Forum Replies Created
If you do a search on buyers agents, or the two specific agencies, you should find responses as the question has been asked before.
Regards
WakeHi shazzajaksic
If you owe $100k and receive $250 a week rent and it isn’t covering the loan repayment, you must be on P & I. Have you thought of changing to interest only, as this would then provide cashflow.
Also, if you have aready refinanced and borrowed against the extra equity, by the time you sell and pay all the associated costs, would you really have enough left over to buy a pair of +CF townhouses? There’s a lot of money wasted in selling and buying.
Regards
WakeWe have dealt with Sam, and more recently Sanja, from Positive Real Estate on quite a few occasions over the past few years with no problems. If you have a current agency agreement with them, at a cost of $250, you complete a profile and they email you brief details of suitable properties as they come up. If you want further info you email them and receive a more detailed report very quickly.
If you proceed with a purchase you pay their commission as soon as you sign a sales contract. They can help you through the process as much or little as you like/require.
We have purchased once through them, and on a second occasion the vendor pulled out so they immediately returned the commission to us.
If you are time poor, or a little uncertain about how to find your own IP’s a buyers agent can be a good idea. You still need to do your own due diligence.
We normally like to find our own IP’s, but are always open to other sources because you never know when you might come across a bargain through someone else. I realise some people would never consider paying for something they could potentially do themselves, but if its a good enough property and price, the commission might be worth it.
Regards
Wake
Hi Dave
I recommend reading “An Intelligent Guide to Australian Property Development” by Ron Forlee, to get an understanding of the various aspects of developing. You can get it from http://www.businessmall.com.au
Also, if you can get your hands on a copy of Martin Ayles Development Checklist, it gives step by step instructions on how to develop a property from start to finish.
Wake
Thanks for the info, David. Good luck with your development.
Wake
Hi Richard
Small, as in subdivide and build a duplex.
We are looking for 80% of the tentative value on completion, which is greater than 80% of the land plus build costs. The point is to be able to stretch our equity further.
Regards
WakeThat could be the case with smaller lenders. I know the big 4 have no restrictions on LVR there.
Wake
Hi maddy1769
We have 2 IPs in Moranbah, both bought mid 2004. We are in the process of selling one now – contract not yet unconditional. We made 62% CG in 18 mnths. Not bad for a property that was bought primarily for cashflow. Of course if we’d bought even earlier we would have made a lot more.
It is a riskier investment, and depends on your comfort level. We were happy to have them as part of a larger portfolio, and have never intended to hold them long term. We try to keep up with what’s happening in the area so we can make a more informed decision as to when to sell. By the way, we aren’t selling one now because we think its time to bail, but to provide the means for another opportunity.
We are hopeful of further reasonable growth, perhaps not as much as already achieved. The town has plans for expansion, which is necessary to cope with the industry boom, and even though new housing is being built, it still won’t fill the demand.
We are constantly amazed at the rents. When we bought $320 was the norm. Now its $550!
Do your due diligence and see how comfortable you feel. Be mindful that there are some downsides, such as the cost of having work done, assuming you can even get a contractor.
Good luck.
Wake
The workshop is at the RACV at 501 Bourke St, Melbourne. If you tell them you are attending the seminar they will give you accommodation at members rates – $190. I’m sure you could find cheaper, but staying on site would be more convenient – especially if attendees wanted to network afterwards.
Wake
Hi All
Official letter from OSR advised 2006 threshold for NSW is $330k. Marty-boyo, if your land is on approx 700 sqm, the $200k value you refer to is the property value. The land component will be less than $50k. I have $1000sqm in Armidale and the 2006 value from OSR is $37K.
Breathe easy.
Regards
Wake
Hi Nickelben
The only way to know is to look at the strata plan, which will show you what is common property (strata responsibility) and what is part of your lot (yours). The strata manager will be able to interpret the plan and explain the situation to you.
Wake
Hi Cabo Wabo
The type of expenses that units/blocks incur include building insurance (plus other types of cover if strata titled), common electricity for lights in stairwells, garden, garage area, intercom, antenna etc, water usage (each owner pays water and sewer service charge but strata pays water usage), accounting fees, cleaning and lawnmowing etc for common areas, repairs and maintenance of common areas, fire safety if applicable, management fees, insurance valuation etc. These will all vary depending on a multitude of factors.
Hope that gives you an idea.
Wake
Hi cazz67
Rental demand in Moranbah is still very strong. Leases being signed today average between $500 pw for a smaller 3 bed to $650pw for bigger 4 bed 2 storey bouses. Many of these are leased to companies associated with the mining industry, and in many cases the tenants contribute very little – one of ours pays $20pw!!
It is very difficult and expensive to get work done – most contractors will work for the mine first and private citizens second, so you have to factor that in. I would imagine that getting a house built would be more expensive than say in Mackay.
It is riskier buying in a mining town, and only you know what your acceptable level of risk is. We don’t view it as a long term investment, but feel comfortable being there a few more years yet. I have heard that there is enough coal for at least 15 yrs. Of course, other factors could force the mine to close.
I don’t know how long the high rents can be sustained. They have almost doubled in the last 18 months. There is new development happening, but it appears to be at least 2 years away from completion. Obvioulsy more housing stock will impact the rents, so if you can sign up a longer lease now, its worth considering (no help if the house isn’t built yet – and also not good if the rents do keep going up and you’re locked in for 3 years). Old shopping centre is being upgraded, and other insfrastruture works are planned I’ve heard.
Last time I checked Residex still thought there would be reasonable CG over the next 5 years compared with many other areas of QLD, but don’t expect to double your money in a year or two, like you would have if you bought a few years ago.
Hope this helps a little.
Wake
I guess the reason we’re not buying in the next few weeks isn’t so much a problem that can’t be resolved but rather sticking to our goal.
Next week we are going to Qld to plan a cosmetic reno on a place we bought 13 months ago which is needed to move it from 1970’s to 2005! The extra equity from that (not to mention rent increase!), in conjunction with the valuation after completion in January of a house currently under construction in Cairns, should give us enough equity in addition to our current equity to enter into a development deal, either as a JV or on our own.
This will be our 11th purchase/deal in 2.5 yrs. We plan to try this as a way of working towards replacing our wages, instead of relying on the buy and hold and working for another 20 yrs!
Wake
Hi Leoau
Any contractors need to be licenced and have public liability insurance. Also, depending on the cost of the work being carried out, they might need to give you a works contract stating what they will be doing and the cost. From the sounds of it you probably won’t be spending that much, but if in doubt contact the Dept of Fair Trading.
It’s very important that you use licenced and insured tradesmen otherwise you have no recourse if there is a problem with the work, or someone is injured.
Good luck
WakeI’m with Celivia.
Plus, it doesn’t seem like an efficient use of funds. The extra deposit you put in to make it appear +ve could be otherwise put towards a deposit on another property. I suppose it depends on your plan, and whether you intend to buy more properties, in which case some investors would normally maximise their leverage by putting in miminum funds.
Wake
Hi Kevin
Thanks for the suggestion, but we were told yesterday the vendor won’t allow access under any circumstances. Getting in early to do the reno was going to fit in with other commitments. Waiting til we settle to reno doesn’t, so unfortunately I think we’ll have to pass. The agent has learnt that next time a purchaser asks for this, he should check with the vendor before giving an answer!!
Regards
WakeHi Blondie
I agree with Don & Liz. The visible damage can be the least of it. By the time they have eaten into the room, they’ve gone through the walls etc. If you can’t get under the house ie slab construction, perhaps a builder can pull off part of the damaged skirting and gyprock to see behind the wall. This will help determine if there’s stuctural damage, and give you an idea of repair costs.
Regards
Wake
I’m pretty sure this question has been asked before. Do a search on Hans Jakobi and see what has been said.
Wake
Hi
We can’t function with one car. Have a 2002 Ford XR8 sedan and 2003 Ford Falcon wagon. These are leased through our company. We decided there had to be more benefits than just a decent wage. Hubby has much higher aspirations for his future car, so we’ll just have to be more frugal in other areas.
Wake
