Forum Replies Created
Get a copy of API (Australian Property Investor) – around $9.00, and in the back it usually has all the postcode / suburb / prices for medians in each area. Use that in conjunction with a map to figure out the area’s you can afford and where they are.
Once you know where you can afford, then you have to figure out:
House or Apartment
New or Old
North, West, East or South East
etcThen you can research the particular area’s you’ve identified of interest.
Cheers,
Simon.
Hi.
I’ve rented to both friends and family (Am I CRAZY!?!?!)…..
Experiences….
Family – Looked after the inside fairly well, but no better than any other tenant would… Didn’t look after the outside much at all, and we’d done the landscaping and irrigation etc nicely. Paid the rent for the most part on time, difficult (impossible) to raise the rent though.Friends – Started out well, did the whole discounted rent by savings of agents fees etc. Started to go south after a couple of years, ended up turning over to an agent, going to VCAT and all sorts. Disaster in the end. Left the place a pig sty (3 trailer loads of crap), flea infestation etc etc.
Sorry, but if you’re going into this, you need to know the flip side.
Funnily enough, they were both the for same house. That house now has an elderly couple in there and WOW! Talk about look after the place. He’s even fixing up the garden!
All the best
Simon.
These can be good, but make sure you do all your Due Dilligence. Remember – you’re buying this on the strength of the lease. Otherwise, it’s just a very small apartment.
Recall the late 80’s / early 90’s when Banks were selling their properties. With nice long leases. Which they didn’t renew. Many got burnt.
You need to find out why they’re selling them, and what their long term plans are.
Be aware – finance will be an issue. Banks dont like them – they’re too small (the rooms) for normal criteria.
Don’t want to be negative here, just advising you to go in eye’s wide open.
Cheerio
Simon.
Would be nice, but you may have a hard time getting a vendor to take a house off market on that basis.
You could do it if you had say 2 weeks, then it’s just like a finance clause. Up to the last minute, I doubt it.
Good luck anyway.
Simon.
Using equity in his own home.
eg. House worth $500,000, $100,000 owing.
80% lend (Line Of Credit) gives $400,000 limit, with $300,000 available.
$280,000 house, 10% deposit, 11% closing costs (incl Mge Ins)= $58,800 each.
5 Houses = $294,000
Note: You still need money somewhere, just that it can be in your existing home.
Regards,
Simon.
Hi Trying.
According to the ATO, you only pay CGT for the period it was an investment property.
eg Rental for 1 year, private for 2 years would mean 33% of the total CGT would be payable.
Check with your accountant though – there may be ways around this….
You’re correct (nearly) – once you live there, all expenses are private (and unclaimable) EXCEPT any REPAIRS required due to being ex-rental. Keep good proof of why and $$$ though – you may need to back up your claims! THere would also be time limits on this.
Cheerio
Simon.
OK, Here’s my tip.
Especially for the first IP, buy in an area you know VERY WELL. If you know that area of Qld, fine. If not, stick to where you know.
You should be able to look at any house any know pretty much what it’s worth. That way, you’ll only pay what you should. It can take a while to catch up on an overpaid purchase price.
Having said that, if that’s the only place you can afford, better that than doing nothing. Investigate and do LOTS of due dilligence. Verify prices as much as you can. If you’re happy with the deal, do it.
All the best,
Simon.
