Forum Replies Created
btw, if anyone wants to know what somerley looks like – there ya go:) our house was finished bout 2 months ago – as you can see there is still alot more construction going on in our street!
Wayne Leech
http://www.WaynesGuide.com.au – Accommodation in Western Australia.
List your holiday home for FREE!Cheers for the tip – though I’ve heard others say not to get it wet before staining it? especially if your using an oil based stain? I had a friend that laid his then covered it up with tarp until he could get the time to stain it. (This was his first time doing it though)
Have to head out, but here’s some quick pics of the frame before i lay the decking tommorow:)
http://www.waynesguide.com.au/pics/IMG_2726.jpg
http://www.waynesguide.com.au/pics/IMG_2727.jpg
http://www.waynesguide.com.au/pics/IMG_2728.jpg
http://www.waynesguide.com.au/pics/IMG_2729.jpg
http://www.waynesguide.com.au/pics/IMG_2730.jpg
http://www.waynesguide.com.au/pics/IMG_2731.jpg
http://www.waynesguide.com.au/pics/IMG_2732.jpgWayne Leech
http://www.WaynesGuide.com.au – Accommodation in Western Australia.
List your holiday home for FREE!HI Guys,
Thanks all so much for the feedback:)
Based on this, I’ve just nipped to bunnings and picked up some screws and other bits. I saw the Cabot’s natural oil that a few of you have mentioned, so I’ll nip back tomorrow and pick that up.
The screws I got are the “allen keys” screws. The ones I got were a little more expensive though apparently they are made for the job. They also don’t seem to stand out as much as normal Philip head screws. I also picked up a little “allen key” drill bit for my battery powered drill so I should be able to whack them in pretty quick:)
I’ve decided to go reeded down as it seems this is the better way to go. I’ll take some before and after pics and will post them here in the next few days.
Btw, some one mentioned to be to oil the bottom of the decking as well. Is it really necessary to do this?
Once again, thanks for the advice!
Cheers
Wayne
Wayne Leech
http://www.WaynesGuide.com.au – Accommodation in Western Australia.
List your holiday home for FREE!Paul – your capital gains is the selling price minus your cost base.
Yes, it would be that you have less to pay back to the bank. The only thing is, is that because you are reducing the interest your paying, then this will mean that your cost base will be less as your interest paid amount will be less.
However if the $20k reduces your loan repayments then you will end up with better cashflow. Saying that though, $20k will probably only affect your repayments by say $30 a week. You could look at using that $20k to fund another IP, then sell up that other IP and use the profits from that to reduce the initial loan for the block:) decisions, decisions….
Ronny – Cheers for that – will check my email tonight!!
Wayne Leech
http://www.WaynesGuide.com.au – Accommodation in Western Australia.
List your holiday home for FREE!Hi Mal,
Cheers for the advice!
Good point with the “Contract of Sale” – where would you recommend to get this?
I’m probably going to stay clear of the units etc, looking at some houses, or blocks of land.
The recent sales is a good idea:) I just had a look at reareports.realestate.com.au. That postcode you gave me – is that for all of cairns? I’m interested in particular suburbs within the northern area of cairns…. in this case should i just get a report for each specific suburb of interest?
rgds
wayne
Wayne Leech
http://www.WaynesGuide.com.au – Accommodation in Western Australia.
List your holiday home for FREE!Hi,
I’m no accountant so I maybe wrong – though yes I believe it would. It’s something you had to pay for to maintain your investment so I wouldn’t see why not:)
Wayne Leech
http://www.WaynesGuide.com.au – Accommodation in Western Australia.
List your holiday home for FREE!Hi All,
jambv – Thanks for the feedback:) sounds like you know what your doing to look at that many props in 2 days!
Yeah I was looking at cairns through Google earth – it’s a great tool for this type of thing!
Did you end up buying a property?duckster – yeah I’ll be very cautious when it comes to the signing the dotted line!
Cheers Amanda – just the type of stuff I’m looking for:)
Wayne Leech
http://www.WaynesGuide.com.au – Accommodation in Western Australia.
List your holiday home for FREE!Hi Paul,
Yes, all buying costs, holding costs, and selling costs.
This basically forms your “cost base” which you then deduct from the Capital Gains amount. (which after 12 months is only 50% of the selling profit).
Rgds
Wayne
Wayne Leech
http://www.WaynesGuide.com.au – Accommodation in Western Australia.
List your holiday home for FREE!Hi All,
jaclift – cheers for that. I will give them a call:)
Paul – thanks mate! yeah it feels good looking back on everything that’s happened – especially when we had no “silver spoon” helping us:)
Yes although the blocks of land returned great CG – servicing the loans was quite a strain!
I adopted a strategy that not a lot of people would be comfortable with; though I believed the returns I would get would be much higher than my loan’s interest rate so I structured it this way.
For example, with one block we had $300 p/w in mortgage to pay. Therefore when getting the initial loan I actually borrowed extra money to help with the loan repayments. eg, if it was $300p/w I new that I could only afford to pay $150 – so I worked out $150 x 24 months then took this out on top of the loan and left in as reserve and drew down on it each mortgage repayment.
In today’s market I wouldn’t do this, though back then I was confident of 25%+ returns.
Unfortunately FHOG doesn’t apply to a block of land unless you are going to build a house of your own to live in on the block.
When selling the block I was able to claim all my “costs” for holding the investment which helped – though unfortunately I wasn’t able to claim much whilst holding the investment.
cheers
wayne
Wayne Leech
http://www.WaynesGuide.com.au – Accommodation in Western Australia.
List your holiday home for FREE!Hi All,
Thanks DLPP – that’s good advice. Since posting that I have spoken to my partner and she is happy to commit to more investments as long as it doesn’t put more strain on our cash flow so we are going to start looking for + geared properties to add to our portfolio. The next step is how to find these. I’m going to do more research into commercial property which should be interesting.
Thanks Julie – do you know of a buyers agent that specializes in commercial property?
cheers
Wayne
Wayne Leech
http://www.WaynesGuide.com.au – Accommodation in Western Australia.
List your holiday home for FREE!living 10mins south of yanchep – the only thing that worries me up there is the “rental returns” on property in the area…
Because you HAVE to build a house in Capricorn Village your options at the end are to sell, or rent. If you are going to sell then you should be aware of the slow down in new house and land packages in the northern corridor – especially in brighton, somerly, jindalee areas – this may have an impact on your returns.
If you are going to rent – then you will most likley have quite a large shortfall to cover!
saying that thhough – it is a beautiful area:)
Wayne Leech
http://www.WaynesGuide.com.au – Accommodation in Western Australia.
List your holiday home for FREE!Accommmodation Wyndham
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wyndham-wa.waynesguide.com.auHi All,
Sorry for the delay in replying – have been away from the computer for the last night or so.
millions – why do you think I should sell the 3×2? This is already very cash positive, so wouldn’t I be better keeping this one?
Hi chancelot – I’m no expert and have had more good luck in the past as we’ve had such a boom in WA. However, saying that I have learn’t that the one main advantage that younger investors have is TIME. No matter what happens in the short term, property (according to history) always goes up over time. Therefore I would look at using the $6,000 towards a deposit on your first property and then wait for the equity.
Rather than wait – try to get creative with your purhcase and buy something that you can add value to allowing you to create equity straight away – via rennovations, sub dividing etc. This will then give you instant equity!
Keep in mind you need money to make money. Once you have equity you can then use the banks money, to make you more money;)
Another strategy that I used for the blocks of land was to borrow 50% of the repayments for say 2 years ahead. This was some what risky, though at the time I was confident that the CG would cover the extra loan amount.
Redwing, it’s actually $194,580 – just got my latest statement after switching home loans:)
Yeah this is a mistake I wish I didn’t make. At the time, I was caught up in the moment and with Lisa (my girlfriend) unhappy to continue paying for the block it was a joint decision to sell it. I did consider borrowing the repayments for the block though the banks said I couldn’t service the loan. I guess you learn from your mistakes – a block of land next to that one is now priced at $445k!!!
I have thought about shares though as I mentioned before without much knowledge it’s something I’m a little cautious of. One area I am interested in is commercial property. I believe you’ve had some experience with this redwing?
Cheers all,
Wayne
Wayne Leech
http://www.WaynesGuide.com.au – Accommodation in Western Australia.
List your holiday home for FREE!HI Guys,
Thanks for all your responses;
Ashley, no I haven’t really looked at Buyers agents – I will do now though. I’ve been doing some sums on holiday rentals – though haven’t thought about the Caravan park aspect – sounds interesting. How do you get involved in areas like this?
Commercial realestate is another area that I plan to look at. I’m thinking that with WA having such a strong economy and with the general market coming to a peak – perhaps it’s time to switch over to commercial?
Wow – equity certainly is the key! Yes, servicing the loans is another issue. Over the last couple of years we have struggled a bit trying to service CG investments – which was worth it though it but a lot of strain on us financially – hence us selling the blocks in Yanchep.
Sue, if I had more time on my hands – yes I would love to get more involved – though it’s just been hard with working fulltime etc. That’s interesting about selling them all to buy more – do you have a link to where I can purchase his book from?
I think whatever we do next I’m definitely going to focus a positively geared move rather than putting us under more cash flow strain for the potential CG.
Just out of curiosity – do both of you work fulltime?
Cheers
Wayne
Wayne Leech
http://www.WaynesGuide.com.au – Accommodation in Western Australia.
List your holiday home for FREE!Hi Terry,
Thanks:)
Yes, as you’ve mentioned my main problem is that Perth is just getting too pricey to make the numbers work out.
I’ve seen quite a few opportunities in the Northern Corridor, though the outlay has been at least $350K + for the same property I could have got for $90k 4-5yrs ago!
I don’t mind out laying this amount, though the rental returns are just to low – often with weekly shortfalls of $200p/w to cover.
Again if I believe the CG value would be there in the short term I would take the short fall in my stride, though with the Perth market peaking I may have to wait another 5-7yrs before I see another strong CG period – which would be a major cash flow strain.
I have been looking in regional areas of WA – though again most of these are getting too pricey for the potential rental returns.
Perhaps I should be looking over east – SA etc? or even NZ? Though with not having much experience I feel a little reluctant to go over east.
When you say I could get “a lot†of properties with that much equity – how much is a lot? As a ball park figure is it common that someone could get raise loans for say 2-3 properties with that amount of equity? (I guess these depends on the price of the properties rightïŠ) Perhaps if they were $250 – $300k each?
I have thought about shares, though again I don’t seem to have the time to sit down and research shares. If I had more time on my hands I would look at shares – though saying that I do like the “bricks and mortar†security of property. Perhaps if I was in a more financially comfortable position I wouldn’t be like this;)
Cheers
Wayne
Wayne Leech
http://www.WaynesGuide.com.au – Accommodation in Western Australia.
List your holiday home for FREE!In my opinion overall I believe the WA market will slow down to about a 5% average this year and may continue to flatten out over the next year or two. I’m predicting Apr/May this year… well this will be when the media picks up on the slow down and makes a big hype about it!
However, saying this (like Dazzling said) there are still potential growth areas. Understanding your local area and researching future infrastrature plans around you is the key.
Remember the market in WA might be slowing, though the economy is still booming and will continue for sometime – meaning that the government is raking in big $$$ in taxes…and can afford to keep pooring this $$$ into developing infrastructure….
anyway, back to work:)
Wayne Leech
http://www.WaynesGuide.com.au – Accommodation in Western Australia.
List your holiday home for FREE!In my opinion overall I believe the WA market will slow down to about a 5% average this year and may continue to flatten out over the next year or two. I’m predicting Apr/May this year… well this will be when the media picks up on the slow down and makes a big hype about it!
However, saying this (like Dazzling said) there are still potential growth areas. Understanding your local area and researching future infrastrature plans around you is the key.
Remember the market in WA might be slowing, though the economy is still booming and will continue for sometime – meaning that the government is raking in big $$$ in taxes…and can afford to keep pooring this $$$ into developing infrastructure….
anyway, back to work:)
Wayne Leech
http://www.WaynesGuide.com.au – Accommodation in Western Australia.
List your holiday home for FREE!Hi Squeak,
Do you have a shack in lancelin – or are you looking at buying one there? If you have one – then yes, I would hold on to it for at least 3-4years.
There’s lots of development planned all the way up the coast – from yanchep to lancelin which is only going to push the prices up.
If you are considering buying up that way then it might be a good idea to check out the towns inbetween, such as Moore River, Ledge Point and so on….
Rgds
Wayne
Wayne Leech
http://www.WaynesGuide.com – Accommodation in Western Australia.
List your holiday home for FREE!anyone looking to do a H&L in somerley (northern suburbs) of perth… here’s their latest release;
http://www.somerly.com.au/somerlyemail/release15-16.pdf
personally I think it’s abit pricy – though saying that H&L up that way are now fetching $430k+
anyway, back to work[smiling]
Wayne Leech
http://www.WaynesGuide.com – Accommodation in Western Australia.
List your holiday home for FREE!Hi PC,
You can expect an average of 1-2% each month. We had a contract with WA Housing Centre and they tried to put a $10K + increase on us within 1.5 months!!! We are now with Home Buyers Centre.
I’ve also heard that due to new building requirements new house prices may go up by another 10%!
when will it stop huh!!!
In regards to who is building up that way… i think it will only be a matter of time until all your “brighton” builders move up the coast.
This will probably happen when marmion ave goes in as all the tradies will only have to drive another 5mins or so up the coast.
Rgds
Wayne
Wayne Leech
http://www.WaynesGuide.com – Accommodation in Western Australia.
List your holiday home for FREE!Hi Brian,
Ocean lagoon has been around for about 5 years plus. It was developed by Peet & Co. The same company that did Caramar and Kinross.
I heard blocks were around the $50-$60k mark when they were first released!!! though these weren’t the ocean view blocks. The growth has been amazing in the last 3 yrs or so.
Rgds
Wayne
Wayne Leech
http://www.WaynesGuide.com – Accommodation in Western Australia.
List your holiday home for FREE!
