Forum Replies Created
A couple of useful texts –
Real Estate Planning & Management – Andrew Kelty ISBN 1 876 602 18X
Property Valuation & Investment Analysis: A Cashflow Approach – Jon Robinson (Law Book Company)A little bit of light reading in the latter however the models put forward are practical applications
Alluding to what I was saying earlier, all of my information excludes the effect of tax, depreciation allowances etc. The models that I use include DCF & IRR which, whether used for projects, investments or other transactions, produces profitability data. How you then use it is up to yourself.
Tax is generally excluded as projects or investments run over several years and adding tax only muddies the results.
Search for another JV partner (whether it is finance only or equity) – offer an attractive 2nd mortgage rate to them.
From a true investment perspective, tax does not enter into the discussion as each investor has their affairs structured differently eg company vs personal vs trust.
It should be none too different from any other mortgage other than for your own protection note that the existing improvements are to be demolished hence you are buying the property at little more than land value. The vendor/financier may be a little concerned if the land on its own is going be worth less than the amount of mortgage (security) that they hold.
Nothing too different in this from a standard vendor finance arrangement. Remember that you become a mortgagee and the vendor/financer holds the deeds until all debt has been repaid.
mill s wrote:Does anyone think Bris is at the top of the cycle or is still going up?
Top of the cycle? Where have you been for the last 18 months? There is a price correction going on throughout the rest of the world. Has Brisbane missed out or has daylight saving got something to do with it?
Shales, what you got the agent to do was go 'conjunctional' with the other agent and split the commission ie he was helping out a mate, not working exclusively for the buyer.
blogs, were they an advisor (what sort) or were they licensed real estate agents? In NSW, buyers reps are required to hold a restricted real estate licence. Is this the case in Victoria?
Our last one was done by Kitchenland however they are no longer in business – but suss out the North Shore Times newspaper, possibly Nobbys Kitchens (they still do alot of project/spec work) or venture out to Silverwater Rd where you should still find a few. Alternatively, check out the adverts for demo sales and you will pick up a great kitchen for less than $1k
I know that the laws relating to smsf borrowing have changed thus allowing the fund to borrow (not sure of the ins and outs but your accountant can advise). As for rolling over your super into your own fund, should not be an issue as long as your fund is a complying fund (you will need to provide this information to the trustee of your current fund in order to roll over).
Generally it does make sense to own property within your own fund – firstly the rent paid by you to your fund is not lost to another party (landlord), rent essentially goes back to you (at the end of the day) in the form of improved balance on your super and possibility of capital gain if the property is sold – with possible cgt concessions available.
Go to the two or three in the area that you know (including the one that you have purchased through). Get each of them to put in a presentation including the recommendation of the method of sale, recent sales data, expected realisable value (market appraisal), time taken to achieve those sales, discount to market (opening price), company profile, salesperson/team profiles, marketing methodology and lastly how much they will charge (including sales commission, marketing costs, signboard, listing fee, inhouse marketing etc).
Remember, it is not necessarily the agent who is cheapest or says that they will achieve the highest price who will do the best job – it will be the agent that you feel most comfortable dealing with.
Once you have agreed to appoint an agent, hold them to that agreement – don't buckle to agent pressure to drop the price prematurely or take an expedient offer.
Yes, I am a hard marker but they are working for you not vice versa.
Resi or commercial/industrial?
It's been a long while since I have seen 10% yield on industrial. However 7-8% isn't out of the question normally Some of the investment grade industrial property will sell at 5 or 6% with higher yields for older/less desirable properties eg asbestos roof, poor condition.
wealth4life.com wrote:From a womans point of view who had several new kitchens …I hate Corian … it stains and cracks …
Our kitchen is about 10 years old, the corian is as good as the day it went in. There are plenty of cheaper products available and I would agree, I wouldn't use them either.
How big?
Depending upon how old the house is, you may be able to date it from the style of building or (if you are really lucky) have a look at the tap in the garden – these often have a date of manufacture which is very close to the install date. You'd be lucky to find the exact date.
It is not going to be simple as A has used the boat more than B (maybe a 75/25% or 85/15% or 95/5% split). You will also need to consider what interest rate to apply – personal loan, bank mortgage, 2nd tier lender etc. You could refer to the last 5 years of bank statements to determine the actual interest rates applied to the loan.
Have the plumber put a snake down the drain to chew out the blockages. Then get them to apply a rooticide (or whatever they call the product which causes the roots to die off and not to regrow in the area).
Funds sourced from equity isn't manna from heaven – you are effectively taking this money out from the bank and paying interest on it anyway. You will need to consider how you finance the purchase (without cross-collaterallising) as well as how you will be able to repay the interest on the $390k loan ($260K+$150k-$20k dep) – approx $2k pcm i/o @ 6%.
If you can capitalise the interest on the development site you won't be paying for the interest cost/repayments until you sell however in the current market it may be more difficult to find a financier who will accept capitalisation of interest, this is also a higher risk path esp if you do not make the profit that you anticipate.
