Forum Replies Created
ADSL is his problem not yours. What will he ask for next?
He can sign a plan that gives him a very low upfront cost if that is his problem.
What will he ask you for next I wonder? where will it end?
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by d_robb21:The 3 bedder would probably get 200, and the 2 bedder probably 170, they are about 100m from the uni so very close. The rooms can command about 120 per week, so the total for 5 rooms is around 600 per week for students vs 370 for normal tenants.
Factor in the electricity and water bills. Include the additional effort to manage 5 leases and the vacancy for three months of the year.
Then compare your figures again.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by kermit:thanks for the replies, so I should check out with my lender if they are happy lending for a 1 bed aprt and minimum size they require.
Or use a broker to find out the min for all lenders.
Even if you get finance be aware that many people struggle to buy under 50sqm unless they have a large deposit. Hence when you go to sell your buyers will face this additional hurdle.
if you can afford it then consider the larger place.
All the best
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
What rent would each side get on it’s own if you leased it to a normal tenant?
What rent will a room get if leased to a student fully furnished with all outgoings paid? Mine pay $100 – 120 depending on room size. My house is 400m from the uni so commands a premium.
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by ogilvy:http://www.strategicwealth.com.au/documents/Anamusingstory.doc
A funny but true story……..
True story?
Are you saying that you know of ten men who eat out every night and split the bill that way?
I think it is just an analogy used to justify one argument re tax cuts.
[biggrin][biggrin][biggrin]
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
http://www.metropole.com.au is the one I would use in your situation.
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
You will find finance a WHOLE LOT easier if you choose one with a floorspace over 50sqm.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Having done my figures I reckon that 5 bedrooms is the minimum number I would use for student accm.
Any less and it is not worth the extra work that goes into it, the longer vacancies, the extra bills I have and the furnishing.
Less than five and I would rather have a normal 12 month lease with one tenant responsible for water, electricity and gardening as well as bringing their own furniture and whitegoods.
I run one place and am looking for another.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by salacious:I would like to buy large quantaties of legal stuff and onsell for a profit.
But ether way if someone new the answer to this question we would all be wealthy people.Dom [biggrin]
Import stuff from China and sell it on eBay. Thousands of people do it.
My daughters and I did it for an experiment and bought $600 worth of products. Each item cost $4 delivered to us. eBay was getting us anywhere between $15 and $55 per unit plus $6 postage. Another item cost us $1 landed and we were selling them for $10 flat on ebay. running the same ad over and over was very little work – less than a minute saw another 10 ads up and running using turbo lister.
Was a great experiment to show my 12 year old that the world is full of money and you just have to make an effort to see some start flowing your way!
If you think that lots of people are poor and money is hard to get and should be hoarded then guess what – it will be hard to get.
Wish my parents had taught me that one when I was a kid!
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by cbellesini:I think you should buy just the one to start with. It will depend on your strategy really what you do. If you neg gear you will only be able to get one,
What figures have you based this on Chris?
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Why? Are you trying to add value for a reason?
I reckon fake brick looks awful.
Fibro houses that are bricked up look nearly as bad.
There are other materials. Have you considered rendered blueboard?
For the cost of the exercise would the money be better spent on buying another fibro place so you have two money machines working for you in place on one albeit tarted up?
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Why don’t you buy a car for $1-2K and keep the rest for your deposit.
Prices aren’t moving fast so there is no rush to buy that unit tomorrow.
Build your deposit and start looking at units. Aim to have looked at 50 before you make an offer – that way you will be an expert at picking a good buy and will know what is priced properly.
In the meantime see if you can get that CRA fixed. As mentioned above it never hurts to ask the lender to remove the CRA mark.
Don’t get caught in the trap of trying to own a nice car like your mates. Are they in a financial position that you envy? Find someone that is doing what you what to do and living the way you want to live. Ask them for advice and see what sort of car they would drive in your position.
I am not a poor man and I drive a 10 year old Commodore. My wife is a Dr and she drives a 9 year old Excel. We are both happy with them. Both cars together would be worth under your $10K mark yet we could buy a new Audi for cash if we wanted to. We just know that it will cost us a lot in opportunity cost down the track and we will never enjoy it enough to warrant the price tag – is just a car after all. My ten year old wagon is used to carry tools and reno gear, sandy kids and dogs and to pull my 30yr old boat! I wouldn’t want to do any of those things with a brand new Audi!
So make sure you understand what a car really costs before you buy it. I have an article I wrote on that very subject. Drop me an email and I will send it to you. Anyone else too. If you have young friends then pass it onto them. Quite a few people have had an AHA moment with it – to paraphrase Steve
[biggrin]
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by Terryw:try http://www.gatherumgoss.com
Author of Trust magicTerryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe†in subject line.I agree. Dale is probably the leading expert amongst my investor friends.
Another is NickM but he is in Sydney.
http://www.strategicwealthmanagement.com.au
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Some searches will show that this has been discussed many times before.
The big fear is who will be left holding the baby if the one industry downsizes or closes.
But many investors have done well as long as they know what they are doing. Don’t be the bunny from the big city who buys the stock the locals wont touch!
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by blade:Wow
Quite a few interesting comments. Some information I never would have considered either. I have been doing a bit of research but it appears I will have to do quite a bit more so that I can broker the best deal for me and not the bank.
Thank you everyone for the comments.Ask some of your investor friends or family for the name of their broker. Sit down with him for a while. By all means do your research so you understand his ideas but don’t waste too much time when you have so many experts at your disposal. A good broker will bring a lot of experience to your team and there will not a any cost to you.
A bad one will waste your time at the very least so seek the referrals from those you trust. Unfortunately our industry is full of cowboys although they are dwindling now the easy money times of the last boom are gone[biggrin]
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by flash:Hi Simon,
Can you exlain to me what is so bad about using redraw?
do you mean redraw on a interest only loan,i can see your point if so.Cheers
Sure mate.
When you borrow money it is deemed to be deductible if you buy income producing assets.
When you pay money into a loan is is a repayment. If you redraw that money it is seen as a new loan.
So if you make your PPOR an IP and REDRAW funds to buy another home this these redrawn funds are seen as a new loan and a non deductible one too.
Using offset gives you far more flexibility with no disadvantages.
Hope that helps
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by ADJAPOUR29220:[biggrin]
I have heard there has been a recent Tax ruling not sure of the TR number, but it seems
as long as you have equity in your investment loan, you can continue to accrue interest repayments, while using the income from your investment property to reduce you home loan.Can anyone confirm.
Warm regards
AndrewMany of us would love to see such a ruling.
I haven’t heard of one and I keep my ear pretty close to the ground. Can you track down where you heard it and get some more info?
Ta
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by Qlds007:Darren
You really should be looking at knocking down that debt as quickly as possible and there are several ways to do this on your income.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner.
Ph: 07 3720 1888
[email protected]I know that richard means you should knock down your current home loan as fast as possible. Making the new loan IO will help there. Then direct both sets of principal repayments into the non deductible home loan!
The only exception will be if you plan on upgrading your home and using the current one as an IP. In this case make all loans IO and save your principla payments in an offset account. Under no circumstances consider redraw !
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I have been doing this for the past three years.
It is working well and I have developed a number of strategies to combat all the negatives.
Do a search as I have written about it a number of times in this and other forums.
Alternatively drop me an email with specific questions and I will try to answer them. Please don’t ask me to tell you how to do it – I haven’t the time or inclination to write pages and pages. Just adress a number of points.
I will try to do up an info sheet on my experience as I find I answer this over and over again.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by Callander:This is an issue that i find a lot of landlords question. I recently sought clarification on this matter. While at a VCAT hearing and being the last case of the day the Member was happy to have a chat. I questioned the issue of smoking. The member advised that smoking is not illegal and no matter what was written into a lease agreement there is nothing in the RTA that can be used to prohibit smoking in a property. However if the tenant was a heavy smoker and for example caused the walls & ceilings to discolour due to the smoke the owner would have a case to claim any costs with regards to washing of walls.
This may be different in other states.
I believe that it is similar with pets. As much as you may ban pets there is little legal recourse if the tenants get one except that damages can be recovered from the bond.
Despite our opinions smoking is yet to be illegal …
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
