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Thanks Ptn for posting this information.
yes it good to read these type of posts and learn from other people’s experiences.
all the best in your next venture.
Think about what you are going to use the money for rather than the couple of thousand you want extra on this deal.
Will the extra time waiting for a better offer mean that you will miss out on your other opportunities?
Personally, I’d take the money and move on to the next deal.
Remember that after the 5 days expires, and if you do not get any better offers after a week or so and you go back to these original people they may very well offer $5-$10K less (most buyers would I think) – then what will you do?
So look forward to where you are going and ask yourself will this offer move me faster towards that next goal?
Good luck.
Originally posted by redwing:Why such a Big Deposit?
The max I pay is $1,000 the Minimum I’ve done is $100?Learning, learning…
[suave2]Building and pest inspaction reports arrived.
Building inspection says the building is in great condition. He found asbestos in eaves though. I dont think this is such a NO NO, as there is a thick layer of paint over it, above height and outside of the property.Inspection report; No active termites or any trace of past termite activities. I have to admit, these exopest guys did a great job. 15 pages report with photos, and suggestions.
They found wood borers only in localised area. It is the lyctid borer. Apparently very common. It says this pest is not considered a significant pest of timber and threatment is not usually required.
I had a chat with the inspector and he said that it is in very small localised area, and the infestation is not active. No need to stress out.I am bit confused with deposit and getting a loan process. Probably it is so simple but, learning as I go due to this is my first property.
House price is $217k
I have $20k in my bank account.And I signed up for %5 ($10800, which I paid $500 of it initially) deposit with the real estate agent.
Want to barrow %90 from the bank.
I have caught up with my broker and he has found a great loan %6.7 comp rate, int only with offset account.
He told me that for borrowing %90 which is $195k, I need a saving history of $20k, which is no probs.Now my confusion is that when I pay %5 to the vendor from my savings account, I won’t have $20k in it to show to the bank. Only $10k left.
Is it correct that any deposit I pay to the vendor will be assumed as savings $$$ by the bank?
Do banks collect the %10 deposit on approval of the loan? or settlement?
We are defacto at the moment. Can she still get her FHOG in this circumstances for another property? I thought she cant.
Our salaries are very similar.
We will put both our name together into the loan.
Set up a meeting with broker tom night.Speaking of out of the country investing, there is actually an opportunity that will become available to us over here in OZ.
My cousin is in property in the Baltic States and partakes in developments similar to yours gross. He was just over here in OZ and the plan is to source direct investors from OZ to fund major developments over there for substantial returns.
I must warn there will be no glossy productions and what not but it will be an international sydnicate style setup.
Cheers,
Jacob.‘Stay Happy and you’ll be Perfectly Fine’ – Jack
Sorry – it was purchased in 2004.
The property is in QLD and he paid $188K.
Hi There,
My first input to the forum. So, hello all and thanks to the team managing and maintaining the site. Keep up the good work.I am Turkish, so I thought I might give you guys a background.
Originally posted by quiggles:
If Turkey largely runs on Islamic principles, then mortgages may be illegal. If they are, you can expect no property boom anytime soon. Finally, the foreign investment rules often catch people out- Australia’s are a case in point, but other countries can be much worse.
Big heaps of caution, OK?Turkey doesn’t run with Islamic rules. It is democratic country. Religion and Government is totally separated.
Mortgages not illegal, nor the interest.
There are rules around how much property can be purchased if the buyer is overseas person/company. It is specified in sqm.
Currently there is no mortgage system in Turkey. The reason for this was the high interest rates which used to be up to %70 for years. Current interest rate is around %20, hence the most affordable it has ever been for a while. As a result there is a lot of talk around introduction of Mortgage System. Government is setting up for this currently. It will be great opportunity for a lot of people. As the rate of house owners are really low compared to Australia. However, I believe it is still too early for Mortgage introduction and this may financially ruin a lot of people, as people don’t realise how much they have to pay back with %20 interest for 25 years. They just think that it is the cheapest they have ever seen during last decade, so it should be great.
Currently, you can get a house loan from Turkish banks, but only 5-10 years max. Repayments are really high as a result. And you cant sell the house before paying it off.
I was in Turkey 6 months ago and actively searching for investment properties.
It seems that 2004 was the golden year for the realestate market.
1999 earthquake and financial crisis after affected the RE market deeply. Properties were selling for peanuts. I am talking well under $100k.
All positive cashflow.
2004 was the boom and still booming. I would say max 1 more year to go. RE prices have been more then doubled, some tripled.
When I was there I have seen great returns.
Positive cash flow are easy to find. Commercial property market is unbelievable. I have seen up to %25 net returns.
There are other factor needs to be aware of that Australians not used to. Such as most of the buildings are high rise in Turkey. As a result, you need to be aware of the owning rights on the total title. Earthquakes shake Turkey all the time, building standards are very important and looked at buy educated buyers. Purchasing system is different. Different taxation rules.
There are great positive sides of investing Turkey as well.
– People renting the house pays for any water, elect, body corp fees, etc… As a result received rental return is almost net income.
– Rental demand is incredibly high. There are people ready to pay 6mnts-1year in advance.
– Stamp duty is around %1, and half of that paid by the house owner.
– Government lets you claim a set amount (which is really high) for repairs without any receipts.
– House owners keeps the bond, which might be up to 3 months worth of rent, so you can invest this anywhere else
– Single male rental market is ready to pay a lot more extra.I have also seen a lot more building opportunities. There are heaps of half built house/apartments around, which might be a great opportunity to finish. For eg, I have seen 3 villas in one of the famous summer holiday places. they were all built, however outside needed to be rendered, and full inside need to be finished. All these 3 villas were having magnificent see view. The next door was also selling which was about 10 years old lovely looking finished villa for $135k. And guess what the owner of the 3 villa was happy to sell the 3 for $120k.
Originally posted by quiggles:That said, anyone investing in a country where they can’t speak the language and don’t know the law will get everything they deserve – no money, no property, huge debt and possibly a criminal record as well. I have ugly examples.
I cant agree more. There is enough conman out there to rip you off to bond undies.
Finally, my intentions are not to spam or advertise anything. I am simply giving you guys information about my beautiful country.
Love you all.
Max Ungun
My thinking is a little different.
I think you should take the money now and run.
You’ve learnt some good lesson in what you have done so far and you can find lots of opportunities in Peth.
With cash in your hand now you can divide and maybe buy two projects in WA – there is still growth there now if you are careful.
This is partly a timing issue. Is there still a potential upswing in parts of WA now apposed to when you may get your money back after the VIC project?
And if you are uncertain about joint venuring at this time then you are not ready – and from a distance it could be more difficult.
I’d sell- take the money and go again in WA. You might be surpriesd at the possibilities available.
All the best in whatever you do.[hair2]
Thanks for the supportive words ecatt.[hair2]
I’ve had a look at blocks of land and have spoken to some builders.
I’ve done the numbers and have found that it may be a possibility to borrow the full amount against the value of my home (scary already) build a house on a vacant block and sell within 8 months and keep the difference.risks:
uncertain market
all the $ risk is on me
may not get the house ‘product’ right which will erode profit. etc etcBut I think is could be a possibility if I can get the land at the right price. So see how I go.
The profit will not be huge but given that I won’t be putting any of my own capital in, then it will be ok provided I watch the costs carefully.
I’ve also started to think about my strengths and weaknesses so I can at least start with what works for me and expand from there. As Steve says, start with yourcore knowledge and expand from there.
In addition I’m not looking at this whole property thing as ‘property’ because for some reason it seams daunting to me – big dollars involved, fancy terminology etc all strange to me.
So I’m looking at this whole thing from a different perspective. When I was working full time I worked as a product manager.
For those who have not heard of this job before it involves looking after a product(s) and analysing opportunities, creating product -including analysing costs and revenues), preparing a product release, releasing it to market and then review of results to assist with next time.
Given all this was easy for me, I am now looking at this property thing as just more product releases.
I’m looking at what the market wants, reviewing potential revenues and costs, creating a product (type of housing), selling (or renting if appropriate) and then review.
Looks like selling my own home to free up cash is not worth the effort – that’s fine more time and energy to put into investing.
And ecatt, I think you’re right if others out there have done it – then I can be one of them too.
Sandy
Will be attending auctions soon of the type of property I’m seeking to see what the market is prepared to pay in today’s climate.
In addition I’ve found that there is a shortage of quality rental stock but having crunched some numbers I’ve found that it is the costs that really need to be carefully looked at to make the real estate viable (obvious I know but so much more important today than 1 or 2 years ago).
Providing quality housing may be a goer and I am contacting various suppliers to find out if I can do this at a profit.
Sorry the information is so vague but given that I don’t know who is reading this site there is only so much I can disclose as I go. I guess that is going to be the biggest problem in this commitment to keep a diary on this web site – how to tell all and still not lose advantage.
In addition, I think the goal of $100 new passive income each week is actually bigger than I initially thought (obviously have much to learn) because I am effectively talking about creating about $100,000 new value or new cash.
Oh well, nothing like a challenge to get you going in the morning!
Sandy
Derek and Thomas thanks for replies.
Yes I have thought about all the costs involved and the initial plan was to have $50K left over for investment after all costs including agents, taxes etc. I think it is a possibility depending on how desperate the seller is for the other property but a remote one at this stage so I I’ll keep a bit of an eye out but not hold my breath.
Thomas, I was thinking along those lines but I was going to use the excess $ to invest at this stage as they would not be enough to live off yet. $50K would be the most I would be able to be left with in the downsize. And yes I had been thinking about it anyway.
You probably need to know that I am on a low income. I earn $1,100 a month and don’t plan to obtain further employment in 2006. (Lots more time to invest!).
Planning to start finding out today if there is a possiblity to get the lease agreed to before the investment property was ‘created’. I feel I have to look at this option because the rental returns are so low that it is hard to get an established property to return anywhere near a decent return.
Sandy
Scoped out the market today and found there is a shortage of certain types of rental properties in a certain area.
I am thinking of sourcing a large company that needs the rental and asking what they would like and then proceeding to build based on their needs if they are prepared to sign a long term lease in advance.
Then possibly proceeding if the numbers are still ok even after their lease period.
Anyone done that before?
I have zero $ in the bank. In fact I owe some money on the credit card.
However I do own my home outright and I am thinking of downsizing the home. Drastic step I know given that I can borrow against the equity – but I am in an expensive home and I may be able to find one that is quite good enough and really free up some actual real money. I expect that this first $100 per week of passive income will not be the last.
My plan is to come away from the entire transaction with at least $50K in cash freed up after all costs were paid (including realestate agents, and taxes.)
If I would free up less than $50K then I would not bother.
I have been looking around my area but like many areas today there are no available posiive cash flow properties today. They will need to be made. The best return is 5% – so I am putting my creative thinking hat on but have not found anything yet.
In addition I really do believe that there may be more opportunities in the share market today because the huge babyboomer generation is at at investment life cycle stage and we can see there is no easy money now in real estate so they have to put their wealth somewhere – share market is the logical place.
However having said that I am not really interested in shares so I will be remaining in property and moving forward in this market.
With a quieter market the buyer now has time to really sort the good from the bad properties.
Sandy
It’s hot and the miners usually dig their own holes to live in.
‘Stay Happy and you’ll be Perfectly Fine’ – Jack
Welcome to Vic Straw610. I too have made the move here from WA and also have a wife and small bub of just 8 months.
We live in a very small apartment in Armadale – East Suburbs. We continue to look for prpoerty in the east suburb area. Its got great infrastructure ie easy access to trains (to CBD) and the freeway if you just want to duck off to the peninsula and relive the memories down there, similar to the region of Margaret River with great wineries etc etc etc.
There is plenty of property around. Our focus remains buying for capital gain but also allowing us to do some small reno’s as to not over capitalise but try and add value and get some capital growth. Whilst I think we all read that the market has slowed I have personaly seen property still recently going to sell for a much higher price then what was expected. Im talking about suburbs like Armdale, Malvern East etc, and to us, it just shows if you focus to profit based on the purchase and do a bit of a reno yourself, then you can still get a good price. People will always want to live in great areas/suburbs.
Right now, we looking to possibly off load our current apartment to free up our equity and to go back and rent. The flipside is we’ll release equity to buy more IP. Im still struglling with the concept of dead money with paying rent
Haven’t quite convinced myself to do this just yet.best of luck,
22nd of Jan is no good unless it’s in the morning.
How about the 17th of Feb?
‘Stay Happy and you’ll be Perfectly Fine’ – Jack
thanks folks. I have been back in NZ for the last 3 weeks and have not been around to reply. I will try through a broker.
n speed
LOL why stop at 25 levels?!
Cheers,
Jacob.‘Stay Happy and you’ll be Perfectly Fine’ – Jack
Haven’t quite convinced myself to do this just yet.
