Forum Replies Created
The issue relating to the legislation is that the at a latter date the tenant may dispute that the premises were actually incorrectly rated against the Water Efficiency Labelling and Standards (WELS) Scheme.
In the interim if the tenant agrees in writing at the outset that the tenant was satisfied that the devices were installed and functioning as per the guide this may be sufficient grounds to charge the tenant for water consumption as per an agreement between the Lessor/Owner and the tenant. That the tenant was satisfied as per the guide and the owner then at a latter date during a plumbing job obtains the appropriate certification.
It's interesting to note that the Owner will still be directly billed for water consumption and can on charge the tenant the reasonable amounts as per the agreement and can not levy and late charges on the tenant.
It seems though the responsibility still lies with the owner to ensure that those devices are installed and functioning correctly. Might be worthwhile to prompt property managers to take note during routine inspections that the required equipment is fitted, maintained and correctly functioning.
"It wont always align with inflation"
Well if we're talking CPI there is a pretty good chance it will given that in the measure residential rents are calculated and included.
Best way to determine market rental is to ask your property manager, then check it out with one of the larger realestate website. Do an area comparison for yourself.
Market rental being a little different to the question here though. You can always increase it above the current market rental to factor for future interest rates rises for example.
At this point in time a recomendation for a 6 month lease would allow the flexibility to keep in time with the market, especially the Perth metro rental market.
Though right now you'd be wanting a 7 month lease to well and trully miss the Christmas and New Year period which can be hit and miss for finding good tenants and no doubt when the consumer spending figures come through for Christmas interest rates will be on the move again anyway.
Always remember that top rents don't always attract top tenants.
I think the question is better posed what/who is really behind the seminar. What’s the product.
Getting caught up in schemes where you're paying for the privilege of being told to buy a property you could have easily
found yourself with a cheap airfare and a basic strategy is simply crazy.
So the seller pays the seminar provider a marketing fee to get the property sold and then the buyer pays the seminar
company a fee for finding the property.
Now let’s stop and think for a second we know we can make money from property so why are these so called gurus so
interested in telling others how to do it too. Beats work for a living.
We all know that the stories that come out of these schemes eventually end up on the TV at 6:30 at night and we sit
back and think how silly are you people. I guess thats the sentiment to focus on.
yes and no
No for some of the reasons above!
And yes for the costs. Opportunity cost that is.
How much is your time worth?
Do you have the time to do the homework for yourself?
At the end of the day if you're happy to put your investment future in the hands of someone else good for you.
Otherwise even ordinary selling agents these days will take the time to educate you on the market and their own listings too obviously.
Disclaimer; never used one and possibly never will.
LNS = Lower North Shore
For those playing along at home (in other states).
Surburbs of the Lower North Shore of Sydney actually are;
Balmoral Beauty Point Blues Point Clifton Gardens Cremorne Cremorne Junction Cremorne Point Georges Heights Hmas Platypus Hmas Waterhen Kirribilli Lavender Bay McMahons Point Milsons Point Mosman Mosmans Bay Neutral Bay Neutral Bay Junction North Sydney Spit Junction The Spit Waverton
Might be helpful?
When it comes to the LNS there simply is no substitute for the location. Having lived in most and operated a business in these suburbs that is.
Ryde and Macquire park o my.
What area/s of Perth are you considering?
Get onto the REIWA site and have a look at the suburb profiles
Example
So you're looking at needing $265k+ to be in the market?
Yeah right buddy show me a property in Coloundra that is worth 50% less by December 2008, no idea!
Scamp wrote:Don't tell them you want to sell it ( because they won't be honest about the real price ) , just tell them you want to use the equity for a new house.
Chances are that the real estate agents will be honest to you and tell you that your property 'might devaluate' to 20% in the short term and advise against getting equity.Also talk to your bank before you do anything, ask them if it's a good idea to buy a house from equity at current interest rates. Don't 'just buy' , get informed about the real value of your house, not what a real estate wished he could sell it for ( they earn more money if they sell your house for more money ).
Especially talk to the bank, they usually love it when you come to them to ask them for advice, instead of morons coming in with huge plans and then 2 years later have put themselves ( and the bank .. ) in debt unnecessarily. Don't speak with a housing guy at the bank, speak to the mortgage guy. ( usually the ones in black suits in the back of the bank in little offices with Ikea furniture and a coffee machine on the desk ).
If the bank truly believes in you, and is happy to give you a loan on your equity in these circumstances, then you should think about orienting on the market. If the bank is hesitant or tell you that it's better to wait a little bit before you do anything, then take their advice and wait.
If you decide to take up the equity, then get a 10-year fixed mortgage rate. This rate will reflect the risks of the future. The more risk, the higher the interest rate. There's a reason the interest rate is high at the moment : There's big risks in housing investments at the moment.
There's also the risk of inflation , which might cause you to get unemployed if it gets bad. Talk to your bank, have a coffee and take your time to get a real valuation. Maybe even get your house details and the details of the investment property with you : the more you discuss with your bank now, the less trouble you might get into at a later stage. You won't make friends with the bank guys, that's not their business, but you might get their support because they see you as a sane and trustworthy, smart investor, which really helps in the long run.
My goodness where do you start, I'm wondering if a good prerequisite is that if you're going to give advice about Australian banks you might have actually have walked into one and maybe even taken out a loan or something like that. Can't say i've ever bothered to do that, who does these days?
1. Real Estate agents doing something for nothing and being honnest about an appraisal, forget about it.
2. Chances are 3 out of 3 agents will laugh and hang up (comedy central)
3. If you're taking advice from a bank give the game away now!
4. I'll never forget the day a senior lending manager from one of the big 4 banks asked me for property advice, aim for that!
5. If you're going to take advice from a bank ask the employee how much they pay a week in rent.
6. 10 Year fixed mortgage rates at what 9%+ weren't interest rates 5%+ in living memory isn't the economy slowing enough already
7. Anyone keen on paying for a valuation
8, Housing guy/Mortgage guy you'll be luck to get a bank employee who owns in IP to start with – Do banks bother to still lend face to face?The great thing about this site is that we will all be able to come back in 12 months time to these posts and have a good laugh at the absolute nature of some of these comments.
December 2008 the Australian property market in every state, in every suburb and every home would have crashed. Cause we're all in the same boat cause we're in Australia. Yep every capital city in Australia is going to slump.
How's Sydney doing now? What about FNQ?
I think we'd all agree that we're pretty much experts in our own backyards take it beyond that to another suburb or state and we're relying on something else other than everyday market watch.
People aren't going to be migrating to Australia (Shhh don't tell the ALP and Rudd who are going to flood the country with workers to address the skills shortage).
The South East corner of Queensland won’t be experiencing population growth at the rate of 1000 a week anymore now will it?
The region’s growth will generate demand for 575,000 new dwellings and 425,000 new jobs, as well as supporting infrastructure and services. It will impose significant social, economic and environmental pressures on the region.
So will there or won’t there be a solution to the urgent need for more housing through greater release of residential land for development.I guess you have to ask yourself does demand have an impact on the sustainability of house prices in Brisbane, Queensland, Australia which might be some practical basis for understanding the localize nature of the market.
What I’m saying about the last 14 years in my patch is this clear. In 2003 you could buy a three bedroom house for $90K today the same property is $300,000+. Property doubles every 7 years does, I mean does it really?Right so my PPOR that I recently purchased/built for $725,000 is going to be worth $290k in December.
Cause it didn’t cost me $350k for the build and $375 for the block. Yeah so which is going to drop in value greater the house construction or the land, I don’t see any more blocks for sale and it took me almost 1 year to find a builder and build.
Demand for new housing what will that do? Is anyone planning on investing in cardboard boxes that can be coverted into 4 bedroom houses?What about the IP I settled on almost 3 months ago now. I picked it up at Auction for $375,000 it’s a 4 bedroom ensuite brick and tiled built 2004 sits on 635m2 and it’s tenanted for 12 months at $425 per week. How much will that decrease in value?
On wages is anyone really prepared to say that wages with the ALP in power at a state and federal level and the unions waiting to take control of the workplace wont be on the rise and strikes along with them.Yeah the economy is a mess is going to be a mess and will impact on the market but maybe recycled paper to make boxes four housing isn't the boom move either.
Wow, having just spent 7 weeks in Europe yeah Australia watch out our market is going to crash. Cause all of our residential investment comes from overseas. Mate Dubai needs your help head there!
Yeah sell me all of your properties now for a 60% discount before they go 60.1% lower.
Whatever, boom, bust, upward, lower, cycle, cycle on.
Mate i'm looking at the cycle for my little suburb of 7,000 houses in Australia graphed on my wall for the last 14 years, I hope you don't mind if on that basis that I'm ready to buy and buy and hold.
Are you any good at picking the next boom, can you tell me which suburbs are going to double in value in 2 years like they did in Perth. I might move on then.
What a read.
$8k reasonable to source a property. Goodness me.
Goodness me i'm going to have to do more study on the CPI, I thought it included a measure of household expenses. Now rents are suppose to be tracking above the CPI trend which includes a measure of household private rents. Um, really.
anandinvestments wrote:We used Professionals but after less than 6mths of tenancy, we're up for another lot of letting/advertising fees…..Anyway, cut long story short, after doing alot of research and number crunching last week, i've found that it was better for us to go with an independent company rather than a 'franchise' as we found the 'franchises' have alot more fees (letting fee, lease renewel fee, tribunal fees etc) involved.Actually Professionals are one of the largest networks of independently owned and operated real estate agencies in Australasia. Not a franchise but a marketing cooperative. Offices are often very able to operate and compete just like independents but with the strength of a large office network including referrals. The best of both worlds! Just to help you out with clarifying your research.
Great motivation
Seems like you are taking all the relevant costs into consideration
Having to see the property thats a restriction most good investor will admit they have overcome
Stamp duty, what are the current rates in NSW, I'm not sure but in most other states they kick in at a reasonable price well above what you are talking about
Not sure about NSW other states if you hold the property 1 year or moe you might avoid stamp duty all together and concession on capital gains might also kick in giving you a 50% discount. It obviously pays to get some accurate and indivdualised advice on that though.
I think you have some strong motivation to make it happen. There are plenty of authors out there with similar stories to your own.
Why not try a Internet search engine search. Put in a brief description of who you are and follow it with investor and you'll find plenty to interest you. Something everyone can try see what you find. Maybe include things like your age, profession, family situation, goal for investing and then put investor.
Good luck, hope to hear of you're success soon your certainly in the right place to make it happen.
Rule 1 Never Sell
Rule 2 You make money when you buy
Rule 3 Start at Rule 1Right now sacrifice you can do it. Trust me I've been there and it ain't worth the short term satisfaction of selling.
You will probably never be able to buy that property again for the price that you did.
Sure there is a lot of missing critical information from your post. But speaking generally do it while your young. Latter on down the track you may have very real financial reasons for making these decisions.
I think this is something that has been posted before. You've got to have as many dishes out in the rain if your plan to make your business storing the water that is capital gains.
Look at the figures on paper, how much is it going to cost you to own that property over the next 12 months? Whats the capital gain going to be over the next year to 5 years. Whats your return on investing the cost over a year. $3000 over a year for a 10% gain on $300,000 $30,000 for example. And then $3000 the next year for a 10% gain on $330,000. If you read the papers in Brisbane for example predictions are of growth 30-40% over the next 3 years. You would want to miss that?
The answers is yes it has affirmed already tightened lending.
Lending products have already been withdrawn from the market relating to loans which might be considered similar risks to that outlined in the story.
I don't think that lending practices in Australia have been immune to the sort of conduct described in the story. Its certainly hasn't taken place on such a scale nor has this part of the market developed into a segment of tangible size one would assume.
Have Australian lenders lent to people in similar circumstance to subprime ratings?
If anything I think we saw lending tighten some time ago when the Sydney property market came off the boil. We're talking some time ago. The number of mortgagee in possession sales started to increase well before the subprime meltdown in the US. Lending was probably under review for over a year prior you would think.
Who needs buyers agents. Save your money. Do the hard yards yourself. After all I could never be a Buyers Agent anything worth buying i wouldn't be selling to anyone else i'd buy the best and sell the rest to the rest.
There is too much hand holding going on and buyers are not making their own decisions based on real hard core self investigated facts, these are the people with their backs to the wall who cringe at interest rate rises.
Buying house and land packages is great if you're going to buy and hold for 10 years. Great for a property portfolio mix of an established investors.
There is no short term money to be made unless you are the developer adding in about 80-100k to the price. Happens everyday of the week and its the same hand holding which leads people to buy above market values with flimsy valuations and there old an grey by the time they have made any real money. Just the way it is.
Buy something that has potential and make that potential happen right now and like me your first investment property might be worth 70k more afer owing it for just 30 days and oly with spending under 5k on renovations.
You make money when you buy, you make it a lot slower when you buy and hold, when you build and depreciate patience is a true virtue. Guess it comes down to risk and reward. When you're starting out playing it safe based nice neat numbers on paper is the long way around.
Buyers agents on an investors site, investors not desk chair bankers, o here's my money find me something to buy and buy it, ain't investing.
Yes i agree with your list all seems pretty hot or hotting up
Deception Bay, Whats so good about it? Care to elaborate?
If the building inspector has flagged an issue its most like due to construction.
There is nothing stopping you from rectifying the issues submitting new plans and going through the normal approval process post settlement.
Beware though that the council may issue you with notice once that property settles. Eventually they'll get around to it.
Most Councils will come on site an give you the advice you need.
Check out the approvals for yourself go to the councils website and search for PDOnline. If your purchasing property in QLD go to the Local Government website and search for the planing data.
Or call the council and ask the question.
