Forum Replies Created
I think it would be great for the experience. An acquaintance of mine does this, and he’s actually writing a book on how to DIY.
Thanks Carlin for the update.
I’m in a similar position, but my ex-tenant has just been extradited to SA!! Nothing would give me more pleasure than to name him on forums, just so others are aware of these crims.
Does anyone know of some sort of database we can look up tenants names and backgrounds?
Qlds007,
Credit providers licence is only needed if you’re doing wrap deals here in WA.
Buyers agents don’t come into play if you’re flipping or doing lease options on a specific property, only if you’re sourcing a property for an established buyer that you have already entered into terms with.
Hi Camder,
Have you thought about lease options or flips or joint ventures? This will get you buying properties without waiting to build your deposit through your job.
Like you, I also wondered why people would consider long settlements or the above options, but as soon as I advertised for these, I had plenty of phone calls. People have their reasons.
You can leverage using OPM much more effectively than doing deals with the banks.
O NobleOne,
I totally agree for these reasons:
We complete a cycle every 7-14 years. We’re at year 10. (..1987,1994,..)
When was the All Ords this high? It’s breaking a new level just about every day.
Money has never been so easy to get from the lending institutions. They’re practically throwing it at you with ‘No interest for 2 years’ or ‘No deposit keystart loans’
Consumer spending is HUGE on plastic, and I’m sure someone here could tell you what the average household debt is. They’re spending more than they earn.
Also, there have been a number of high profile economists who have confirmed the future outlook bleak – including Johnny Howard.These are just a few and I’m tho not paranoid, I’m just aware of the cycles and am being cautious for the next 5 years to see what unfolds. But hey – hopefully I’m wrong!!
Okay, ASIDE from Geraldton, they’re putting in that huge railway link from the city to Mandurah. I would say anywhere along that new track has big potential. UBD should show this.
I think the ripple effect is out Gosnells & midland areas at the moment. Can anyone confirm?
Hi Bonnie,
You have come to the right place. I recommend the best place to start to get an idea of what its all about, is to read Steve’s book “0 to 130 properties…).
Other than that, jump on the ‘wrapping’ forum topic and ask away!!Hi Elika
I’m not familiar with Accor but can only tell you what i have experienced. I have a holiday apt in a tropical region (tho not as fancy as yours!) and was initially worried about cyclones etc. For a cyclone to go through a 10km patch of coast (the destructive part of the cyclone) out of the whole 4000km is reasonably rare. There is always that threat, yes, so take out insurance. Also you can have a look at the local meteorological office as they usually have a past history cyclone tracking map which is always interestingto look at.
When you say its ‘+CF in the first year’, does this include your strata fees, rates etc? For eg. my place cost $176K (100% finance) the average weekly rent (total year divided by 52) is $300/wk, which looks like +CF at 100% finance at first glance. Strata rates are just under $1000 per qtr. Rates and management services etc take this back to break even point.
It is true in my experience that banks don’t look on these favourably as the occupancy is not guaranteed (to them) but it also depends on how you describe it!![snitch] I describe mine as a 2br unit in a strata lot – which it is. I tell them the average weekly rent which is also correct. So by no means am I hiding any information except for the word ‘holiday’. I’m sure there are people out there who disagree.
One more comment – you mentioned summer holidays usually mean higher occupancy rates. Not the case. Summer is the wet season, v.hot, humid, AWFUL weather where it seems you cant escape the heat (my aircon was costing me $300/week to run!). Very little or nil occupancy during this time. Winter is peak season as the tropics are the summer escape in the middle of the southern cold winter.
Comparing this to standard residential, to me they both have pro’s n con’s. Residential has rental security, lower strata costs, its up to you to organise any maintenance if its brought to your attention. Holiday places don’t have the rental security but do tend to be reliable consistent rental flow, all maintenance is taken care of in the highest standard, and you have a place to stay in a 5star palace for free!!
I wouldn’t favour one or the other, and I certainly wouldn’t worry about buying in the tropics.
I used to swear never to live up there because of “all” the crocs which scared me half to death! I just needed to learn about the environment (cyclones included) before making a judgement on the tropics.Hope this helps a little.
What a diverse reaction!
Waz – I haven’t read Success Stories but was wondering were any of these properties foreclosures? I’m guessing this would make a difference.
Richmond – Hotvaluer pointed out 15 suburbs that he knew of How many people do you expect to know every market value and every rental return of every suburb in the back of the white pages?
There are plenty out there in the ozzie market, but I think some people have a different definiition of the word “plenty”. They’re not down every street, you do need to do research and know what the market is doing in an area. Buy below value if you can. Then you’ll see all these great yielding properties leaping out at you.
I find they tend to be suburb orientated but not always.Has everyone been thinking along the lines of residential property?? Expand your thoughts to include commercial property.
Kay Henry – you wrote “I agree, Valuer, that there are many CF+ deals around. My question though, is are those places desirable? “
I’m sure you know all this but people do have reasons for needing/wanting to live in these areas where I wouldn’t dream of living for a million years. I agree some areas are riskier but it also sometimes depends on the property manager and/or advertising. Smaller towns may have a little more risk than the city, but i certainly wouldn’t say “a much greater risk”. Due diligence is a must as with all suburbs. Make sure it has +ve population growth (no matter how small that growth is – even in Tassie!)[king]
Its great that you KayH point out these things tho. They all need to be considered.Ultimately I think its an inividualality thing. By that I mean its what the individuals priorities are +CF or CG. Its different for everyone. What works for some may not work for others.
Benson,
I don’t think Redwing has his calcs wrong at all – that information is taken straight from the Dept Treasury and Finance.
Remember those savings were for the FHO. For investors and other home owners, the savings is substantially smaller.
I have heard that to avoid the big slump in June, they were going to introduce a pro-rata.
Can anyone confirm this? I can’t seem to track down any information regarding this, so am dismissing it as a rumour.
hi,
If you’re talking about “desperately needing funds”, spending money on furniture wont give you this.
What is your objective? If you need the $$ would you consider a joint partnership? tho this can create political hassles as well. As mentioned in the previous post, you could subdivide and sell depending on the property.
If you want to turn it into +ve geared you may need to spend some funds to grab your longer term cash. How about putting a granny flat in the backyard.
yes yes, there is a catch.
1) The property had discusting tennants, but they are reliable on paying their rent on time (essential!!), and my friend intends on repainting and deodorising the place if/when they move out.
2) The vendor was a motivated seller given the status of the above. Perhaps scared off by rental properties???
3) There was a granny flat out the back. The main house tennants are paying $190/wk and the ‘granny’ was paying $90/wk.
there are bargains out there, just research a little longer, and ask questions!!
If the common fence is on the unit complex, it is part of the body corporate. Even the external walls, roof and guttering of the property are covered.
However, read their fine print, that particular company may have an exclusion for this for some unknown reason (tho I’ve never heard of that before)
Just remember, you’re not buying your IPs for you to live in (generally). People have their reasons for needing/wanting to live in places like Armadale.
A friend of mine just bought a place there for $128K and is renting it out for $280/wk. Are you after +ve cashflow or capital gains?
Also, don’t rule out the smaller country towns. Also, places like Kal/boulder still have huge bargains.
