Forum Replies Created
Foundation
You speak like you have the wisdom of someone who is 1000 years old, i’m not knocking just very impressed by your replys
Cheers Rick
Monopoly, my favourite game
nkibel
4.5% return that would be bad in that area.
My mate just bought a property there for 130k
and is getting $190 a week rent good clean brick home.Thats 7.6% returns.Cheers Rick
Monopoly, my favourite game
Corey
I agree there is plenty of land and capital growth is not going to be the strongest case for melton, but if you are trying to get some property that is almost +cash flow and is unlikely to go down in value due to its already one of the cheapest areas then it make sence . small deposit little money in after rent and possible growth. Not a bad option if you ask me.
Or you could go my a mansion in toorak put half a million down as a deposit pay a couple of thousand a month on top of the rent just to meet the payment , in return over a long period if you can afford to keep the property make really good capital gains.Not haveing a dig , I just belive that you wouldnt go wrong if you invested in melton.
Cheers Rick
Monopoly, my favourite game
Wow Foundation,
That is excelent about the best stuff I have read for a long time, I cant belive it but know that what you are saying is true.
Just one thing I would like to add, the only reason we have not had a huge crash like 1990 all ready is a cobination of low interest rates and consumers living of equity that they have in there over priced homes . How ever this will catch up over the next couple of years.
In 1990 people didnt live of equity but it seems to be pretty popular at the moment.Cheers Rick
Monopoly, my favourite game
Buy Buy Buy
I cant undersand why it is so cheap myself but it is the cheapest suberb in melbourne. All the new development from 2 major motor ways are heading quickly toward melton it can only go up in value.
Plenty of infrastucture , no real reason for the price except still plenty of land between melton and melbourne. But that is quickly being developed.Cheers Rick
Monopoly, my favourite game
Sounds good to me, They are out ther , go buy it before someone else does.
Cheers Rick
Monopoly, my favourite game
Hi PP
It was nice to catch up with you the other night, we have talked about this subject before and I know that it is difficult but when around people that are negative to theses things it is better to not talk about the subject.
I only know this to well, I have to hold myself back some times because I want all my family and friends to be able to do what I am doing, but they are just not interested.It frustrates me so much. Thats why it is so good to be able to catch up with people that you dont even know but share the same interests , just talk about what you are doing and share ideas.
I have no dout that you will be so successful in your first developement project and in investing in general, keep up the good work.Cheers Rick
Monopoly, my favourite game
A cheaper option is put chicken wire nailed over the weather boards and render over the top , I have seen this done a couple of times.
If you just cement sheet the insulation might be poor.Monopoly, my favourite game
I got an investment loan with the national bank for 5 units with a 20% deposit.But most lenders at the time told me it is a commercial loan and wanted 30% deposit. Just keep trying
Cheers Rick
Monopoly, my favourite game
Dont buy it.
I cant see you doing well out of the deal. there are appartments everywere in the city, what is so good to make it a good deal if you are loosing $300 a mounth. Remember that this property is the best it will ever be when you buy it off the plan so it can only go down in value, unless there is some capital growth in the next few years. Look at buying property that is under valued put a bit of an effort in and you might achive some growth just buy value adding. Appartments in my opinion will loose money over the next 5 years. Be careful, there are a lot of propertys to make a little money on , but to buy a property that is brand new the only way to make money is capital growth and that has finished for city apparments for awhile.Cheers Rick
Monopoly, my favourite game
Hi Jenny
Nice to see you on the forum its been awhile.
You may have to sweeten the deal.e.g. first mounth free rent , put foxtel on for a year,offer to pay for removelist.
The same has happenend in city appartments in melboure , there has been an over supply.Cheers Rick
Monopoly, my favourite game
Why demolish, can you just dual occ.
Monopoly, my favourite game
Dazzling
I sold it because at that price Im only getting around a 5% return. I think I can put the money somewere else and make beter returns.
Cheers Rick
Monopoly, my favourite game
What a legend
Monopoly, my favourite game
Property Passion
The esay way to finnace owner builder, is to get a line of credit facility on your property for as much as possible if this money will do half the project then start the project. Once you run out of money get the banks to revalue the hole job , by that timr there will be a lot of value added and providing you can afford the payments the bank “in my opioin” ( I say this because there are to many political correct people on this forum that will put there 2 bob in) the bank will give you the money.
I have done a few like this and it always worked for me . Sure there is the chance that your bank wont want to do it but there are plenty of banks that will refinnace to get the business.
The nat has always been good to me for these types of projects.Cheers Rick
Monopoly, my favourite game
I agree with Micheal if you have an architect that is good they can add a lot of value to the job. Be carefull that there design isnt to over the top for the area causing you to have expensive building costs (over captalizing for the area).
I would still see if they can do a better price.Cheers Rick
Monopoly, my favourite game
Tell him
That you have had a couple of other quotes , and that he is a little high but you want to use him if he can match one of your other quotes. You will find that most people can move on there price if you put it to them nicely.
Let him know how much he is out by and ask him to match the price. If he says no I cant do any beter tell him you will have to get back to him. Ring him a couple of days later and see if he can come back in between his price and your other quote.
Just play the game till you get him around the price that you feel is right.Cheers Rick
Monopoly, my favourite game
On the first deal
Loan is $100,000
so you must leave at least $125,000 in the deal.
$100,000 in the loan plus
20% equity (in most cases) so the numbers look like this.Banks hold %20 equity plus loan amount
Loan amount $100,000
%20 equity $25,000
Total equity banks hold $125,000
So avalible equity would be as follows.$400,000 property value
$100,000 loan
$25,000 on top of loan amount for equity
$275,000 avalible equity.Hope this helps
Cheers RickMonopoly, my favourite game
Ozi
You remind me of a engineer I work with , he is very thorough in everything he does. He looks at something in side out before opening his mouth, and when he says something you can bet he knows what he is talking about.
I am a maintence fitter and have worked with engineers all over the world , but he is one of… if not the best I have worked with.
I dare say if you make a choise to buy in buffalo it will not have been without you looking the hole situation inside and out.Cheers Rick
Monopoly, my favourite game
P&I loan is prinsipal and interest repayments and
and interest only loans means that you only pay interest on the loan , so your loan never decreases, this make your payments cheaper so you can free up cash flow.
I dont like interest only loans it sounds scarey to me , but Im a chichen when it comes to never paying some thing off.
Interest only loans can work good when property prices are increasing quickly it allows you make minimam payments and quick capital gains.
But if prices dont go up for a few years it can be a waste of time .Monopoly, my favourite game
