Forum Replies Created
Funny you should say that about boats, yes my boat doesn’t get used as much as i thought it would, and yes, i have found that it is smaller than i should have bought.
As for Disneyland, i think we are staying at the Circus Circus hotel, which i believe is not that far from Disneyland, plan to do the Vegas and Grand Canyon thing also. I will probally only do it the once also, but am looking forward to it, as i think the kids will have a ball.
Any other suggestions of what is worth seeing in the area? People have suggested that San Fransisco is worth the visit, what do you think?
Thanks
Wayne
Hi Marc,
I was not sure if i could mention the car dealer, i certaintly would like to have done so.
I totally agree with you in regards to buying a new car, it is not certaintly the best financial move, the not deductible debt scenario. My wife had her heart set on it, and i would of been playing with fire should i suggest anything less.
I figured that after putting the hard yards in over the last ten years, i am a point where i want to reap the rewards of my efforts, part of that is time with my wife and kids, ( work 2 days a week), new cars and a second hand boat. I would of loved to bought a new boat, but cant see the value in it, compared with the amount you use it.
I am heading your way in 2007, taking the kids to disneyland. I take your advice on board though, if and when i replace my car, i would be happy to settle for something 3-4 years old for financial reasons.
Have a good xmas
Wayne
Thanks Terry & Marc for your input.
I am having trouble convincing lenders that i can service the loans, and the fact that LMI protects the lender, i would assume that it would be easier to ontain finance.
Terry, as you have pointed out, you still have to pass the LMI’s company criteria. I thought that i would only have to satisfy the lenders criteria, not both, if the bank thought i was too high risk, that they would just not approve the loan, eliminating the LMI’s company involment.
Marc, i realise that every seminar has an objective, which generally equates to selling you something, but to stay actively involved in investing, i find myself looking for any leverage that i can to achieve this and get around some of these brick walls.
Regards
Wayne
Originally posted by The Contrarian:Dishonest, untrustworthy and good ability to tell a lie or two.
That’s what I like about real estate agents [cowboy2]Contrarian,
Have we had one too many bad experiences with real estate agents?
Finding the right agent can be a useful investing tool in your journey to building your investment portfolio.
Wayne
There are other threads on depreciation on this forum, do a search and you will find some useful info.
Deppro have an office in Perth, should cost approximately $450 to have a depreciation schedule done.
Regards
Wayne
I have the majority of my portfolio in WA, but i feel that prices can not be sustained at the rate that they are currently moving. I would think that there would be a few burnt investors should the market slow or turn.
I believe that there are better oportunities on the east coast at the moment, and have recently returned from QLD where there seems to be areas that would be less risky than WA.
I was suprised in the quality of home that you can buy for your money, compared with WA. With all the skills base jumping in to mining, it is very costily to get anything built or maintained at the moment.
Thats only my thoughts, then again i could be entirely wrong.
Regards
Wayne
Dr X
I totally agree with you, about the majority of real estate agents, they dont see the picture from the investors eyes. I dont know how many times i asked questions of them, and they have had no idea about property investing.
To have a clue about what the words “investment property” mean!
I am an investor that had to get an agent’s license to do what I have always been doing. Before I got a license, I thought that I knew alot more about investing than the average agent. Now I’m absolutely sure of it!!!
I have been an investor for the last ten years, and have joined the ranks of being a real estate agent myself in the last 12 months. I was offered the position when the local agent discovered i was moving into one of the properties that they were managing. Property Investing was something that i have a passion for, and seen it as a natural progression of my investing in property.
In the small town that i live and work, i would predict that 50% of them are investors. I get a kick out of hearing successful stories and admire those that are in the process of buying and building there portfolios.
An agent could easily increase his sales by asking vendors to supply a depreciation schedule, or just simply have the information that investors want to hear at hand, return on investment, capital and rental growth over set period. People expect and deserve to hear back from agents on the same day, even if they are unable to get the O&A signed, or just dont have the information, they want to be kept informed and treated as if there enquries or concerns are important.
Often people sell there home when they dont have to, the equity that they have, can enable them to still hold on to there home as an investment property and still be able to relocate or buy elsewhere. Often i will let clients know that there is other options, and have missed out on sales, but i know that a good turn will be eventually repaid in the future, and when they are ready to buy a property in my area, that they will most likely give me a call.
I only work part time, 2 days a week, and it certaintly is a job that has its draw backs, low income, unable to borrow to continue investing, despite heaps of equity. It is not a job that i would even consider doing in the city, as it is a very cut throat industry, where people easily lose their values of integrity, loyalty and trust in exchange for financial self gain.
Regards
Wayne
I have been investing in property seriously for the last ten years, i bought my first property at age 30 (1990) purely because my parents were harping on about buying in to property. I got married in 92, and my wife also had an investment property also. We purchased our third property in 93. Did not do much between 93 and 96, then changed jobs and shifted to another town, we endeded up selling 2 of our investment properties because we did not know what other options were available, and thought we could not afford them.
I met a co worker in 96 who had a portfolio of 4-5 properties, and it was this meeting with him that opened my eyes and mind to investing in property. I began to read as much as i possibly could, surfed the net for useful info. The biggest problem that my wife and i faced, was the idea of being in debt for so much, once we got over that fear and released the potential of capital growth, equity and cash flow, we jumped in full bore whilst i was earning good money.
I bought as much property as the banks would allow between 2000 and 2004, in that 5 year period i sold 3 properties and bought 8 investment properties including one which was to become our principle place of residence in the future.
Had a quiet year In 2005, quit my mining job and moved in to one of the investment properties on the coast. Currently only work 2 days a week and my wife retired all together, at least that what she tells me. We also purchased another 2 investment properties, and sold 2 investment properties.
This year i have bought 3 investment properties and sold 3 investment properties. This year 2006 was topped off by winning a water front home on the canals on the gold coast.
I currently hold 10 properties with just over 1 million debt, i no longer worry too much about debt, as we believe we have structured our investments reasonablly well. I still have trouble getting finance though, due to a job that pays commision, and have been forced over the last few years to look for other lenders and low doc loans. I belive there many degrees of wealth, but there is only one degree of broke, so if you cant afford to pay back a $100 to may as well owe a $1,000,000.
I learn something everyday from a wide variety of people, and this forum is one of the best learning tools available to a investor, whether they are experienced or not. Had i known about this site when i first started, i am sure that i may have done things a little better and more profitable.
Thanks
Wayne
Thanks Mortgage Hunter & Depreciator
Simon i have not completed my tax return for FYE 06, am i able to claim the depreciation over the last 4 years even if the properties had been sold in the FYE 06?
Scott, i will give you a call shortly.
Regards
Wayne
Depreciator
Thanks for the info, am i able to claim depreciation on my properties for previous years not claimed? I am currently settling on a IP in December 06, which i have had for 2 years, am i able to claim depreciation on this for financial years 06 and 07 even though it is going through settlement?
What would my options for depreciation of the building be, does this have to be performed by someone qualified to be able to claim?
I would also appreciate if you could email me the check list.
Thanks
Wayne
Hi Jenny
I currently work for real estate agent, and if you have had no luck with current agent, it could be for a number of reasons which L.A Aussie had mentioned.
1: Your price may be too high, the agent should of supplied some sales evidence to support his apprasial.
2: If your sale price is right, then the agent is simply not doing his/her job, if the property is fairly priced, you would imagine having no problem selling it.
L.A Aussie
All your advice is spot on, even the summary of the agents and the way they go about there business.
I would stick to an exclusive,and apply the pressure also by dictating terms.
Regards
wayne10539
Hi Guys
Could someone explain what a “flip” is exactly, i want to be sure i understand the jargon.
Is it on selling a property before the title is released, and all parties settling on same day?
wayne10539
Thanks Guys
I was under the impression that the investment properties that i had bought were to old to be of any benefit. Obviously if Mortgage Hunter is able to claim $7000 over 3 years on a property 40+ years old, i am certaintly missing out.
I will have to look into it further with a reputable company, can be a little hard at times as they dont service country WA that well, its hard enough trying to get a property valued at moment.
Regards
wayne10539
Hi Zuma,
100k offer first up would appear to be a bit low on a property listed at 360k, what i have found that is generally 10% is added on to the desired sale price to allow for the negotiating process. Some projects have a set price from the developer, dictating terms and deposits.
It is not up to the agent if a counter offer is to be submitted, the agent is only a mediator between the vendor and the buyer, and should be working for the vendors interest at all times.
In our agency you may have an rep working for the buyer and a seperate rep working for the vendor. This minimises the likelyhood of a rep not acting on behalf of the vendors interest, buy selling a property lower than what may have been achieved.
I hope to have success with your offer.
Regards
wayne10539
Hi Guys,
I have been involved in property investing over the last ten years, and generally have offered between 10-15% off the list price, which i thought i was doing quite well, until i read some of the other strategies used. I assume if you were to be successful by being able to purchase properties at 30-50% below the list price, you would have instant equity and it would take no time to build quite a large property portfolio.
It was only until this year that i jumped on the other side of the fence, and instead of buying only, i began selling properties as a real estate agent. It seemed a natural progression, as it involved property, something that i was passionate about and enjoyed. I also mistakenly believed that being employed in the industry, that i would have first access to any good deals before others.
Often as agents we appraise properties for vendors, and base our apprasial on previous sales evidence from Valuer Generals records and current listings, only to lose the listing to another agent because they were prepared to appraise the property at a higher price, or the vendor expects a lot more than the property is worth. The property most often sits there with no prospective buyers looking through it, or vendor is then pursuaded by agent to reduce listing price.
As an agent we represent the vendor, and all offers should be presented to thge vendor, regardless how low they may seem to the agent. But if an agent has a potential buyer that continually places low offers below what properties are worth, the buyer/investor soon realise why they have not been contacted when good opportunities arise.
Wylie is on the money with agents.
What these agents should realise is that word of mouth is THE most important tool they have. A happy vendor will tell two friends, etc etc. A cranky vendor will probably tell at least ten others.[/By the way i have not purchased a single property through the agency that i work at.
Regards
Wayne10539
Hi Guys,
Iv’e had a mixed year, we bought an investment property on the WA coast 3 years ago, and had originally planned to move into Dec 06. My job was beginning to suck, so my wife and i threw our jobs in at the mines and moved into our home on the coast a year earlier than expected.
We arrived with no jobs, and were redrawing on our home loan to service our debt of our investment properties and for every day living expenses. I finally was offered a job selling real estate with the local agent, as i had bought a couple of investment properties through them., so thinks began to look good, at least i had a job.
I only work 2 days a week, and was finding it hard to crack in to the local market with contacts. We wanted to still buy investment properties, but the banks were not comfortable to lend money as i am on a commission base salary and had only commenced employment.
That all changed in July 06, when one morning i recieved a registered letter and was told that my wife and i had won a RSL Art Union canal home on the Gold Coast. This has boosted our investment portfolio greatly, and has taken the pressure of the need to work harder.
The down side is that even with plenty of equity, still amazaed at how little banks will lend against the equity we have. I imagine that after 12 to 18 months when i can show a stable comission salary, things may change and i will be able to continue what i enjoy most, investing in property.
Regards
Wayne
Hi Pagan
I recieved something by emai the other day, the company offering these is called Source Finance and may have ties with the Positive Real Estate site.
Regards
Wayne
Hi Bruham
I am one of those sheep that has recently putting funds into my own self managed super fund, i have been selling off my properties in mining towns in WA and contributing to super to minimise tax on capital gain. Self managed super funds still allow you to buy property and helps reduce tax payable.
Western Australia has been good to myself over the last 3-4 years, but feel developers and vendors are becoming a little greedy in a booming market. I believe WA is becoming a little difficult to find good value investment properties at the moment, and will look to the east coast for next investments.
Regards
Wayne
Hi Guys,
What document is this section 22a 5.2 being refered from, and what state does it apply to.
Regards
Wayne
Hi Amanda,
Thanks for the info, i will check out the web site and books.
The problem with WA at the moment is, the cost to have anything done has gone through the roof, a lot of local trades people are leaving their professions and working in the mines, and contractors are having to pay tradesman top dollars to try and keep them, unfortunately this cost has to be passed on to the investor or developer.
Regards
Wayne
