Forum Replies Created
Gross,
How heavy is 40k exactly? Did you have it handcuffed to your wrist? Seriously though, that’s a great deal. The things I’ll dream about.Rabprop,
I’m no expert but these are my thoughts. Try to find out as much as you can about the seller’s motivations/needs/etc. If you can cater to these whether they be quick/long settlement, etc. then you will have greater bargaining power.After your initial offer, ask for a counter offer. No point bidding against yourself!
Munjy
I heard this from a friend who has an addiction to shopping. She’s a real bargain hunter and loves it to death. In any case, she has just started to find bargins and then selling them on ebay. Of course, you really need to know how much you can get from them.
The latest thing she did was to purchase 5 digital cameras from a shop that was closing down – for half price. She sold 4, kept the last for herself and made like 500 bucks. Not bad for a shop-a-holic!
Hi Simon,
Why do you run out of serviceability when you go with another partner?
Munjy
Sparky,
I have no formal qualifications to answer your questions with authority. I do feel however, that in any country, a foreigner probably wouldn’t have to pay three times as much to get a house built than a local, if they had local help and knowledge. This is totally separate to ownership issues, etc where the cost will be different, if ownership is even allowable.
I’d be getting a lawyer, getting quotes from a builder in Tunisia and hiring a private investigator.
Sorry to add fuel to the suspicions. I genuinely admire your mother’s vitality!
Munjy
I’m sure Dazz is right with his calculations. So, assuming that you lose $12,000 every year for two years, and assuming the tenant then decides to buy back the house for $500k, that means that CG is 68k?
But I think on an investing forum such as this, most people will be wanting better yields especially considering the option to buy is with the tenant.
I like this better. If the valuation for the house comes in at 420k, then we’ll go with a purchase price of 320k. Rent same, etc. Then buy back option in 2yrs for 450k.
Seriously though, go with Terry’s suggestion. Find equity in the house.
Munjy
Bruce,
I’ve not bought one before. However, my concerns would relate to the business in there and how easy it is to re-let to another business. Especially if you are talking a big building with loads of floors, when times are tough, why would they choose your office?
Other things would be the lease thats there at the moment, etc.
Are you presently looking at a deal? What is the tenant/lease like? How is the location?
Munjy
G’day Apples,
This is what I would do. As you can see, everyone has their opinion and would do different things. Pick the one you like.
I’d rent out the property you current live in and live in a rented apartment myself. Bottom line for me is, tax deductibility. Now the interest is deductible as well as the expenses, etc. I get to keep the property and any future CG.
Mossie – You ask two questions:
1. Changing -ve to +ve geared IPs. In your position, it doesn’t seem like they even need to be +ve, maybe just neutral or less -ve? Search the site here for ways to incr. rental, depreciation, etc. Then look for ways to decrease your loan costs, maybe refinance.
2. Should you sell and start again. Take a look around for a good +ve cashflow prop first. Good luck with that one – every man and his dog is looking right now. Then decide how you will purchase it. Don’t sell and then start again.
The question I’d be asking is this, they may be negatively geared, but how are/will/can they actually perform? Can I maximise my investments or utilise my investing capital in a better way?
Hope it helps
Hi Dr X,
Originally posted by Dr.X:Do the tenant have personal or bank garantees?
Have the lease looked over by a solicitor before buying and if you are concerned about the tenant not renewing, you can sign a long term contract on the asking price subject to rental renewal for another 2 years or whatever terms you are comfortable with.
What is a personal/bank guarantee?
Is the long term contract you talk about something along the lines of “on condition of existing lease being modified to….”? Maybe the vendor could just renegotiate the lease prior to Matt’s purchase?
Matt – even if they do resign lease, etc. I still think it’d be a good idea to think about possible alternative uses like Terry suggested.
Munjy
Bought a new Alfa Romeo spider 2.5yrs ago for just a lil under $60Gs – before I’d even heard of investing. Really regret it. Trying to sell it now. The biggest cost to me, is the ongoing costs of servicing, etc and also the hassle cost – looking after a nice-ish car is a real pain in the proverbial.
Dream car now is something with dents – that way when I put one in, I won’t get upset over it.
Munjy
I think Rowen Kelly said that removal of the vendor duty will release more properties onto the market, and bring more investors also to the market. Therefore an increase in market trade, but without a large impact on prices.
Personally, I feel that more vendors than investors will join the market, having a downward pressure on prices. At least for the immediate future.
Munjy
Once you get this up and running TMA, you should pitch it to that Russian guy who’s full time job is punting. Can’t remember his name, but he makes millions a year.
The few issues I have with DHA properties is this:
1. If you want to sell again during the time of the lease, it will be to an investor as it MUST be leased back to them. Hence, what you get for the property will be solely on the rental return – whatever that may be.
2. You have no options in order to try to improve the value of the building or to increase the rent with renovations, etc.
However, they seem to be hassle free investments. In your current circumstance, where you feel that you don’t want any problems, then this may be perfect for you. No vacancies would be a real plus in your view. There would be worse investments out there.
Munjy
Richard,
Yeah, Mike comes over now and then. He’s a bit boring thou *yawm*
But I just meant that when you stack, the contract price is higher. So when you come to selling, the CG on paper looks lower.
And you’re right, I think this topic has been flogged long enough.
Geez,
All these mortgage brokers wantin full disclosure
Property Passion,
Firstly, I think that you’re doing it the other way around. You’d best be finding an investment your convinced of, then getting the finance for it. Don’t just use the money because they’re offering.
Secondly, if they’re willing to give you 260k for ressy IP, then I’m pretty sure they’re not going to give you anything like that for a comm. IP.
If I were you proph, I’d:
Pay off my HECS debt first. If Mum and Dad have paid it off or you don’t have any, then go with the investments. Like Neo said, find out how much you can borrow first.
Actually, when I first got a decent amount of money together, I bought myself a car to get to work in. But getting to the train station at 6.30am and returning at 9pm on a cold night really makes you feel like if you can afford it, you deserve to not freeze to death coming/going to work.
When people start using the word “Drossville” in everyday conversations, I’m sure my life will be complete.
Munjy
Even though I’m sure trusts are a good idea for asset protection, is anything safe from a defacto or wife situation? Not even your super.
Marry up maybe.
I’m wondering if property prices move downwards in excess of his deposit, could he then withdraw from the contract?
Or if rents move upwards, could he settle prior to the 12months?
Why did you want such a long settlement Chrismaz?
Believenothing,
Why do you say only 5% of the population are property investors? I don’t understand where this assumption comes from. Are you saying its impossible for more than 1 in 200 investors to own more than 5 properties? Or are you saying that the value of property HAS to rise as there are only so many squares on a monopoly board?
In any case, 100% of the property is owned at any one time. You have to buy it off someone. And the property market is difficult to look at in such static terms.
And the thing with the statistics is that it’s hard to say in comm/industrial/etc property is included in that.
I think that I’m confusing myself with the simple maths!
