yes i do see your point, the problem is you make your money when you buy, so although it does seem wrong to want the valuations low when we buy, at the end of the day we are all running a business and sometimes i guess thats just the way things must be.

I’m not sure what bill was saying. As for my reply i was just goofing around.
Bill may have meant those young but have an IP, i am not sure. you will have to ask bill.
cheers
shaun

I too have had problems with getting a valuation done actually twice, and after emailing phil jones’s partners here is what i was told to do to get a fair valuation.
when buying an IP put a clause in the bid saying that neither the vendor nor the RE agent are to tell the valuer the asking price. Arrive on the day of valuation and if he wants to know the purchasing cost tell him that its still under negotiation and you just want to know what its worth as you are worried about over paying.
the other problem i had when refinancing my PPOR was that there were no units built from the same materials or design in my street. In fact nothing had been bought or sold on my street for at least a year, to the valuer “guestimated” how much it was worth. I gave him copies of what 2 bedroom units had sold for in the area ie a 2 block radius but he still undervalued by about 30,000 dollars. I cant really complain, i bought the place 3 years ago for 55,000 its now valued at 150,000.
any one else have any idea how to get a fair evaluation i would love to hear it!

14 hours is a fair old hike, but it may be worth it in the long run, as lucky phil has said i also would reccomend a propertymanager. when you sort out the property management agreement, look for the clause that says you must be contacted if damages (ie blocked drain etc) cost more than 250 dollars. this will at least give you an alarm bell to go and check the property.
as for the 14 hour drive, personally i would do it, stay in the local pub for the weekend, ask the locals about the area, check the house at night time etc for “hoons” and noise levels. Yes 14 hours is a long drive but its not as if you will have to do it every weekend for the rest of your life if you set it up right to start with.
as for the 95 dollars a week rent, it does come close, do you know how old the building is? how new is the carpet etc, I’m thinking you could (possibly) depreciate the property and fittings with a valuation done on it. This will also add to amount you earn per week.
hope this is some help
shaun

I was warned this type of thing might happen!
Thank goodness i have a great mortgage broker and accountant who speak to each other.
Being warned that this may happen several months ago. when i set up the loan for my first IP this is how it was done to avoid repayment should they decide to want money back.
IP in darwin is worth 220,000 but bought for 210,000
I borrowed 159600 (this is below 80%)
the other 50,000 odd dollars i used owners equity since my PPOR is 120,000 this is also below 80% (this involves a revolving credit)
The IP is negatively geared but positive cashflow, I then put in a 221D to advance my tax return. The accountant then sent off a business plan to the bank assuring them of my ability to repay the loan based on the numbers.
It was actually quite easy to do, but only because i picked my team of people way before i even looked at purchasing a property.
If anyone knows of a better way i would love to hear it.
shaun

Got your email fine. will see you there.
thanks everybody!

I go off CPI to increase the rent, ie the cpi for darwin is now 2.4% so the rent should go up 5 dollars. I have checked with the other owners in the same block of units and there rent is 270 per week where as mine is 265. Due to the wet season etc I have no intention of increasing rent till june next year. The other owners are finding it hard to find tennants (again due to the wet season) so its prudent to do your homework. I speak to other agents etc to find out the going rent for my street etc then act accordingly. As steve says the tennants make you money not the property.

would like to get in this, if thats ok

For bill.
glad to have been of help. the national library is a great place for all that type of info. i will go in once a month and do the numbers for you. I didnt really see much difference when i was doing it as i was probably doing the numbers wrong. to get 25% increase, did you average the numbers for each month then average those numbers against the amount of months (ie the 4 months worth i gave you?)
enjoy.
shaun

for background checks into area’s. have found the national library has a lot of newspapers archived daily.
great for checking the “bell ringer theory”

http://www.nla.gov.au/
enjoy
shaun