Forum Replies Created
Correction…..Environmentalism is not the new fascism……. it's the new REALISM.
By the way….. the earth is round not flat, or so the scientists say….. but what would they know?!!!……….
Maybe it's not the tree-huggers spreading these "rumours". Maybe it's some smart property investors getting ready to snap up all those coastal properties that are going to plummet in value as the fear sets in. Problem is, they'll have to wait 100 years to see if the scientists are in fact wrong!
Hmmmmmm………
Guan wrote:Ed since the talk about u around is very convincing, i rang up your branch in melbourne and asked for a quote to do my coming end of yr tax return on my rental properties… the answer was $660… i think it is a bit too high compare to the market dont u think? my cousin's accountant expertised in rental properties and charges only $300 for individuals and $400 for companies.Guan,
What's the issue? If you're happy paying $300 to $400 to your cousin's accountant and are satisfied with what you're getting, then Chan & Naylor is probably not for you. I would suggest that Chan & Naylor are likely to have a much greater understanding of taxation laws relating to investment property and offer much more than just completion of tax returns. Are you comparing 'like with like'? As the age-old saying goes, 'you get what you pay for'!Anne.
Hi Ed,
Your offer is so unbelievably generous! Thank you so much. I hope you've got health insurance, 'cos I reckon you're going to have a heart attack when we complete our Financial Health Check!
Looking forward to speaking with you,Anne & Brett
Hi Ed,
My husband and I were very pleased to read that Chan & Naylor are opening an office in Newcastle. We are in that class of investors that lives from week to week. It is very stressful and we constantly feel like a heavy weight is always bearing down on us. We have two young children and we try to shield them from the anxiety we are feeling, but its hard, very hard.
We desperately need direction from accountants who are not only property-savvy, but also care about helping us achieve our goals. Our current accountant has been far from helpful, but we haven't been game to 'jump ship' in case we go from bad to worse.Looking forward to the opening of the Newcastle office,
Anne & Brett
The factor I see as critical to a successful partnership involving friends is TRUST, and I’m not talking about the kind you set up with an accountant or solicitor. I’m talking about the intangible kind that develops through sharing life experiences, supporting each other through good and bad, knowing you’re always there for each other, having similar dreams and aspirations, and knowing exactly what makes each other tick.
If you are going to go into partnership with your friends, make sure you have a clear understanding about the role each of you will play.
Have a solicitor draw up a deed which sets out the responsibilities etc of each of the partners. Do your potential partners have the sort of personalities which would allow them to keep their emotional ties with each other separate from their business dealings?
Communicate, communicate, communicate. Make sure that ALL information pertaining to the business is disseminated to all members of the partnership> Nothing engenders distrust quicker than lack of communication.
If there is any doubt in your mind……..don’t do it. My husband lost a 30 year friendship through a property deal about 4 years ago, and tho’ he doesn’t talk about it, I know that it has affected him deeply. It’s almost as if his friend has died – I guess in a way he did, as we will never see him again. We have also lost contact with the circle of friends that my husband and his mate were involved with, and my husband has lost interest in the activities that we used to do with his mate and partner, like scuba diving, caving, bushwalking and camping.
Please, give it very careful consideration. We may be recovering financially, but the emotional scars will never heal.
Good luck.
Novo.
Sorry – I was a bit hasty with my forum posting. Bit hard to get a moment to myself to post anything on the forum with a 2 yr old and 5 yr old brawling with each other most of the day! One’s having a nap and the other is out shopping with her father, so I finally have a few minutes to myself….[exhappy]
We currently have 4 properties, all financed by LoDoc loans, as summarised below:
PPOR: Valued at $520,000; owe $416,000; interest rate is 8.75% .
IP 1: valued at $250,000; owe $200,000; interest rate is 8.35%.
IP 3: Valued at $340,000; owe $264,000; interest rate is 7.74%.
IP 4: Valued at $700,000; owe $540,000; interest rate is 7.74%.We are looking at 90% LVR for IP 3 and IP 4 now, and for IP 1 and PPOR in the next 6 months (after we’ve completed some renovations).
The reason why we want to access more equity is to acquire more properties to develop – now is the best time to buy, but we don’t have access to any cash reserves. We have seen so many opportunities lately, but can’t do a thing about them!Our broker has suggest we look for deals where we put little of our money in, and we have heard Ed Chan from Chan & Naylor allude to ‘no money down’ deals. Does anyone have knowledge/experience in this area?
Cheers,
Novo.
We have been looking at the same mortgage. We’ve even gone as far as putting in an application and getting ‘indicative approval’. We have 3 investment properties and are struggling to meet the shortfall on the repayments. The ‘Cash Flow Mortgage’ seemed the way for us, until we saw the exorbitant fees involved. Not only is the interest rate one of the highest around, there is a ‘risk fee’ of 1.5%, and an establishment fee (which can be deferred) of 3.5%. The other thing that concerns us is by eating into our future equity, we are going to make it difficult to purchase properties in the future.
So…….we are now looking at other options, like lenders that will go to 90% LVR. Can anyone recommend a lender that does go to 90%LVR? We are currently with RAMS and RESI and neither of those do.Cheers,
Novo
My husband and I are in a similar situation. Our goal is to be able to give up our day jobs and renovate old houses, buy houses on large blocks and subdivide, undertake small-scale residential development projects, etc. But, we are fully maxed out on all our properties, and the areas our properties are in are either stagnant or have dropped by around 10%.
I read somewhere that if you do a review of your property purchases and ask yourself the question “Would I have purchased this property knowing what I know now?”. If the answer is ‘no’ then you should offload the property. That scenario is certainly the case for one of our properties. We bought a dump in a beachside suburb in Newcastle, at the height of the boom. We had always aspired to buy into this area because it is such a desirable location and historically had shown solid capital growth of around 12 per cent p/a. We knocked the old house down and built a new house, with the intent of on-selling. Problem is, the market dropped not long after we bought the property, and we would end up making a loss on the property.
Since we bought the property, we have learnt that the way to make good gains in this particular area is to buy an old house on a block that would allow for a duplex and go for a dual occupancy development. We have considered ‘cutting our losses’ and selling the property so we can pursue other prospects, but it would cost us around $90K in GST, agents’ fees, CGT etc.
So, we are forced to ‘sit tight’ and wait for the market to pick up again. It’s absolutely killing us, because we see so many opportunities and are so keen to get stuck into the renovating side of things, but we seem to be just drifting. We know now is the time to buy and get set up for the next peak in the market, but we can’t do anything!Cheers,
Novo.
