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I attended their 2 day free Real Estate Mastery program where they were selling tickets for Advanced Real Estate Mastery for $4,850.
Hi simbacat,
First of all, welcome to the forum.
You should look at converting to interest only loan. This will reduce your minimum monthly payments but does not stop you from making additional payments.
With regards to refinancing, without knowing the property value and loan amount it is hard to provide any suggestions.I agree guys. I am concerned about the future of our economy. Interest rates may have gone up 6 times but the average interest rate under John Howard is still 5% lower than average interest rate under labour.
I pay 14-18% interest (depending on the amount and the period of investment).
PM me for detailsHi pyramid,
That is a ridiculous quote. You should look at changing the solicitors. I have used The Property Practice for my NSW deals. They are based in Collaroy. Their contact # is 02 9981 7800 or thepropertypractice.com
Ask for Jock Kennedy. They charge around $900 + Disbursements.I have got Hybrid Discretionary Trust set up for ~$400 and company for ~$700 through an accountant.
Hi eller,
I think the decision will depend on your investment timeframe. I think in short to medium term Adelaide will be as good as Brisbane. Adelaide has one of the most affordable house prices amongst the capital cities. Also, SA has got uranium mines and will continue to grow for some time on the back of resources boom. However, over a longer period of time, I think Brisbane will perform better due to the increasing internal migration to SE Queensland, better infrastructure, etc.Hi Phil,
First of all, welcome to the forum.
Its an interesting point you have raised but there are few things you should consider:
1. You should consider income from rent. What are the projectiosn if you assume a 5% yield.
2. The capital growth you have taken are very conservative. What are the projections when you use a more realistic growth of around 8-9% (this is based on long term trend including the 1980s and early 1990s when interest rates were high).
3. What happens if you calculate cash on cash return rather than return on the total value of the property. As an example, lets say we buy $450k property. To buy it we need 20% deposit ($90k) and the rest is borrowed. What is the % return on your investment of $90k?
PS: To do more accurate modelling you should consider other buying costs like stamp duty, legals etc and ongoing costs like rates, body corp, etc.Would be interesting to see the new numbers.
probably worth reporting to jenman.com.au
Make sure you include enough clauses to get out of a deal if too many of your offers get accepted. Personally, I don't have more than 2-3 offers at any given point in time and always have date/time after which my offer is not valid.
hi shanshan,
7-8% +GST is common for ongoing fees.
You should be able to negotiate a better price after shopping around a bit. Where is the property located? If the property is located in a city/town where rental market is tight, you should be able to negotiate simply because the property manager do not have to work very hard to find new tenants.Hi Boy in Blue,
Good on you. Make sure you organise a depreciation schedule to maximise the cashflow.Try Depreciator (http://www.depreciator.com.au).
It should be the responsibility of Body Corporate.
Hi Da Man,
Firstly, congratulations on your first IP.
You can use Depreciator (http://www.depreciator.com.au). I have used them couple of times and found them very prompt.
Is the property established or brand new. If its brand new, you can give the building contract to the QS but I prefer the QS to go to the property because sometimes everything is not mentioned in the building contract.
Because the property is in Sydney suburbs, I think the QS should be able to provide the schedule within a week or so.
Good luckhi hamoracci,
Welcome to the forum.
I had looked at the opportunity sometime last yearThe pros are:
* Long leases (usually 3-10 year leases with annual CPI adjustments).
* Hassle free investment (the management company does it all for you).
* No vacancy factor and therefore continued income.However, I dropped the idea due to the following reasons:
* Limited capital growth
* Low LVR (around 60%-70%)
* You cannot add value to the property because you cannot do anything with the investment. The only option is to lease it to the student accomodation management company
* The gross yield appears good but usually there are a number of expenses (sinking fund, body corporate, management fees, etc) that eats into the yield. The net yields are usually not as good.
* Because the leases are multi year, you only get CPI adjustments for rent. Sometimes when the market moves strongly (like right now) you can get better than CPI increases but with such arrangements your increase is capped at CPI.Hope this helps.
Hi John,
Even if you increase the rent amount to $230, I am guessing your property in Ringwood will be negatively geared. If yes, why would you want to start the negative cashflow on your property sooner. I think you have done well to negotiate a longish settlement in Ringwood East. The market is moving nicely in that area. Feb 08 is still 3 months away and by the time you settle, the market should have moved up by around 3-4% (based on recent performance). This is where you make the money because you have not settled on the loan and therefore have not started making any repayments. Feb 08 fits in perfectly with the availability of painter/landscaper as well and therefore you don't have to worry about any vacancy. You will do well to negotiate with the vendor to allow early access so that the painting and landscpaing can be done just before settlement. This obviously means the tenant needs to vacate the property 1-2 weeks before settlement (which should not be a big issue).
I know this is not your preferred option but this is what I will do.Hi Beck70,
With the market so strong at the moment, I would be surprised if you are not able to sell the property without offering 20% deposit. The question I have is – are you expecting bit too much for the townhouse?
May be you should consider dropping the price a bit.
But to answer your question, offering 20% deposit will make the purchase appealing to more people and therefore improves the chance for sale.Hi tuggerwaugh,
You can amend your tax returns. I think you can amend the returns within 3 years.
I think Stamp Duty is included in the cost and therefore used for CGT calculations but Mortgage Insurance can be claimed as an expense over a period of 5 years.As Tony Robbins says, we make decisions to avoide pain or gain pleasure. From what you are saying, he does not relate any pleasure with property investing. You need to find the pain he is associating with buying property and try and address those pain points. It may be he needs to be educated on property investment. Take him to some property education seminars (not the one's where they try to sell their products/properties). He might get interested if other people are talking about it and he can socialise with people who may have made it "big" with properties.
Besides that, I agree with Marc. Present property investment as a business plan to him. Do comparisons with other investments like shares, business, etc.
