Forum Replies Created
Hi Domo,
I believe that when there are no tenants in your IP the agreement between your and the PM is no longer binding. I have twice ditched PMs for too long a vacancy and had no problems.
If you have to ditch a PM for lousy performance I would ammend the notice to quit the agreement to 1 month.Not much use if next year your asset is worth say 10% less. I’d stick to ING for the 12-month period !
Hi Allen,
I keep cash,tomorrows deposits, backup survival funds or what ever you want to call it in an offset account against one of my IP loans.
Hi,
Be careful. A lot of “renovators†fool themselves that their renovations have added huge value to their properties. Mostly, the capital gains have been attributed to an upswing in overall property values whether they did renovations or not.
I‘m not saying you can’t make money out of renovations. You can!
I‘ve noticed that the people who do really well out of renovating do a lot of it themselves. They buy before the market gets going (see para 1) they stick to a specific budget / timeframe and they know exactly what they have to do to get their price.A friend of mine who has renovated a lot of houses said recently (tongue in cheek)that he wanted to buy a fully renovated house trash it and sell it for a profit to would be renovators because everybody would think it was a bargain because it was trashed! Mind you this was during the last property boom in Sydney when anything sold for top dollar and everybody wanted to renovate! He also says that during quieter times renovating usually returns costs plus 10 % “hassle†factor.
Now that the market’s cooled you would have to be very careful renovating for a profit I reckon.
I think Westan you’ve got it right and you’ll do ok out of it too.
…….If you can buy ahead of the crowd and then flog them off that is where the money at!………Not holding these remote headaches for years and years with the eventual maintenance / tenant issues that WILL come with time.
Most will tell you +ve cashflow is the only way to go. Forget about –ve gearing and praying on a capital gain it’s too risky. Hmmmm……
I see +ve cashflow props out the back of Burke as the biggest risks in property investing for exactly all the reasons you outlined!!!
Hi Dee,
Separating / divorce whilst still being financially connected aint such a good idea IMHO. When I divorced I split our net worth down the middle and gave it to my ex.
Believe me any financial deal you have together will be quickly overturned once a new partner comes on the scene.
If you can stay financially connected and good friends about it I would go back over the problems that caused you to want to separate and see if you can fix up the relationship!!!!!!
Yeah, I’m with you Baloo. I would keep an eye on vacancy rates, yield etc and make your move when the market is truly heading in the right direction. (Maybe 12 to 18 month wait IMHO though!)
Hi Da Man,
I too am looking at beach side suburbs (one in particular) in Sydney. My advice is always be careful of buying units. They are easily replicated when demand gets hot therefore curtailing capital gains somewhat. My brother lives down at the beach in Sydney and cuts articles out of the local papers regarding real estate. It appears there are massive plans in the pipeline for more units down there (possibly to cope with all the baby boomers in a sea change frame of mind). Also the fact that you want to pick up an older unit might leave you with a difficult to rent property as most tenants are quite fickled in their choices and will always try to move onto the newest building in the area.
If you want a reality check get the Manly Daily newspaper and check the for lease section for Dee Why. This suburb has a particularly high density of units and there’s literally hundreds of units to let. My brother has a 1 bedder down there and it’s constantly a pain with high turnover and rent defaulters so much so he’s put it in the hands of a PM.
IMHO I would not purchase anything less than a duplex/ townhouse down there. Sure you might pay more but with its associated land content you’ll win on capital gain.
Sheeesh Yack keep posting !
If there’s anybody who I can draw parallels with in my investment philosophy it’s you mate.
Yes, I seem to remember the “to let” sign at the front of this place during renovations…………….if you get my drift……..[biggrin]
My accountant went for one of these and at the end of the lease sold up and did very well out of it. That was a deal struck 2 years ago and sold 6 months ago.
At this time in the cycle you might not get any real capital appreciation and more than likely a value drop as the house moves from brand new to second hand status. Also the rent in the real world might not be anything near what the builder will pay you today if you decide to hold it.
Hmmmm,
Real Life.
Marital assets are assets of a husband and or wife no matter when they were accrued, no matter who contributed to them and no matter whatever entity they’re held in.
Marital assets are split upon a divorce.
You will be asked by your solicitor to disclose your TOTAL assets / liabilities. If one hides the fact that they have assets squirreled away in difficult to trace entities and the other party can prove the fact that you have an interest in them then the judge can come down hard on you.
For example, the judge might decide that the assets you did declare go 70/30, which in effect, take into account the other assets you chose to “forget” declaring!
Risky business but people do it and get away with it.Hi Lucifer,
Holding your assets in trusts etc wont save your butt either.
……………unless, of course, your ex doesn’t know about it…………
[biggrin]
I have heard of a story where one guy converted most of his assets to cash went to the casino and converted it all to chips (over a period of time) placed a few bets and converted it all back to a number of casino cheques and later, after the divorce, cashed them in.His solicitor claimed he had a gambling problem and lost most of the couples assets!!!
[biggrin]Hi Monopoly,
Tell me about it! When my solicitor told me that last bit I snapped!
No offence taken. Divorce can certainly be a pretty crappy time in ones life.
Glad to hear you’ve moved on and found someone great.
In a nutshell TOTAL net assets held in a marriage (super, assets in a trust, out of a trust, your name, her name, jointly held etc etc) after a reasonably long marriage are divided by 2 and that’s what would be yours in the split. Other things that can change this 50/50 split are
1) Children to the marriage and their ages.
2) Length of time out of the workforce (raising kids) and their ability to get back in
3) Health issues
4) A very short marriage
etc etc etc
Exclusions are things like recent inheritances, gifts etc they too will take at least 2 years to become the property of both of you.See a solicitor just to discuss the settlement if it did go to court and use that figure as a starting point.
You both can agree on anything as a property settlement literally anything. His solicitor/ friends/ family will advise against it but if you both agree the consent orders can be drawn up and validated by the courts. This also applies to child support. You can even do your own divorce for $250 (maybe more now) through the family law court if you want to. These are not myths because it’s exactly what I did.
PNA’s and FBA’s will only work if they are fair. For example the agreement could be that the assets bought into a marriage remain the assets of the individual. Anything acquired during the marriage goes 50/50.
Also agreements like PNA’s and FBA’s can be overturned if something changes to disadvantage the other person. For example one of you become extremely ill and spend all the money acquired during the marriage fighting this illness. Chances are the agreement will be overturned.
Oh, and just to add, even when you are divorced and things go wrong for your ex you have a duty of care to them as well (spousal maintenance)…………..
I have NEVER had a tenant mow a lawn or look after a garden to anything I would regard as satisfactory. I remember one of my properties, I complained to the PM about the lawns not being cut and the next time I saw it was mauled to the dirt!!.
Pay for a gardener, get it revalued and let them live in it with the lawns to the eaves!
[biggrin]Kay henry,
We’re built differently I suppose. I’ve been investing since xmas of ’86 and always purchased property when others didn’t (slump market) and done OK. One thing I’ve learnt in property is that many techniques work. Mine has and I hope yours eventually does to.
1) Work out the best ways to hold your properties (tusts etc).
2) Work out exactly your temperament with real estate investing. 130 properties to me spells a logistical nightmare with low SANF. Someone else might see it as a challenge.
3) Buy slowly. As your knowledge develops you might look at other things like sub division potentials etc.
4) Never sell is true most of the time but sometimes selling to release funds for something better isn’t a crime.
5) Try and understand what your accountant, PM, Solicitor etc do. Don’t just leave it up to them.
6) Don’t overdo this real estate thing too much otherwise you might end up divorced. (like me!)[biggrin]Hi BBG,
I remember the last boom. The guys who went into real estate too hard and too late in the cycle got burnt the worst.
Where are we in the current cycle?……….hmmmm.
