Forum Replies Created
Thanks for the advice Nami.
BanjoSmyth, I am predicting to live in the apartment for 12 months to claim FHOG without any issues as a PPOR. Once all phases are complete, estimated to be done within 12 months I intend to recycle my equity, possibly refinance and purchase a second property using my checklist simlarly to my first purchase (under market value, opportunity for minor/intermediate renovations to increase value by more than the costs to do the work). My stratgey that I intend to use is:
1. Buy undermarket value property with minor/intermediate renovations required.
2. Use as PPOR during renovation period.
3. Hold + Rent out + Recycle equity.As I am getting closer to settlement I am getting quite excited with going ahead with my plans.
Thanks for all the great advice!Much appreciated!
Miike
duckster wrote:Welcome to the forum.One thing I have discovered is properties that require a major renovation to fix are usually not advertised in property web sites or in newspapers.
The first step is to be able to have a good financial record so that you can enquire from a bank as to how much you can borrow , so that you have a good idea how much you can borrow before you walk into a real estate office.Duckster,
You mention the above. What is your recommendation on how to find the renovation type properties?
i.e local newspapers, driving around, internet sites, etc?Cheers,
MiikeThe purchase is a bit more complicated, as the Vendor is through State Trustees.
My understanding is that the State Trustees sells on behalf of the client and is liable for the transfer. In the case that the proprieter of the property dies, the state trustees is still liable.
Am i on the right track here?
strange…i replied to another post, sorry guys….
The purchase is a bit more complicated, as the Vendor is through State Trustees.
My understanding is that the State Trustees sells on behalf of the client and is liable for the transfer. In the case that the proprieter of the property dies, the state trustees is still liable.
Am i on the right track here?
Thanks for the help Yarpos.
I intend to do a bit better than just posting my results.
Keep you all posted,
providing estimates only as a guide.
purchase 320k
equity 30k
loan 290k
interest only 8.75%
length of project 1 month
using the property as PPOR for 12 months
FHOG being used – 10klocation: brighton east, VIC
only flat in the street, block of 6.hard to compare as there is no property on sale or even for rent in this range. it's a pretty absorbed market in brighton east.
my only comparisons that are even close are around 400+What you think?
Cheers,
Miike
Wow, that was great Jeff.
Thanks for such a detailed reply.
I am just at the start of my investment life…don't even have my own place at this time. However, there is always a place to start.
I look forward to contacting you with any further queries.
Cheers,
miikeHi Jeff,
I've done some minor research into Ingham.
Can you provide me with some further details on things such as:
1) Good areas in Ingham,
2) Any PM's you use,
3) Anything to do with:
a) vacancy issues
b) rental issues
c) area issues
d) Contractor issues for reno's, updates to property for added value, etc…
e) development issues
r) rental target i.e. miners
g) growth rates in the areaAny information that you have researched would be much appreciated. Finding Ingham as quite an interesting investment target and blocks of units are at an affordable price for the investor and can be bumped up a minor negative gearing position, with potential to cashflow in the next year and capital growth set to increase due to expansion.
Cheers,
miikeForgot to mention:
Body Corporate – 250 per quarter
Cody Corp Funds – 16k
Insured for 2.2 Million, with 9 flats, all equal rights.Thanks for your reply Gary.
In general these figures are not accurate (they are provided to figure out if my calculation method is accurate or not), thankyou for the advise on not displaying personal financial information in public forums.
The 5% purchase costs is something I did leave out, but am aware of.
I am in agreeance with you that there are 2 different goals re: Home Development vs Wealth Development.
In my present situation, my short term aim is to move out and setup the PPOR. However, I want to make it a positive outcome towards my goals of wealth building. In order to acheive this outcome I beleive that I need to purchase with the aim of renovations and light to moderate property growth.
The reason I am asking for opinions with the property industry at present is due to my push to reach my 12 month goal. As much as people say the key to success is slow progress, I also believe in doing the figures and having estimations in order to have to close as possible accuracy on what my investment is going to be doing at each stage (i.e. 12 months away).
My question in this case is if my circumstances and my estimations are correctly assesing my expectations and will it provide me with the outcome that I wish to acheive. This being the ability in 12 months time to recycle my equity into an IP and thus change my position from Home development to Wealth development.
As I have never been in the position to purchase property nor do I have any assistance from friends and family, I am left on my own with no real world knowledge and thus I rely on what I learn from others via internet resource (i.e. forums) and books.
Unfortunately there is not much information out there on things such as what types of clauses to have for conditional offers for private sales. And not much information on investing with the intent of using investments as a PPOR.
I hope this clears up more of my intentions.
Your help is appreciated and I look forward to further comments and experience that you can assist me with.Cheers,
Michael
