Forum Replies Created
Hi Will,
What I’ve found over the last 11 years I’ve been living in the area, is that there are good spots and not so good spots. I pick my investments in the area very carefully to do avoid certain spots.
I think sometimes it makes more sense to rent where you want to live and buy where the investment makes sense, however you really need to crunch the numbers on this to make sure you are coming out ahead.
With the properties I own in the area, I self manage 2 and have the others across 3 different real estate agents. The issues I’ve had with the properties managed by agents is they don’t seem to follow up with the tenant on leases renewals due to tenants not getting back to them. My self managed properties I had issue with 1 tenant who didn’t vacate on time and another tenant who broke a lease early but refused to pay rent until a new tenant was found. However in saying that I’ve had these issues with properties that are 3 minutes from Brisbane City as well so I wouldn’t say it is a Logan issue.
Hi Will,
Yes you are definitely right about properties in Logan being snapped up quickly. To be honest I’m seeing people offer some ridiculous money for some properties that just seems too high.
I live in Kingston and have properties in both Woodridge and Kingston. I think the type of tenants you get is very much dependent on the property manager or in your case just vetting the people thoroughly. I am just unsure about the demand for rooms so can’t really comment on how much that would help you.
Cheers
RudraHi Will,
I live and invest in the Logan area and I think a lot of it will come down to how much you want to spend and whether the house will be purely a stepping stone to your next property or if this will be an actual home.
If you want to rent out rooms then you probably need to decide what type of people you want to be renting out rooms as that will affect the location you buy in.
With regards to the DIY idea, I’ve done a few and yes there is a chance to increase value as long as you buy right and don’t over capitalise for the area (I’ve seen this happen a few times).
Cheers
RudraHi Serge,
Just to clarify under the present planning scheme for Logan City Council I don’t believe you can rent out a granny flat separately. The council currently says the main house and granny flat must form 1 household. This is expected to change with the new planning scheme where they will be introducing dual occupancy (dual key). However it is now with state government so there could be a change, I’m currently waiting to see what happens.
Cheers
RudraHi Jamie,
Thanks for that, I've got an appointment with my accountant and solicitor to discuss this. I was hoping to be able to deduct the investment stamp duty as I worked out it would bring the cost back to that of a owner occupied stamp duty.
Cheers
Rudra
Hi Richard,
Thanks for that, I think I had a similar thought and realistically will have to wait about 2 months before we will have the savings and equity available.
A Discretionary Family Trust is something I have considered as this will probably be the first of many IP's we purchase together.
Look forward to meeting up with you and everyone else during the Property Know How Club meetings.
Cheers
Rudra
Hi Terry,
Just looking at the TrustMagic book at the moment and noticed the pricing of it ($99 Hardcopy – prefer that to the PDF version), would like to know your thoughts on the book before I go out and buy it.
Hi Aussie Guy,
I agree that the prices of these new developments are on par with the old queenslanders which are closer to the city. However if you look at house prices for established houses the same distance from the city as these new developments then there seems to be a significant price difference (between 50k to 100k based on my research). As a first home buyer even with the FHOG and the rebates being offered you would still be required to come up with an extra 2k to 7k as a deposit (assuming they only wanted a 10% deposit).
I think if they want to promote new houses then builders need to start getting realistic about the environment they are operating in. I recently got quotes from about 6 different builders for a granny flat and was quoted from 60k up to 140k, that is a huge difference and makes me wonder if they really want the work. I also know of a few people looking to build houses but the run around they have been given by builders is prompting them to look at the established market to save time, money and a lot of hair pulling.
Hi Nguli,
Yes I believe it has already kicked in, very interested to see how it affects prices.
Hi,
We recently had our PPOR valued and was advised by the valuer who did the inspection that built in robes do increase the value of the property. That being said I'm not sure in terms of dollars how much of a difference this made.
Cheers
Rudra
Hi Chris,
My PPOR and current IP are with separate banks so there is no cross-collateralisation and the new property will not be cross-collateraised with any of the existing properties. What I am doing is getting a loan form my current bank and taking that money to another bank for my 2nd IP.
I recognise my serviceability will be hit, but realise finding positively geared property will be hard given at this point I am using equity as the deposit. I earn a decent salary and as such my lifestyle won’t be comprimised by having to contribute a small amount which I have worked out to be between $150 and $200 a week based on conservative rental returns and an interest rate of 8% (I always look at worse case scenario). Taking into account negative gearing this would be reduced to between $70 and $125 per week.
Once my mortgage is paid off which I expect sometime in 2012 it will be a lot easier, as I can put my money into the IP’s.
Cheers
RudraHi Richard,
Thanks for that, looks like I’ll have to wait a little bit longer before I can go down that path unless I do voluntary contributions. Look forward to reading your e-book on the topic.
Cheers
RudraHi Chris,
I will be using equity for the deposit so essentially I am borrowing 100% plus costs, I guess the real difference here is where funds are secured against. Do I try secure a majority against the new IP and pay LMI or do I stick with the 80% and use the equity funds for the 20% deposit and costs.
Cheers
RudraHi Catalyst,
Thanks for that, realistically I’m not in a great rush to expand as I am only 24. However what I have found is recently is that I will find property that according to my calculations are close to neutral but can’t act on it as I don’t have the funds at the ready. Hence what i was thinking is to buy my 2nd IP in the first half of next year with a LVR of 90% which will leave enough left over to be able to act quickly at a later date if need be. The money would be sitting in the offset account so I’m not paying unnecessary interest on it, but is quick accessible.
Cheers
RudraI’m not an expert on this but how you obtain funds to do a renovation on an IP should not impact the claiming of depreciation. No doubt some of the more knowledgeable people on this forum can confirm that.
Cheers
RudraHi Richard,
Just out of curiosity what do you see as the minimum amount required to buy property via SMSF?
Cheers
Rudra RadasandaranHi,
I just listed mine on Gumtree and paid the $1.99 to be listed on page 1 and received 686 views in 3 weeks with 5 replies via the form on Gumtree and about 10 phone calls. I think it is definitely worth it given it’s free to list with an option to pay if you want to highlight your ad etc…Cheers
RudraI am in the exact same situation as you both and also live in the Logan area. It’s a very tricky situation as the council website does not have information regarding high set houses and dual occupancy. The Logan City Council classify dual occupancy as duplexes etc… however this was just on their website and you would need to obtain further information from the council. I am actually in the process of trying to find someone in the council who can assist me with this.
If i hear anything back or find someone I shall let you know.
Cheers
RudraI’m very much in the same situation as you mixedup and have been considering whether to get my next IP in my name or in a trust. While not married at this stage, I am investing with my parents to assist me in building a portfolio to assist both them and I. Will definately be doing my reading on trusts to get a better understanding.
Hi Paul,
Just double checked and it should have gone through just then. Also I would be very interested to know how many situations of a house with an attached granny flat you have come across. Also as a slight side note, I’m currently working on a project to split the upstairs and downstairs of my parents place. Our plan was to rent the upstairs (2 bedroom, 1 bathroom), while living downstairs however we want a separate letterbox for the upstairs, do you know if anything needs to go through council for this?
Cheers
Rudra
