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propertunity
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September 14, 2011 - 1:35 am
Terryw wrote:
Make sure that the vendor will accept a deposit bond as many won't. 10% cash is standard
Yes, I second this.
I was bidding at an auction on behalf of a client in Leichhardt a few months ago and another bidder was trying to register but was turned away by the auctioneer, as he was wanting to use a Deposit Bond.
This was not acceptable to the vendor on the day. The intending purchaser should have sought approval 1 – 2 days beforehand.
propertunity
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September 25, 2010 - 10:04 pm
Ninh1000 wrote:
Wat is passive and active etc etc can some explain, does it meanbuy and sell quick etc
Passive means to buy a house and do nothing but put in tenants to help with the holding costs. You just let it sit there and go up in value over time.
Active means you do something to it. Maybe you renovate it to add value. Maybe you subdivide off the back yard and sell as a block of land or build a house on it to sell or to keep. That kind of thing.
propertunity
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August 30, 2010 - 5:50 am
Yes, bear in mind too that sub-divisions can take 12 months minimum to even be approved. Therefore any lease in place now is likely to be expired by the time the machinery arrives on site to dig sewer & water lines etc.
Just let the tenant know when it is likely to being close to being started and she can decide if she wants to move or stay on at a reduced rental.
propertunity
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August 6, 2010 - 6:08 am
We have purchased in there for clients before. There is the new part and the older part. Capital Growth historically has tracked that of Campbelltown in Sydney. You can get a suburb profile for free from RP Data here: http://www.myrp.com.au/showProductDetail.do?reportTypeId=1&propertyId=
propertunity
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August 6, 2010 - 6:02 am
Ask the kit supplier. They get asked this a dozen times a day. Then call a couple of the builders they recommend and get the truth from the horse's mouth.
propertunity
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August 6, 2010 - 5:59 am
If your 1brm unit is greater than 50m2, then sure buy it – no problems.
There are problems trying to finance smaller than that.
2brms are probably in better demand but good 1brm in the right location are fine too.
propertunity
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August 6, 2010 - 5:54 am
quickchick wrote:
Maybe a small block of units which you buy in one line, not strata titled, may work.
These almost never show an 8% yield.
Loans are almost always commercial not residential and therefore are lower LVRs
The purchase almost always tips the purchaser into paying Land Tax
…probably won't work.
propertunity
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August 6, 2010 - 5:49 am
scotts wrote:
Can I get some advice of whether its worth spending $250 fee to free up $240.47 a month in extra cash flow?
You're kidding right?
Spend $250 once to get back $240 per month for the next 5 years at least…….I don't think you need help with a decision like that
propertunity
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August 6, 2010 - 5:45 am
A bit of background, rough rule of thumb:
Costs to run an IP:
7% mortgage
1.5% property manager, rates, insurance, mtce
Income
0.5% depreciation write back (if newish)
Rent needed to be cash flow neutral = 7 + 1.5 – 0.5 = 8%
Good luch finding a rental property not too far from the beach showing an 8% gross rental yield.
The only possibilities:
1. Buy a run down shack at nearly land value, do a really cheap reno that will bring it up to the value of other properties around it.
2. Tip in a huge deposit, so you have a small mortgage
3. Buy a dual income property – a tunkey apartment (3brm that conn be closed off to create a 1brm self contained + 2brm self contained)
4. Along the same lines – a house + flat on one title
propertunity
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August 6, 2010 - 5:36 am
Personally, I prefer a flat fixed fee. If you pay a BA a % commission on the purchase price, what incentive is there for them to negotiate the cheapest possible price?
propertunity
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August 6, 2010 - 5:31 am
You need to take professional accounting advice.
In the meanwhile read the free booklet "How not to be a property developer" on http://www.bantacs.com.au
propertunity
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July 19, 2010 - 10:06 pm
the_kurniawans wrote:
Then, it is of no difference of having dummy bidders, which is illegal in Australia?
No, not really. Dummy bidding is illegal….and you don't necessarily know who is doing it. A vendor bid is announced as such and made by the auctioneer – so everyone is clear what it is.
propertunity
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July 19, 2010 - 2:05 pm
the_kurniawans wrote:
You are buying your own product!
Well obviously the vendor is not going to buy his own property as he already owns it. Which begs the question, "then why let the vendor bid?"
propertunity
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July 19, 2010 - 1:49 pm
the_kurniawans wrote:
what's the purpose of allowing the vendor to bid on his own property ….
You tell me and we'll all know. I think it is the most ridiculous thing to allow a vendor bid – it's insane. I'm supposing that REAs like it, because it gets the auction "moving" if it is stuck.
propertunity
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July 19, 2010 - 6:01 am
http://www.stayz.com.au is where a lot of this is advertised.
propertunity
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July 19, 2010 - 6:00 am
M Y wrote:
How can I be sure that this is so. Do I just call up council and ask them.
Yes, call and ask.
M Y wrote:
What did you do? Did you end up buying the property anyways?
Yes, purchased at a discount. It was only one dud property next door though – not a street full. Also now, that owner passed away and there are new owners who have fixed it all up.
M Y wrote:
Or should we not care about the other properties.
Yes you should care. It does affect value (both real and perceived).
propertunity
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July 19, 2010 - 5:47 am
the_kurniawans wrote:
Thank you. And what is the difference with passed in after vendor's bid?
As Scott said, "Bidding on the property failed to reach the vendor's reserve price," even after the vendor made a bid on thier own property. So in effect, no-one at the auction thought it was worth more than the vendor's bid and it did not reach reserve.
propertunity
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July 19, 2010 - 5:44 am
lisamills wrote:
I was a bit taken aback by the fee (2 day training course at $2950) plus if I need assiatance with property acquisition it will cost $5990 (includes the training in this price).
For that kind of money, you can tell a buyers agent exactly what you are looking for and he/she would go out and deliver it to you on a silver platter. There is a lot to be said for outsourcing these days.
Or, if you are so inclined and have the time, you can read and study up yourself and just be a DIY kind of investor.
propertunity
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July 19, 2010 - 5:39 am
harrip wrote:
Hello I purchased an investment property on 9 July 2010.
Congrats!
harrip wrote:
I was looking to obtain a depreciation schedule on the property, but an accountant advise I may have to wait until the next financial year to be able to obtain the deductions. Is this correct?
No, you will be able to claim deductions in the 2010/2011 financial year.
harrip wrote:
I have to complete a monthly IAS for the tax office, so could this possibly prevent me from submitting the PAYG withholding variation form that I believe is usually used to obtain the tax benefit now rather than waiting? Thanks.
No that won't prevent you – do it now (do both now )
propertunity
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July 14, 2010 - 9:24 pm
housegoodies wrote:
Does the structural guarantee transfers to the next person when the property is sold say within 1 year of construction?
My understanding is that the builders warranty is transferrable. Why not give the HIA or MBA in WA a phone call just to confirm?