Forum Replies Created
Hi Redwing ,
thanks for the tips , i will check them out
“Buy low and sell high”
Hi niniebear,
i have offices in Hong Kong , Singapore and India . What do you want to know? First point there are many Aussie rogues selling property for way beyond what it is worth. At the end of the process you want the buyers to settle
Costs are very expensive you need to be selling a lot more than 4 properties, no offence intended.
The asian market is all about perception, so the propeties are generally marketed in the foyers of 5 star hotels . The function rooms and meeting rooms are hired out , plus media advertising. There is no change out of $40K AUS and no guarantees of a sale.
Many of the purchasers from asia have studied here have relatives local etc, ie they have an affiliation with Australia and that is what attracts them to the advertising in the first instance.
I hope this is not a thought of ripping off offshore investors as this tarnishes every aspect of Australia. I am not suggesting it is , but i get very annoyed overseas when i see $500K properties in Gisbourne Vic that would not fetch $400K, it burns the market for everyone, that is a literal example.
Your best option would be to package a deal with some of the other post offers,
cheers
tony
Great post Derek.
I am at a loss with all the negative comments though?
These mortgagees sales in Sydney should be music to the ears of investors .Why arent we the ones bidding for these properties. Why are we all running to the USA or some bloody place no one other the 24 locals have heard of before.
Havent rental yields dramatically increased in Sydney and Melbourne ? People are bidding for rentals Dutch auction style.They both have massive population growth, they both rank in the top ten cities in the world. Then shouldnt the prices reflect the status. Perhaps someone should question Gen Y where this generation wants to live. Out in the burbs on a high maitenance block of land or in a trendo apartment , with gym , pool , theatre, and cafes a stones throw. Plus they dont need a car because they can use public transport to work.
Australia is one of the few countries in the world with a growing population and more importantly one of the only countries with a growing middle class. These are the people we want as tenants.
Any one that hs invested with a long term view of 2 years should visit a casino , not the property market. It is a long term investment and the CBDs of Sydney and Melbourne , will be the next hot spots.It is where the next generation wants to live…consider London , Hing Kong,New York etc Also where do a large portion of new Australians come from?
Hello Cazza,
have you done tax variation with the ATO to minimixe your weekly hold cost?
Also i suggest you consider refinancing , there are lenders that would offer 1% off standard variable , just renegotiated myself. This can make a substantial difference. Call SFS 03 9882 3400 they lend on other states as i too have properties in various states.
A good football saying is “winners never quit and quitters never win”…
I too would like to hear/see your theory …
Hi DraconisV,
if you want to fast track your entry time a few suggestions.
Learn about rebates in property. I will explain more shortly…
You and your gf should ask for a pay rise . Make sure you have a good case why you deserve it (if you dont start working harder then ask). Also request to do overtime and be eager to look to advance in your line of work. More income never hurts.
Budget your money , it is amazing how much you can save when you know where your money goes.(dont become a tight ass though no one likes that)
With the low capital it is more difficult but a rebate could help. Determine the value of an property only via a recognized bank panel valuer. Valuers can tell you which bank panels they represent.
Your job is to find a property at say $300k , offer about $230K. The contract will be written at $300K with a $70K rebate at settlement. (your deposit) . This way with costs at about say 6% ($18K) your total investment is $8K with borrowings of 80% of val is $240K . The latest article of ‘Sydney prices crash’ should help your negotiations.This would mean you will begin in 20 weeks, so get saving.If you want some property investment software i developed some , you can track your investments email myself your details and i will post you a free copy. I dont distribute it normally but i like hearing young people making an effort…for themselves
Hi Porsha.
i would suggest you get as many recent comparable sales as possible , even buy a local price guide via http://www.domain.com.au. Prices can change by suburb and even by street.
Look at as many properties in the one area as possible to familiarise yourself.
What makes you not want to invest in your local area?
Hello Elkam,
I am not sure on the point of borrowings to invest in the SMSF itself. A SMSF cannot borrow money , so it makes sense.
cheers
There is a structure used by some investors where by the SMSF has a percentage ownership (the deposit) and the remainder is in the name of the investor (or entity).
For the sake of the example :a $300K investment property ;
20% deposit + costs of say 6% = $78K, this would be the contribution from the SMSF.
The remaing 80% would be borrowings in the investors name
Please remember the legislation for SMSF is about to change again reflective of the last federal budget.
With that one sale in Sydney . Was that a loss or a gain? I think it was a gain for one person, yet a loss for another. It just highlights there is good money to be made. Property is the same as shares you can make more money in a bear market if you are savvy.
Bankruptcy occurs everyday . It is a shame for one family and a great buy for the next.
Could you explain to me how the ASX100 and ALL ORD yield is calculated?
From a managed fund i had , i sold AMP shares in about late 1997 for $15 rounded, they are no where near that figure now . Please correct me if i am wrong.It was handy , it paid for my wedding at the time.
Apologies for the silly looking post! I tried to make it look fancy , with dot points and made myself look like an idiot.
Hi tkting,
Very smart move, if you are just starting out , many investors look back and only wish they began with the right advice.
Some good questions are:
Have they invested themselves ?
If yes.Ask for specifics.
Were they successful?
What are there personal beliefs of property? (negativity is not going to help you)
Ask about hybrid trust structures versus a discretionary trust.
Do they have many clients that invest in property?( this will also reflect their understanding)
Do they encourage their clients to invest in property ?
Are they proactive or reactive? (do they just look at what you have done and try to tidy it up at the end of the financial year or do they make suggestions to help improve your circumstances)
I would suggest not to concern yourself with their fees and determine their ‘value’ by how much can they help you. Good Luck
There are a number of points missing to give a concrete answer. But i will make a few assumptions . Lets say she has made $100K equity on the $350K investment over 2 years. This equates to around $1K per week. At $50/wk you would need 20 cashflow positive properties to reach the same yield (debatable point). The important thing for your friend is the famous Renae Rivkin quote ‘buy low and sell high’. I would suggest if she has made a large amount of capital on the 2nd property to cash in and secure her position.
The other point she may have been focusing on is the tax benefits only. Not a great reason to invest but it does help. There is a document called the NAT 2036 , tax variation document and it is possible receive your tax benefits as per your pay period ie weekly, fortnightly etc. (dont accept a lazy accountant that states , just claim it at the end of the financial year , CASH IS KING). Take your money and use it to offseyt bad debts. The difference between buying new to 2nd hand is substantial . I recently purchsed a house in Coburg and claimed over $15k in depreication in year 1. That money does not physically come out of my pocket.
Another point also is consider hybrid trust structures if you are investing with a partner and there is a reasinable discrepency in incomes. Your accountant can advise if this suits.
A good accountant can detail the trust and arrange documentation. Ask about hybrid trusts especially if you have a partner and there is a reasonable size difference in income between the two of you. Utilising this structure it is possible to convert negative geared to positve geared…good luck. I am live in Melb but i do know a great accountant in Brisbane. Just email myself if you would like the details .
There is an option to consider that can wipe CGT. You would need to create the investment in a SMSF , you also need to be 60+ as of July 1st next year there is no CGT or income tax appicable(55+ you can extract $130K tax free). Check with an accountant , mine has already briefed myself on this topic. This may not apply to yourself but could be an option if your parents made the investment. There are few criterias , therfore the structure is very important. Worth considering for no tax! Always confirm any details with a professional.
Amazing that investors are flying around the world to find those cash flow positive properties that will change their lives, when the properties are seeking are in their own backyards. Firstly , acheiving a positive cashflow property in Tassie that nets $50 per week will not change a life!!! How many do you need to retire ?I am not a negative attitude person , but i do find it a farce to consider creating a $60K + investment to make $50 per week. A few more car accidents in Tasmania will cause negative population growth, the only reason for capital appreciation is the disparity between the ‘mainland’ and Tasmania. Ever played musical chairs and they add chairs every time they stop the music ?
There are developers (in particular that are desperate for sales~literally). Properties in Melbourne and Sydney acheiving 7% + yields.
All of these ‘property guru’ investment tips on how to make millions from cashflow positive properties, is a simple ploy to encourage investors into an area , as they are selling the properties and cashing in on the capital growth. This is just an opinion , but what would I know , I am just a dumb electrician.
Consider the current situation of petrol prices and where most people work. Also consider what is the most expensive real estate in other major countries around the world. If you can answer this basic cryptic question , then you have the answer…
How is $179K in Collins St in Melbourne and $300 per week , not bad 4 a blue chip location (outgoings by tenant and residential property). I looked at properties in the Docklands in Melb on Monday , asking price is $340K and tenanted for 3 years at $500/wk , i am sure the savvy investor could pick this up for circa $300K.
I also purchased a 3 bed townhouse in Richmond for $550K , bank value for finance came in at $800K. I tenanted it in 1 week at $600/wk , not a huge yield but i am happy having blue chip investments…. and many more
Remember yields are reflective of the cost of money . One persons perspective is different to the next ! It is possible to get 1% off for the life of the loan, the banks are also negotiable !!!! I have recently secured a rate of 6.57% (1% off the standard variable). Its not what you know it is always who you know.
Hello Foundation,
i would be interested , if you could detail your successes so that we can all ascertain the level of your insight. My concern is you are giving negative information to people because you sell what? Attempting to link CPI to capital growth is pointless.
i will happily debate some of these points with you, all in good fun of course.
i would not consider putting my money in the bank , there are heaps of secure investments with higher returns than banks . the minimum you should look for is 15% . ASSET BACKED.
Hi all,
i love these stories. i am now outside your age bracket at 30 , but i began investing at age 17 , i have had the good fortune of time being on my side(as all of you youngsters do) and now have in excess of 60 IP . I tend to have a different strategy to most on this site i only buy bluechip properties. Any how i started my working life as a sparky , and thought it would be good to invest in property . I guess what i am saying is any one can do it … just remember your dreams and stay focused.
Originally posted by tony wpb:
“cutting part of a sentence to attempt to mock somebody is childish.
I don’t believe I changed the context of your statement.
“i only care about the results for investors. “
The reason i mentioned i only care about results for investors, i should clarify that , i dont care about the comments of a minority , especially someone that has never met myself.Sorry, but this pushes my sceptical button. You are running a business, not a charity.
“Do you use in-house and/or paid valuations? Why?” “Who paid for the valuation figures you have been quoting here?”
the purchaser paid for the valuation to refinance , that statement earlier was not clear , the property revalued at $510K, and it was the borrowers lender that performed the val.
“It has been almost impossible to lose money in RE over the last 5 years. What makes your company so special? The figures on the ‘immigration’ website you sponsor seem to show lower than average CG.”“Michael and Andrea purchased their first investment property in February 2001 in Brunswick for $285,000. The property is now worth $350,000.
The pair purchased their second property in Elsternwick in March 2002 for $350,000 and it is worth $420,000 today.”
Why are you targetting New Australians in this way?
The figures quoted were actually old figures from testimonials, we advertised with the dept. of immigration of which they perform several checks prior to been approved to advertise with them. We have offices in Singapore , Hong Kong and China, hence the ads.Are the $600+ pw rent deals being in any way subsidised for the guarantee period? If not, where do you source these tenants? These are actual rental figures and to find the tenants we advertise.
you do not see or hear of horror stories of dealing with ourselves.
“I have heard a few actually.”
i am sure these are from people that have never dealt with ourselves, and make unfounded comments.
I’m also interested to hear more about the proceedings in the Supreme Court last year, as I have yet to read the transcripts…i do run a business and we do make money , the reason for the supreme court proceeding is that i have a developer that did not pay our commissions owing and he is attempting to use a legal loop hole not to pay.(we sold 31 properties not to be paid 1c, yet our clients still got what was promised)
Sorry to come across as sceptical, but I really am.”Originally posted by tony wpb:
…i challenge anyone to give their clients better deals.There is not a fat chance in hell that anyone could provide better deals …
As you are aware foundation, there was more to this statement than what was simply pasted in your reponse.
Monopoly has also changed my words from rebates to yields.I am simply frustrated that it seems like a game to people on this site to be derogatory and attempt to take people down , with no actual knowledge.
I have underwrite projects and my day to day job is property investing, as somebody that does this everyday , i believe i have a great handle on investing.
I know how to convert -ve to +ve geared property , for a particular demographic. You would immediately say that is impossible, with that same philosophy we should be living in caves, sometimes it does not hurt to listen that way you can learn.
i have done deals with the developer paying the interest on your property (house and land), of which you can claim tax deductions and yet not financing the project with a 2yr build time, with discounts in Newport, vic.or maybe no money down with cashflow +ve properties in East Malvern, vic….or protect your assets utilising trusts over properties that have already settled without stamp duty implications.
i would not claim to play better football than James Hird, although i do love footy . i would be interested in you substantiating your evolution of deals , that are so inventive.
Maybe i misunderstood the purpose of people discussing property/deals…i am happy to share info… but i do get annoyed if i am being tainted.
Please keep an open mind to the possibility that there are peolpe that do deals that have no been done before
Apologies if my quotes mess up as i am not faimliar with the site operations
