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  • Profile photo of oneiriceroneiricer
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    June 24, 2007 - 8:10 am

    your investment property? is it good? havnt seen it around.. maybe i'll subscribe to it!

    Profile photo of oneiriceroneiricer
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    June 19, 2007 - 12:48 pm

    just a quick question, how do you get 'wilful damage caused by pests'? its not like the pests delibratly WANT to cause damage… on the other hand, how can pests cause unwilful damage?

    Profile photo of oneiriceroneiricer
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    June 19, 2007 - 12:40 pm

    i might not be of much help, but my first impression is to check your contract you have with your PM. What does it say? Does it say you have to authorize repairs before paying for it? Does the PM have 'reasonable' power to make decisions that will cost you money? If you find that your pm doesnt have that power, then its up to the pm to pay. obviously you pay your PM $900 bucks and he can settle the difference- but also find a new pm.

    Profile photo of oneiriceroneiricer
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    June 19, 2007 - 12:31 pm

    Hi Sarah,

    If you wouldn't mind, why dont you let people know around what suburb it is? This way you could ask for opinions from people who know the area and maybe can recommend tennants or 2.

    Another thing is explain the processes that you went through prior to buying your property. Let others what happened to you so you reiterate the lessons that you've learned and educate others as well!

    What sort of research did you go through? How did you come to the conclusion of buying this? Did you just go out and buy a property?

    Profile photo of oneiriceroneiricer
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    June 19, 2007 - 7:20 am

    Hey Richard,

    Thanks for replying. A few people have seen this but havnt done anything.

    The article doesnt say, but it looks like 40 year loans are both principal and interest. it wouldnt make much sense for a 40 year loan to have the same monthly repayments as a 20 year loan though.

    and i thought that the shared equity scheme was offered by more than just adelaide bank? damn!

    Profile photo of oneiriceroneiricer
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    June 16, 2007 - 1:01 pm

    Just to butt in here, is this how it works?

    House: $100.00

    Bank will lend 80% of the value of the house.

    So now you have to make up for the short-fall of 20%.

    You go to the vendor/sellor, and you tell them "look, i only have $80 bucks, i don't have the deposit. However, i am going to rent your property to my client here which will generate an extra 10 a month. I will pay you $5 per month for the next 6 months. Will you accept this?"

    Its a win/win situation, because the vendor gets $110.00 for his house (as opposed to $100) and you can buy it no money down.

    Is this how the scenario works?

    I guess the question is… what if the vendor owns the bank $85.00? The proceeds from the sale will not be able to cover the liable amount.

    Profile photo of oneiriceroneiricer
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    June 13, 2007 - 9:33 am

    steve's latest book is very new and very good. check it out.

    Profile photo of oneiriceroneiricer
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    June 12, 2007 - 12:23 pm

    Hi Chris,

    it is the advertised rental price. i would probably say this is opinion, which i will make further enquiries with the real estate agent involved in regards with this property. I will also be enquiring about the management fee.

    -Ken

    Profile photo of oneiriceroneiricer
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    June 9, 2007 - 2:32 pm

    ah, also i forgot to add, do most mortgage companies allow the cost of the mortgage insurance to be added onto the loan, or is it an out of pocket expense?

    Profile photo of oneiriceroneiricer
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    June 9, 2007 - 2:24 pm

    hey maxi,

    Thanks for the quick reply. So basically they are all online- you cant go into the store and 'speak' with them, its all online? Thats fine with me, especially if it means less monthly repayments. and i just quickly saw that the variable rate is only 0.03% lower than the fixed interest rate- sounds like its definately worth a go, its unlikely that interest rates will decrease in the next 3 years anyway.

    Thanks for the tip!

    also, one question. is it right to assume that apartments tend to not appreciate as fast due to the fact you dont own land? does that make appartments not that great unless you get a really good offer?

    Profile photo of oneiriceroneiricer
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    June 9, 2007 - 1:56 pm
    millions wrote:
    Members Equity have 7.44 fixed for 5 years with no fees. I'd be fixing for alap.

    ALAP? you mean asap? this brings me to another question.. do investors tend to use fixed interest rates or not?

    Profile photo of oneiriceroneiricer
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    June 8, 2007 - 7:37 am
    TanyaBlack wrote:
    Hi there The first thing you should do is write down some goals and formulate a plan around that. Ask yourself: Why do you want to invest? What sort of returns are you wanting to achieve? Are you investing for capital growth, cash flow or tax purposes? (You can invest for a couple of those reasons and you will probably get the benefit of at least 2 of them in whatever strategy you use, but an investment plan works better, the more specific you are.) Do you want access to the cash now, or are you able to allocate some towards a self managed super fund perhaps? How much time do you want to dedicate towards the maintenance and associated tasks of creating this portfolio? Do you have much time for learning? I can be contacted via email if you want to chat sometime. Tanya at wakidoo dot com (spelled it out to avoid the spam bots) Thanks Tanya Black

    Hey guys, im in a similiar position. (as close to you as psosible, except im in melb)

    1)  invest so i can be financially free before i am 30 years old.
    fiancially free means making roughly $1500 a month.

    2) Any sort of NET cash flow positive earnings from my investment properties. capital growth will be nice oto.

    3) i dont understand your question to this tanya. Allocating money to a self managed super fund isnt going to be possible for me since my employer only allows a select few, but other than that, i dont *need* the cash, except to invest.

    4) I would like minimum maintenance with portfolio. I mean, i dont want a job in property management, i want it as an investment. I wouldn't mind spending a lot of extra time (20+ hours) creating this portfolio.

    5) Yes, heaps of time for learning.

    Profile photo of oneiriceroneiricer
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    June 8, 2007 - 5:58 am

    hey guys,

    As i promised, i took today off to do a little more research and have spoken to RAMS and HSBC regarding how much i can borrow. At first i was a bit disheartened to see the home loans officer lay out all these extra costs i didn't even take into account , as well as mortgage insurance

    Firstly HSBC says that th mortgage insurance is an out of pocket expense for me, where as rams i've spoken to says they can put it onto the loan itself too. Im already finding it that speaking to different home loans people give totally different results- HSBC only allows up to 80% borrowing of the cost where as rams gives up to 95%

    RAMS gave me the best interest rate; 7.24% I/O payment for 5 years with the ability to renew for another 5 years. seeing as my goal is positive cashflow, an I/O loan is most applicable to me, is that correct?

    also, do many of you use mortgage insurance? mortgage insurance seems like a necessary evil especially when you do not have enough money.

    finally i also went out and purchased steve's two books- 0 to 350 and 0-700.. hopefully i can up my knowledge more.

    all in all, i feel *better* for having gone out and got some 'hands on' experience, but it looks like i got a long way to go yet. at least its a step huh.

    p.s. i would like some recommendations from good mortgage brokers who wouldnt mind dealing with a very inexpereinced newbie and just basically teaching me the basic framework to getting the best homeloan for me.

    Profile photo of oneiriceroneiricer
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    June 7, 2007 - 8:28 am

    ^^ i suppose any news agent will have it?

    Profile photo of oneiriceroneiricer
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    June 6, 2007 - 10:54 am

    Hi Paul,

    Its fairly achievable (i hope!!) and its currently my biggest goal in life.

    It is to create an investment porfolio that will mean by the time i am 30 (in 8 and a bit years) i will have positive cashflow of $1500.00 per month before working. No doubt this will be hard, but i am definately willing to try. One flaw i have is that i am not confident; not confident of the fact that i will be able to value properties i see. If someone said to me, this propert is worth X amount, i can probably see where he is coming from, but if someone said "Y" i would probably agree.

    As i mentioned i currently have $17 grand banked. What sized savings will i need to invest fairly easy in a CF+ property?

    Profile photo of oneiriceroneiricer
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    June 6, 2007 - 8:43 am
    Handy Andy wrote:
    OH, it helps if I finish reading your comment…

    Advice:
    1. Start sorting out finance NOW.
    2. Find a good/reputable/cheap solicitor NOW.
    3. Get bank statements, wage statements, ID etc. together NOW!

    Good luck.

    Hey Andy,

    Thanks a lot for your reply. Im thinking about what you've said, and am wondering, what is a good/reputable/cheap solicitor?

    With number 3, thats easy. im fairly organised and have fairly accurate and up to date records of bank statements. Printing out my wage statements will take about 10 seconds in the office too. so thats no problem.

    Lastly, arranging finance. I assume i just go into the bank, say i want to invest in propertly, and they will arrange some pre-approved credit? do i do that for every bank / MB or just for the interest rates that are good?

    -Ken

    Profile photo of oneiriceroneiricer
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    June 5, 2007 - 12:42 pm

    Hey there Kellylock,

    Just wondering, what are 'some business'? i woudl love to get in touch with some of these businesses that help investors start.

    Profile photo of oneiriceroneiricer
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    June 5, 2007 - 12:35 pm

    Hey guys, thanks for the reply.

    I've checked out your website and have booked marked it :) A quick glimpse does show its fairly useful, especially the top 10 tips- i'll keep that in mind.

    Whilst i don't disagree with the view of research and education as the starting place, i feel i've been doing that too much. I need some ACTION. hence i am going out on friday to do everything i can- see an MB, see the bank, speak to a real estate agent. Although some guidance would be good. Like having a checklist of 'things to do' cos i don't want to forget about anything that i should have done when i first speak with my MB.

    Also, one quick question. I keep reading about the 11 second rule; quickly brief me on this again. So if a property is 250,000 for sale, do you:

    divide by 2, multiply by 3, and thats how much rent you need PER WEEK to turn it into a CF+ property? or is it per fortnight?

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