Hi Dee Dee
Mine is going fine, I demolished a house in Adelaide a couple of months back and am awaiting the Building and council approvals for my two dwellings along with the final stage of the Land division. No building is likely to start much before the end of Jan, given the Christmas shut down.

I’m currently in the market for a “cosmetic”…[Read more]

Hi Dee Dee
Have you read Steve’s article on Negative Gearing.
As I see it the best way to approach negative gearing is to pick an area with strong potential growth otherwise you ahve the potential to go seriously backwards.
To my way of thinking, I would much prefer to do the renos and developements that put money in my pocket in a relatively…[Read more]

Hello again
I would think that you would need council approval for any structural change. Just pose a hypothetical question to them and see what transpires.
Is this place of yours currently +ve cashflow? Using The 11 sec solution it doesn’t look like it based on the info you supplied, it looks more like a Negatively geared property. Unless you…[Read more]

Well I joined the RESULTS program (Premium) in Oct last year, have since moved to Adel, given up my job and bought a place in Adel, demolished a house, and am planning to build two new ones for a profit of around $65k.
Currently searching for a reno to do with a money partner.
So aside from a couple of personal issues I have had a GREAT year. Met…[Read more]

Anywhere between 6-10% depending on where your property is but I would expect 7-9% as the norm
Sue

Hi Jenny
I paid advertising of about $2400 ( acution) for a place in Melb I sold a year or so back. The Auction didn mean a sale and then I paid about 3% in commission.
These days I would negotiate on total selling costs and expect a commission cost of around 2.5-3%.
Ask the agent to send you copies of all “advertsing” that you ahve supposedly…[Read more]

Hi Stan
My first thoughts are what vendor would sell a place now for $500 with only an end price of $560?
But then I looked at your financing option of asking the financier to fund to 80% of potential end value.
This seems un-workable to me as I cannot see a ny lender wanting to wear such a risk. Usually they are so conservative that we are lucky…[Read more]

Adding an extra bedroom always adds value but you need to balalnce that out with your costs and what you eventually plan to do with the place ie rent out or sell.
It is difficult to tell without seeing the plans, what might be possible.
Feel free to pm me with the plans if you like.
Warm Regards
Sue

I agree with SImon
Use your negotiating skills to reduce the initial deposit if possible and / or go for a longer settlement
Sue

Richard
PM me if you would like to discuss further
Regards
Sue

Hi All
Seems to me from the few posts I read that people are confused about +ve cashflow properties, where to find them etc and what is considered a good return on them.
My take on this aftrer spending 12 months on Steve’s Premium RESULTS program is this.
Anything less than 10.4% on a buy and hold is not postive cashflow or so close to the bone…[Read more]

Hi Richard
My take would be there would be minimal or no profit in it.
Can I suggest having a look at other options that could be better use $ wise of your time.
Regards
Sue

Hi Kennyboy
From waht you say and based on a 20% deposit unles you can get the rent up by a reasonable amount throught say renovating and or improving the value of the place so you can get your money back at the end of a reno. It is looking like a -22.87% CoCR.

I have also allowed only $1000 per annum to be spent on things such as council rates…[Read more]

Hi All
I too ahve a SMSF and have heard via my accountant there are lenders who will arrange finance for SMSF / Trust JV’s whereby the SMSF owns one part of the building and the Other TRust borrows only against its portion of ownership. Tricky and I still need to clarify, waiting on comments from the org involved.
Regards
Sue

I agree with all the comments so far.
Sorry Richard.
Keep trying
Sue

Hello again Richard
It just occurred to me that maybe the “For Sale” sign has gone up but that the house is not really “on the Market” so to speak until the place is finished. It may also look subdivided but the titles may not have been issued yet so there si no point buying till that occurs. Check with the agent to see if the place is likely to…[Read more]

Hi Richard

Can I suggest that you do some research on recent sale prices of similar houses in the area (ones that have actually sold say in the last few months), work out how much you need to spend on it to finish it, how much to hold the property whilst you complete it and also work out a profit % and also include the purchase and sale costs…[Read more]

Hi All
Another way to approcah it is to discuss the process with a surveyor or a specilaised local Development consultant ( I wasn’t thinking Michael Yardney as I don’t pursue his theories). I have hired one in Adel and it is only costing me about $550 for their services plus all the assoc costs of course.

Regards
Sue

Hi JJ
I think you will find that whilst the 11 second solution is still applicable as a guide to positive cashflow properties in certain regional areas, that Steve is now advocating a range of Strategies such as Renovate and Sell and Subdivisions etc.

Steve’s latest book is out in the shops this week and is a great read for more up to date info…[Read more]

Hey Derek

Good on you, for finding one.
How did you manage a 2 year guarantee on rent?