Forum Replies Created
Peter
I take on board what you are saying but I think you may be missing my point.
Very few properties in metro areas would be positive after tax.I didn’t say positively geared properties were in plentiful supply in capital cities, but there are definately some in amongst all the real estate on offer.
Those that are would be either new units (where there are big depreciation allowances) or short-term accomodation. The yield might be 3-4% and tax/depreciation benefits might give you another 5% (if you’re on the top rate).True, but it will still turn out as positively geared. The units do not necessarily have to be brand new either. A 3-4 yo unit would still attract large depreciation.
The capital growth of these properties would not necessarily be as good as -ve geared houses in good suburbs.Again, you are probably correct, but if it is costing you less (than a house in better suburb) and making you money from day one, you are getting the best of both worlds. I never said you would get incredible CG, just maybe better than regional/rural locations
Even some regional areas with neutral or positive properties might do better (especially if your income is average or less and you want to own several properties).Do better in what way? Do you mean more money in the hand or CG? I am not advocating (like Ms Lomas) that people only buy +ve geared properties – just that there is the option to diversify your portfolio with more than just +ve CF, -ve Geared and neutrally geared properties.
I do understand that peoples incomes and situations preclude them from -ve gearing/+ve gearing many properties.It is my strategy to get properties of all these types in my portfolio.
‘Eat rich food, barbeque a yuppie’ [greedy]
Why don’t you call Russ, he says he’s got plenty to sell in WA.
Although, I am an Eastern Stater, I know those areas very well as my folks live on a farm in Cookernup (Harvey). I was actually born in Harvey too.
I know what you mean about the areas though. My relos are R/E agents in Harvey and you think I might get some inside info, but there has been 9/10’s of bugger all go through that’s even close to +ve.
Don’t give up.
‘Eat rich food, barbeque a yuppie’ [greedy]
Is it arsenic dust? It sounds like it for the price.
If so, you will need to warn your tenants about the dangers and make sure their kids get no where near the fence for a while.
‘Eat rich food, barbeque a yuppie’ [greedy]
Spot on Sis (as if you wouldn’t be!)
Positive gearing (a la Margaret Lomas), takes into account depreciation to make it +ve CF. The building needs to be post 1985 to get building depreciation and you need a Depreciation Schedule done by a Quantity Surveyor to get both building and Fixtures/Fittings depreciation.
The idea with positive geared props is that once you have dispensed with most of the depreciation (5-10yrs), the rents should have increased enough to turn it into a +ve CF property.
The trick is to find a +ve geared property with good yield and this will happen for you.
Basically it dispells the notion that you need older rural properties to give you cash in the hand. You can find +ve geared properties in capital cities – therefore CG should be higher.
Am I making sense.
‘Eat rich food, barbeque a yuppie’ [greedy]
Originally posted by _se7en_:The Gordon Highlander are lucky to win a game.
The club sold their prime real estate to developers for next to nought, and have now a crappy licenced club that takes the lifts ages to get too.
I know what you mean. When I played there they were going through a purple patch and were winning alot – that was a while ago. I actually played with Andrew Mower. He and I were breakaways/flankers in 3rd grade. He was only 19 or 20 then. He then got bumped into first grade and now plays for the Scottish test team.
The Waratahs always dissappoint, so i no longer go to their games.
Have faith man. I can never not support them because they lose a few games. They have shown plenty of spirit.
The Brumbies have always been the best side in super 12, and are leading the comp this year.
True, I would love to see them and the Waratahs in the semis. I think the Bulls and Stormers are the teams to watch though (unless they play in Aust.).
‘Eat rich food, barbeque a yuppie’ [greedy]
Hey Rubbachook. I am starting to get a big head now. I have been scrolling through some posts and you are the latest person (one of about 10) to agree with what I am saying on some topic.
Either I have become fabulously smart in the last couple of days [grad](doubt it) or someones trying to pull the wool over my eyes![fear]
‘Eat rich food, barbeque a yuppie’ [greedy]
Where’s your IP?
‘Eat rich food, barbeque a yuppie’ [greedy]
Your spot on Chan.
Gordon in the local Sydney comp
Waratahs in the Super 12
and of course the mighty Wallabies.Go you good thing!
‘Eat rich food, barbeque a yuppie’ [greedy]
Why do you get filthy drunk when you drink lots of cleansing ales?
‘Eat rich food, barbeque a yuppie’ [greedy]
Originally posted by Rachel77:Hey Rugbyfan,
The house is only clean cause I clean it everyday about 50 times!! Notice there are no shots of the kids bedrooms!!! I know you know what I’m talking bout.[suave2]
Rachel.
Only too well!
‘Eat rich food, barbeque a yuppie’ [greedy]
Originally posted by Chan$:Dear All,
REPLIES IN BLUE
I don’t want to create another topic, but want to add my question here if I could.
I just got a pest inspection done on one of my potential purchase for investment. there are live termites activity on the side fence, but there are no activity in the house.
I know you can do a pest control treatment for termites. The questions are:
1. Will it be a permanent (no more termites activity) once the treatment done? or I have to do pest inspection / treatment regularly for this house?
There is no such thing as a guarantee in the termite eradication business. They will give you a choice of various treatments which range from around $1000 to over $5000. They will not guarantee that it will get rid of them though. You will have to do follow up inspections every 6 months (they recomment every 3 months in the first twelve months)2. Any estimate of how much it cost for 30 metres fences termites treatment?
No idea here, but assume $1000 for a basic arsenic treatment.3. What is the downside / risks if I buy this house? ie. future sale?
The million dollar question Chan? The risks are fairly obvious but if you get onto it quickly you will probably be OK. I was told by an inspector that if your house (or fence in this case) is only affected a little, there is a house in the street that has almost been destroyed. It was the case with me that one house 4 down had extremely bad infestations and damage.Kind regards
Chan Dollars
[Retire Young, Retire Rich] [strum]If you want anymore info just PM me.
‘Eat rich food, barbeque a yuppie’ [greedy]
My parents helped us out with a deposit for our house. We bought 7 years ago and had a 15% deposit. My parents lent us $15,000 and we had the rest from other investments.
We could not have bought unless they were so kind. We new we were over-extending a little but it was worth it and we thought we could manage.
We have so far.
‘Eat rich food, barbeque a yuppie’ [greedy]
Why is abbreviated such a long word?
‘Eat rich food, barbeque a yuppie’ [greedy]
You are both right. Why? because I believe there is no right or wrong answer. Investing your own money should be something you are comfortable with but by all means don’t put blinkers on.
You will find many people on this forum have a varied portfolio and some will have on -ve geared, some only +ve geared and some only +ve CF.
I personally think a diverse portfolio suits my strategy. I have properties with good CG in capital cities and about to sign at least one +ve CF this week. This will offset my -ve geared property.
Holden Commodore, There are also plenty of people on this forum like Westan, Wilandel and SiS that have many +ve CF properties. It is certainly working for them. They are certainly not ‘past all the shitty little +ve CF country/small properties,’.
The ultimate aim is to by property that is +ve and also achieves CG. Where Steve bought his first property (and subsequently many more) has done just that.
Marcus Ambrose (just stirring)
‘Eat rich food, barbeque a yuppie’ [greedy]
Put yourself in the shoes of the locals.
If the houses around you were getting ridiculous money in your opinion and you were looking at selling, would you:
A. Sell it a the price you thought it was worth OR
B. Get on the bandwagon and get as much as possible since it is your money you are playing with. (case in point – Collie, WA)Secret deals below market value done privately – I very much doubt it!
All locals I speak to in regional NSW are actually a little annoyed that City investors are pushing up the prices to a unsustainable level, making buying a house on a low income almost an impossibility.
Why does this bother them you ask? It means their kids can’t afford to buy.
‘Eat rich food, barbeque a yuppie’ [greedy]
No need, Chan.
Rugby Union is referred to as Rugby.
Rugby League is referred to as League.
Rugby was invented in 1880 something. Rugby League was a 20th century invention. That’s why it has the Rugby tag.
‘Eat rich food, barbeque a yuppie’ [greedy]
Channel 7 Pisces.
Richmond works for the other one [jerry] so he is off scott free today.
‘Eat rich food, barbeque a yuppie’ [greedy]
What’s with the double replies guys – Admin, Brent?????
‘Eat rich food, barbeque a yuppie’ [greedy]
Yup, from Sydney and haver had a little bit of experience with those nasty white ants.
Expensive to deal with.
I don’t know the Mt Druitt market that well, I have been out there a number of times though. As long as you are happy with your decision, good on you. $248,000 sounds like good value when the housing commission homes are probably more than that.
‘Eat rich food, barbeque a yuppie’ [greedy]
Originally posted by RussH:Wow Its a lot of money for a so so area
So many +CF properties in Western Australia.Let me help you. And we can achieve a win win situation.Russ.0438 659 411
Russ
With all due respect to you coz I know you are only into +ve CF properties, there are others who do see the benefit in -ve gearing. $248K is not a huge amount in the Sydney market.
The Sydney market CG’s are so far above WA’s its not funny. If this property only costs nathan $50 a week to keep, the CG will far outweigh his costs.
‘Eat rich food, barbeque a yuppie’ [greedy]
