Forum Replies Created
Fair point Bibra [cap]
It is only your thoughts that create your future – Be careful what you think!
Raceplays,
In theory it sounds very attractive, but as with all investing ‘theories’, how do you turn this theory into practical real life situations. For example, the numbers you have stated obviously all add up, but how do you get people to bet with you firstly, then do you look for a one off $650 bet at 2/1 or do you take alot of small bets until the amount adds up to $650? Also, how to punters get to access placing bets with you: Are you at the track or can they place bets via internet or a ‘Betfair’ website?
The theory does sound interesting and I would like to learn more on the practicalities of this form of ‘investing’?
It is only your thoughts that create your future – Be careful what you think!
Yeah thanks Yack, i already lost too much at the Melbourne Cup – Dammit![thumbsdownanim
It is only your thoughts that create your future – Be careful what you think!
Whoops, a bit slow on the up take![blink]
It is only your thoughts that create your future – Be careful what you think!
not sure about anyone else, but 2.25% of $438,000 = $10,950?
where did that come from?
It is only your thoughts that create your future – Be careful what you think!
thanks for your thoughts guys/girls, very interesting!
[party]
we have located a good accountant in Wollongong NSW (where i live), Brian Rees, but have yet to meet with him as it is not yet tax time. this will be our first financial year with an IP, so it will be a learning curve i am looking forward to!
i think it will be the best option to self asses the items for depreciation. thanking you greatly for your valuable expertise [suave2]
nathan[thumbsupanim]
thanks scott.
the house was built in 1979. there is not much new in the house from my memory (we purchased in jan 04) but we did buy a s/hand oven for around $400 in the last couple of months. not sure if there will be enough to worry about it?
there are the standard items like carpet, curtains etc. but as this is our first IP, and reading your reply, am not sure if it is viable to cvomplete a depreciation schedule? if so, i will give you a call (if you think it is viable that is?)
thanks again scott, really appreciate your help![biggrin]
nathan
mel
we purchased the property with 100% plus costs using my mum as guarantor, meaning it cost $180,000 all up ($172,000 for the house + $8,000 for the purchase costs).
being that the loan is for $180,000 at 6.95%, the mortgage repayments alone are $295/week. on top of that, iwe put in an extra $60/week to cover insurance, rates, property management and repairs/maintenance.
as the house is in south australia, we cannot do a wrap (as it is illegal in sth oz), but could look at doing a lease option. the current tenant of 3 1/2 years is paying $165/week in rent, meaning we need to come up with$190/week to pick up the shortfall. after tax deductions have been taken into account, the house costs us approx. $100/week. expensive.
with a lease option, i was looking at an option deposit of $4500 (2.5%) with a price of $230,000 to be exercised within 25 years, and increasing the “rent” to approx. $330/week. as this is a big step up from $165/week, i am not sure if the current tenant would be interested. although, they have indicated to us that the reason why they are on a periodic lease (month by month) is because they are waiting on an insurance payout-of what size i do not know-and would be looking to buy their own house from this payout). maybe this is my ticket in? don’t know, haven’t asked. reading some of the other forumtopics, i se thast some investors are getting these kinds of weekly rent returns, so maybe it is quite feasable.
additionally, this would then only bring us up to nearly even on a weekly basis, so as not to produce a cash flow positive situation and relieve the weekly financial burden on ourselves! bummer!
as for the books, steve’s book is one of many different books i have read regarding proiperty investing, including Margaret Lomas, Anita Bell, Dolf De Roos, all having different methods of investing. but i guess it is up to the individual investor to make their own style of investing.
if you have any thoughts on my scenario above , then please do tell.
thanks,
nathan [happy3]thanks guys
the only problem i am faced with, with regards to wrapping, vendor financing and lease options, is that the house is in South Australia. it is to my belief that it is NOT legal to do these things in South Australia?
i am not sure whether this is correct or not? if it was an option, then maybe these options would then be possible?
[blink]
nathan
Thanks guys/girls. thought i was close, but just needed reassurance.[specool]
thanks Kay for the contact. will follow up. no depreciation for me as the IP is 28 years old (1976) and just misses out according to the ATO.Bummer.
not too worried about the lower tax return if it does work out that way, we were just hoping to put a little bit extra on the loan to build up equity faster (as we borrowed 100%). here’s hoping the tax man to be friendly to us: lol [lmao]
thanks again everyone for your help [suave2]
income for the year is 8500, on top of yearly 37500 salary.
i am feeling silly as when we initially bought the place i worked out a different possible amount & worked it into the equation for yearly return. bummer! anyway, i think it is time to see an accountant.
does anyone know of a very good accountant in the wollongong area who knows alot about Proerty Investments? [blush2]
kaloni
just purchased an IP 2 months ago with 0% deposit. no joke. we borrowed 100%, but only by using a gurantor. hard work with the banks but we got it. the rent compared to the price of the house was excellent enough so that this situation was not volatile or susceptible to be affected by interest rate rises. gurantor has to be solid & in tune with your goals, yet not looking to benefit from the deal in any way.
property will build up it’s equity gradually whilst we have excess $ to put towards other properties (to actually save for a deposit!)
depends on what you feel comfortable with putting down as a deposit.
[biggrin]
wrappack
currently looking at wollongong area as i live there & have the ability to keep an eye on things if something does eventually come to fruition.
i understand that $ are needed to pull a project of this capacity off successfully.
although looking at building/selling, am always looking to add more properties to our small (1) portfolio.
looking forward to retiring early. (at 40 hopefully!! – 27 now)
[hair2]
thanks elves for your insight. looking at it from that perspective, and given our current financial position, then less financial outlay is honestly the best & safest way to go. the idea of slowly building our way up to bigger & bigger projects sounds like a sound investment, helping to educate ourselves at a pace more comfortable for us. honestly, the sound of making $1million on a single project is luring, but we need to work our way up to that. buying two blocks next to each other is still exciting, yet seems much safer than going all out. i thoroughly enjoy having the ability to voice my thoughts and to gain valuable insights as to what options we have available. thanks kindly. [biggrin]
wow, thanks guys/girls. alot of very very useful info for me to read (especially wrappack-wow you’re right into it. good to see. i think my next step will be to go see father in-laws next door neighbour. thanks again. will let you know how i go. [biggrin]
Kay,
Cool, sounds good. Will look to having a coffee in the new year maybe? Hope you enjoy your visit to the Gong, very busy today here with all Xmas craziness!!
Merry Xmas, Happy New Year & Safe holidays.
Nathan
Kay Henry,
I do agree with you also kay, as i prefer to work things out for myself usually, it gives me increased satisfaction in knowing that i conquered something! I guess i just need a kick in the backside to get motivated! Geez, dont i wish i knew then (2 years ago before the boom) what i know now. Probably would have a few more $$ to my name. Anyways, it creates a bigger challenge for me to conquer! Wahoo! Thanks again for your advice guys.
Merry xmas, happy new year & safe holidays!!
Nathan[8D]
Try a website – http://www.propertyvalue.com.au & it will give you an estimated value on a specific property, and even give you recent property sales for the last few years in some cases. It does cost $39.95 for the first time, but gets dicounts of 25% & up for the next report & so on. It also gives an estimated property value for 5 years down the track. Check it out.[
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