Forum Replies Created
Consider having spray on epoxy finish (stencilled concrete).
Yes on both counts.
Thanks IP, that's the sort of thing I was looking at but I need to understand more about the product. Do I need to wait 10 years before I can borrow against these savings (or can I lob up and ask a bank to hold it as security prior to the 10 years)?
Depends how the lease is set up but tenants usually have to get phone, power & gas in their own names (ie you don't arrange for these to be connected other than having the meters available).
Tenant is responsible for the water usage (but not the services charges).
What? You still use a financier which charges you for app fees & vals???? Shop around Kaz & get a better deal.
SNM
A good yield is very subjective and closely related to the type of risk that you are exposed to. Risk varies greatly between each category of investment – residential ppty has a lower yield than say industrial or retail property (although I know that UK yields are generally lower than in Oz and lease terms of 10yrs plus are very common). You'd need to chat to a couple of estate agents to get a feel for what the norm is for yields in your area & for the asset class.
AS for which makes more sense, it greatly depends upon your financial situation (how you are structured, what you earn, the deductions available to you as an investor etc).
Generally I always consider my net returns (exclusive of borrowings) ie Gross Rent less outgoings (insurance, rates, repairs/mtce etc) divided by purchase price (property, legals, sd & capital works).
As each investor has differing borrowing costs these are excluded from the calculations of determining net returns.
I will add that many people simply look at gross returns (or don't understand the fundamental difference) so they may be happy seeing a 5-8% return when analysing a property.
I have had dealings with a couple doing ES works (both of them located elsewhere) – Somervilles Real Estate (Summer Hill) and Strata Partners (Willoughby). Somervilles can be quite proactive with regards to getting BC/SP budget for admin & sinking funds working so that the premises have a 10 year plan in place and are proceeding towards doing upgrade works via appointing a project manager to manage the works, establish systems & processes.
Ballparking it – $15-20k depending upon several site variables (ie site unseen). Tandem garage is probably not the best solution as many find it inconvenient
See the Office of State Revenue website: OSR (assuming that you are in NSW) or check out your state govt website.
propertunity wrote:Now maybe if you had borrowings over $1M with the same bank or applied for more loans as the others have said, it might be a different story.As the old saying goes, if you owe the bank $1M and can't pay – you've got a problem. If you owe the bank $10M and can't pay – then the bank's got a problem. I've seen it plenty of times where the small fish (who have adequate asset coverage/equity) get foreclosed on whilst those where the bank stands to lose a whole lot more remain unscathed.
Pardon the dumb quezzie, but why if it took the builder 4 months to get you a quote for mods to a house are you liable for their delay & subsequent price increases? I'd be talking to a quantity surveyor or a contract administator before I 'd agree to paying for increased costs in an flailing economy.
Consider why you have 'invested' – was it for a quick buck? No, PI is a long-term strategy. If necessary, consider doing some inexpensive work to the house (ie no more than $5-10k, less if possible) to improve the appearance and increase your return.
You won't learn what not to do until you've done it.
Flick the contract to your solicitor/conveyancer to review (they usually don't charge to review the contract, provided that you go ahead with a purchase within a reasonable time).
If necessary do all of your building/pest reports & have solicitor review the strata minutes to ensure that there is no disharmony/adverse conditions existing within the complex, also ensures that you are aware of any special levies that may be forthcoming, the strata scheme is financial & its records have been audited (esp where there have been high expenses).Fiona, your risks are more than just a rise in interest rates & vacancy factors. The rental market has performed strongly over the past 2 years with yields rising dramatically – this is not sustainable (for renters), expect lower yields hence lower rents especially if you are anticipating that property prices to rise. Those who watch property watch all factors and understand that yield and house prices travel in opposite directions – you may not have seen this yet in this cycle with extraordinarily low vacancy rates however as the market turns yields will drop and rents will stagnate.
Some people like high risk pursuits, I prefer specific performance. If you sign the waiver, I hold purchasers to it – not my problem if you didn't undertake your due diligence or listen to your legal counsel.
SNM
(and some wonder why).Adrian, a shoebox is a shoebox (studio <50 m2), you will find that banks find it difficult to lend against. These are often converted ex-hotel rooms and have a very transient tenant. Sometimes these are best let as furnished due to the short tenure/high turnover – best if you can do an executive type rental in desirable locations eg city digs for weekdays with the tenant going back to their house further out of the cbd. Short-term rentals are usually not worthwhile as the agent takes a hefty fee + items such as cleaning & higher level of maintenance eat into returns making it difficult to be +vely geared. I have a mate living in Perth cbd, 100m from the office/gym/restaurants, spends minimal time at the unit (12+ hour days at the office x 6 day week), monthly flights back to Sydney as a typical user.
1 bedders are a totally different scenario. Usually larger >50m2 up to 70 m2 + parking. Tenants are mixed – singles who have outgrown a sharehouse, newly single who have furniture, first time out of home (under parent supervision), downsizers (retirees/widowed). Provided you buy in a key location (near shops & transport) there aren't too many issues in getting tenants. Proximity to schools isn't a priority. The key to keeping one of these tenants is presentation, maintenance & affordability. If I have to move out of home for work (contracts), I seek out the best of the 1 bedders available, although I will do the share house thing (2 bedder) if it is going to be short term contracting away from my base & I have local contacts.
duckster wrote:Strangely our federal parliament members can own a house in Canberra and still claim living away from home allowance of $215 a night which pays off their mortgages while staying in their houses they own in Canberra.
One in five claim a travel allowance while staying in their own investment home in Canberra.
see
http://news.ninemsn.com.au/national/815702/pollies-cashing-in-on-living-allowanceThey take from Mum and Dad investors while feathering their own investments !!
All part of the public service mentality – you get paid a set daily rate for LWA regardless of where you stay (fee differs for each city/town), unless the employer pays the provider the cost of accommodation/food etc. They don't need to provide an invoice, just put in their claim.
Depending upon the type of wall paper you would be best served by hiring a wall paper steamer.
I don't know how a kitchen will look in your bathroom
Absolutely nothing, the requirement is that you reside in the property for 6 months in the first 12 months after purchase. If you do live in the property, then you can vacate & use the six year rule for cgt exemption.
