Forum Replies Created
Depends on what you are trying to achieve. It is usually better to hold a place particularly if you have added value – BUT, can you afford to hold it, most places in the current market could well end up negative geared. In this instance you need to work out what your loss per year would be and then
1) Can you afford that amount from your own pocket
2) If you hold for 10 years what does this add up to and how much more would the captial gain be, would your long term profit be worth the negative holding.
3) What is your strategy long term.For myself, I wanted to buy, renovate and hold but have found due to the time frames in my plan, the short term goals and the long term goals that for me it is better to renovate and sell 3 or 4, then use those profits to buy something to hold with more money down and therefore positive.
It is all an individual choice and working out your goals will make it all much clearer for you.
Another thought on CC, if you have one property goes up and other stays same, by having them seperate you do not have to pay for both to be revalued, 2 x stamp duties etc.
Also if one property has increased a lot but the other may have actually gone down you can just revalue the UP one and leave other as is, whereas if you had to revalue they would take away some equity.
Hope this makes sense, we have just gone through this exercise, 2 properties crossed with one bank, one is in country area and has most probably not gone up, but so few sales they could value down. Other has gone up. On trying to revalue the UP one, they insist on doing both (one could cancel out the other), plus about 4K in extra stamp duty for doing both plus extra valuation costs.
If we split them (which we are doing), they will leave country at old value, then just charge to revalue other one. Later we then also have the option of moving one to another bank if necessary.
I would suggest re-financing both, set it up so the investment property has just enough paid to make it neutral (then you don’t have to worry about supporting it). Don’t overspend on your PPOR and set up as a LOC or Offset with all other equity, then buy another property with again enough in it to make it neutral, from your figures you should be able to do this.
I agree with a lot of the posts on here – mostly people are jealous and sometimes it does appear to be easier just to avoid them but I think if you spend most of your time with other positive people who have done well then your own attitude changes and hopefully you can at least accept the other person more.
Not that I have got there yet.
My ex is always digging at us investing in property (he used to be a builder and reckons he knows it all). My partner and I try not to discuss property with them these days but have finded that as we are changing and he stays the same we just have less and less in common to talk about and naturally spend less and less time together.
If everyone was tolerant of other’s choices wouldn’t the world be a wonderful place.HI, I just use Microsoft Money but you could use Quicken or Myob. Also try Jan Somers or Dolf De Roos websites, they both do specific property software.
Cheers[biggrin]
I would also be interested in the meetings but have obviously missed Jan 10th, could you let me know when the next one is please
Cheers
First decide how active you want to be, read some books on different strategies.
Do you want to just buy/create cash flow positive or do you want to be actively involved long term (ie building, renovating) or maybe a bit of both.
once you have decided on your strategy, the best way to go would be to find a joint venture partner who has experience and can teach you as you go, just check that they have experience first and make sure you do your due diligence.
Would be happy to advise more if you want to email me.
Hi Ben
I have done this in Adelaide and you should allow 15K to subdivide 1 into 2 if community title and 18K if torrens title. You then add 7K per extra block.
This will cover all fees and the expense of water, sewer etc to be split and moved. Check on Stobbie poles as this can add ontop of that and also make sure no Telstra box in footpath that may be in the way. Contact me direct if you want to know more.
Hi
Also from Adelaide, got one IP in QLD, have just reno’d our PPOR as an investment, subdivided a block and just about to start another reno – (to sell). Would love to keep some but not finding a lot of positive around, theory is to do reno and/or subdivide, gain more equity and keep knowledge and skills growing for when good bargains to hold appear.
Would love to chat with others locally so if anyone wants to send an email please do and we can swap ideas.
Cheers
Thanks everyone for the input, I believe I need to do a lot more research before I am ready for this step but you have all helped in the learning curve.
Cheers
Would it be possible to turn into a bed and breakfast or a boutique hotel maybe – would need to check council guidelines.
Need to know more about where it is located – compared to transport, shops etc. also actual square meterage of house and what council rules are. Once you know all that I am sure there are plenty of people on here who can come up with the ideas
Cheers
Hi all, great thread
My partner and I are also looking at going this route but so far have not had much luck with getting land at right price – nearly had one but it got away.
Any info on figures and or what to look for to find the right sites would be greatly appreciated.
Cheers
I struggled to buy a property as a single mum in UK, a council house (ie housing trust). My father lent me the deposit and after a couple of years I started paying extra off, got married had a couple more kids and extended house.
Unfortunately I did not know much about property so with only 7K (pounds) mortgage, sold it and bought in country. Split from husband, as I left house and country to escape violence, court awarded him house.
First house bought for 17500, sold for 106000 after 6 years, second one he sold after 2 for same price paid (125K). 1st sold in 1989, second in 1992, rent on both those now would have meant I could quit work (approx 2000K per month after expenses).
houses now worth about 300K and 350K (pounds).Then still not realising, living in SA renting, bought block of land in QLD, held for 10years then sold as had only doubled in price form 45 to 84K, 18 months later it was worth 299K.
Finally I saw the light, bought rental unit in QLD – not doing bad but have more knowledge now.
Bought PPOR in 2002 and renovated – done OK with that too, just bought, subdivided and sold a block, made a bit of cash.
Still really trying to work out how to do positive cash flow so that end up holding some while being able to do large numbers. (Dont have years till retirement).
Great journey though, learning heaps and long way to go but no-way will I ever stop – I love it.
How is it currently rented, to one tenant? Have you thought of student accommodation, maybe you could add some value that would more than cover your costs. Hard to say more without knowing more, but if you can find a way round it, then keep it. Is it interest only?
Thanks everyone – thought it maybe a little skinny but we went in with the thought that we did not think it possible to lose money and if we did not make very much then at least we had the knowledge for next time.
After all knowledge and action get results in the end.
Thanks everyone, the plan before this happened was to be in a position to leave work within a year to work in property. We have knowledge to be able to do buy and subdivide and also our own reno work if there was nothing out there with enough room to pay people and we were about to start this build. Pretty sure we were right about figures – had done heaps of research.
Have been reading and learning about property for 3 years, started first one 3 years ago.
Really do not want to work in IT anymore and have not done so for a while – I work for a consulting company and it is pretty sure that the redundancy will happen – came from HR. Heaps of people have been made redundant in the last couple of years and a lot of others have left. Modern skills are in demand and graduates have these and only have to be paid half the salary so it makes business sense to go this way (for the company).
Ideally I would like to go straight into own business doing reno’s and subdivisions etc but am unsure that we have the funds to be able to do this. I have LOC set up and there is plenty in there to survive for a long while – BUT I would have no funds to cover standard mortgage let alone the extra on the LOC money.
Therefore I have thought about Real Estate Sales, Mortgage Broking, Property Management. Basically anything that I could do around property that would enable me to continue learning. The ideal would be to work in a property investment type area with similar type people.
Would be really interested if anyone had any info on these or other similar roles (ie what you would expect to earn in first year – not what is possible but just what the norm would be).
I have by no means become negative and am trying to see this as an opportunity to do what I had wanted to do anyway – just trying to asertain best way to do that.
Thanks so much everyone for advise.
Cheers
It depends where you are (state) and if you are going to Torrens title or community title.
In SA Torrens 1 into 2 is about 18000 and community about 15000. In both cases add 7K per extra block.
Approx costs only – make sure you also do your won research, ie ring council
Yes I had planned to use Margin scheme about 7K per house.
Insurance is included in costs, so are council and legel fees. 10K allocated to footings was per house over and above basic footings in builders costs.
Is order OK?
Do sums add up to anyone who has done this before or is it too skinny?
Cheers
Hi G7
Did your mum aquire property during her course – how successful was she and why is there a need to do it again.
Surely if you have learnt the information and made the contacts there should be no need to repeat but just go on buying etc.?
The reason I ask is that I too also have considered this course but have not been able to find out much.
Cheers
HI
I too take my hat off to Steve. I am sure he has heaps to occupy his time but he cares enough to do this.
I am really hoping to get accepted and am looking forward to
the networking with like minded people,
mentoring and being made accountable,
general knowledge about property,
the chance to change for the better.hope to be part of the journey
