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  • Profile photo of The ContrarianThe Contrarian
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    December 19, 2008 - 11:18 am

    What are they they selling? (When it comes to DEFENSE HOUSING)

    A PACKAGED DEAL offering SECURED RENT over the lifetime of your investment.
    A "hassle free" investment property that is to assist in securing your financial independance and with a "promised" government guarentee that ensures you receive strong rental returns over the long term (and appreciate substantial Capital Gains).

    – – – The truth of the matter is this:

    If you stick to good quality property in good locations  (over the medium – long term), you can not go wrong!
    Do your research and you can purchase better located properties, with better rental returns, with lower commissions (if any).
    THIS IS A GREAT TIME to be scouting top quality properties. Buy BIG, lock in the FIXED INTEREST RATE, and play it for 3 years from now. SECURE yourself a f*cking great deal now and THANK YOURSELF 10 years from now!!

    Anthony Campbell
    [email protected]

    Profile photo of The ContrarianThe Contrarian
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    October 20, 2008 - 10:12 pm

    Hi mate,

    Good post…
    To be honest, the concept of rent paid for the first year, gives it that "serviced apartment" feel.

    Rather than paying the rent for the first year, why don't you just SELL them @ $349K (i.e. $20K cheaper).

    They will get snapped up at that price (no matter what market you're in)…

    Just one opinion.

    cheers,
    Anthony.

    Profile photo of The ContrarianThe Contrarian
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    June 16, 2008 - 11:56 am

    Start small… much smaller.

    Profile photo of The ContrarianThe Contrarian
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    April 12, 2008 - 9:01 am

    Ok. You could refinance with your current bank / institution.

    If you already have a $39K loan with them, you might want to extend that loan on your townhouse to $389K.
    This will give you $350K cash in your hand, and a new debt of $389K on your townhouse.
    Enquire about an offset account… You may be able to pay a little extra now for the facility of an offset account…
    Therefore if you leave that $350K in the offset, you wouldn't have to pay interest on that amount…
    I can't see many banks offering this feature for obvious reasons.. but some do.

    So then…
    You have a $389K debt… and $350K CASH deposit for your new home.

    So say you purchase a home for $600K… then you would have:

    – House worth $600K (loan of $250K)
    – Townhose worth $450K (loan of $389K)
    Your accountant will also remind you that it pays to pay off as much of your PPOR first, then have all the debt on the townhouse (as you can claim the interest on the investment property, but not on the PPOR).

    When refinancing bank remember that you will need to borrow less than 80% ($360K) of the principle (450K) to ensure you don't pay LMI (Lender's Mortgage Insurance).

    Either way… as "NEWBIE 2" mentioned…. Congratulations on your success so far… It's a great position to be in and a great problem to have :)

    Profile photo of The ContrarianThe Contrarian
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    April 12, 2008 - 8:39 am

    I think the best advice to give anyone about to purchase their first property is to "start small"…

    Think of your first property as a stepping stone to your dream home.

    Since you are on such a good salary… I would purchase in May/June with your $20K, $7K homeowners grant & stamp duty exemption, with say an affordable 2 bedroom townhouse in a good average suburb.

    Whether you rent or live in it will be up to you, however… by starting small, it will:

    1. Get you into the market (to take advantage of capital growth spurts)
    2. Give you confidence with property & learn about the legals, financing, building & pest reports, depreciation schedule (if for investment property), rates / strata, learn how to manage property, etc
    3. Give you a financial "buffer" zone… you can opt to either speed up repayments to mortgage or offset account and/or save a little money on the side for family responsibilities…

    Start affordable, finish strong…

    Profile photo of The ContrarianThe Contrarian
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    April 12, 2008 - 8:17 am

    Mate, if you have the cash…
    Go for 3-5 townhouses for sure!

    Multiple income streams… All you need to do is jack the rent up $20 per week on each property & you have an extra $430 per month. (i.e. $20 x 5 x 52 / 12)

    My brother is about to do 4 townhouses. Easy money.

    Profile photo of The ContrarianThe Contrarian
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    February 1, 2008 - 12:55 am

    Do it.

    Profile photo of The ContrarianThe Contrarian
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    January 1, 2008 - 1:34 am

    Hi Chetnik,

    If you were looking for something close to the uni, perhaps you could try Gwynneville… It's affordable, but has had pretty consistent growth over the last 10 years (ref: Residex).

    Cheers,

    Profile photo of The ContrarianThe Contrarian
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    November 7, 2007 - 4:44 pm

    Yep… If it's still available… I would be happy to look into it also.

    Profile photo of The ContrarianThe Contrarian
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    November 6, 2007 - 5:42 am

    Hi Jodie,

    I would try to consider what INCENTIVES there are for people to live in a unit in Tamworth.

    I believe the main incentive would be for people to SAVE MONEY.

    People in Tamworth will not pay top dollar for a "prestigous" unit… NOR will they pay top dollar for "convenience"…
    If they had the money, they would either: 1. Buy an acreage or 2. Build a block of units themselves.

    Therefore,
    I would aim to build a very BASIC units… Make them affordable enough so that people CAN'T REFUSE…
    but don't spend so much that you go bust.

    I bet there are some people out there, that would LOVE to buy a basic property at an affordable price.

    Just my thoughts…. I wish you all the best.

    Regards,
    Anthony.

    Profile photo of The ContrarianThe Contrarian
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    November 6, 2007 - 5:14 am

    Hi Karl & Rita,

    A good CLEAR / SATIN CONCRETE SEALER can really lift the appearance of your concrete.

    It will not only improve the look of your concrete, put also protect it from erosion and make it easier to clean.

    It's EASY to apply and you can pick up 4 litres for about $50 at your local Bunnings.

    Cheers,
    Anthony.

    I have done this before and was VERY happy with the result.

    Profile photo of The ContrarianThe Contrarian
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    November 2, 2007 - 12:33 pm

    Hi Nix,

    I agree with Foundation… Don't sign anything!

    Is the deposit negotiable? YES. EVERYTHING IS.
    I recently purchased a townhouse of the plan and neg. from 5% to 3%

    Yes, you can make money from off the plan… but remember most of the money is normally made by the developers.
    Especially be weary of the High rise developments…
    If you can get a little townhouse or something with a bit more land content in the same good area, you are always miles ahead.

    I'm sure people here can help out a bit more if you advise:

    How much are the units selling for?
    How many units in the complex? (is it a staged development)
    do you know the builders background?
    have they advised the expected "strata / body corp fees?
    what deposit are they asking for?
    have they sold many units?
    is there a strong rental return in the area currently?
    is money being invested in the area?
    that is, infrastructure: schools, transport, shopping centres, etc…
    What are WAGES like in the area?
    Do you see people moving TO or FROM this area over the next 10 years …?
    And ofcourse, what area are they selling? (if you don't want to say… just advice if it's cap city or not.)

    cheers

    Profile photo of The ContrarianThe Contrarian
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    November 2, 2007 - 12:06 pm

    I'm sure someone here will be able to answer you question re: the trusts etc (sry, not my forte)…

    Just another option…

    Have you considered:

    1. Your brother & wife rent their unit out to someone else (that way all their UNIT expenses are tax deductible
    2. You rent your house / granny flat to them…
    3. You pull equity out of your house and reinvest in your growth area. (that way you have two properties and three incomes)

    Cheers.

    Profile photo of The ContrarianThe Contrarian
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    November 2, 2007 - 11:54 am

    Yep… I agree…. try to be as diplomatic as possible :)

    Profile photo of The ContrarianThe Contrarian
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    November 2, 2007 - 11:51 am

    Hi wishful.

    I thought of a couple of possible ideas:

    1. Perhaps your partner's parents repurchase the property through a trust… You act as the Guarantor, but they make the repayments. (perhaps interest only loan)… Perhaps if they default then, you could repurchase.

    or

    2. Maybe you considered purchasing HALF of the property with them…?
        Perhaps this could lighten the repayments for them, then they could purchase the rest of you later.

    or

    3. Would they consider downsizing their property ? (Perhaps there's a property down the road that's more affordable)

    Profile photo of The ContrarianThe Contrarian
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    October 31, 2007 - 10:30 am

    Hi Dan,

    I agree with "PropertyPower"

    Good advice.

    Profile photo of The ContrarianThe Contrarian
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    October 31, 2007 - 10:25 am

    A house can never have enough storage places…

    Profile photo of The ContrarianThe Contrarian
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    October 15, 2007 - 7:48 am

    Can you improve the yield on it somehow…? ie. increase the rent, to minimise repayments?

    For eg:

    1. a quick makeover… Paint, lights, steam clean ?

    2. Rent by the room

    3. rent furnished etc…

    Just ideas.

    Profile photo of The ContrarianThe Contrarian
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    October 15, 2007 - 7:42 am

    Why sell them ….?

    Refinance your loans so that you pay off your PPOR and leave the loans on the investment properties….

    There are a few guys on this site that I'm sure could help you refinance.

    If you are able to hold onto these properties… the long term compound growth is where the real money is made.

    Also… if you sell now… you pay a lot of CGT…
    The governements has made some announcements today on tax changes that will have an impact on this.
    If you can afford to… I would refinance and lock the rates up for a few years.

    Hope this helps.
    Cheers.

    Profile photo of The ContrarianThe Contrarian
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    October 15, 2007 - 7:01 am

    If your area's marina is expected to be finished by 2012…
    We may be talking about the same place ;)

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