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I was looking in Horsham.
It appears there were a few sold in North Eastern direction of Horsham and they were sold for low 200K or below 200K. But then there are also a few sold for over 300K in that general direction as well. (A few sold at Dooen Road for well over 300K).
Speaking with agent, I was told the places near Mary St / Winifred St, etc… are places where there are a number of ex-commissioned home, and even though they are not that far away from Dooen Road, the agent believes houses won’t sell for over 250K just “because they are ex-commissioned home”. But the particular one I inquired about (it is under contract now unfortunately), agent said has been lived in by elderly (apparently their children are selling on their behalf since they have now moved to a nursing home) and from what I can see, it has been pretty well looked after, in the sense that it is neat and tidy and without any major issues that can be identified, save for some minor adjustments that can be done in a few places.
Which part of Vic are you familiar with?
This is a way old thread, and I am kind of surprised that it got dug up….but the short answer is no, I didn’t go ahead with this training..
But I went ahead with a different training (which is the reason why I am now in both Australian and New Zealand markets).
By the way, you said “it’s sad how many great presenters/sales agents are out there doing their part to backsteps Australians reach their financial goals by promoting them to reach their financial goals/great deals.”.. quite a long sentence and I have to say I didn’t understand it fully. Would you be able to elaborate?
Steven
wait for price drop
You can’t predict or time the market, so don’t even try it.
Make offers based on numbers that:
a) makes sense
b) provide you with buffer
c) allow you to add value so you create equity rather than “waiting for equity to build up over time”.
Study the area well and make sure the place where you invest and how you invest fits your strategy.
we renovated for manufactured growth
I second this.
My first IP was bought when I had very little knowledge of how to invest, and it is negatively geared. It is still negatively geared even today.
My IP in NZ was like this:
Standard price on market: 220-240K, with rental income in early 300 per week.
I bought one at 150K (then rented at 240 per week). Renovated for about 33K, and a few other bits and pieces, so consider that as 190K altogether. My valuation report came back at 220K. Rented at 330 per week. So the yield is almost 2% higher than if I bought at standard market price, not to mention the 30K in between is ready for me to be refinanced, instead of having to “wait for 2-3 years of 10% capital growth before I can move again”.
My first IP is in Melbourne.
I went elsewhere for the same reason as you are thinking. Low return of investment, high price, having to pay stamp duty, etc…
I have rental property in New Zealand. Bought at sub-bar condition, worked with local NZ builders to do renovation and having a local property manager looking after tenants.
Build your relationships with local resources. It is difficult initially but it is good once you have contacts and relations.
We have stalled our economy for 30 deaths
I think the problem now is nobody in the government wants to risk running into the scenario where death rates going high. So better to be blamed for slowing down economy rather than to be blamed for high level of death.
I come from a Chinese background and there is a proverb in my language that says “好死不如烂活”… which means something like “better to have a chance to live a harder life than risk dying”. If you get the chance to live, even though life can be hard, but you have a chance to go on with life and eventually turn things around… but if you die, then it is all for nothing.
All it really takes is for a few irresponsible people to make the virus to spread around. Especially considering most Asian regions where population levels are high while land is limited (think Japan, China, Korea, etc… all places where people literally squash each other on the roads)…, which make the virus spread even easier compare to say Australia. So we are lucky here at Australia, where land is big and population is very low compare to most of the world. — This probably explains why we take so many things for granted here in Australia. Things which rest of the world have to learn to live with and yet we are lucky to be able to just take them for granted…. and it also explains why a lot of my friends frequently comment to me that here in Australia, we “are too laid back and not take things seriously enough”… but I guess that’s a different topic for another time.
The thing about virus (especially the ones that spread at a super fast level) is that you either have very high level of infection or extreme low level of infection. There really is no “somewhere in between”. As soon as you try to be some where in between, you end up with the higher end in a matter of days.
couldn’t advocate
I think moderate may want to consider deleting this thread.
The ATO searches the rental bond register too
I have also seen many people simply not advertise their house for rental and instead rely on world of mouth for referral, and they are rented to overseas students who simply make payments to landlords without doing the bond register or what not.
I have in the past seen friend’s friend doing it, they post some kind of “bulletin” near train stations or on power poles, and receive large number of overseas students interested in renting, and then payment is just made directly between the landlord and the students. Full on tax evasion.
Personally I don’t like doing it, as I consider this to be unethical, but I have seen enough people doing it.
It seems to me that the lockdown was a very expensive way of getting the necessary stockpiles of PPE and ventilators to manage post-lockdown
To me, it looked like the government was initially unwilling to proceed to a full lockdown in the beginning. I have been reading news and comments online for a few weeks, and I can see right at the beginning, when comments on The Age or News.com.au were calling for government to proceed with quarantine, the government still insisted on “there is no need to lockdown”.
However, then come a few incidents where both the government and local people decide to be morons (eg: Bondi Beach, also Ruby Princesses, St Kilda beach, etc…), which prompted a much harsher response from authorities.
In that sense, some people may say we were given a chance to go with Sweden Model, but we ruined it ourselves. (Only a day or two after Bondi Beach, NSW infection rate spiked and most of them happened to be related to people who went to Bondi Beach)
At the moment, while we have done a good job and restrictions are definitely softening now, but they are being softened gradually….
We need to be careful that all it takes is 1 person to be an moronic antic to un-do all of the efforts made by everybody.
Just look at South Korea… they re-opened and then now they are shutting down again because 1 person who went around a few pubs and bars and spread to some 40 people in a matter of 1 or 2 days.
Your friend can show that he lived there if he has some proofs such as records
Not too sure if this is an ethical thing to do, but having said that, I know a few people who have done it:
1. They continue to live with parents even after they bought a property
2. Then they negotiate with tenants that they would charge a slightly higher rent (eg: $320 per week rather than $300 per week) but the rent would include all utilities, and they proceed to connect water/power/gas in their own names. They also purposely ask banks to send statements, letters, etc… to that property instead of where they are actually living.
Now they have all the “evidence” that they live in that house.
e.g. I wouldn’t want to be within 1.5 metres of anyone for even a few seconds right now (save for my family) – just in case. :)
My understanding is that is more of an IT question.
Things are being “polled” at regular intervals. If your phone is uploading / downloading continuously non-stop every second, then a) your phone will probably have a battery life of 2-3 hours and b) your download limit will be used up before you know it.
So to compensate for it, the app is probably designed to take a balance. So that the amount of data being sent from your phone to the database is sufficient enough so it can be considered as “reasonably accurate” (of course, if you purposely try to break it, then that is a different story… but we are talking about average responsible citizens who are able to apply common sense), but at the same time not destroy your phone battery and / or your monthly data limit.
I didn’t make this app so I can’t comment on exactly what algorithm is applied but based on my IT knowledge, it would be something like this:
1. At time 0, your phone sends data
2. At time 0 + X minutes, someone walks past you and breaches the 1.5m threshold. Your phone registers this but probably won’t raise an alert yet
3. At time 0 + 2*X minutes, if that someone is no longer within 1.5m, then do nothing. Otherwise flag it but give it the benefit of doubt that this particular person may have walked away and come within 1.5m again but is leaving soon. Flag as suspicious but don’t raise alert yet
4. At time 0 + 3*X minutes, that person is still detected to be within 1.5m, then raise alert.
Something like that.
And if Govts are saying “Give renters a holiday”, then there should be something similar for landlords. Small businesses are getting some help – and isn’t landlording a “small business”?
In NZ, they are changing the phrase such as “rent freeze” or “mortgage holiday”, because those terms are being grossed mis-understood. Both of those terms created a great deal of confusions and as such, they are using different terms that have better clarity and more transparent.
eg 1:, NZ government is now using the term “rent increase freeze” rather than “rent freeze”, because that is what “rental freeze” really is: Landlords are not allowed to increase rent for x months defined by the government, but that doesn’t mean tenant should just outright stop paying altogether. Tenants can request for rental reduction if they are genuinely affected by Covid-19 and are stressed out financially. At the other hand, there are also many people affected by Covid-19, who are getting support from government and that resulted in them getting higher income than their job, so obviously those people have no issue with continuing with rental payment.
eg 2: NZ banks are now prohibiting their employees to use the term “mortgage holiday” and instead are using the term “mortgage payment deferral”, which is a more accurate reflection of what is actually happening.
As for rental reduction, one particular person suggested the following. I don’t know if this is legal, but it sounds quite reasonable to me:
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Rent reduction is fine. Although if tenants are having cash flow issues, I would allow them to pay less (specify what the amount is … don’t say pay what you can) and call it a rent payment deferral. Record all rent shortfalls as arrears. When this blows over, you can then decide how they catch up on the arrears or if you’re in the position to do so, you can waive some or all of the arrears.
Don’t call it a rent reduction as you cannot put the rent up for 6 months due to the rent increase freeze that is in place.
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If you want to make an offer for a house that will be auctioned, then my suggestion is:
1. Express your desire to make offer early. It is probably a bit too late now.
2. Try to negotiate if you can make conditional offers, so you have time to do due diligence during conditional period.
3. If you are only allowed to make unconditional offer before auction date, then you need to do proper inspections, etc.. get your math worked out before the auction date.
4. Price isn’t everything. Find out from agent why is the vendor selling? If vendor needs quick settlement (so they can get money) in a hurry, then an offer with quick settlement may beat an offer with higher price but longer settlement.
5. If you are buying it as an IP then I strongly recommend you get your math worked out before making any offers. If you make (unconditional) offer first and do the math later than be prepared for some possible nasty surprises.
So I will add that you make your money when you buy. If you can buy under market value and have a good strategy to add value then you are reducing your risk
Actually, I do both BTL or flip depending on where I look into.
Definitely agree with “make the money in the buy” rather than “buy and hope value will increase 10% the next year”. The idea of buying below market value and add value is also to give myself buffer. This “buffer” also serves as “extra leverage”, so if market value increases by 10% the next year, then great, I have “buffer value + 10% increase” as my total leverage. Even if the market stalls the next year, I still have this “buffer value”, which can be leveraged.
no still thinking on my strategy as where to look/buy that will give me growth over a length of time,
1. Decide strategy first.
2. Find areas that will suit your strategy.
3. Find the property in the said area.
Most people do it the other way around, and get stuck after buying 1 or 2.
Down Down, the interest rates are down!! (again). But what now ? Time to buy or is there something bigger that’s getting cooked in the background which we don’t know about ?
Any thoughts ?
Keep your cool.
Last thing you want is getting overly excited because agents are saying “everybody else is rushing in and bidding at $X higher than expected selling price at an auction”.
As far as I am concerned, whether the market is going up or down. If the number makes sense, then buy… otherwise don’t.
If you pay cash and then get a loan the interest could not be deductible
Even if Property 1 is a rental IP to start with, I still can’t deduct interest against it?
Or are you saying you can’t even use that as a deduction against next investment (property 2?) as well?
Isn’t that kind of unfair for people who couldn’t apply for a loan in a point of time? Say you get a real good bargain deal but you can’t apply for a loan at that point of time because you are in probation so you are forced to buy with cash, but you can apply for a loan after you complete your probation in your job.
Good question – I think Labor’s intent is to only reward those investors who are ADDING to the number of homes available. Buying second-hand doesn’t increase the total number of houses, so no “bonus” for these investor
Technically buying a new house is not “adding” to the number of homes available.
If I knock down a house and build 2 units then I am adding up the numbers. Or if I buy a block of empty land and start building new housings, then I am adding up the numbers.
If all I do is buying 1, then I am not adding any more houses (new or old), because I won’t be able to make any more housings after I buy what I buy.
Also this means any investors who buy brand new houses are happily negative gearing for X number of years and “potentially” after a certain number of years they will “suddenly find themselves running into a huge loss that they cannot offset again”. Then what? nobody will want to buy from them because by then those are considered as second hand housing and whoever buys from them can’t negatively gear.
Labor have stated that they will forgo Negative Gearing on all but new properties
I still don’t quite see how “new” is defined… if I buy something that is “new” (not that I will do anyway), does it stay “new until I sell it”? Or does it stay “new for X years” and then becomes “not new” whether I sell or not?
