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Viewing 8 posts - 61 through 68 (of 68 total)
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  • Profile photo of walkernickwalkernick
    Participant
    @walkernick
    Join Date: 2002
    Post Count: 68
    March 10, 2003 - 11:18 am

    Hi guys,

    There’s no harm in starting to shop around for property managers before settlement…it’s a blessing to have a tenant ready to move in by settlement! Remember to ask potential property managers lots of questions – and don’t just pick based on their fee. See what the fee includes, how the manager has dealt with certain problems before, and how many properties on their rental roll.

    It’s hard to say what additions to the property will bring in extra rent. The best thing to do is get the opinion of some property managers. Ask them what extra rent can be charged with specific ad-ons and do a cost vs return analysis for each one. Also speak to your accountant about depreciation allowances and incorporate that in as well.

    Hope this helps
    -Nick

    Profile photo of walkernickwalkernick
    Participant
    @walkernick
    Join Date: 2002
    Post Count: 68
    March 10, 2003 - 11:11 am

    Hi Paul,

    Before I started looking for my first property I had the same concerns about talking to agents that you had. Since then I have learnt a couple of things…
    Firstly, I have found that there is a difference between agents in the city and the country. We have just bought our PPOR in Sydney and have found the agents a lot tougher to deal with. However I am purchasing an investment property in Kurri Kurri, NSW at the moment and have found it easy to become friends with the agents. They are more simple country folk, who know their stuff, and are under less pressure to make money as in the city.

    The other thing I do is make a list of things I want to find out from the agents. If you make a good impression the agents are more willing to listen to you. Ask them about yields, vacancy rates, population growth, price growth, etc… get them talking about what they are passionate about.

    Anyway that’s my approach…good luck!
    -Nick

    Profile photo of walkernickwalkernick
    Participant
    @walkernick
    Join Date: 2002
    Post Count: 68
    March 7, 2003 - 3:28 am

    Hi Oscar,

    I am in a smilar situation… I have a 6 month settlement and intend to negotiate with the vendor to arrange for renovations before settlement.
    Would you mind mentioning which originator you found to allow a loan based on valuation rather than contract price?

    Cheers
    -Nick

    Profile photo of walkernickwalkernick
    Participant
    @walkernick
    Join Date: 2002
    Post Count: 68
    March 5, 2003 - 2:06 pm

    Thanks heaps AD.
    I didn’t realise how negotiable the deposit amount can be.
    The vendor is not an owner occupier so I can’t for the life of me see why she would want such a long settlement. But you have put a positive light on the subject!
    Nick

    Profile photo of walkernickwalkernick
    Participant
    @walkernick
    Join Date: 2002
    Post Count: 68
    December 30, 2002 - 1:26 pm

    Hi there,

    Just some stats for you in case you don’t have them:
    Umina/Ettalong – postcode 2257
    -median unit price $254,000 (june 02)
    -capital growth units 13.2% (last 12 months)
    -rental yield units 5.27% (last year), 6.03% (last 10 years)
    -average rent units $270pw

    These figures are nothing special but you’re correct that the fast ferry may have an impact.

    Just got the new API magazine – a great article on capital gains vs positive cashflow I’m sure you’ll all enjoy!

    Hope this helps
    -Nick

    Profile photo of walkernickwalkernick
    Participant
    @walkernick
    Join Date: 2002
    Post Count: 68
    December 28, 2002 - 5:00 am

    Hi everyone,

    Would it be OK for you to link to some of the better overseas forums? It’d save me having to shop around like you guys have done. Thanx =)

    -Nick

    Profile photo of walkernickwalkernick
    Participant
    @walkernick
    Join Date: 2002
    Post Count: 68
    December 21, 2002 - 1:01 pm

    Hey Everyone,

    Sooshie, I have the pleasure of spending Christmas in Melbourne! After spending today driving down from Sydney…boy is that a boring drive…we’ve arrived! I plan on having a great Christmas with my family and then getting back into the books between Christmas and New Year.

    I have a goal to purchase my first property before I start uni again in late February. I can’t wait for the challenge!!

    Have a great Christmas everyone and remember the three most important things: 1. Your health, 2. Family and friends, 3. Money and business. In that order!! No point having the third if the others have to suffer! Look forward to contributing more to the forum in 03.

    Regards,
    Nick Walker

    Profile photo of walkernickwalkernick
    Participant
    @walkernick
    Join Date: 2002
    Post Count: 68
    December 2, 2002 - 1:24 pm

    Hi Napalm,

    From what I understand, the 11 second rule is a general rule that can produce a positive cashflow property in the current interest rate environment as well as providing ‘insurance’ for if interest rates should go up.

    I have done some basic calculations, and on a property that just satisfies the 11 second rule, that requires maintenance at a conservative rate of 10% of annual rental, and where 80% of the property value is borrowed, the 11 second rule still produces positive cashflow if interest rates rise to around 11% (assuming the top tax bracket) NB. I have assumed that no depreciation can be claimed.

    Having said this, I can see some disadvantages with the 11 second rule. No-one will deny that the rental return required here is comparatively high, and the traditional tradeoff between rental return and capital growth needs to be considered. In my personal circumstances, for example, I am looking for properties that don’t cost me MUCH per week (as I don’t have the income to support it), but that I can get a relatively good capital growth from, as I want to be able to build equity quickly so I can purchase a large portfolio of properties relatively quickly.

    Keep Smilin’ =)
    Nick Walker

Viewing 8 posts - 61 through 68 (of 68 total)
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