Forum Replies Created
No I missed it. What went down? Would be very interested to hear about it.
MHi Crows!
We are also in Adelaide and I can guess which areas you are speaking of
. Are you sure that they don't have much in the way of CG? I looked in the back of some investment magazines and found some great CG figures, which surprised me. I am not expecting much CG there in the next couple of years though.Also, Have you considered becoming familiar with those areas? We are currently researching the northern suburbs. By attending opens, speaking to agents, popping into shops, driving and observing, and we are slowly beginning to recognise the nicer areas within the district.
I can understand your hesitation to invest in these areas, it's taken us a while to get out head around it also. We've put in a few offers on the low side recently and got knocked back. We'll keep on trying.
Best of luck!
It looks brilliant!
I love the thumbs up function. I like it so much, I may even try give myself a thumbs up
I think there is a lot of wasted empty space on the sides also. I'm sure you'll fill that up over time.
Great job, Michelle.
Thanks!
I am doing my best to avoid any emotional decisions. I can't wait for the next one in a couple of weeks the WIP &Solomon.
Michelle….
Hi Janine….
The areas I originally wanted to buy in didn't meet the 1% rule either. I had to go looking in other areas that were cheaper but the rental still meets the costs. Still looking for our first IP, so by no means an expert at all.
A couple that we have seriously done DD on that were advertised on RE.com or similar, I rang independent property managers from other companies to see what rental i could get for it. This killed 2 birds with 1 stone because we will be needing a PM anyway. Some already had tennants and the agent could tell me what they were paying when contacted about property.
I think if a property does meet the 1% rule, we then need to look into all other costs and do our sums of income vs expenses from there while completing DD… I hear what you are saying tho Mattsta.
M
Thank's Paul and W.I.P.
We had decided to set up the company also as the experts in the field that we researched had recommended it. I am glad we did now, especially after your comments. He was happy to set up the company as well as a trust, he just didn't think we needed it. I went to the appointment armed with Steve McKnight's book and my notes from Boholt's video podcasts on the subject ready to debate it out.
Very glad we have a good surveyor contact as he has looked into potential for subdivision. We are not going to make a killing on that deal, and hence we are leaving that one alone.
I believe you are correct about the banks and a couple of you have now said the same about the banks not budging. We will find the right place sometime, just to keep looking for now.
We really appreciate all the suggestions on this post! What a great resource for beginners!
Thanks all!Michelle & Ade.
Wow! What a couple of crazy days.
Thank you all for your advice. We have heard back from the surveyor and it doesn't look like it would be an easy subdivision unless you knock the old house down and have 2 long blocks side by side. Once you've done that tho, there wouldn't be much profit in it….especially if you didn't get asking price. So we are holding off on that one, even tho it can be CF+ if bought at the right price.
It has been a great experience though. we are getting our act together so that next time we can jump on it. Our Company and Trust are being set up as we speak and we are organising our finances too. We now know more of what to look for when looking at properties, and have made some excellent contacts. We have our names in with some real estate agents to hear about properties as soon as they go on the market.
It's funny how making just a few phone enquiries can turn into real tangible progress. We will continue to look and learn until we find the right place to pounce on!
Regards, M & A.
Ah Property Monopoly!
Just spotted your response, thank you.
I think we'll do it… but just waiting to see about the subdivision. That may determine what we are willing to pay.
I can't even tell you how many phone calls we have made today!
This could get addictive
Cheers… M & A
Hi Catalyst & Ryan!
Thanks for your comments
We must confess to being unprepared. We hadn't sorted out our LOC and didn't have building inspection etc done. We only spotted it on the weekend. We also didn't have our trust/company in place.
I have been reading books and listening to information and we really have just been trying to familiarise ourselves with the area and didn't think we would act so fast. This place seemed like a good idea as the numbers added up and so we decided to rock up to the auction for experience if nothing else.
The agent has called. It is back on the market at $190 000 (Catalyst, you are correct) and he said he would put all offers forward. In the meantime, we are arranging the trust with our accountant in the morning. We have a surveyor looking into feasability of subdivision and have heard back from 2 agents confirming rent at 250 – 260pw. They also both advised not to bother with reno for now as it won't be tax deductable until it is already rented out. They also said it wouldn't yield much more in rent anyway.
We will act once we have heard back from the surveyor.
So…. company… or not? That is the question…
Thanks again…. Michelle and Ade
@ Catalyst
Will definately leave cards at homeHi!
I live in the Adelaide area also and think I am in a similar position to you, looking to buy my first IP. Trying to gather all the information I possibly can before leaping in.
I am going to a free one day seminar by Mark Rolton on the 26th for some ideas. I believe he deals more with options, but i'm up for a bit of free information. I am cautiously optimistic, realising they will obviously be pushing a longer expensive course on the day.
If you are going, pm me and maybe we can catch up there.Cheers Catalyst!
I live in SA and I am talking of the Northern Suburbs of Adelaide particularly. I have been targeting properties with potential for second residence. Of course, by the time I sus it out and chat with my hubbie about it… it's gone. It's all research and experience I guess.Sounds like this strategy has worked for you. Seems like spending a little extra time on reno's would particularly pay off in these areas, like the sound of being fussy.
I appreciate the advice.
Sorry, my above post should have said that I was told that it is NOT possible to buy +CF property…. oops…
That was what put me off for a while. Thanks Kristin for your suggestion.
M
. Are you sure that they don't have much in the way of CG? I looked in the back of some investment magazines and found some great CG figures, which surprised me. I am not expecting much CG there in the next couple of years though.
