and consolidating your debt
2. Get rid of your credit cards and pay cash. If you dont have the cash then you wont be able to buy
3. Spend 1-2 months writing everything down you spend money on. There will be at least 50 pw you could find. eg Do you smoke?, Do you drink?, Do you eat out? How often?, Do you drive when you could train it? Do you conserve hot water? etc, etc.Here is a really good one someone told me that really works. Do not shop again for food until your cupboard is empty. Yep that may mean mince meat and a can of baked beans for dinner. It does 2 things: 1. Makes you better plan what to buy 2. Stops you throwing out old stock cause it goes off.
Good luck, there is no silver bullet, but you must be disciplined and determined.
Hello,
Good luck. Dont just look at the optimistjc scenario, also consider what if the property does not go up? What will you do?I think also you may not qualifiy for a FHOG if you already have an IP???? I think I read that somewhere.
Mat
Im still investing in Syd. But it just depends on where. Its a pretty big place. For example Mt Annon topped capital growth last year. And the Narellan/Camden area has had strong consistent growth over the last 10 years (according to residex).
I cant believe anyone would buy a house in St Claire for 450k!
Hello Mr Cloth,
We did exactly what you are thinking.We found in the prahran, south yarra, toorak area you can find slightly run down 1960s-1970s smallist 2br for 250-300k. With a little elbow grease and 10-20k budget you can make a nice little place for 2 year stay that is rentable when you leave.
These areas are also very pleasant, surrounded by $1m+ (ie toorak is most expensive place in Melb) properties and 10 min by train to the CBD.
Mat
It sounds like you have done everything you should to try and reconcile the matter. This could cost you a lot of money and a lot of time from now until it is settled. So I guess, even though you think you are right, you can perhaps suggest a mediation service where a third party will help all parties through. Or you can take it to court. But it sounds like even if you win, the other guy has no money. so what would be the point?
The reason so many people make and lose money is because everyone adopts their own strategy. People make money in the most rediculous unheard of ways (eg the guy who traded a paperclip).
Point is, everyone has an opinion and everyone can make money. The trick is finding your niche. Yours may be +ve cashflow or you may find you do better buying and fixing up. Either way you need to approach investing with a methodical eye.
I have not read the book you talk about, but maybe this lady just fails to find the right +ve cashflow properties?
And just to confuse things the same set of statistics can be used to both support or reject your own strategy.
There is no one silver bullet, find yours and follow it!
Where to start? Determine how you want to invest and then ask the forumers here for their thoughts.
If you really want to have a go at +ve cashflow, start your search, find some potentials and ask away. Wont cost you a cent!
BUT NEVER GIVE UP!
The downside is not getting what you want.
Figure out what you need from them and then meet with a few and see if they are comfortable with your needs.
For example I would only use a buys agent if they find property that matches my criteria. That is Im using them only to save me time (eg interstate purchases). It works better than me talking to 10’s of selling agents.
Others use buyers agent because they dont know how to assess a deal or they dont know where to start or they want to learn along the way.
Hope this helps.
