Hi @gaving

There are very strict rules regarding what you can and cannot do or buy, regarding real estate, in a super fund.

Best to speak with your accountant and solicitor to seek their advice and guidance prior moving forward/spending money.

Hi Jemfraser,

You need to do thorough due diligence on whether this model is going to work for you.

1. make sure that you can indeed build within a national park. What are the restrictions and ongoing costs?

2. right now, COVID-19 has put a huge dent in the Air BnB market. People are self-isolating, staying home and not traveling.

Perhaps creating/running an Air BnB is better looked at when the travel industry opens up again?

HomeBuyerLouisiana wrote:

It’s a red flag that they are not allowing a building inspection.

That is a major red flag that should be setting off alarm bells.

In my experience, a vendor generally has no issues with a building inspection being done. Where they do, it begs the question… why? What are they hiding?

We always suggest to clients that they get a building and pest inspection done.  We have pulled out of proceeding with properties many times based on what has been discovered during a building/pest inspection. A very worthwhile investment to save a hip pocket hit down the track.

Hope all worked out for you on this one.

• This reply was modified 4 years, 7 months ago by  Wendy Chamberlain.

Total lack of due diligence.  Silly woman.

Hi Grant,

If you are serious about using renovating as a strategy to build wealth through real estate, then I can fully recommend Ana's course.  She works very closely with each client to make sure they achieve win:win outcomes.

Regarding Philip's post about the online course – this may suit you too. It comes down to how you best learn, what you are most comfortable with and how you digest information.  If you are happy to follow modules and have the self-motivation to do this, that course may suit.  Also, find out how many modules specifically cover renovating – you've mentioned that is your area of interest.

What Ana offers is weekly support and she will go over any deals you find with you, to ensure they are on track for what you are looking to achieve.  You'll receive far more "human" time than you would following modules.  Ana's a renovation specialist and that's what she'll cover with you – renovating.

Wealth4Life – Ana runs Winning Formulas for Success, the coaching program asked about by Grant at the start of the thread.  Chrstine Stow (RahRahPrincess) runs get togethers for women in Melbourne.  Totally different people and they are not associated.

I hope this helps.  All the best Greg, no matter what you decide.

Wendy Moore
http://www.Affluencia.com

Hi Ness1474,
I agree with Erik.  Each of these figures will differ for each deal that you look at.  You are best to start collating actual $ costs, so that you can get an idea of what each of these is as you move from deal to deal.  Then at least you'll have "ball park" figures to go by for the next deal.

Body Corporate fees (where applicable) and council rates you should be able to gather from the contract documentation.
Capital appreciation – you'd need a crystal ball to get this one right.  Depends on market factors, location and so many other variables.
Loan Application fees – will vary lender to lender and may even be waived in some cases:  speak to a good finance broker.
Mortgage registration – is usually a standard fee but can differ state to state: again a finance broker can give you a figure on this
Capital costs – talk to an accountant on this.
Depreciation – highly variable and will depend on age of property, fixtures, fittings, method of calculation:  talk to a good accountant
Maintenance costs – will depend on the age of the property, etc
Utility rates – water costs will usually be part of contract documentation
Builders inspection, Quantity surveyor and Pest insepction will vary depending on the location of the property and the detail of the report, but allow at least $400+ ish per report.  I've had QS quotes for $1,000s for blocks of flats.

I hope this helps.
Wendy

Hi Crashy,

I'd take it up with the relevant tenant tribunal.  Were all those issues there before you moved in and when you first inspected the place?

Wendy
http://www.realestatewomen.com.au

Hi laurieload2,

I'd ask the accountant how many investment properties she has or how many clients they have own substantial investment property portfolios.  I think you need to get a second opinion from someone that actually deals with people that invest in property.

If you are happy to continue to rent your IP to good tenants and can release equity in the property to continue investing, that is certainly a strategy worth more investigation.  Also, whilst you are comfortable renting whilst building up your investing portfolio, as long as the numbers stack up, why not continue to do this?  It comes down to what you are comfortable doing and what suits your lifestyle and investing goals.

You definitely need to seek the advice of another accountant as you need to correctly structure your purchases.  If you current accountant doesn't like trusts and companies, you definitely need additional unbiased advice so that you 1) understand what each entity does/doesn't do for you and 2) can make an informed choice for yourself as to how to structure any further purchases.

Good luck.

Wendy
http://www.realestatewomen.com.au

Hi Bespoke,

I think it all comes back to what you are trying to achieve through your investing.  Which property is going to get you closer to your investing goal sooner?  What is your investing strategy?  Once you know this, run the numbers and see which one has the better return for what you want to achieve.

Wendy
http://www.realestatewomen.com.au