Forum Replies Created
Hey, Tanyaa
What general area are you in? Would help you for accountant recommendations. I know what you mean, have been to (former!) accountant for advice, had him fluff around because he didn't know, and then received a bill for $350 for his non-advice!
Time to change accountants! A 'conventional' accountant will probably advise you to hold, so you don't realise a loss.
Problem is, 1. things could get worse in your area, eg price drops, or harder to sell due to ? interest rise.
2. you can't buy a good deal meanwhile, because your borrowing is maxed out.You don't need an accountant to tell you what to do, so much as clarify the numbers of each option so you can make an informed decision for yourself.
(I'm fascinated with Scamp's approach…. if you truly feel so bearish about real estate all over Australia in the short and medium
term, why do you bother with anything to do with property investing?)quickchick
Perhaps you could have plans drawn up, and sell it with a D.A. But this may take months to get thru council, and whether you can afford to wait…
"The" market is a fallacy in my opinion, there are several markets within each capital city. Your local market may go up, down or sideways in the next yr. You may have a strong opinion on your local market, but if so, can you afford it if you're wrong?
If the above good suggestions of ways to afford to keep it don't work for you, selling now even at a slight loss (eg agents fees, legals) may be better than waiting, holding and then selling when you have no choice. or worse, the bank forclosing on you if you can't make your repayments.
If you decide to absolutely stretch yourself and borrowing eg thru low-doc loan (maybe higher interest loan) to build and sell, be very careful as you need to be able to service the loan.If you do decide to sell now and cut your losses, don't beat yourself up. Regard it as a learning experience, and cost things more carefully next time!,
For sure, worth asking your accountant's advice.Good luck,
quickchick
I am sure you can access the property, with the agent of course, either the day before or day of settlement. It is your right to check that all is in order for settlement. As far as advertising pre settlement, I can't see that he can stop you… but they can stop access by future tenants, even with the agent. Why he'd want to is hard to comprehend!
Your solicitor/conveyancer and real estate agent should be able to advise you in this regard.quickchick
Hi Howie.
Sorry your investment is not going as well as you'd like. Not always easy.
If you can find a better investment that will make money, rather than lose money, may be well advised to cut your losses and sell. We have a negatively geared property that we are selling at the moment, because it loses us money every year, and the sales price has gone back $50,000 in the last few years (Western Sydney).
Some other posts have been knocking the concept of paying for education in the property investing field. We have paid all up, maybe $15,000 so far. Ripped off? No, far from it. We made $176,000 profit last October from a property that we owned for 18 months. And it gave us $100 income per week, after paying the interest on 105% mortgage, while we owned it.
I would never have stumbled across this property without the education. I'm not that bright! I consider it money well spent.
The income from our positive cash flow properties saved me from having to work while my mother was dying.
I'm so glad we'd gone down the investing road before then.There's nothing wrong with learning from your mistakes, we have.
Next time you buy a property, have goals in mind first, and don't just anticipate that the property market will keep going ahead. It doesn't always.
Don't give up, though. You can become successful in your investment. Put in the time and effort, and (gulp) money to learn first.Quickchick.
Hi Matt.
I have been to Kiyosaki on the Gold Coast (2003, I think.) very inspiring, but when I finished it took me 3 months and a lot of frustration to find my first cashflow-positive property.
Have done a share trading course, not as easy as it looks, and need to spend $14,000 or so to further my education. (Which I'm happy to do, but need to see some results first.)
Have done a property options course too, felt pumped by the end of the day, but the data to do anything was going to set me back hundreds of dollars a month so never did..
I'm currently doing the RESULTS programme (with Steve Mcknight and the propertyinvesting team.) Only been going for 4 weeks, and as an "experienced" investor already with several cashflow positive proerties, I'm learning heaps! I wanted to go into developing, and wouldn't do it without a mentor. Which I have, and lots of accountability buddies, thru the programme. Obviously, I need to buy my first developing deal and see it work, which will be the proof the course works.
Like finding my first positive cashflow property, it's NOT easy, and takes time, personal development, and effort. Oh, and you do have to buy property, too!
But I strongly recommend the RESULTS course, and Steve's seminar April 11-13 2008 was great, practical info in digetible portions! If you haven't been to it, it costs about 1/10 of Kiyosaki, and is more applicable in our current market in Australia. You can say it costs too much for the year long RESULTS programme, but you can stumble along on your own and it may cost you much more! (Year programme costs about the same as a 3 day seminar with Kiyosaki.) And you have a mentor as part of it, and access to the whole team (eg I spent an hour on the phone with Leon today, who has 40 yrs of developing experience!) Real, live property investors who are ahead of us in the journey.
Another mentor may or may not volunteer their services for free, anyway. They make too much doing what they do best, to spend time with a stranger who wants to pick their brains!
Worth a thought.
Good luck in all your ventures. Just think, you wouldn't become an engineer without spending $10,000's of HECS fees. Its not a bad thing to pay for an education.
Quickchick.
We have a great conveyancer who is organised, efficient and knows her stuff. We have used her several times, both for private and investment use, and recommend her highly.
Jean Galloway. 02 4647 9855, mob 0413 310 499.
Based in Harrington Park, near Camden, but makes no difference (she did a purchase and sale for us in Gunnedah!)
Reasonable price, excellent service.Ruth.
Re: risks in mining towns.
We've got property in Dysart, which is performing well. (Cash flow positive on loan of 105% of purchase price.)
I mitigate risk by only buying in mining towns with more than several different mines in the area. Then every 3-6 months, I check the ASX website and look for info regarding the expected life span of those mines. I also have a great agent in the area who posts up- to- date newsletters every few months, on how things are going.If you keep up to date with the area, you can lessen your risk. Steve is looking for a higher profit if he looked at property in mining areas, because of the inherent risk ie. if mines shut down, industrial accident, etc. These towns wouldn't survive without the mining industry.
