Forum Replies Created
- Originally posted by proper property:
I am desperate to buy something already i have been searching for six months but have not come up with some thing i am looking to spend 250k in a capital gaing suburb . looking for some reason why the prop is cheap. have bben looking in frankston but need someone to lead me to specific deal.
Perhaps you need to engage a buyers agent to put some deals on the table for you?
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 davidholihan:Hi there – I just purchase 2 properties in Hobart there are giving me a 7% net return, so when borrowing at say 6.6%, it is positively cash flowed from the start.
They are out there. And funnly enough, the ANZ bank recently reported that the Hobart market is the only undervalued capital city real estate market in Australia – by 13%
Only just…. surely rates and insurance eats into that profit? Have you factored in a repair budget as well?
Don’t forget a depreciation schedule which can add a few dollars in cashflow depending upon age of the properties.
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.
No need to split the loan.
Just claim 66% of the interest and other costs (electricity, rates, insurance etc).
Also add all the rent to your taxable income.
When you sell you will have to also pay CGT on 66% of any CG you make.
This is one reaon why people renting rooms often don’t declare it on their tax nor claim any negative gearing against it….
Not that I am suggesting you avoid your taxation obligations. Just that you need to be fully informed of the pros and cons before making such an investment decision.
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 done all of this before to some success with students.
Rather than post everything I can think of can I ask you to give me a call sometime for a chat – that way you can ask all the questions.
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.
Adam makes some salient points.
Ask yourself what this company makes for looking after you.
Are you paying them a healthy upfront fee?
If not then where do they make money? I suggest on the sale of real estate.
I gather they are an investment group rather than a finance provider? The name is misleading.
All the best and please be very careful.
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.
This agent is telling you the exact truth and adding nothing useful.
Legally you cannot force the tenants to leave if they choose not to.
Unless they have broken some lease terms of course.
However there is no reason why you cannot ask them to leave, offer to pay their costs to move or any other avenue which gives them some choice and incentive in the matter.
I suspect the PM doesn’t wish to lose the rental. Each rental property is worth $thousands$ when calculating the value of the rent roll and is often the true “wealth value” of a real estate agency.
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.
No
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 Tramsnod:Does anyone know what “LOL” means???????
LOL = Laughed out Loud – which indicates that something actually made you chuckle.
A LOC is easily understood by imagining it as a credit card account secured by property – at a lower rate. Until you use it no interest is charged. Thereafter interested is charged on the funds you have drawn and added to the loan balance monthly.
You can pay off as much or as little as you like. it is a good idea to at least cover the interest so as to not capitalise it for both tax and budgeting reasons.
Remember that each new drawing is seen as a whole new loan by the ATO. So if you use a LOC for business and personal expenses then please have at least a split into two LOCS to keep deductible and non deductible interest seperate.
Cheers,
Simon
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 Trade Off:Hi
Nick at Strategic Wealth Management comes highly recommended.
http://www.strategicwealth.com.au/
I agree.
http://www.tradeoff.com.au
the new card for investorsSimon 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.
She cannot – defacto = married.
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 agree with the loan account you wish.
Depending on your marital status with your partner it may be possible to each claim the FHOG, but you need to be careful. ie if just bf/gf then I suggest buying in one name and then perhaps the other can then buy his/her home seperately.
But of course if you are married or defacto then you just get the one bite.
There is no quick answer to whose name the purchase should be in. it depends on whether the property will be pos or neg geared and whom has the higher or lower income. At this stage I doubt a Trust is necessary although you can check this with your accountant.
I suggest you see your broker ASAP to determine which lender to use and get your applicatiuon submitted.
All the best – and congratulations!
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 AmIHotOrNot:Sure, but where is everywhwere.
Mate – you need to understand that locations are usually a closely guarded secret by those putting in the effort of finding them. Why would they research and travel then post it on a website full of people looking for those very properties?
In the past these properties have been plentiful in regional cities but as the last boom drove up prices, so the yields dropped.
Investors then flocked to Tasmania, NZ and the US. Some even to Eastern Europe if my sources are correct.
Buying overseas introduces another element of uncertainty and risk but for those prepared to research there seems to be some great deals out there.
Another idea is to use a Buyers Agent who specialises in finding these properties for you. But they also wont tell you locations until you have agreed to engage them I suspect.
Lastly look in your own backyard. You wont see these deals in the paper but what you might see are properties that can have their usage changed to command higher rent.
I renovated a standard home near a major uni from 3 into 5 bedrooms. I rent it by the room and effectively get double the rent as if I rented it as a normal IP. This is now cashflow pos.
I think you should realise by now that this isn’t like the stockmarket where products are listed with yield for you to order over the phone. To reap the rewards you must put in considerable effort. I hope that you have been given enough info to be able to formulate your plan.
If it still hasn’t clicked then do some searches and read all the posts for the last couple of years…
Al lthe best my friend,
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.
You are a good guy Adam.
Thanks
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.
A couple of very impressive replies there.
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.
RDPD was written in an American setting.
Owning property in a company doesn’t add any real benefits here. You need to talk to an accountant about the various different Trusts available for different circumstances.
However other business activites may well suit a company.
As usual seek professional advice.
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 AmIHotOrNot:You say in your emial about interets free loans. where did you go.
I am having some trouble following the gist of your question here AmIHotOrNot.
Who are you addressing it to and what is your actual question?
If it is me then I am unsure what email you refer to. And I am still here.
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.
Looks like eBay pulled it.
Seems he was asking for a $20K deposit from someone and in return he would buy a home on a main road and let them erect advertising.
Good on him for trying, he just needs to think of a better angle [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.
Fair Point Jacque,
In my work I also need a rough guide before I can help people plan their finance. All too often we suspect the worst of REAs but we know there are some very professional ones there. I hope that the end of the boom should shake out the cowboys after a quick buck like it is in my industry.
I have often suspected motivations of Agents. There are some I know who work for the vendor right up until the listing is secured then work for themselves to get a sale through – even to convince a vendor to take a low offer just to secure the commission…..cynical of me?
But I figure if vendors are appointing a professional to do their negotiating and marketing then so should we appoint someone to negotiate and research. In these days of a flat and even declining market there are some motivated vendors out there and unless we are close to the market ourselves we will not find them without assistance.
How would you suggest we choose a Buyers Agent that will work for us and not just send us a email of local listings and split commission with their listing mate and bill us for the service as I hear is happening in smalltown NZ and regional towns in Australia?
Even heard of agents renting places to mates at inflated rental then advertising the property at 10% + return!!
Is a minefield these days.
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.
Good Buyers Agents like Jacques are well worth speaking to. They do this sort of thing every day and know all the tactics used by the Agents to milk the last dollar from you.
I am talking to one atm about my next project, reasoning that their costs will easily be covered by the price she will negotiate as well as the time I will save researching the areas.
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 Chris-Syd:Have you purchase property before in your name or with someone else? If not you maybe able to get the FHOG
http://www.firsthome.gov.au/If you have you still may be able to get the FHOG too.
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.
