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MJK
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@mjk
Join Date: 2003
Post Count: 157
December 1, 2004 - 11:51 am
Everything in the house will have a current value that can be depreciated and a good quantity surveyor should be able to sort that out.
I have had schedules done on old homes and found that the councils keep records of permit applications etc… which has pointed out more recent renovations and additions. Its always been worthwhile for me.
MJK
MJK
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@mjk
Join Date: 2003
Post Count: 157
November 26, 2004 - 4:23 am
Summer,
I wouldn’t sell if its a nice property. It will cost you heaps more than the $150pw to sell.
Have you considered applying for a “PAYG Income Tax withholding variation”? This is a standard procedure for negitively geared property and will increase your cashflow.
Have you had a quantity surveyors report done so you can get max deductions ? This also will improve your cashflow.
You may be able to convert a $150pw loss to a close to neutral position.
MJK
MJK
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@mjk
Join Date: 2003
Post Count: 157
November 4, 2004 - 12:53 pm
Most of these apartments being sold under 200k with long leases are student accomodation in huge blocks that are essentialy managed investments. Could be positive cash flow but not enough to make it worthwhile and cap growth may be non existant.Not what I’d call an investment for a fully geared aproach
MJK
MJK
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@mjk
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Post Count: 157
July 30, 2004 - 5:44 am
What are the details. Eg lease lenght , %return, outgoings paid by who ?
Finance will be more expensive and deposit will need to be 30% but I think commercial is the +cf to be going for if you can.
MJK
MJK
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@mjk
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Post Count: 157
July 28, 2004 - 11:15 am
I think you have to have both kinds of properties. Unless you want to live of equity draw downs, you will have to sell a property that has had good capital growth. Once sold the gain can be paid into high yeilding +ve cash flow investments to create the passive income stream.
I like to use commercial property as the +cash flow part of the equation because this type of investment often offers excellent tax benifits which protect the income stream.
MJK[cap]
MJK
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@mjk
Join Date: 2003
Post Count: 157
May 26, 2004 - 6:29 am
I do as Brenda does. I always have. I like to be in control. I have a better understanding of my portfolio than my acountant ever will.
I provide my accountant with one page breakdowns for each property. I don’t think I could trust anyone else to assess it all correctly.
My accountant does the lodging.
Personally I think turning up at your accountants office, with a shoe box full, is really slack and if I were an accountant I would charge by the hour to get it done.
MJK
MJK
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@mjk
Join Date: 2003
Post Count: 157
May 21, 2004 - 1:11 am
Yep, I’ve been gone for a while. The last time I complained in my imfamous post ” Its going downhill” I copped it big time from the uni students trying to buy houses in between exams.Don’t write another book Steve HeHe.
MJK[fear]
MJK
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@mjk
Join Date: 2003
Post Count: 157
February 19, 2004 - 3:26 am
Do a search. There is plenty in the archives.
MJK
MJK
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@mjk
Join Date: 2003
Post Count: 157
February 17, 2004 - 2:23 am
Often a downside to fixing is when the fixed rate expires you’ve lost your negotiated discount on the variable.
Eg. i get a 0.05% discount of the vairiable for the term of the loan. If I fix I lose this forever, so to speak.Perhaps it can be renegotiated.
MJK[V]
MJK
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@mjk
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Post Count: 157
January 18, 2004 - 4:51 am
Kit doctor,
I sent you a contact that can help with cap growth property by email.
MJK[]
MJK
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@mjk
Join Date: 2003
Post Count: 157
January 16, 2004 - 3:22 am
Cash poor,
Check out http://www.navra.com.au
Your talking about using equity not deposit cash bonds are’t you?
MJK
MJK
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@mjk
Join Date: 2003
Post Count: 157
January 16, 2004 - 3:06 am
I agree with Kays sentiments. I dont want to own property in the towns that are offering positive cashflow residential at the moment.
I think the experienced investor now needs to focus on having a cashflow positive portfolio rather than putting the focus on the next asset.
You could,
1.Sell a property and pay down some debt.
2.Buy a commercial
3.Do a renovation etc…
I think my next asset aquisition will be capital growth focused, ut who knows that could change.
MJK[8D]
MJK
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@mjk
Join Date: 2003
Post Count: 157
January 16, 2004 - 2:56 am
Elves,
You may have been in the right place at the right time by accident but those of us who have been doing property for more than ten years make it a habit.
And dont forget some see what others dont.
MJK[][]
MJK
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@mjk
Join Date: 2003
Post Count: 157
January 16, 2004 - 1:54 am
The key to buying in brisbane in times of moderate growth is…….
MAKE SURE YOU BUY AT CORRECT MARKET PRICE NOT ABOVE!!!
Buying at auction or private sale usually achieves this but buying from a developer rarely does.
If you cant be in Brisbane yourself get a good buyers agent to help you.
Just a hint for those getting started.[]
MJK
MJK
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@mjk
Join Date: 2003
Post Count: 157
January 15, 2004 - 6:32 am
Go to http://www.bulletin.ninemsn.com.au
Scoll down the page and find the article “Crystal Ball”
Read the property link.[^]
As you can see I dont know how to put a link in!but its a good read.[]
MJK
MJK
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@mjk
Join Date: 2003
Post Count: 157
January 15, 2004 - 4:16 am
I cant tell you what will happen but I can tell you what I think may happen.
My money is on slower capital growth say 10% pa over the next couple of years. My reasoning is because it offers the best value on the east coast.
By value I mean (1) low vacancy rates (2) lower priced property relative to distance from CBD (3)population growth (4) strong economy.
I dont think there is room for huge growth say 30%pa over the next 5 years. I think those days are over.
Again this is highly opinionated. But many market analysts have been saying Brisbane has still some go in it.
If I was starting out I would put money in Brisbane before I put it in Sydney or Melbourne.[^]
Interested to see what others think ?[?]
MJK
MJK
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@mjk
Join Date: 2003
Post Count: 157
January 14, 2004 - 12:56 am
Originally posted by westan:
welcome to the forum pricey
yes, you are right enough rate rises will turn a cash positive into a negative one……….
……….
the other point is what happens to negative geared properties when interest rates go up – it hurts even more.
Westan,
The problem with this argument is that the reason people are buying for cashflow is ruined by interest rate increases but the reason for buying neg geared is not defeated as people are after capital gain not cash flow.
It can be argued that pos cashies will get cap growth butI think only in major centres and it is less likely to be the way forward.
What do you think?
MJK
MJK
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@mjk
Join Date: 2003
Post Count: 157
January 14, 2004 - 12:46 am
Darren,
Thanks for your reply.Sounds a great investment.[^]
What do you mean by gross & net ? Are you talking about outgoings or GST?
Do you have one tenant running the business or are the individual customers your tenants.
MJK[]
MJK
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@mjk
Join Date: 2003
Post Count: 157
January 13, 2004 - 7:02 am
DarrenB,
What sort of return are you getting on the self storage complex. And what sort of outgoings.
Did you develope this investment or did you buy it as a going concern ?[:o)]
Sounds Interesting[]
MJK
MJK
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@mjk
Join Date: 2003
Post Count: 157
January 13, 2004 - 5:47 am
Sorry Mel,
Something made me think you were from Brissy. Anyway thanks for your help.[]
MJK