Forum Replies Created
Terry, for CGT purposes can we choose between "% of time as IP" vs cost-base before it changed to a PPOR? The tenants will be moving out in 2 weeks so in total it would have been rented out for 4 weeks (2 in the last financial year). The property will be my PPOR for at least a year (FHOG and WA grant requirements) after then I'll move out and make it an IP. If I sell it 5 years from now can it still be exempt from CGT? Thanks.
Can't you use a Handover Inspection for that?
+1
Even a 12-hour clause is fine when you sense that your competition will be busy with DD. I know cause I lost to one
Several weeks later, that property is back on market. Me calls agent to check – the competition couldn't get finance. Luckily, I found a better one Replying to my own thread.
I've some feedback to share.
1) Pest Inspection – Pesti Pest Control, used him twice. Does an excellent job, also skilled with general building condition advice. Recommended.
2) Building Inspection – Used Archicentre on one and Resicert on another. Similarly priced pre-purchase inspections. Both of them are fairly thorough but in my experience I found resicert to be better, picked up on many more things.
3) Surveyor – I haven't used one but heard/read that Land Division are good.
Do you guys have any recommendation for a sparkie and a plumber?
Cheers,
Thanks for that, Shahin. I'll start searching for a good Conveyancer. and a building inspector so that when I do find something I like, I can move fast.
I heard that, I can actually setup the finance all-ready to go even before I find a place? Will such a thing, if it's true, reduce the final processing time?
Nigel, I agree with you. I am still not dead-set on this strategy but when I look at it as a black-box that takes my money and after xx months spits out what I want, they seem to be adding up. I am also thinking, for my 2nd property, why not just build in the big backyard(subject to council approval etc). Looks like, that may result in a greater ROI. It may also be easier(I think) to convince the lender to give me an extra $150 grand for the next IP rather than $400k. While I am at it, why not build 2 units (1 after the other) and rent them out, the ROI would be ~12+%. I am sure there are lot of things to consider in a scenario like this but I am working on it.
As for equity growth, I am still not sure how building multiple units in a block of land will add-up to the total value of the property?
Thanks for the all information, guys.
I need to start work on an execution plan for my strategy. First step would to be build a team. I understand that one needs the following professionals for things to go smooth.
1) Conveyancer – Helps with the buying process. Do I need a solicitor for standard home purchases?
2) Finance Broker – Takes care of the finances.
3) Buyers Agent? – Are they worth the money?
The Finance broker doesn't have to be local. Any implications in that?
How about things like, building inspectors, surveyors, valuers etc?
Any recommendations in Perth?
Is there such a service where I can get a "fast" second opinion on a property and it's suitability for my strategy?
Also, I like numbers and analytics. Where can I find detailed numbers for sale prices in a suburb/street. I know of residex, RPdata are there others? Any feedback on Residex's MarketFacts subscription? I read that these are reported numbers rather than "true" figures. How accurate do they tend to be?
Thanks everyone, this forum is a real treasure in plain sight!
Thanks Shahin and Jamie. Your advice is invaluable.
I was reading an article that said 83% of investors only have 2 IPs and ~13% only 2-4 IPs. You guys got me thinking, I need to plan for the first 5 properties. Like most things in life, it wouldn't go as planned but better plan rather than get stuck.
Let's assume that I get my first one for under $400k but to get funds for the second one, I either need to save more (can only inject 20k to 30k per annum) or do a renno like Jaime suggested.
I like the idea of renno and re-value to get more equity. Let's assume, I inject 20k into the renno and manage an equity of 50k (this seems to be possible, depending on the place – not really sure though). I draw on this newly created equity and get my second property.
As my cash injection alone won't give me a fast enough growth rate – my second property needs to have a high CG? to get more equity for my third one? High CG only means negative gearing? Or can it be a cash-flow positive property so that it won't affect my serviceability and can quickly move to the third one?
As Shahin suggested, I am planning on taking a 95% LVR loan (with LMI capitilization) on my first property. That'll leave me some money for renno. For the second property, can I convince the lender to consider my rental income on the first one and the second one?
I guess, what I am trying to find out is "how people keep convincing banks of their serviceability to keep adding to their portfolio?"
So far this is my idea of a first property
-> 4/2 with a big-block and potential for a battle-axe sub-division and/or renno
Second property:
-> High CG or CF+ property
Third propriety:
-> if second one is CF+, then a high CG one or vice-versa.
Fourth one? Fifth one?
Thanks guys.
Several weeks later, that property is back on market. Me calls agent to check – the competition couldn't get finance. Luckily, I found a better one 
