Forum Replies Created
Hi Richard
Thanks for the info
Rudolph
Hi corhig
Thanks for the info. I have an ABN for the last 2 years but will now have to upgrade it to GST. Hopefully I can backdate the gst section to the original listing.Thanks again
RudolphHi Thinker
Personally I would be looking for an off the plan in a high growth area in a small lowrise complex that will be ready in 18+ months. Held with a deposit bond. In doing it this way you can then get revalued before settling which would hopefully have increased in value so that you will need little or none of your own money to settle.This leaves you with more capital to spend.RudolphHi
Stay with your original idea.Pools are a maintanence and insurance nightmare for rental properties.Toy can build a deck over the pool but tis will need a small submersible pump to get rid of surplus water that will get trapped. Otherwise you would need to break up the bottom to allow the water to escape otherwise it would slowly turn the soil sour once it is filled in. Check out your local earthmovers or building sites nearby as they often have soil to dispose of at a reduced rate if it can be taken directly to your site.rudolphHi Pete
how long is a piece of string. Costing will vary depending on council requirements. you need to check the LEP with council. Most council will require a fire proof wll between each unit, separate power (some separate water) 1 or 2 carparks per unit. We are just finishing one in Armidale in NSW 4 x 2 for around $20,000.Hope this helps
Rudolph
Hi
Do you need a building report depend on how well you trust the builder with your money. I know with some builders I would definitrly get a report. What is a couple of hundred dollars compared to your investment and peace of mind.rudolph
Hi Julius
As tyson said they are a reasonable earner, but banks dont like to finance them because they are usually less than the magical 50m2 area.Rudolph
HI wezwaz
As far as I am aware you certainly can. this allows you to build future deposits for IP faster. Some advisors actually suggest that you will progress faster if you do it this way. As you will acquire more land to have capital growth on and this will be more beneficial than the extra payments off your home loan. i'm no expert but this is what I've heard at property seminars I've attended.
Rudolph
Hi Jaz/Chris
Dont be sorry for asking question. I'm no mortgage broker but I would ask your current financer to up there mortgage on your current property, even dare I say pay mortgage insurance to get a 90+% l/v. You can then use this extra cash as a deposit for your home. Some financers will treat it as a separate loan which makes tax time easier as you can't claim the interest for your home.
Talk to a mortgage broker or accountant familiar with property investing rather than a financial planner as they tend towards other types of investments
Remember I'm just an average investor
enjoy the experience
Rudolph
Hi
7.27% is not the real rate when you take into account the $300 annual fee (this is a bit rich I would querie this as mortgage companies are looking for new business).IO is the way to go as you have more chance of being cash flow positive. It also frees up extra money to put towards your next ip or improvements to this one.
IO dont decrease the loan but you still get increased equity through capital growth (property doubles in value every 8 years approx)Your $300k property with $200 loan $100 equity becomes $600K PROPERTY STILL WITH $200K LOAN and $400k equity.
Pre approval is always a good start so you know your price rangeHave fun on the hunt enjoy the experience
Rudolph
Hi
Yes you are right you would have a higher interest payment but remember this is offset by your rental income. I you were to sell you still have to live somewhere and pay rent so the extra $350 + per week disappears with no capital growth.
If you want to rent that's fine Also rent your PPoR then it becomes interest deductable and also can claim on depreciation.It in my opinion is a backward step to sell if you can acheive your goals by renegotiating your mortgage.
I'd be interested to hear other opinions on this
Rudolph
Hi MKC
It could be a bit soon but I would still put in an offer after some research.
have you talked to the agent about reasons for sale is it urgent moving to a new job building may like to rent it back for a while etc . Get as much info as you can. Then research the area well with the seling agent so that they know that you are a serious buyer. This also gives you more information to use in your offer.
Make sure that you present a written offer with your figure stating reasons for the offer such as the falling market and the value of x and y in the area. Remember you can always try it again in the future with the same amount or an adjusted figure.You might catch them at the right time and they will accept.
what have you got to lose go for it
rudolph
Hi Chris.
Is the reason for selling just to get into investing? If so have you thought of getting a valuation done on you ppor and if there is enough equity the arranging for your mortgage to be renegotiated to the higher amount then use this increased funding as a deposit for your next IP.
This way you will have greater property value to get capiyal growth on.
You do not lose money with selling costs.
You stay in your own home.
the increased mortgage's interest will be tax deductible
you can if you want to leave your PPor make it into a rental as well ad then claim all of the interest.
Regards
rudolphHi
after reading your last comment I am concerned that you think you need to sell to invest. Have you investigated no doc loans. Some lenders will give these out with up tp 70% lend if you have an ABN ( these can be obtained over the net with no delay) Some lenders require you to have this number for several months but others have no time limit. As long as you are comfortable with the repayment level. Also remember that most lenders will top up your loan ( for a small fee) to take advantage in the increased equity you you hae gained which is great for the deposit of your next purchase.Dont be put off by what the major banks say if you can find a good deal then you will find the money if you ask the right question.
Enjoy the journey
Rudolph
Hi Kevjosh
We have held the property for 20 months in that time the value of the property has increased by 23% (12+% pa) and a net income return of 5.7% (after tax) The dark side of my investments are my -ve geared properties,
rudolphHi kevjosh
We have a dual keyed apartment in Cairns and am very happy with its capital growth and return. $10,000 +net before depreciation really helps support the dark side of my portifilio
rudolphHi
just 2 quick points.Most of these units are under 50sq metres and finance can be a big problem.
I think demand will increase very soon with our aging population so prices must improve big time[biggrin]
Peter
Hi MIKALA
We have student accomodation on the Gold Coastin a complex of 65 3bed with ensuite units power included Pay extra for broadband connection. complex has pool and gym included. The complex is managed and caters mainly for overseas students. They charge $140 pw. I think the idea is good the downfall is you are very reliant on the manager’s handling of the students and promoting the complex at present our lost 50 USA beds so the complex is only 70% ful and that hurts(‘[angry2]’)Peter
You should already be doing it through voluntary work in the community via sporting groups, Rotary Apex etc
My Q Why should you have loans with different institution instead all with one
Peter
We have just bought two properties in Rocky after discovering a very tight rental market when our son was looking for a unit to rent. It appears that the tight rental market is due to the opening of the new meatworks and the boom in mining. Our properties are also within walking distance to the Uni providing us with the opportunity to rent by the room. we are very happy with the rental yield.
