Forum Replies Created
quote:
Hi SteveI think we got a certificate, but so what? I don’t believe that you need any qualifications to be a PM – and in fact there are lots of agencies who are not members of the REI, and so therefore would not send their people to the REI courses. It’s a fairly high turnover industry from what I’ve seen
Cheers
MelI was just curious as i am thinking about a few busines ideas…
I can understand why it is a high turnover industry!!![8D][
][8D]Steve
quote:
SteveSimon and I have both answered your question in the preceeding posts. If you purchase an ‘IP’ to live in it for six months you are really purchasing a PPOR – yes?
If you move out in six months to a new house you have bought, you will be making a decision as to which of the houses is your PPOR.
If you are doing what Simon said, to have the overlapping 6 months where you can have two PPORs, then David is right in saying that it cannot be rented out before you sell it. If you have rented it out, then the two PPORs rule will not happen, and you need to make the choice as to which is your PPOR. If you choose the first one (that you have sold afte one year) there will be no CGT on sale. However, when you go to sell the second one, it will be pro rata based on how long you have lived there.
My question. Why would you be looking at selling a house every six months?
Cheers
MelHi Mel
In summary i kept an apartment un rented for 6 months, at present i am living at my parents house… I am about to purchase another old apartment that i will be renovating, so I was trying to see if there are any legal loop holes in the systems that would enable me to escape paying CGT on both of those particular apartments when sold. From reading this thread, it sounds like I cannot do this…
Both of these apartments have been purchased for short term investments, the first was through developers i know which was off the plan, which will deliver me a high profit (hence why i don’t want to pay CGT) and the second was a bargain that i already have a buyer for in 9 months due to it’s location, again delivering a high profit, so i do not want to pay CGT if possible.
I know.. i do wierd things, but it’s all about the $$$$$$
Steve
quote:
Hi All
I have been reading this thread with interest. It is amazing that the only thing that PM do is collect the rent. You should be so lucky if that is all they do. That means that they have chosen good long term tenants that fix everything themselves.
I think of our property managers as part of our property investing business what they bring is their skills in that field yes we have had to sack some of them but my part in this business is looking for new properties. Would you do your own maintenance,conveyancing,building inspections, pest inspections? Why is it that everyone thinks they are just as qualified or have the time to PM?Hi Erika
It is interesting to hear different points of view on if people need PM’s. Personally i think we need properties to be managed, and for most people managing their PM themselves is not a viable option. My argument is that in most cases PM’s do not really earn their rates i.e. management fees, postage and sundries charges.
What are your thoughts on this.. Also from your response i am assuming your are a PM. To your defense I have one PM that i would never change, but a large majority of them are knuckles!!!
Steve
Hi Towlie,
Tell me more about this propertyof yours?
Kay Hanry,
Single out the areas or suburbs you think you are interested in, visit or call the real estate agents in the area and have them do the research for you. Then all you have to do is use your bargaining skills to make sure they don’t rip you off or find someone who has access to RPDATA that can feed you information on neighbouring sales, street sales etc..
Steve
Hi All,
What is the minimium amount of time you are required to have a place as your PPOR to avoid CGT. I assumed it was 6 months, but i heard you can get away with it in 3 months???
Forget where you live for a second, eg. Live with parents, or sharing a flat with a mate. You purchase a new IP, you live in it for 6 months, then move out buy another IP and live in it for 6 months also. If you sell the first place, even though you lived in it for 6 months and are now living in the second IP, you will still have to pay CGT is this correct?
Is there are way that you can bypass CGT in the above scenario?
Steve
quote:
SteveI think it cost me $695 and it was held over two weeks, with about 5 half days, and one full day or something similar. Some ‘homework’ and an exam at the end.
I did the course so I could ‘hold the hand’ of my sister’s friend who I was going to employ to manage my properties. Sadly, that arrangement hasn’t worked out, and my new aim is to steal a top notch manager from one of the firms when I have the $$ to pay them at least an equivalent – for probably 10% of the work.
Cheers
MelHi Mel
Does this course class you as a qualified PM?
Steve
Hi Kelvin,
Not bad at all… I will be posting one shortly, so i will be sure to send it to you…
Steve
quote:
There are some shockers out there as evidenced by the stories here. But when you find a good one and should something go wrong you will realise why you have one.Especially if the property is not conveniently located nearby.
Sometimes it is best to pay an expert that works well with you. The difficulty is finding one! i think personal referrals are best for this sort of thing if possible.
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Hi Simon,
Well said… I have only had issues with one PM, and that was the only one that was not a personaly referral. After a few incidents and a letter from my solicitor stating negligence, she cleaned up her act… But the point remains, they get money for jam in most cases!!!
Steve
Hi Michael,
Firstly, I would never waste my time collecting rent, i do believe this is bad use of time for most… but for some it may not.
I do not disagree with your comments and i am sure metropole offer a great service, seems like a great company… My point is that PM’s do need to be paid as much especially when most of the time, specifically with new properties, they don’t really need to do anything… I kind of like the idea of PM’s offering various management plans to their clients… e.g. New apartment plans, Incident based plans etc.
I know many owners of real estate businesses, they all say that a healthy real estate business heavily relies on the number of properties it manages… High profit, annuity revenue… Hence why metropole is seeking this market!!!
What kind of rates do you charge at metropole? Let’s face it the property game is about making money, so other than providing good service how do you ensure that you offer you clients (Landlords) the best possible return… Keeping in mind the massive influx of new apartments in VIC which has directly impacted landlord’s seeking for premium rental returns.
Regards,
Steve
Hi Mel,
I don’t manage my IP’s myself, however i just struggle to justify the money the PM’s get paid. Again not all of them are bad… But most people do not have much choice, there are two option, use them or do it yourself!!
How long was the course and how much did it cost?
Steve
quote:
Cash on Cash calculator….After reading Steves book, Ive bumbled through one… in excel…
Its pretty raw and based on a few general assumptions but I hope it helps some of you… or can be modified/corrected for your own needs…If you would like a copy drop me an email and I can send it might make some of those calcs of +ve or or –ve a little easier…
Regards
Kelvin
[email protected]Hi Kelvinh
Would love a copy [email protected]
Regards,
Steve
Hi all,
What percetnage does you PM usually ask for including GST? The lowest i have payed is 5.5%, but if you include the amount they charge for postage and handling, and other generic charges, they are actually getting alot more the 5.5%[
!][!][!] I would like to cut them out of the equation, but still not have to do all the work[?][?][?]Steve
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We collect rent via bank account. We set up an account specifically for the rent and the tenants get a deposit book. We can check online anytine whether it is paid or not.I don’t see any problems with terminating the PM – just keep your tenant informed.
I work fairly long hours and have 6 IP’s on the go and don’t find it a drain on my time at all. They contact me if they have an issue – issue gets fixed by tradesman. A few phone calls a few minutes, pay the bill.
Even searching for new tenants isn’t too bad get them all there within a certain time window and ask them to fill in an application if necessary – a few reference checks and sign the lease.
Hi Polar_bear,
What do you do about the Bond?
Steve
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Hey I got a PM who never gets back to me when I fax her some request for quotes and questions. Usually I have to send 2 or 3 faxes to remind them, and the reply comes back a few weeks later.
hrrrrrrrrrrr
The last repair i had to fax once, then call her the following week, then another fax the next week, and she got back to me the week after! NOw I dont even know if the repairman did or did not proceed with the repair as the PM didnt get back to me after that!Does anyone know any good PM who is proactive and good in the Latrobe Valley area like Morwell/Churchill and Traralgon?
PLs recommend***********************
They should be sacked as your agent… the one thing they never forget is to take their percentage…
quote:
Hi SmorosI have never actually used a PM – we manage ours ourselves which has never thrown up any problems. From being on the other side of the fence (we don’t own a PPOR) as a renter I don’t think they are worth anything.
In 4 yrs we have had not a single inspection, so it’s hard to see how they are protecting the investor. I can check the bank balance as well as they can for rental payments, I can call a tradesman for repairs etc etc etc.
I may be biased against them but I think the only advantage thye may offer is in finding tenants.
Hi Polar_bear,
I agree with you, their main value is to find tenants only!!!
The only problem with managing your own properties, is that once you start to have a few rented properties, it will be difficult to manage and work a 9 – 5 job at the same time…
Steve
Hi Fullout,
In my opinion it is great to get QS’s to create a depreciation schedule. Obviously on very old properties the value is diluted, but it all depends on the ability of your QS.
Remeber that Depreciation schedules can be in two forms, you have to choose one for tax purposes, depending on your investment strategy:
1) Diminishing Value
2) Prime Costmy two cents…
Steve
Hi Troy,
You can always check out RPDATA (http://www.rpdata.com.au), however it will cost you… If you are interested in a specific area you can subscribe to the service for that particular postcode. This will give you the answers to many of your list items.
Regards,
Steve
Hi there… Would love to see a copy of your spreadsheet. Please send to [email protected]
Regards,
Steve
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