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to be honest powmow, i have done plenty of renovations, there fun to do, if you have the cashflow and you are willin to put the time into it.
Though i dont do them anymore but maybe when i am able to quit my job, that something i would like to do with my spare time.
Best advice i can give you about renovations and theres plenty of other advice, but i feel this one is the most important one.
Remember while fixing the place, you lose that cash flow of having it tenanted, when renovating, make a project plan and try to complete as fast as you can, the longer you take to do the renovation, the longer it will take before you have someone rentin givin you income or havin it back on the market.
Or better still, heres a better suggestion, if you buy the place see if you can put into the contract that once the other party has signed and the contract is no longer conditional if you can start fixing the place before settlement date. Some sellers are happy to do this, but doing this would be much better for a few reasons, one that you can complete the renovation before settlement and have someone already renting in there immediatelty and you can get an income straight away to pay your mortgage loan.
good luck!
for me personally, if a tenant requests or askes for deadlocks, normally dependin on the tenant or on the lease agreement i will think about it, but normally i like to up the rent a little bit, usually any cost or expense that comes out of my pocket i will increase the rent just a fraction, just to cover cost,
normally i try to work out an item if its priced anywhere between $300 – $400 i will increase the rent by a dollar a day, in the end i didnt pay for it the tenanat covered the cost of the item over a one year period.
no body mentioned, jerry springer or rickie lake, oh well i like those talk shows, i dont know but to me they are really addictive.
for me personal what really pisses me off is dole bludges, there are so many of them and some of these pensioners come on, the ones that really need the hell get knocked back but the ones that are rippin the government off and havin cash on hand jobs or dont bother too look for a job but sit round and wait for the dole cheque to come in really get on my nerves.
Its unfair we pay tax to support them and yet there the ones still complainin and sayin that they cant find a job or they want more money.
i so much cant wait till they get stricter on the centrelink system and get some of these lazy people off there arses and get them to work for their money and stop relyin on the economy in supporting them.
im confused, is this seriously real or is this a fun joke, please answer cause if it is real i am interested.
thanks still_in_school
Hey Westan, yeah that deal is here in australia, though that is my best cheapest deal, though the second cheapest i have is $58,000 they are here to find but there there like findin a pin in haystack the real cheap ones, but theres plenty of $80k – $120k though they are just neutral properties, but it give it a shot and im sure you will find plenty of properties under 65k that are still have good returns.
Though i think as well steve book had some infulence over people and sooner or later they will be even much harder to find.
Thanks Westan, i will take a note of what you said, i do take what you say into consideration and use the same approach as what you have said when investing.
thanks for pointin it out
Hi Westan,
ive notice that too, there is a definite, decrease in how many there were from how long ago were there were many,
but do you think, this might sound crazy but ok Steve book sold over 20,000 copies and i bet still counting and close to 30,000.
Now lets say there are 10,000 people who read steves book and took it quite serious and all went out to look for properties like this and were successful in finding one, well that would mean there is 10,000 less propertys that were positive geared,
to me im kinda worried these properties will soon be a hard find and will be extint or gone forever in the years to come.
i guess will have to work harder, thats all.
i would raise it up by $7 (this is $1 a day, $365 days a year). Also it will depend on your lease agreement you have with them, if you are allowed to, there are no reason in stoppin you at all, also another thing, adding new locks to your door, if for example they were deadlocks this will decrease you insurance as it is some form of protection and it tax dectubile and depreciable as well.
hey powmow,
you sound very eager and you got the fire and will, to me you seem your really ready to invest, take my advice, speak to your bank and see how much you can borrow straight up, also ask your parents and see if they will guarnator you in your first property, doing this will help convice them about +ve gearing.
and im also happy to see there are plenty of young people here, how are worried about there future.
i will give a quick example
the soon you get into the property market the quicker you will make your money, but here are some facts that will get you going.
at the current moment inflation is about 4% a year if you are workin in a $35,000 job today by the year 2014 if inflation is still rising at 4% you will be earnin $70,000 a year, thats double this years $35000 that most average people are earning, now lets say if interest rates are to stay around 6-7% and you are payin your debt off and keepin it as is, you should be able to pay 30 year loan off in between 15 – 22 years, instead of 30 if you were to put that money into your mortgage, or if you have positive cash flow properties, who knows you might pay it off in record time.
thats my 2 cents
talk to your bank powmow
soryr guys, they havent been take out, but when i look at property, i look at it how much money it would put in my pocket a week and how i can invest that money, all monies i make i dont touch,
ok to clarify what you guys said all those extra expense im not worried about, yes they may be outer pocket expense but they are claimable on your tax return, another thing to, if you have a few IP that your real estate agent who manages your properties for you,
you can ask them to charge you lesser fees as they are gettin a bulk deal from you or tell them about another real estate manager in the area is willin to charge lesser fees again. Most are happy to bring the fees down. But also talkin to other real estate agents and askin if they could do better than the management fees you are being charged, are willin to do a better deal.
Sorry to explain the loan i think my explainin was a little wrong,
my loan is fixed for 3 years at 5.25% and after those 3 years it will be variable, so for the time being im basing this information at the current interest rate
thanks for barin with me guys
hey steveod,
i hear you, im worried and im sure its part of the forum rules that i cant do it, but if you want tell me what problems you are having with your excel spreadsheet to caculate a figure and i will be happy to answer it for you and tell you how, but remember only use the excel spread sheet as a guidance but you must still get pre approved finance from your bank. cause a few dollars out a year or week on a home excel spread sheet can be thousand of dollars difference over a 30 year loan with the bank.
though i am very different to how steve preaches,
i like to invest my passive profits into negative geared properties i have.
Doing it this way i dont have to fund these propertys at all or any other outer pocket expense,
Also doing this, i have learnt that were you make a profit you have to make a loss, (to me doing this i can maximise my tax return and give myself a tax break and still profit with no loss or very very little lost).
Here you go Powmow
ok here how it works,
i purchased the property for $43,000 my interest rate is 5.25% over 30 years but that is fixed/variable but i have 3 years fixed
so the bank wants $59.36 a week my property rents at $120.00 a week
To work out the yield this is how you do it, and this will still appy to 1 week to 1 year as the amounts are still the same.
my positive passive income on this property is $60.64 a week divide that figure by $120 which is the rental and the yield profit return is 50% but if i was to get technical and round the figure up to the nearest percent as the actual answer was .505 it would be 51%
sure can hold on
there are plenty of +ve cash flow properties, just keep searching, i swear i find one in every search i do, and i havent searched in a week only reason is causei have to wait for some more finance.
look harder
another thing too, see if you can get that $85,000.00 negotiated, paying a little less for it can make a big difference
Congratulations Arty, job well done!
Read Steves book
Here is a good saying, “if you want to be a milionaire, speak to some one who is already a millionaire”
Now lets say if you want to own more IP talk to someone who owns many IP and ask him or her how they did it.
This way you are gettin the information from someone who knows what they are talkin about.
