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Hi happy to assist, please email me the actual property address and I will reply with a Comparative Market Analysis and a Suburb report. I need more details as price can vary depending on number of rooms, bathrooms, car spaces etc etc. Can you email me a link to the actual listing?
Hi I can recommend http://www.housedesignsolutions.com.au/
The post above seems to have covered the key points so I will approach it from another angle.. in all my years dealing in property and finance, I have never seen a partnership like this work out. In fact all I have ever seen or heard has been negative. Sorry to put a dampener on things. Like any relationship, as soon as the honeymoon wears off you will most likely need to deal with the spooks in the closet and the more people involved the noisier it gets. Good luck.
I agree absolutely, get a building and pest inspection for sure on any purchase.
Try these guys for an inspection http://www.aussiespect.com.au/
And conveyancing http://www.lexcon.com.au/If you want to build wealth the key is to build the size of your asset as big as you can as fast as you can. Its the size of the asset that will give you the return and will snowball (compounding growth). I have a video on my website you might want to take a look at regarding a simple strategy you could easily put into place. The strategy can be varied to suit your own investing rules i.e. adding value with buying well to start with and doing renos etc.
Are you aware that duty will be payable when you transfer the property? Personally if I was getting full rental income I would rent out. I would be happy to discuss further if you shoot me an email., also other Forum members might have some useful insight as well.
>>as it is currently looked after by my fiancee’s parents (they are paying the negative cashflow), I am not yet in a position to comment<<
I guess if your fiance’s family is paying the difference then your doing ok. If you are not living in the property then you get tax benefits. perhaps speak with your accountant who can advise you on this.
>>If we could find a place to rent at $300/wk and rented the apartment out at $350/wk, then I take it that would be a good option?<<
You mentioned your fiances parents were paying the difference, that seems like a pretty good deal to me and I wouldn’t think of any reason to change this unless your worried about the possibility of the favour backfiring later on down the track.
Hi Tim happy to meet up, feel free to contact me any time.
The FHOG applies to your first PPR (home) whether or not you have previously owned an investment property. In other words you can go ahead and buy an investment property now and still be eligible for the FHOG later on. If you are married or in a relationship the grant applies to both of you whether you buy in one name or both. Happy to help re advise on structuring loans, feel free to shoot me an email.
Hi Ajay, the question is “are these properties going to give you a decent return on your investment (growth) as well as the rental return? There are some good sources of info out there, hotspotting.com.au have info on high yield properties and Residex has an excellent report. Its all very well to find properties that have rental return but are they any good? Beware of student accommodation deals. Do your research on the potential growth as well.
Daniel Mare wrote:I'm building a brand new 4×2 house and considering renting it out myself without using a property manager. Does anyone have experience renting out properties without the use of a property manager? What are the potential pitfalls I might face?If you have time to spare and you are within reasonable driving distance from property then sure why not manage it yourself, if you are busy you might want to consider a local manager. Personally I have no inclination to manage my own properties as its time consuming and frustrating. I prefer to leverage and use the services of people who do it full time and make better use of my time elsewhere i.e. making money.
The API magazine has lots of good books and info in the back section of the mag..
You would need at least 5% of the property value in genuine savings and employment of a min of 3 months and be out of the probation period. I also suggest you buy a PPR (home) first to take advantage of the FHOG. Hope this helps.
Hi if this is correct “The property is currently tenanted for around $300/wk, but should be getting between $350 – $500/wk” then why is the rent $300 a week? If you were getting the full rental income i.e. above $350 then its a reasonable yield and I would keep it rented. As an investor I prefer to rent all my properties out and don’t O/Oc. Depends on your particular investing rules.
These guys are pretty good http://www.realestatetraining.com.au/
Rents for a 4Bdm in Gladstone are around $410-$420 a week right now but expected to increase as the demand for housing really kicks in. British Gas put in a order for over 50 houses and developers just cant supply them… land is a real issue at the moment. The expected rental increase is anybodies guess right now.
I have dealt with a few builders in Brisbane including one you mentioned and don’t want to comment publicly. In terms of quality and reliability have a couple I can recommend, feel free to shoot me an email and I will pass on their contact details.
You need to watch out for any small outfit particularly if they are a start up or haven’t been around for long. You broker should be able to advise you and if they suggest a lender you haven’t heard of then ask questions i.e. who are they, how long have then been around, industry awards, who actually owns the company etc. You don’t want your interest rates to suddenly jump by .45 … oops …. you might want to keep an eye on some of the big players too then.
Any new property sale (house and land) will have sales commission built in to the price to cover sales and marketing, thats just standard, similar to established properties usually factor in the Agents commission.
There are benefits with land and construction i.e. full depreciation, no transfer duty payable on the construction .. if for example the land is 200k and const 250k the transfer duty (in QLD) would be on the land only at $5,729 and you don’t pay transfer on the uncompleted house. If you were buying an established house in QLD the transfer payable on a $450k property would be $14,175. So you can see theres a considerable difference. You also get the full builders warranty on a newly constructed dwelling. Everything is negotiable remember so you can buy new properties at a reasonable price.
Buying established you can always find good deals if you are prepared to be persistent. In my opinion theres benefits in both. Don’t be afraid to haggle.
1: You local council will be able to advise you on how you can develop the land.
2: The only sure way to find out building cost is to get 2-3 quotes from builders because as there are hidden costs on top of the construction i.e. cutting or retaining walls etc. You can get a rough idea of construction costs from http://www.bmtqs.com.au/ConstructionCostCalculator.aspx
3: Yes most lenders will fund both the land purchase and construction.
4: Talk to the local council, speak with your mortgage broker or bank, keep an eye on the posts here because you should get some good replies.
5: Personally I would start off slow and would buy a couple of investment properties before I got into developing. If it were me I would begin with land purchase and start with a house construction. Work your way up to a small townhouse development later perhaps. Maybe I’m conservative, I have seen people come to grief by not realising how involved a project really is. Then again if you are adventurous it might suit you.
