Forum Replies Created
- Originally posted by Mabbott:
Has anyone had a property manager find suitable tenants for a standard fee when you intend on manging yourself, is this very uncommon??
This is common in WA,
Most agents have both a Letting Agreement and a Management Agreement. With a Letting agreement, the agent will source the tenants, do the paperwork, lodge the rental bond etc. Then hand it back to you to manage.
Note though, that there a many Insurance companies that will not allow you to take out Landlord insurance with them, unless the property is managed by a qualified real estate agent.Mal
Getting out of your comfort zone, can help you become comfortable
Hi pbrau,
Remember there are heaps of different stratergies, and people use different strategies and combinations of stretegies to suit there own needs.
Cash flow positive – why lose money, when you can make money.
I believe that part of Steves strategy is to identify problems and find the solution that once rectified will make make the property cash flow positive.
Mal
Getting out of your comfort zone, can help you become comfortable
It appears to me as though Steve has invested in improving this web site, the RESULTS program, etc. Not necessarily on Property.
Mal
Getting out of your comfort zone, can help you become comfortable
DAB,
You will find that the requirement to pay P&I borrowing above the 90% will have come from the Mortgage Insurer. Some lenders require P&I if borrowing above 80%. It’s just a way of them covering there own butt, in that the assett will cover the money they are lending, which at 90-95% is not guatanteed in a falling market (as parts if Sydney and Melb have been and may continue to do).
Mal
Getting out of your comfort zone, can help you become comfortable
Originally posted by Mabbott:Do you feel that your wifes input is very helpful, what does she do in the grand scheme of it all?
Yes, J (wife) is very helpful. If your partner believes in you and supports you, especially when it involves lots of Zero’s ($), then that is extremely helpful. J works a 37.5 hr week herself, pays all household expenses, does the bulk of the shopping, cooking, housekeeping,(generally before I even get home) and has supported me through 6 years of Uni. She has been to about 30 property inspections with me this year.
In the last 18 months, she has lost her father, had a miscarriage, had an ectopic pregnancy, surgery, stresses about me finishing uni and changing jobs, plus we refinanced an IP and have purchased 2 other IP’s, both interstate.In the grand scheme of things, now that you make me think about it, J does heaps, more than I probably give her credit for. Bugger, I should probably buy her some of those flowers she whinges that I never buy her.
Mal
Getting out of your comfort zone, can help you become comfortable
Hi Michael,
The first thing you need in a marriage is to invest in yourselves. Do the wedding that she wants, take a honeymoon that you will never forget. You are not about to run out of time.
Magellan and wife may not have spent much on their wedding, but that was obviously a mutual thing. Likewise yours needs to be mutual. Forget the concept of pre Nup, unless it had already been discussed. Things change, my wife had more to offer financially than I did when we started out, but things have changed.
We did not own any property when we got married, when we did buy our home late in the first year of marriage, we borrowed all we could to get the place we wanted. The wife was the one pushing for us to buy an IP, I was the one doing all the research, reading books, working out finances etc. 5 years on (next month), I’m the one who reads the books, does the research, organises finance, does all the spreadsheets etc on the numerous IP’s that we have since purchased. That’s what I do though, because I enjoy it. The wife, loved our trips interstate to have a bit of a holiday and check out potential IP’s. She is the one with pen and paper, comparing the goods and the bads of each property, I crunch the numbers. We are both involved, but with distinctly different roles.
You say “I had grand visions of …”, does the fiancee, know about this vision ?
Just for a moment put yourself in her shoes, is she saying “We have this wedding to organise, and he is spending all his time on the net searching for property , or reading books on property… I wish he’d just focus on us for a while.”There is this old technique that can help alleviate some of “your” concerns, it’s called “communication”. The topic and timing need to be right though.
You will both get there, we and many other have. Others will realise when, by the fact that you without even knowing, substituted “I” for “we”.
You continue learning, her part in will come, it just may not be as you had envisaged.
Ps. I’m really crap at the above metioned “Communication” thing. I get it right sometimes though, either by blind luck , or the fact that I actually attempted.
Mal
Getting out of your comfort zone, can help you become comfortable
The Hart case relates specifically to the use of Split Loan accounts for the purpose of compounding interest.
Mal
Getting out of your comfort zone, can help you become comfortable
A family harrassed on the train at Cronulla, of a tanned complexion, although distressed, had a brilliant comeback.
Turns out the guy is Australian Aboriginal, from Queensland, can’t get more Australian than that. He was quite happy to give the thugs some contacts numbers and names, if they required so desperately to reclaim the public land that they say is being taken over by various ethnic groups.
Apparently he as been down this path himself for a slightly different cause.
Mal
Getting out of your comfort zone, can help you become comfortable
1. Finish my Bsc Comp Sci. – Done. Woohoo (6 years part time).
2. Look for a new PPOR (because we live on what some would consider to be the side of a mountain) – decided we like our place more that anything we can find for similar money. + it still has heaps of potential , fantastic views, in a pretty good suburb.
3. Have a baby – failed – but not from lack of trying.
4. Refinance one property to access funds for another purchase. Done.
5. Buy 1 IP, preferebly south of Perth – Failed (not really) – bought in the north of Perth instead, where once spending some time there in April we much prefered.
6. Take a trip OS – done and still to do. skiing in NZ + still off to Vietnam and Cambodia in 2 weeks.
7. Evict bad tenant from IP purchased Christmas last year.- Done (this was actually the first thing done in 05).Sorry Dazz, I strayed a bit from just Property.
Mal
Getting out of your comfort zone, can help you become comfortable
ASDF,
What you don’t see in that excerpt is that it also depends on the reason for the loan structure that you set up.
IE. You are suggesting that using a second loan to borrow interest on the first loan, purely to shift debt from personal debt to investment debt and avoid paying so much tax.
Any interest paid on a loan structure set up to purely avoid paying tax is not deductible. Which a structure like this wreeks of, and hence would not be deductible.Mal
Getting out of your comfort zone, can help you become comfortable
Originally posted by nazzysmith0153:Need proof, the crowd on Sunday turned up angry with beers and protest signs. Pretty pointless if the opposing team had turned up. They would have bars knives and guns.
Thomas,
“Need proof, the crowd on Sunday turned up angry with beers and protest signs. Pretty pointless if the opposing team had turned up. They would have bars knives and guns.”
Thats a bit harsh, the majority of people from what I’ve heard of the thousands that turned up where very well behaved and were simply being patriotic and pushing the point that we are a multi national country and we should all get on and not have to be subject to the violance that occurred the previous weekend.
I bet there are heaps of people that were at Cronulla peacefully, and will be horrified that there face has appeared in papers and such and will now be associated with the violance that followed.
Most people are not capable of taking things into there own hands, whether it be for good or bad, MOST people are just onlookers. Most people at Cronulla and within the rest of the Shire are good, non violent people who are just as horrified by the antics as everyone else.
The crowd at Cronulla did not turned up armed. And they did not turn up to destroy their own propery.
I agree that alcohol became a factor, and I agree that there are racists, and idiots that take things a bit to far. But most people are good people.
I’m a Shire boy (but not as proud of it as I used to be).
Mal
Getting out of your comfort zone, can help you become comfortable
I’m with you, I think Gary Larson and his Farside cartoons are brilliant. His “Sheep in the night”, was one of my favorites, hence my avatar.
My Family actually call me Hal, after the Deer with a bullseye on it’s chest. “Bummer of a birthmark Hal”Mal
Getting out of your comfort zone, can help you become comfortable
Diggo & MT87,
You are both doing pretty well for such a young age.
But before you dive in the deep end, you need to do some more research and learn more about property investing. The fact that you had to ask what mortgage insurance was and what the FHOG was is a dead give away.There is nothing wrong with sticking you money in a term deposit for now, because there are some good returns, and your money only needs to be in say for 3 months (which isn’t long, when buying property it’s there for a lot longer). That’s where I started. It’s actually a good starting point, because you start to learn where to park your money while it is not being used for property investments. Believe it or not but not long before you were born we could get 15-18% return on short term deposits. Not such a silly idea.
Given your age, you are not about to “miss the boat”, as they say. An educated investor is a smart investor. There are a lot of places to put your money.
Ever though of starting your own business ?? What could you do?? Have a think about it.
Mal
Getting out of your comfort zone, can help you become comfortable
ASDF,
Sorry I did almost put in my post that I meant all expenses, except interest. You still have to pay that.There is really only a benefit of borrowing all expenses while you still have a sinificant debt on you PPOR. Once the PPOR is paid down, then start paying off the IP Debts.
Like Simon said it is a slow way of transfering non-deductable debt to deductable debt, but as Mogul has 3 properties, this expense may be say $10,000 a year. Over 5 years, you can have transfered $50,000 to a deductable debt, and knocked years and $’000 off you PPOR debt.
Mal
Getting out of your comfort zone, can help you become comfortable
Hi CoG,
Don’t be scared off by Dazz.
Did the vendor say it was cheep? did the vendor mention the water, and that why it was cheep? I bet not.
Chances are, they do not know the extent of the damage, themselves. Before bothering to try and renegotiate, try and establish the extent of the damage and cost to fix (it may have been fixed and what you are seeing is only cosmetic).If there is some cost involved, then start the renegotiation. I’m going to assume that there the 3 day cooling off period is a walk away for any old reason, cooling off period. And that the subject to building/ pest have a seperate date (I’ve never seen a standard NT contract of sale). If this is the case you still have up until the date of specified for accepting building as being ok.
If it’s going to be costly and you are getting nowhere with the renegotiation. Simple put it in writing that you are cancelling the contract due to you being unsatisfied with items raised in the building report and subsequent costs identified to rectify the problems. And add that you are still interested in the property but under a new contract if you can agree with the vendor on a new price.
Don’t be afraid to walk away if you are not happy.
Don’t assume that the vendor know of problems. Dazz might be smart to twist things his way, but not everyone is.
12 month ago (almost to the day) I was in the same situation, and I saved $,000’s by bringing problems to the vendors attention, that they had no idea existed. We couldn’t agree on a price before the building inspection date, so I cancelled the contract. The next day they agreed to my price. It was a win/win , because I wanted it cheaper and after hearing about problems they really did just want out (as since signed the 1st contract the existing tenant had also stopped paying, but that another story).Good Luck
Mal
Getting out of your comfort zone, can help you become comfortable
Hi Mogul,
If you are not borrowing to pay all of your IP expenses then that is your starting point. It sound simple but a lot of people do not do it.
For example, if your properties are managed by an agent, do not allow them to pay expenses on your behalf out of rent received. Pay it yourself from borrowings. Borrow the money for Insurance, Body Corp, rates, land tax.
With 3 investment properties, you no doubt have $000 of expenses each year.
Make sure that all of your rent goes into your PPOR.
Make sure that all of your IP expenses are paid from borrowed money.Mal
Getting out of your comfort zone, can help you become comfortable
Christmas day with the mother-in-law.
Boxing day with my some what larger family (always huge).
Next day fly out for 11 days in Vietnam and Cambodia.Mal
Getting out of your comfort zone, can help you become comfortable
I know a couple in a similar situation to this scenario. I envy them.
They spend about 6+ months of the year sailing their 50ft Cat, stopping off where ever they please. They will probably head back to Sydney from the Nth Qld area soon, to avoid the dreaded Monsoons season. Ahh, it must be tough.I’ve volunteered my services to assist/crew, in a trip across the pacific, which they suggested may be on the cards last time I saw them.
They have actually sold their house/ property in the last 12 months, as they figure that it’s just not going to get used by them much in the future. Even sold the car.
Sorry, you were after thoughts.
Umm…
1. Keep doing what they are doing.
2. Take that trip they have been planning for years. If they love the ocean as much as the couple I know, they may just want to do it for the rest of their lives.
3. Don’t make any drastic financial decisions until after that long awaited trip.
4. Get someone to house-sit while they are on their trip.
5. To you, keep people like this in your life, they are a great inspiration.Mal
Getting out of your comfort zone, can help you become comfortable
Welcome JC,
I wouldn’t drive 6-8 Hours just to look at 1 place. Squeeze in as many as you can in the time you have so that you have a very good idea of the value of the place you are interested in, in relation to what else is available in the area.
Having said that, yes 1 trip/ inspection MAY be enough. You can make the Contract subject to a building inspection report, to your satisfaction.
There are plenty of other things to check out as well, while on your trip. Like, will it rent ? what’s the rental vacancy rate there ? is there a property manager nearby to manage it ? If it a small town, are there trades people around for emergency repairs if you can’t do it ?
Mal
Getting out of your comfort zone, can help you become comfortable
Sorry Marty, I was refering to Stuck-at-two’s comment above –
“There pathetic, computer programs are written by humans, what if there is a typo!
20c to me is different to 20c X number of customers to them!!” – regarding, not being able to work out how the interest calculations are done.
I develop financial applications, including those pesky interest calculations, that people can’t figure out how to get the same number.Mal
Getting out of your comfort zone, can help you become comfortable
