Forum Replies Created
Hi there
could I just put a rider on Goulburn due to the water shortages – they are on very tight water restrictions – it may not be a good long term investment
thanksHi again
http://www.realestatesecrets.com.au
is the website for anyone wanting to do a compare and contrast. Wanelad – you will see that what you are paying for represents 543 hours of work to prepare material on 24 DVDs which each run for over an hour plus the additional written material.
I would agree that Hans and Steve have much in common – they are both Accountants by training and are both advocating the positive cashflow approach to property investing. But both have moved on from the 90's where a property could drop into your laps for a yield of 10%. I note that Hans book How to be Rich and Happy was first published in May 1998.
It is important to note that both are advocating more creative approaches to achieve the positive cashflow – and both are more into developing property to achieve that end.
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HI there
It may be the property taxes referred to are the stamp duty payable to the state government (which is levied on the contract or the transfer of land – depending upon which state you are in) and also land tax (which is levied at various thresholds depending upon the entity purchasing the property – depending upon which state you are in).
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Hi there
by the way Raddles and Robyn Davis are one in the same
We did have our meeting on the 27th May and had 6 people attend
The first part of the session dealt with shares then we discussed property.
Can fill you in if you contact me
thanksHi there
if you are looking to Toowoomba for lifestyle – would have to say it is a good choiceI am speaking as the wife of a RAAF member for 20 years who has been posted to most states in Australia and also overseas to the USA – Toowoomba would have to be one of my most favourite places. It is an excellent place to bring up children given that there are so many choices for their education. There is a university and TAFE here. Brisbane is 1.5 hours drive away and there are buses which travel up and down the range to Brisbane, the Gold Coast and Sunshine Coast on a daily basis.
Our mayor, Di Thorley is also pushing for the rail to service the area.There is always something on at the showgrounds and there is a lovely historic theatre in town, the Empire Theatre, which hosts a lot of the shows. Gina Jeffreys and Geoffrey Rush are some of the entertainers who were raised in Toowoomba. The radio commentator Alan Jones went to Toowoomba Grammar.
The sporting facilities are great – and if you did a medal count from the last Commonwealth Games – Toowoomba would have come eighth on the rankings.
The annual carnival of flowers in September is worth seeing – even when there is a drought.
The water issue is the downside but everyone I know are buying tanks and having it plumbed into their house. The tanks are the huge concrete inground tanks as well as the smaller slimline versions. Every new subdivision has to address the water issue and all have to have tanks. Adjoining shires are also coming on board with innovative ideas to resolve the issue.
If you want any more comments or suggestions where to buy – just contact me.
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Hi there
will try and answer some of your queriesInterest on a mortgage will be deductible if the property is an investment property. It is not possible to deduct interest on a property which is owner occupied – though if some one has a home office in that property – a proportion might be deductible.
As to acquistion of property through deeds – that is a system known as old system title. We have a system known as Torrens title which a buyer gets unchallengable title once registered upon the title. It is not necessary to prove a chain of title to a property to become its owner.
There have been new developments in finance here – which the brokers can probably give you more details on – some are cashflow mortgages which have the lower interest rates at the outset.
There are definately low doc and no doc loans available which once again a broker can advise you on. You will pay a higher interest rate for the privilege.
Foreclosures – most mortgagees will have a reserve price to achieve so I don't believe that the property will go for pennies. It may certainly go for under the market price for similar properties.
The real estate agent will normally be acting for a seller and doesn't act for the buyer. There are dedicated buyers agents who are real estate agents who act for a buyer.
Negative gearing is definately touted for higher income earners but from a serviceability aspect a positive cashflow or positively geared property is preferable.
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HI there
I think you do need to get some legal advice tooThe community legal service where I live (Toowoomba) used to have solicitors who would fly out to visit isolated parties and would also conduct interviews with people via video conference facilities. Is there any way you can see if those sort of facilities are available to you?
If you Caveat a property – you can potentially end up in the Supreme Court – having to justify your interest in the land. It does sound as if you may have some equitable interest in the land – but that really does need to be worked through properly. You do need some advice on the Deed you are being required to sign – as you could be denying yourself some important rights.
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HI there
I would agree with some of the comments above – if you are purchasing in Toowoomba as an owner occupier – prices are very reasonable – but if you are looking as an investor – the comment from our property manager was that the developers are bringing in too much stock at the moment which means the letting agents are having difficulty filling properties – which means the rentals are lower.
I have just had a tenant give notice and we are having to list the rental at the same price as 12 mths ago in the hope of getting a tenant.
That said however – the interest in Toowoomba has definately been picking up. I attended an open house on the weekend and was speaking to the agent who made comments that there had been a lot more inquiry recently compared with a few months back.
I note that I attended a property seminar which suggested people may live where they want to holiday and just have something like a unit to stay in the city. Toowoomba was nominated as a possible tree change location for that scenario with the Sunshine Coast and Tweed Coast as possible locations for people to live. So – provided they can get the water situation sorted – it should be a good long term investment. Education is still the major industry in town and you have a lot of people posted in and out due to the Oakey Army Aviation base. There is a large retired population in town and the medical services are being improved all the time to service that population.If they ever get the train to service the Toowoomba area – it will be excellent.
thanksHi there
A Lessor can charge the tenant for all consumption where individually metered and there is a term in the
agreement.
Your lease is a contract and unless there is a provision which specifically states that you can deduct water expenses from rent received (which could put the tenant in arrears) – then you are not permitted to do so under your agreement.
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HI there
when a business likes this breaks up they do have arrangements between the parties as to what happens with debtorsI would think it is an issue for the parties to resolve – not for you to have to pay twice. Can you send a copy of your receipt for the bill to whoever is sending you the invoice and say if they need to resolve debtors – they should approach the party you paid.
Then at least you have done everything at this stage to resolve the issue – I wouldn't be paying again and if a debt collector comes knocking – tell them what has happened and that there is no debt owing. You would have a very good defence if a debt collector was silly enough to start proceedings against you.
As for an accountant – can I suggest you do a search of the old threads as this question has come up before
thanksHI there JTW
I am certainly not trying to make any of this personal – and I think you a right to feel cautious, skeptical and be tight with money.I was just trying to answer the question put by renabelz if anyone has done the Hans Jacobi course and are they using the methods propounded. As the answer was yes – I was trying to give the author of the question some information about what was included in the course – the down side of the material – and whether it might be worthwhile.
I found the course extremely comprehensive – it took me a solid month to get through all the material forwarded – and I do think it represented value for money. There is also a money back guarantee if people are not happy with the material.
I note that I have met Hans and his daughter Stephanie at another property course in Brisbane and both are very genuine people. Michael Yardney and Bill Zheng also Tony Melvin were some of the other presenters at the same course – so I am speaking as someone who has been investing in property since 1987 and has attended courses and read material.
If you look at some of the posts by Michael Yardney on the Somersoft forum you will see that he still pays for his self education and attends courses – and if he feels as if he learns one new thing from the course – then it is worthwhile. I am of the same opinion.
thanksCurrent provisions under the Residential Tenancies
Act 1994
Sections 89, 90 and 91 of the Act outline the rights
and obligations with respect to service charging, for
non moveable dwellings. Sections 91A and 94 are
special provisions about water charging.
Under the current legislation, lessors are required to
pay all outgoings for the premises, with the exception
of service charges, which include water charges.
Tenants can only be liable to contribute to water
charges if the premises are individually metered or
if water is delivered by vehicle. In addition, the
Residential Tenancies Regulation 2005 requires that
the written agreement state that the tenant must pay
for water supplied to the premises.
The tenant does not have to pay for a quantity of
water for which the lessor should reasonably be
liable. Although this amount is not defined in the
Act, section 94 (3A) does set out factors to which
the Small Claims Tribunal, and by implication the
parties, must have regard in determining the amount
payable by a tenant for water consumption. Tenants
can be charged for water (if individually metered or
delivered) if their use is above a reasonable amount.
Determining this amount under the current
provisions relates to:
• the number of people allowed to reside in
the property;
• information about water usage in the area;
• whether water saving devices are installed; and
• other responsibilities under the agreement the
tenant has which may require water usage,
such as gardens.
The Act also states that the tenant does not have to
pay an amount for outgoings that are more than that
charged by the relevant authority for the quantity of
water supplied. The Regulation also requires that the
tenant must pay the amount within one month of the
lessor providing a copy of the documents outlining
the water charge.
Hi JTW
your comments are noted – but I would say that we easily recovered the costs of the course as a result of the negotiation skills learned – when purchasing properties subsequently.What I also failed to mention is that if you purchase the course – you also have a personal consultation by phone with Hans – at a time convenient to you to discuss issues of concern – and you also get sent other similar such interviews so you can learn from others experiences.
As I highlighted above – you will get much of the same information from other sources but the benefit is it is in one set of reference material. The presenters are all accounting and legal professionals who do a good job explaining for example where trusts started and why they are used, the various options with wills and estate planning, how you prepare for a finance application and what the solicitor does when undertaking your conveyancing. It is just a different medium for receiving the material than reading it in a book.
I have been to other courses and have not felt the need to purchase any more material given the reference material that I already have.
I do think utilising the forums is a good idea because you can vent your issues or discuss options with like minded people who can raise points you may not have considered.
It does come down to a personal decision and a personal preference how best you absorb material – if you are a reader – yes you can get the other material – if you are more visual – then perhaps this is a good option for you. I note that I had done a lot of reading of books such as the Kiwosaki books such as Rich Dad, Poor Dad, had read Jan Somers book but still felt that the question and answer presentations in the DVDs were good for someone just starting out. It was good from my husband's point of view – because he tends to get me to read the material then get me to summarise the points rather than read it himself. He could watch the DVD's and then stop it and ask questions if he didn't understand the point being made.
I am not trying to sell this course – particularly on Steve's website – but I just don't want someone bagging it from ignorance.
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Hi there
I have actually done the initial Hans Jacobi course at a time when we were considering where to invest for our next property.I know it is a lot of money but I don't regret getting it – because it is not just limited to property investment topics. The program starts with looking at your structure to buy – in this case property – takes you through the process – including the inquiries to be made and how you do your due diligence. Trusts are discussed and so are estate planning issues. Some of the presenters on the program are Dale Gatherum Goss, Dympha Boholt – who are well known in the wealth creation game. Other presenters were mortgage brokers and solicitors.
Consideration is given to self managed super funds and one of the DVD's is devoted to tricks for young players. One of the best pieces of information we obtained on the DVD's was how to finance the purchases to avoid cross collateralising your investments. The final DVD highlights that once you have made your wealth – perhaps it is time to give back to your community.
The benefit for us was that both my husband and I could sit down and watch the DVD and stop it – discuss the issues and see how it relates to our situation. We have also shown it to family members particularly when talking about testamentary trusts.
The only downside is that a lot of the information relates to the period in the late 90's when it was possible to get a property with a yield of 10% – it is different nowadays and Hans latest programs are more into the value adding aspect of property.
As we already had property, we could claim the course as a tax deduction as it was increasing our knowledge. We did use the information and have since bought two properties utilising the information obtained.
I do agree you will get similar information from a lot of other authors – but for us – that was a very succint way of obtaining information that you would get from a financial planner as well as people who are in the property side of the wealth creation game.
There is also a lot of other information that comes with the course including checklists for landlords (if you want to self manage) and clauses to use in your contracts – there are also books to read which hopefully give you a positive mindset.
Yes it is lot of money – but those of you who have not done the course – cannot really judge how useful it can be – particularly when you are undecided on your next steps.
After undertaking the course – we set up our own trust structure – sorted out all the wills side of things and had a better idea what to look for to achieve cashflow and how to negotiate to get the best deal possible. It was actually after Hans course that I got onto this site and the Somersoft site.
thanksHI there
Can I say it does often depend upon the body corporate what information is sent out – there are specific requirements to comply with and then there may be additional information – depending upon what is happening – if there was a proposal to drastically increase the admin and sinking fund – you may see the income and expenditure at the AGM to see why the increase
The information you require would be available in the body corporate records – you could try and get a copy from the manager or otherwise pay the fee as a lot owner and go and do an inspection of the records.
thanksHi there
we had a 30 day contract for a sale in Canberra – mind you it didn't settle on time because the Purchaser's bank was still sorting mortgage documents when settlement was due
I reminded the purchaser of the terms – that I could withdraw from the contract or have him pay penalty interest – it was very quickly sorted out from there
so I suggest you put 30 days down – as that should be a sufficient time to allow the purchaser to make their enquiries and satisfy their lender's requirements
thanksHi there
that definately is the sort of thing that is done for an exit clause – the only other thing you may want to think about is what if one party passes away and the other's estate needs to resolve issues – similar principles apply. You might also want to think about what insurance is in place for each of you – to ensure that there is money for any payout or to fund mortgage payments in the event of one party not being able to work.
If you have a joint venture agreement prepared for you – a lot of those sort of issues should be covered.
thanksHi Noni
when you did your conveyancing searches – was a body corporate search done – as a lot of the information you have requested would have been evident if a search of the body corporate records were done?
You may like to review information on 2 BCM sites that we have dealt with and consider well run to do a compare and contrast – also see the information you can get from those sites – some of which may direct you to the information you require
thanks
Hi there
have you any relatives over the east side of the country?In our case – our first IP was actually interstate but it was near my husband's family – so when we visited them – we did our inspections and bought a property – it also meant they could keep an eye on it for us and any subsequent visits we did, we could claim some of our costs if we also did an inspection and undertook some maintenance of the property.
Perhaps you could do something similar?
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HI there
without doing an actual property search – if you are interested in a particular area – why not ring the local council and get them to let you know the average rates for the area – they may also have some financial information on websites which you can review
thanks
