Forum Replies Created
Yack,
LOL, Not sweating the small stuff, just want to learn the correct way before something “big” occurs. Much cheaper to learn with a small mistake before a big one happens. Will be fixed ourselves.
Holden commodore, thanks for the legal standpoint, it is something I didn’t know.
Regards both,
PKYep, I subscribe to, have done for just over a year I think.
First IP was a 4×2, 4 year old B/T home in Mandurah WA, within walking distance to estury and river. Purchased for $160,000 in May 2002. Just been revalued at $210,000. Rents at $170pw. Is -ve geared (purchased prior to learning about positive cashflow), however the equity of this one has given us the means to purchase other IP’s.
Still have it, it’s extremely low maintenance (no lawns etc, paved areas for parking of boat instead, which suits tenants, that’s why a lot retire down there) and as value continues increasing, we will keep this one so we can keep using the equity to purchase further IP’s.
Mini,
Thanks for sharing the article.
PK
Originally posted by geo:Hi again to all,
Just had a meeting with the consultants of Margaret Lomas – the lady behind several books on pos. cashflow. Towards the end of our meeting, they show how they can help you achieve 10 pos. cashflow investment properties in 15 years – yes, that’s right – 10 properties in 15 years.
Was that 10 paid off in 15 years or 10 still with mortgages?
If it was 10 paid off I’d be very happy.
PK
If you consult your office of fair trading, make sure you consult the NT one and not the one in the state you live as every states laws are slightly different and you need the laws for the state your investment is in.
As for breaking the lease, it depends what your lease says, my ones are ususally fixed for say, 12 months, and after that 3 weeks notice is needed. If we break earlier then we have to pay them what they would have lost in management fees. Having said that, the lease also states that we can give notice if they have failed to fulfil there duties and you may be able to get out of it that way. Have a read of the lease and see what it says.
Bonds – In most states have to be held in a trust account. Check this with Fair Trading in NT as well, as some states (such as WA) have a set office that the bonds must be lodged with and both the owner (or PM if they have one) and the tenant receive a copy of the receipt for the funds. Both signatures are then required when a bond is drawn back out. So you need to know what the laws are for NT first.
Good Luck, I hope it works out for you.
PKInterest???
Do a search on Landlords insurance in this forum, there’s a previous thread listing various companies.
Marisa,
Was there 2 weekends ago. A place I would consider as long as you realise that the yields go up and down with the mining industry ie: if mining industry is booming, your yields will to, if mining industry not booming then yields drop.
A vast range of housing types available so pays to actually check them out. Also, a waste treatment plant is in planning stages for Kalg (to replace the one in Bookdale, near Armadale in WA that was closed down due to illness that surrounding people said they were getting from the plant. Not proved, but it was closed anyway due to public demand). Kalg residents are now up in arms about it, so whether it will happen or not I don’t know, but if it does I believe it is planned to be behind the airport somewhere, so it may pay to keep well away from the airport.
Redwing may be able to help more with actual yield figures.
Regards
PKI always get one done too. I usually do it after settlement and before I do anything to the place as I have receipts for anything I’ve done anyway. Time doesn’t really matter though, but I’ve just found that to be the “least confusing” time to do it.
What’s LOL please?
I check out the ABS site, but I can’t figure out how to post the link here. ???
Beerboy,
Fine to get the opinion of the bank manager, but also remember that his financial plan wouldn’t necessarily be the same as yours ie: many are still conditioned to -ve gearing.
Good Luck
PKCan you have two anti-virus softwares running at the same time? iE: Nortins and AVG? I currenlty have Nortin’s and it has been picking up 3 to4 virus each day, have no reason to think it’s missed anything, however reading above makes me wonder….so can you have two running or do you have to delete one to run the other?
Hi Beerboy,
I’d agree that maintenance and insurance sounds high, but that might depend on the area. Also you said no depreciation, but I’d suggest get a Quantity Surveyor in anyway as things like HWS, Stoves, a/c’s, curtains etc often can be depreciated, but a QS can work out the values etc.
PK
Are you talking about the 11 second rule, if so, have a read of it again, your first two are getting close (but not there), but the other 3 don’t fit it, the rent isn’t high enough.
The rule is just a guide though, so with the ones that are getting closer, spend some more time working your figures and investigating the areas etc.
It also depends on what your looking for, cashflow or possible capital gains too, this may affect whether your willing to accept something that’s slightly negative or not.
Well done on getting started by looking and good luck in the future.
PK
Woolworths Mastercard also offers Qantas Frequent flyer points (can’t remember who asked this earlier in the thread, but there’s the answer), and the annual fees are a lot cheaper than the ANZ Qantas Telstra VISA.
Sorry Georgisj, yes they are +ve cashflow. IP3 is only jsut positive but in an area where I feel it may also get some gains over time (as it’s paying for itself, any gain will be an added bonus here). IP4 which I’m waiting to see if offer is accepted is definitley +ve cashflow but don’t feel there will be any chance of capital gains on that one.
AusProp, I think you could be right, I believe you need a credit providers licence in WA to be able to do wraps etc and that’s a form of vendor finance. The Department of Consumer and Employment Protection Agency (or whatever they are called nowadays, used to be called The Ministry of Fair Trading) would be able to clarify.
I guess you could say she gets a reasonable benefit because if you guys split she can still take you for her share through the courts. That’s reasonalbe isn’t it? SOunds terrible I know, but I’m sure she would benefit. We have a negative geared house in my husbands name only and a positive geared house in my name only but all loans are in both names. We’ve never had to sign anything like that though.
As to whether it should be in just your name or both names, that depends how long it will be negative geared for and when you plan on selling, retiring etc. If it’s only negatively geared for a year or two and then it with rental increases etc it turns around to be +ve geared then it might not be worth while as you’d be paying the higher rate tax on the porpety for the next few years until you retire or sell the porperty in 10 years time.
Is it too late to see your accountant and get them to do a forecast over 10 years so you can see when it might change from -ve geared. It’s only a forecast as assumptions will need to be made regarding inflation, possible rent increases, interest rate changes etc, but it’s a starting point.
Also what I do on all contracts when buying is state that the buyer is “MY NAME and/or nominee”, then in the conditions on the back of the offer I put ” The nominee is MY HUSBANDS NAME”. This then gives me time before settlement to work out the figures over the next 10 years to ascertain whose name it would be best in.
