Forum Replies Created
There may be some stamp duty savings if you buy it as your first home.
Investigate possibilities using the internet according to your state authority (e.g. it would be the State Revenue Office in Vic).
Cheers,
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi Shelley,
I suggest you read the books as written by people you want to emulate. Everyone is different, and there are many ways to make money from property. No one is right or wrong.
My advice is to think about 4 points:
1. Get a vision for what you want from your property. No point being a guru with 1000 properties if you go broke!
2. Make a plan. How much money and by when.
3. Choose a strategy: Which property money making method meets your time, money, skill and risk profile.
4. Take action. Thinking about money won't make you rich. You need to keep active.
This said, if you are serious about stepping up then check out the RESULTS mentoring program https://www.propertyinvesting.com/results2008prereg2
All the best,
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
Quick-turn relates to quick turnaround property projects where you get in, add value, and get out thereby banking a profit. Quick turn is b/w 6 – 18 months depending on the project.
While some types of commerical property will be risky in a downturn, I'm not talking fish and chip shops… I'm talking about blue chip property that is leased to good / established quality tenants.
Cheers,
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Well, you could approach the vendor's and ask them to give notice during the settlement period. You may have to indemnify them against any lost rent though.
Otherwise, the day you settle issue the notice to vacate.
Cheers,
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
There seems to be a NSW industry body for architects who I would approach as a first step. Their web address is: http://www.architects.nsw.gov.au/home.cfm?smenu=3
Be wary though – you want an adviser who is cost conscious rather than looking for a project to show off his/her flair at any price. You may be better of with someone just starting out who is looking to get some work to build experience.
Most architects will have builders they recommend / work with regularly.
Cheers,
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
Thanks for your generous comments about the book.
Sadly, the days of going out and buying a positively geared property are now generally over. This is because prices have risen in excess of rents, and costs of owning property (in particular interest rates) have risen too.
Does this mean we should give up and look to other wealth creation opportunities? I don't think so, not yet.
The lesson here is that we need to evolve our investing as the market changes. My recommendation is that people now look to create positive cashflow rather than simply buy it. There are a number of means of making this happen. However, my preferred model, which will be fully outlined at the upcoming conference, is to take small sums of money, multiply them into an investing bank, and then use those funds to buy good quality commercial property that provides an income stream.
For example, in your case you could take that $15k and try to turn it into (say) $100k within two years (doing quick-turn deals), and then use that $100k to buy a $350,000 commercial property that will provide positive cashflow.
Well done on asking questions. Keep looking for answers!
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
First up, I'm not a lawyer, so this information is to the best of my knowledge. I recommend that you pay a professional to test its accuracy.
Vacant Possession
Assuming you bought the property on the basis that it was to be vacant at settlement, you have just cause NOT to settle on time. Rather to defer settlement until it is vacant or discount the sales proceeds by an agreed amount to compensate your for your loss. You may also look to rescind the contract if the terms of the agreement have been breached, but this is a more serious outcome given you'll be wanting your deposit money back and the vendor's solicitor presumably has that.My recommendation is for your solicitor to send a friendly 'reminder' email as to the terms of the contract (i.e. vacant possession) and in doing so reiterate the importance of that clause to your intended plans.
Month to Month Tenancy
I understand that a tenant on a month-to-month lease needs to be given 60 days notice to vacate in this circumstance. You may like to check this with the rental manager / consumer affairs vic.
More information:Early Release Of Deposit Money
You are talking Section 27 of the Sale of Land Act. Rather than rephrasing the content, I recommend you check out:
http://www.lawyersconveyancing.com.au/section_27.aspI hope this has helped.
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
Welcome to the forum and thanks for you post.
You can certainly sell your right to the finished product, and this is an everyday transaction. That is, you are not selling the property so much as the right to the property once it is finished.
Some things to be aware of though are:
* Is there a rental guarantee? If so, how much and what are the fineprint clauses?
* Leave the lowest deposit possible. 10% is not etched in stone and the less down the better as you are essentially getting a 0% return on that money in the meantime.
* Get some idea of what the body corp costs will be once finished – it may be more than you expect.
* Does it come furnished? If so, do you like the furniture and are you getting a good deal?
* How many carparks does it come with? My guess is only one, but find out. If you can get more than one then it may be worth the extra cost as they are scarce and will be a key selling feature when you decide to sell.
* I hope the capital gain eventuates. In years past it has not and people have been left disappointed.
* Be aware that the property may not be easy to sell before it is finished as there is a limited market of potential buyers. If many people try to sell then it is possible the value will drop below what you paid for it.
* Final point – some financiers are very particular about what they will and won't lend for in terms of inner city apartments. Do you research so you are sure you will get a loan – visit a bank or mortgage broker to check out your options.
Hope this has helped. Without wanting to sound opportunistic, you sound like the ideal sort of person who would benefit from coming to the upcoming 3 day conference. Check out the link below.
All the best,
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Allan,
Some thoughts about investing in the US:
1. Indirect ownership may be a good option, however remember it will be the quality of the management as much as the quality of the property bought that determines the return.
2. Direct ownership in the US poses some problems for non-residents. Chief among them is the ability to borrow without a social security number. There are ways around it, but they take time and can cost a lot.
3. The danger with investing OS is that you become as much a currency investor as a property investor. This is particularly so the higher the deposit you leave.
4. Local property laws differ quite a lot to those in Australia. For instance, the cost of managing the property portfolio will be higher.
5. Remember that the US is on the other side of the world. Communication will be difficult, and it is a long way away if you have to sort something out.
Therefore, if you go ahead, choose your assets wisely. I'd imagine it is better to buy good quality 'set and forget' rather than problem properties that are difficult to 'fix' from a distance.
Finally, remember that the tax laws will complicate your investing.
All the best,
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
It certainly can – on at least two fronts. In answering I have assumed that it is an easement in favour of water/sewerage.
Generally, an easement is a right to access a property to the favour of another person. Common easements include access for power, water, sewerage, or for access to another property.
To answer your question then…
1. An water easement cannot usually have a permanent sturcture built on top of it. About the limit is a carport (as opposed to a garage) or a garden shed. If access is required then you will need to make it possible at your cost.
2. More of an issue though is that for subdivision to go ahead you will need to ensure there are services available to the property. Accordingly, you may need to chop up the block so that there access to the easement from both titles. This may mean that you extend the existing easement.
I recommend that you call or visit the local water authority and discuss this matter directly with them.
Some quick research revealed (albeit not from Qld).
Hope it goes well for you.
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
I think legal advice is your best bet for the most accurate answers. I recommend you try:
Lewis O'Brien & AssociatesSuite 4310 Whitehorse RoadBALWYN VIC 3103P: 03 9888 6388However, I can offer my help but remember I am not a lawyer and this is not legal advice.
Quote:Is it wise to buy a property with out seeing the section 32 or reading the contract?I didn't think it was 'legal' to sell a property in Vic without a signed Section 32. Having said that, it is sometimes commonplace to agree on price and terms on the basis that the s. 32 is being prepared.
Certainly, any negotiations that take place should be subject to your satisfactory review of the contract once prepared.
Quote:Can I still make an offer on this property?Yes, you can make an offer to buy, but I'm not sure of the contractual validity should the vendor sell to someone else in the meantime. Again, the negotiation would be to agree on price and terms and then make sure the paperwork is as expected.
Quote:Is the holding deposit a gareentee to the other buyer that they will get the property?I don't think so. It is more a gesture of goodwill than it is a rock solid guarantee. If you pull out then you may lose the $500, if the vendor pulls out I imagine that you would get it back.
Quote:Can the agent sell it to me if I offer a bit more money?Not sure where you are going with this question. Agents normally sell to whoever offers the most, but be careful that you don't get into a bidding war against yourself.
Quote:Does the agent have to take my offer to the vendor ( as the property is not on the market as a holding deposit has been take ??????)Legally, I think all legitimate offers need to be presented unless the vendor has said to the agent 'Don't bring me offers less than $XXX…'
Quote:I can offer a 20% deposit and Im not subject to finance can I use this to my addvantage?Definitely!
Quote:Is the property really sold, I beleive it is not sold untill both parties sign the contract?Generally for a contract to be established there needs to be three components: offer, acceptance and consideration paid. The formalities of acceptance will be met when you sign the contract, but having said that, contracts do not necessarily have to be in writing.
Quote:Is it ethical for me to offer something a bit better to the vendor in order to cut the other buyer out. Also is it legal for the agent to play them off against me to win the property?Ethical matters are often subjective. What is ethical to one person may not be to another. Personally, I don't see anything wrong with putting your best offer forward, and if that is above the asking price then that's great for the vendor. As for agents – some play all sorts of games which is why the profession has a questionable reputation. My advice is to work out three prices:
1. The price you are happy to pay (top dollar)
2. The price you won't pay (above top dollar)
3. The price where you think the property is a bargainDepending on the potential profit, aim between prices 1 & 3.
Cheers,
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
This might be a tough ask! International tax is a tricky area, and if you want UK expertise then perhaps your best bet is one of the larger accounting firms. You may pay a lot, but if it helps fill in the gaps then it will be worth it.
He's not in Perth, but my accountant Mark Unwin has knowledge of the tax law as it pertains to offshore investing (for Aussie tax residents). He has needed to become keenly aware of these issues from my own OS investing. His contact number is 03 9854 6317
Cheers,
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi Singlemum,
Welcome to the forum. You ask a good question and you are wise to think about your financial future.
I'm unable to comment about shares or managed funds as this is the domain of financial planners who must be licensed with an Australian Financial Services License. I do not have one.
However, as far as property is concerned, when buying for growth look for scarcity above all else, as this is what will drive prices higher in the long-term. Watch out for the impact of negative gearing (a property with more expenses than income) though, as this may erode your income.
Perhaps a unit (avoid 1Br) that is near shops and transport that would suit a retiree would be a good start. You are more likely to have a longer term tenant in this case, and if you can get it neutrally geared or even positively geared then that would be ideal.
Now, as for issues with Centrelink… an accountant is your best bet, and it would be wise to also pop in to see a financial planner – remember though, they will probably push you towards some sort of shares/managed funds scenario so you will need to work out whether that or direct property investing best suits your goals.
Once again, welcome to the community and all the best for a bright future.
Cheers,
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
Hope it all goes well with Nick.
At the moment I don't get to make it up to the NT, only as far as Brisbane, which I know is still a long, long way away.
Cheers,
– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
My brother had Lasik over 10 years ago when he lived in the states. It was a new procedure back then. He used to require quite thick glasses, but since the op he has been fine. He compains of some unusual night vision from time to time, but he seems fine.
I looked into it a few years back, because like most people, glasses can be a pain in the backside from time to time.
However, in my research I discovered http://www.visionsurgeryrehab.org/ and they put me off. I didn't want to be one of the statistics who doesn't work out as my vision is too important to be stuffed up, even slightly.
Each to his own though, and it's great to hear so many positive reports from forumites.
Cheers,
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi Ray83,
Welcome to the forum and thanks for making a post.
Before thinking about another property, I'd encourage you to get a better handle on how your apartment is travelling. That is, your ability to handle more property will depend on how well you management your money and investment, and it seems like that could be something you could sharpen a little.
For example, $260 p/w represents nearly 25% of your pre-tax salary. Could you afford another IP at the same negative return?
Specifically, I would:
1. Contact a r/e agent to get an appraisal of the value
2. Understand my loan repayment obligations. Perhaps you could refinance for a cheaper rate and save some money
3. Create a plan, and then relate your current property and also future purchases to itIn terms of a 2nd, 3rd etc IP, it seems you have a long-term growth asset, so now you may like to do a shorter term quick-cash deal or else look for an investment that delivers a cashflow return.
All the best,
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi again,
Good question… with six years on your side you have the chance to save for a deposit, start investing when you hit 18, make some property profits over 2 years, and then have a bank to either buy a home or keep investing.
The issue will be your ability to borrow at 18. You may need some help, which means having a parent co-guarantee the loan or else using someone else's money (family member/ money partner / joint venture partner).
Cheers,
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
Welcome to the forum! You might be our youngest member… well done!
Some additional thoughts for you:
1. Play Kiyosaki's games: Cashflow & Cashflow For Kids
2. Read investment and money related books – become a regular at your local library. Kiyosaki's Rich Dad Poor Dad and Clason's Richest Man In Babylon are a great places to start.
3. Start understanding how money works, and the best way to do this is to get a part-time job and gain an appreciation of how hard it is to get ahead by working. That way you'll become hungry for what investing can do for you.
4. If you want to come to seminars, write to those running them explaining your age, enthusiasm and situation. You might be able to swing a free or cheap ticket. It's worth a try.
5. Keep asking questions! It's the best way to learn.
All the best,
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
I don't know if they do financial advice as such, but a good authority on property matters in Tassie is Nick Raeburn.
His contact details are: Launceston ph 03 6337 5555
Website: http://www.raepartners.com.au/contact.htmlIn the least, he may be able to provide you with a referral.
If you call him tell him I say hello and let him know I owe him a lunch.
Cheers,
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
Remember that LMI is insurance for the bank against your repayment default. Even though you pay it, you don't get the benefit. My understanding is that even if you default and the bank claims on LMI, your credit rating will remain trashed.
There aren't too many mortgage insurers, and hence the market isn't very competitive. One of the ways the previous government looked at reducing loan costs was to contemplate opening up the LMI market to more players. I haven't heard of any developments as to whether or not this ever progressed beyond being a draft policy.
Cheers,
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
