Forum Replies Created
Hi All,
Went to hear Garth speak last night. Seems he and his partner who have been involved in realestate and investing for nearly 30 years, are expanding the business here to Tassie.
Without being too cynical I felt we were being spruiked to in order to drum up future business rather than giving us useful information we could use to help us on our own journey.
His spiel was basically this.
Buy a potential high growth property no more than 6 km from a capital city, using $100,000 in equity in PPOR (if you have it of course)
Rent this high demand generally medium to low density property to Dinks, Sinks and Trinks.
Hold for 10 years whereby its capital growth quoted as being 7.25% would have you owning a larger sum of equity in this new property while using the tax breaks to increase the paying down of PPOR mortgage. After the ten years repeat again.
Interestingly Garth did not want to “push Queensland down anyone’s throat but all the examples he gave were Queensland ones.
I felt the seminar was glaring not for what information it provided but what it left out.
No mention of how much disposable income was needed, no mention of costs they charge to find or manage properties.
Far more information to be had reading and posting here.
Thanks
Matt
We did contact the Residential Tenancy Commisioner here in Hobart only to be told that they only handle disputes lodged by tenants not owners/landlords.
So down here Tenants have recourse against landlords via Tenants Union and Residential Tenancy Commissioner.
Are their any bodies, groups, agencies that assist landlords or is that what we should pay our lawyers to do?
Also can a debt collection agency be involved here when no official ruling has been made?
Cheers
Matt
Go Brissy!!
Erika,
Just for your info the coverage we have with CGU does not cover loss of rent in this instance – did make the inquiry though.
Thanks
Matt
Thanks for all your info.
Property was managed by us originally.
Now have a PM in place – she is fantastic, new tenant moving in this week.
Have lodged a notice of dispute with our Residential Tenancy commissioner and if we get a ruling in our favour will look at your suggestion Terry – very interesting.
Needless to say we have learnt a lot in a very short space of time.
Thanks again
Matt
Robo,
A guy I have got to know who has 32 properties across Tas and Qld and Gold Coast has renovated a few fibro places in his time. He said he has removed the cover strips filled the gaps between the fibro sheets with a suitable substance and then rendered over the top.
Sounds feasible, but I’m not sure how well it would hold to the fibro without some surface prep – which given it contains asbestos would be a no no anyway.
This guy is away at the moment so have not been able to investigate further.
Matt
Hi Guys,
I’ve just had recent advice that its OK to take off the cover strips and render over the fibro.
Has anyone had experience with this?
Has it lasted and continued to look good over the long term?Matt
Thanks guys.
The HWC is very old but was in perfect working condition when we purchased the property. Since then it continues to work well but with low pressure and has also developed a leak.
Certainly I’ll check with the account to clarify.
Matt
Rachderick,
Research counts for everything and enthusiasm not for much when you’re starting out!!
I think you will find +ve cashflow properties are very hard to find – they are out there but its not as easy as lets go find one and snap it up.
Take your partner’s caution in mind to perhaps temper your own enthusiasm and do some more research. Enough is never too much. Stick around the forum for a while and see what you can learn.
Matt
Still in pursuit of much more knowledge before taking that all important next step.
Go CGU very comprehensive and also reasonable premiums and allow flexibility with payments.
Matt
Yorker,
Not just visited, lived there (midlands)for a while, now down south in outerlying area of Hobart.
Matt
Thanks Pelican,
Would be a great idea if it was a regular old IP.
However, we bought it based on position and renovation potential (its by no means a dump, just small when you have 4 kids) and one day it will become our PPOR. So it was an emotional purchase – we are currently letting it to gain some tax breaks and use others to help pay the mortgage!!
Matt
Mortgage Hunter,
Firstly thanks – similar expectation here in Tassie – continue top pay rent until it is retennanted, pay for advertising etc.
We have prospective new tennants already – but current tennants (ones moving out) have suggested we keep bond (4 weeks rent) as a buffer to help with the transition – sound like a win – win to us?
Probably will now also let an PM look after the property from now on. Hasn’t really been too much hassle but I now just feel its better to leaves things purely on a business basis?
Anyone know of a great PM in Hobart and surrounding area?
Thanks heaps
Matt
Luke,
Don’t want to completely disappoint you but Tassie’s prices haven’t yet seen the slow down other areas have. Still asking big prices and still managing to sell, even if they are staying on the market a little longer.
Cf +ve deals on mining towns on West Coast – leave well alone, very little population, very little capital growth, fair distance from major population centres.
Travelling between Hobart, Launceston will see you pass many Midlands towns, might find a bargain here and might be able to negotiate down if they have been on the market for a while.
Do a search on realestate.com
Matt
Da Man,
Two cliche’s come to mind
Quality not quantity.
Due dilligence.
Matt
PenguinJr,
Great post. Excellent information here thanks to all the contributors, will ensure I keep this one for future refernce.
Matt
G’Day All,
Thanks for your contributions. As a 32 year old dad who has had all 4 kids from a young age, I’m feeling more confident now that I still have plenty of time, kids are now getting older, soon income levels will allow more investing. Just goes to show age is certainly no barrier.
Will revise my goals to be little more realisitic in terms of time allowed.
Thanks V.much
I am loving the journey.
Matt
Yorker,
Do a search West Coast Tassie, someone last week talked about the mining companies controlling towns – not exactly sure what they meant – might be interesting to follow up.
Despite the mining angle, the West coast of Tassie is beginning to get a bit of Rep as a tourist destination
Very Wild winderness
Mining moonscape of Queenstown
Strahan also is lovely.Expect little to no capital growth except maybe in the long long term but if cashflow is what you’re after you’ll certainly get that.
Have a look also at Warratah, Smithton, Circular Head.
Burnie is possibly also about to see some major development. If it gets up then capital growth will be evident.
Matt
Monopoly,
What a position to be in!
Good luck when you decide to take on some debt. I’m sure you’ll have a hell of a time buying again.
When do you think you might propose to do so?
Matt
Thanks Mortgage Advisor,
I guess I was speaking from the point of view of someone who is really champing at the bit to get into investing more heavily but is only constrained but funds, and of course more knowledge from research.
A good point you make.
By the way I’m a Leo.
Matt
Newbys 1 stop shop P2
Other useful points
Learn the jargon.
Do a search on the forums for abbreviations. It makes reading posts so much easier.
Use the searches to snswer your questions as well as posts. Most stuff has been discussed around here at some point.
Due Dilligence
Know as much as you can about the property you intend to buy. Everything you wanted to know about it write it down. Then ask someone else to look over your list and get them to add to it.
Poss Vs Neg geared
Gee it really does depend on your situation and circumstances like
deposit
income
area being research
How much property you already hold
How much equity you have in those propertiesI go with do what feels right for you. Ensure you can sleep comfortably at night.
I would love to buy more property right now but I don’t have the deposit and am contributing to a neg geared property that I won’t sell. This will all change when we become a 2 income family again post little chn
