Forum Replies Created
Elvis,
Have you spoken to the council. I was thinking about this, It’s possible that employment exists due to tourism, so perhpas it would be worth chekcing with the council what theri plans for tourism in the area are for the next decade or two.
PK
Scremin,
No it’s further, just past Harvey. Don’t think you’d need the wrench. Just don’t blink as you drive through.
I think if the jobs happen in wagerup, the bigger towns around Wagerup might be the better options for IP’s but that’s just my uneducated opinion as I haven’t looked into it at all.
PK
We’re into a balance I guess.
What we earn off investments goes back into investments at present so that it keeps growing for the future. But what we save from wages we use to live on and have fun, we make sure we have a holiday every year, sometimes local (as in driving distance somewhere) and sometimes overseas but always need to have a break.
We’ve never been big into eating out, but do enjoy a few drinks etc and don’t cut ourselves short for that. I guess our social life revolves around family and kids at present. Must be time to throw a party! And to book that trip to Bali!
I think everyone needs to have a bit of fun along the way, but everyone’s idea of fun will be different.
PK
Well, I’m not a guru, but from the little info that you can provide without giving the town away it sounds interesting.
If I were you I’d certianly look inyo this further as it may be +ve cashflow now and may have capital gains in the future but it does depend upon a few things I think: Is the mining site the only employment for poeple in the town or are there other types of employment as well? If the mining is the only thing, then what happens if the mine closes? If other things, are there enough other things to substain the town should the mine close? What is the mine’s life expectancy?
The international airport is interesting, could provide lots of possibilites, have you checked with the council whether they have tourism of any kind in mind now or in the future? Is there any accomodation in town for tourists?
The size of the population doesn’t bother me, but I’d try and find out what portion rent and what the vacancy rates are. Is there a real estate agent in town that does property management?
Well, enough from me, you initial post sounds very intruiging, if it was me, I’d investigate further.
Good Luck
PKThanks, appreciate you reply.
Coldy, I’ve say read, read, read, everything you can get your hands on and then work out what method would work best for your circumstances.
FOr some -ve gearing say suit better, particalurly if they are on a high income and do plan to work more many years to come and need the tax breaks while waiting for the gian. FOr others, +ve cashflow owrks better as it gives you income now that you can use to fund further properties, or if on a low income then it helps your sevicibility levels with the banks.
So read everything and then decide. Personally I suggest Steve’s book whihc you’re reading (or have read and I’d recommend readind “Building Wealth through Reisdientail Properties” by Jan Somers. I’ve heard Margaret Loams books are also recommended but I haven’t read hers yet so can’t comment but I’d say read lots and then work out your plan.
I like what Steve has to say in his books but I also believe others have fair comments too and it depends on you risk levels etc as to which road may suit you.
Regards
PKHi Tink,
I’m sure your tenants will think you’re a fairy, but if you think it’ll help keep your tenant doing the right then go ahead.
Yes, this topic did cause a bit of debate last time, try doing a search on gifts or rewards and see what comes up, you might be very interested in that thread.
I tend to only give a gift at Christmas time to say “thanks” for the year, unless something out of the ordinary has happened in between ie: we were putting up a fence in 41 degree heat and lo and behold our tenant came and helped us. Took all day, was very dirty, and tiring work (I don’t think I’ve ever seem so many tree roots) and he missed watching the car racing on TV which we know he really likes to to watch. As far as we were concerned he went well above what can be expected so we bought him a carton of premium beer there and then! a carton seemed small for a days work but he was thrilled, he hadn’t had any money left over for himself for some time (single dad with two kids) so he really appreciated it.
Ultimately, though we are all different, some respond very well to positive reinforcement, for others it would make no difference, if they are going to do the wrong theing, then they still will do the wrong thing.
Good luck.
PKNo need for apologies, hope you’ve caught up with the sleep now though.[sleepy2][sleepyanim]
Thanks Redwing, looked it up today (I’d never heard of it before). Turns out I would have driven through it many times on holidays going south.
Still, have to finish the deal we’re on first before I start looking again, otherwise hubby will get greyer. Just like to look into all these things, sometimes they aren’t for me, sometimes they are, but don’t know unless I look.
I believe if we miss one, they’ll always be another one.
PK
As an aside isn’t it better to get onto the wave early rather than later – the challenge is to pick the next ‘wave’ and not find out where the last one was. Derek.
Definitly, that’s why I said that we’d done well in picking properties that have growth in the previous 12 months, but perhaps we need to be looking for those that haven’t had that growth cycle yet for the next 12 months. When a lot of properties have sold in an area then I have found median property prices to be a reasonable guide.
I also agree that median prices are only an indication and other factors affect these, however, they are still one of the guides available that we’d be silly not to look at and consider. But it is just part of the “homework” needed whne buying.
Redwing, you were lucky to get a hold of Saturday’s paper on Monday, glad to hear your areas did well. Ours did too, so I’m happy. [biggrin] Was the offer on the new one accepted?
Good Luck everyone
PKAll sounds reasonable except:
I wouldn’t recommend getting a personal loan to pay out your mortgage as I can’t see what that would achieve. You still have a liability as far as the banks are concerned as they take all loans into account and the interest rate would be higher than a mortgage. Therefore I think you’d be able to pay out the mortgage quicker by leaving it as a mortgage.You can have more than one mortgage ie: when you are ready to do your second IP then you’d approach the bank and ask to borrow the full amount of the new IP and use the equity you have in the unit as your security.
Good Luck, and well done for considering different ways you can achieve your goal.
PK
Well, did everyone get Saturdays West and read teh “Property Report”. For those that didn’t I’ve listed the growth for the last 12 months for the suburbs we’d all listed in this thread (I think we listed half the city!!!)
I know this is the past and not the future and it was the future we were talking about, but it was interesting anyway.
Leederville 40.7%
Mandurah (central) 32.2%
Quinns 35.3%
Armadale 21%
Rockingham 29.8%
Waikiki 32.8%
Ashfield 28.1%
Midland 17.2% (note units went up 50.6%)
Golden Bay 30.6%
Westminster 30.3%
Balga 27.7%
Morley 27.5%
Warwick 19.6%
Greenwood 26.3%
Yangebup 27.5%
SouthLake 21.7%
Ferndal 27.3%
Lynwood 21.4%
Queens Park 27.5%
Rivervale 25%
Kewdale 33.2%
Kenwick 24.2%
Scarborough 21.5%
Subiaco 5.8%
Bicton -6.8%
Coogee 2.6%
Wembley 18.8%
Wembley Downs 32.3%
Thornlie 23.3%
Langford 23.4%Do note that this was 12 month growth and some of these areas had showed -ve growth over the last three months.
If seems we all picked growth suburbs well, based on their previous performance but could tha mean these areas have had thier cycle of growth and we should perhpas be looking at different areas altogether ie: those that haven’t yet had this type of growth.
Just food for thought!
PK
Thanks Westan. I’ve never heard of it, but will get the map out!
Well, Saturday’s West Australian had the property report in it and WA still seems to be holding. Slowing of course but out median price has continued to grow, now at $247,000.
Having said that there were a few areas that had negative growth over the last quarter so perhpas that’s the start of the lull. But well, every things cycles, will just continue as per our plan and be there when the next cycle comes around.
PK
Lovely place for a holiday. WOuld you be looking at as short term rentals for holiday makers or long term for locals, not sure how the latter would go?
Redwing was probably tired, check the time of his post! I odn’t want to speak for him, but I think he might have been thinking of Esperance rather than Exmouth?
This is an interesting thread, any accountants out there that can provide any other info?
going off on a tangent: What happens if you have “pre-possession” written into the contract, the property is then availalbe for rent prior to it being settled, so can you start claiming earlier than settlement?
Ezy,
I wouldn’t want the seeler to hand me the reports even if it meant the cost wasn’t mine. If he’s got a mate that’s a termite inspector or a building inspecotr or whatever, he may be able to get reports that look better than what is “actually” there.
I’d always want one that’s as independent as possible, or as Mel commented, it’s marked to me so they are liable to me!
Lambsie,
I agree with Kay Henry that I would not buy a house that needs restumping, rewiring, new roof etc. (But others make money this way by buying at reduced prices, it’s just not for me). However, termites, I wouldn’t rule out altogether as long as they are eradicated and any damage fixed to my liking, if not, then I’m off. Having said that, it depends on the report, if the house has termites that can be fixed but they state there are ares they cannot check then I’d be wary as there could be more hiding, however, if they are able to check everything and no others can be found then I’d still consider it.Good Luck
PKGet your unpaid defaults paid off first before taking on additonal committments.
PK
REad teh lease you signed, what did it state for payment of rent etc, are they abiding my the conditions of the lease, if not, then perhpas reminding them of their contractual obligations may help, otherwise you could seek legal advice.
I don’t know anything about the mob you are with so can’t help there, but do start by reading the fineprint of the lease to find out what your rights are.
Regards
PKHi Lambsie,
Firstly, when you make a mistake in a post, you can go back to the thread, find your post and then press the edit button, you can then add, delete etc.
Now, I can’t answer all your questions but I’ll tackle the pest inspector one. Unless you know the pest inspecotr then there is no guarantee and even if you know them they is no guarantee, however, most pest inspectors would love to find termites as it means more money for them ie: the owner then has to cough up to have them eradicated otherwise you probably won’t buy the house. I never use one the owner recommends (in case it’s a friend of the owner) who may then overlook the termites.
I have used ones the agent recommends (others will probably tell you not to, to find an independant one) but in both cases they found termites and the owner then paid to have them eradicated. In the most recent case, the owner is also paying to have a bearer under the floor replaced.
So, even if there is no guarantee ie: they could miss termite activity especially if it’s in a wall cavity, I believe they will try and find any activity if it’s there as it means more pay to them for the job.
A good termite inspector will get under the floor in older style housing however, you may need to pay extra to have trapdoors cut if there aren’t any already cut, I’d recommend this if they ring and ask if you’ll pay for trapdoors (this is how they found the eaten bearer in the current purchase).
Hope this helps.
PK.
