Forum Replies Created
With PIA you can enter both the Purchase price of a property and the Market price of the same property… these two figures will affect your ROI over time.
I am not aware of any functionality within PIA to calculate costs of reno's etc.
You can do things like change the loan from P&I to IO, interest rate, rental return, vacancy rates, forecast capital growth etc all by just changing the appropriate cells.
You can download a demo version of the program, but unfortunately a lot of the cells are locked so other than a overview of the program, the demo version is very limted.
Matt
Mate
I personally use and would recommend the PIA software…
http://www.somersoft.com.au/software.htm
There are a few on line calculators that other people may be able to provide the links for, but i personally cannot comment on any of these.
Matt
Hi Adrian
Great news about you finding a bank loan fault in your favour.
If you read the terms and conditions but, i believe that you will have to pay the $197…
3. Where the 30 day Risk free Trial is selected, customers will only pay for shipping only at the time of the order. The full price of the software is payable in 30 days when the customer has found errors.
Matt
Hi Terry
It's interesting that you hear in the media how the availabilty of finance is becoming more difficult, but the major banks will give you 95% LVR no problems with several of the small lenders moving back to 95% + home loans…
Matt
Hi Buyseller.
You can get 9% returns in the Tuggerah Business Park, Central Coast…
As many people have mentioned above, i would be very hesitant to buy commercial property in a town of 5000.
Matt
You know what i find interesting'
On the very same day, the very same paper printed an article talking about how rents in Sydney have increased and show no sign of slowing…
Matt
Banker wrote:However. If you offer 480k in writing, the vendor / agent can no longer advertise a 420-470k price range (it is now blatant under quoting which is illegal). They now have to adjust to 480k + or a range starting at 480k.Hi Banker.
The same applies in NSW.
Matt
Hi Hinh1000
This one could be a tough purchase…
If the agent is any good at his job, he will already know what the fair market value of the property is, and how easily achievable that price is in the current market.
The other thing that will potentially work against you, is that the agent can log onto RP Data and within about 30 seconds discover that you own the property next door… once again, if he is any good at his job and understands the local zoning laws, he will realise why your purchasing the property and will all of a sudden want a price that reflects the development potential. (Eg. Above market value).
I guess you have a couple options;
1) Instead of buying his place, find a developer is willing to buy both your property and his property and sell both above market value (based on development potential).
2) Understand that if you really do want this place, you may have to pay slightly more than what it's worth based on you'll make your money back in future. If you do take this option, ensure that you can obtain finance before exchanging as the bank will only value it on 'stand alone market value'.
3) Do a joint venture with the Agent to develop the units and split costs / profits.
4) Stay firm on you price, and be prepared to walk away if the agent won't accept a fair price. Understand, very few other buyers (unless emotionally attached to the place) will offer above market value anyway.
In regards to what price to offer / what is fair market value… it's time to do your research.Spend a couple hours on RealEstate.com.au / Domain.com.au and have a look at what comparable properties have been sold for / are selling for…
Matt
Hi Psaini09
Your question unfortunately can't be easily answered as their are way too many variables…
To name just a few, it depends on things like;
* What are your long term goals
* Do you have any major long term expenses forecast (Eg. 12 month O/S holiday, planned study period, change of career, desire to have kids etc)
* How much do you have available to invest (both capital / equity and on-going cash flow)
* What is your risk profile
* How much time do you have to dedicate to investing
* What style of investing attracts you (Buy and hold, renovate, develop, etc – not to mention other asset classes such as shares and business)Best advice is for you to find a good financial planner who has proved their worth over time (not just somebody who has a paper qualification) and have a chat with them.
Yeah, it would be a very bold move to lift rates independant of the reserve.
I do find it very interesting but that that they 'give notification to the general public' that it may occur within a very short time of announcing record profits.
Is it a warning to the reserve, rather than a warning to the general public ?
Or are they simply focused on ensuring that next year provides another record profit for the share holders ?
(Although i may be hung for presenting a capitalist view here, as a pubic company, the role of the C Level executives is to provide record profits each and every year to shareholders. Although we would all like to think that the bank is there for mum's and dad's… ultimately, it is the share holders that they are repsonsible for reporting to.)
Hi Jmr
The broker you want to talk to, just answered your question…
Matt
Geoff Corah from Peninusla Law (Woy Woy) would be a good place to start.
Not sure what experience he has with wraps, but is very good with trust structures etc.
http://www.peninsulalaw.com.au/index.html
Matt
number 8 wrote:Here's a thought, CBA make $5.6 Billion net profit(up 20% from last year), how is it that this can be good for us? what advice do they really give, and for who's benefit? My Mother and Father walk into CBA, should I feel scared that they will be sold products to help the bottom line or are the getting value for their dollar?Hey Mate
Looks like you beat me to this one'
Depsite record profits, CBA are also 'hinting' that they may lift interest rates independant of the reserve… Whats everybodies thoughts on this;
Is it justifiable for them to lift their rates independant of the reserve ?
Will they actually do so and in what time frame do you think it will take place ?
How long before the other big three follow ?
Matt
Hi James
I'm not sure about the actual vacancy rate or letting times, but in Gosford (Central Coast) i have noticed that the average advertised rent for a 2 bed unit has increased about $20 in the last 6 months…
Matt
brisbaneJosh wrote:In terms of them getting their solicitor to draft a contract of sale do you know approximately how much this would cost? I intend to put an offer in at a discount equivalent to the full cost of the agents fees but the owner may reject I on the basis that they would still have to pay extra solicitor costs. I guess the upside for them is the house is sold quickly without the inconvenience factor!!
JoshHey Josh
In NSW, (i think it's different in Qld) the vendor would still have to pay for the solicitor to draw up the contract of sale documents if they went through an agent.
The agents primary role is to simply market the property and negotiate the sale price.
The actual finance / contract reviews and conveyencing is done externally to the agent. If anything, the agent simply acts as a central point of contact and ensures that all parties have the required paperwork etc.
Matt
Ok, the agent does not need to and most likely won't show you the vendors request in writing (they may not even have it in writing ! ) … that comment was more so made as it is best practice for the agent to have the request for offers not to be submitted below X amount in writing to protect themselves. Eg. Otherwise if it all goes pear shapes it could turn into a he said / she said argument as to why all offers were not submitted.
Most real estates will have a standard form that they want offers submitted on which will include details such as your solicitor etc… from a legal perspective, it really doesnt matter how your offer is submitted. Verbal or written (fax, email, handwritten), the agent is still required to submit all offers from other interested buys and niether party (vendor or buyer) is legally bound to purchase / sell the property until such time as contracts have exchanged.
Best advice, especially in a hot market or on a property that is a seriously good buy, is to put down a 0.025% deposit with a ten day cooling off period as soon as your offer has been accepted. Then use that ten days to organise the pest and building reports, confirm finance etc. Worst case scenario, you lose your 0.025% deposit.
jksgoh wrote:I have heard that the vendor can make a threshold, and if the offer is below this offer the real estate agent does not pass on the offer, is this true? i have read conflicting things about this. Currently, the real estate agent dealing with the property i am interested in has said the vendors are not considering offers under X amount.In NSW (not sure about other states), the real estate agent in question is required to pass on all offers either verbal or written unless the vendor has made a specific request (best practice is for the agent to have it in writing from the vendor) not to recieve any offers under X amount.
Hello Folks'
Gotta love google…
A non-recourse loan is a loan that is secured against a property, but does not hold the borrower personally liable for the loan. In a non-recourse loan, your lender can take your home for repayment, but cannot seize any asset besides the collateral. If you incur more debt than your home is worth, the lender simply loses the money.
Hi James
Have a look at the attached link as some free education on shares…
Please note, the idea of this session is ultimately for Stock Doctor to sell you their share market analysis program, but as long as you don't sign up / commit to anything, it will give you a very high level overview of what to look for when doing share market analysis.
Ps. In no way am i recommending you should choose the share market as your investment vehicle, or should you use stock doctor etc… but it's a free event and you will be able to rub shoulders with a few guys who actively trade and potentially ask some questions as to their experience with the markets.
Matt
jamesp33 wrote:as you stated matt what kind of tafe courses do you recommend in being a begginer in investing?Hey James
By Tafe course, i didn't necessarily a 'Tafe' course, but more so just a course that will give you the oppty to learn about your specific area of investment. Doesn't really matter who provides it… just realise you don't need to spend a heap of $$ to get some good education. (Be very cautious of the $5K for 5 days type courses).
Eg. If you have an attraction towards business, then maybe a small business course. If you have an attarction towards shares, then maybe an economics course. Learn about what causes the Aussie Dollar to fluctuate etc…
I'm currently doing the 'course in property practice' which is offered by the Real Estate Institute NSW. Theoretically, it is the course required by budding Real Estate agents to get their certification to practice… for me personally, it has been a real insight into the current legislation around buying and selling a property, and also on-going property management.
