Forum Replies Created
Crashy
professional advice ???where do you find that its all self interest out there mate.
westanfullout
are they the figure from the bank ??
regarding you loan
because if the are they have stuffed up.
what about your deposit on the purchase?
SD is not included in the purchase price neither is legal cost , loan fees nearly all those costs.
i only allowed 1500 costs, i was well under those figure so the return on cash is even less than i said
westanhi crashy
i think the question refers to Tues night on TV because ianbillers post was at 6.24 before TT was aired.sadly once again TT shows how easy it is to make money and offer great advice ???? most of the people i know who are traders aren’t making much cash at all. what areyou seeing with your friends?
regards westanyes afgangirl as “Simon says” (i’m sure i’ve heard that before somewhere?) more detail is needed for instance where is the property.
regards westanFullout
how much did you allow for
repairs/ maintenance ?
gee i’d love an overage of 1 week vacancy per year on my properties, i’ve never worked it out but i’d be conservative and est. about 3 per yr.
regards wetanyes it is the state revenue office
or commissioner as your paperwork says.
regards westanHi spideyman
if you buy you need at full back plan if one has a change of mind about the house. who know you may meet a beautiful woman and suddenly sharing a house with brother for the next 5 yrs doesn’t look so appealing.
Also it may be difficult if you are planning to use some of the equity in your home to buy IP’s. if your brother’s name is also on the title. When you take out a loan like this with your brother the banks will ask you both to committ to 100% (in the event of one defaulting) of the loan so it will effect your servicability on future loans
some of these issues you may want to talk to a bank/broker about. i own an IP with my brother and it has worked very well, but i wouldn’t do it again.
regards westanhi
Enjolady
what sort of Return on investment do you like as a rule ?
Fullout
where is your property ?
i don’t see a risk with telling us as you have the option to buy, and also a 3 day cooling period to reconsider.
westanHi fullout
lets see the figures
Say you put 20% deposit plus 1500 costs so you put close enough to 20,000 with a $73,600 loan
73k interest @ 6% 84pw
insurance 4pw
rates/ water 15pw
agents fees @ 8% 12pw
Repairs 10pw
vacancies 6pw (3 weeks per year)
TOTAL 131pw
Profit on 150pw 19 pw only $1000 a yr
So your return on Investment is 5%, plus capital growth if any ?
Sorry i wouldn’t buy this property i’d rather have it in the bank at 5% and no risk, actually i’d invest it in a property that would give me 25% Return on investment.
sorry about that
Maybe someone wants to give another diagnosis
regards westanwell done guys i’m sure you both will succeed. its funny i feel the same way about our home in some ways owning ahome slows the whole process down. not tied to a home give you freedom to do more.
westan (i’m not selling my home yet)hey huey
hang in there. in the big scheme of things this is only a small hick up (i know it doesn’t feel like that at the moment) i used to worry when i had these problems now its part of the process.
lots of landlords sell after these types of hassles. Some learn from these situations and go on and buy more and make lots of money.
I had an agent mismanage a property of mine so bad it cost me $2000, i’m wiser now (i hope), another time the tenant did 5000 damage (luckily covered by landlord insurance).
i’m not trying to belittle the obvious stress these thing can give us but today i can laugh about them.
Now lets help solve this problem can you share with us where the property is so collectively we can refer you to a very good agent (they are out there)
regards westanHi guys
wilandel
congadulations on a courageous decision, i know this will work well for you, you are well on the way. all the best
andrewsal
start looking now to find what properties you would buy if you had the cash, just to see if you can find enough properties to meet your requierments and expectations. I’m saying this because it is getting harder to find, even experienced buyers like wilandel would agree the number of poerties available is reducing every day.
regards westanjerryw
the 72k property in ararat (rundell st) is sold.
fullout (where have you been?)
i wouldn’t take that deal 92k for 150pw renturn. I’d want well over 200pw? maybe not achievable ?
Unless the area had a very good capital growth potential or you can improve the property. 92k is a lot for a property in a small country town, but then again so is 150pw (Perhaps too much) how does that compare with other rentals.
westanHi all
there are some people out there who try to make a living out of predicting where interest rates are heading. look hback over the past2 months , 2 years you will see these guy’s consistantly get it wrong. i wouldn’t make an investment desision based on what economists are predicting. Next set of data out they will change their mind again.
some very good commments so far i’d like to add
Europe is in Economic trouble look at the largest European economy Germany they are going backwards
USA dispite some apparent good news recently they still are in big trouble. Throw into the equation another act of major terrorism in the USA and they are back to square one. The war in Iraq is still costing them big money, they can’t afford to lift rates.
Aust good job figures but the RBA would have cut rates except for the fear of inflating the housing market even more.
With low inflation the RBA cannot justify a lift in rates.i wouldn’t expect to see much change in rates up or down for a few years.
westanKaren
are you saying you feel like you need to talk to someone about your circumstances off the forum ?if you need to talk call 0415438666
regards westanhi guys
another idea to massively increase the value is to buy the property next door for 600k suddenly yours apears to be worth a lot more[
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regards westandave sadly you have been looking in the wrong places because up until say 6 months ago they were all over the place, in every regional city and town in Australia.
i assume from your question you are in Melb. or Sydney. you need to look further afield.
sorry you are NOW looking with 1,000’s of others.
all the best
westanHi guys
thanks muppet for clearing that up in effect it is the same as we experience.
Mini the property is in the nead of a few powerpoints, and a good repaint on the outside i don’t have a swedish boyfriend (just as well i suppose) so i’ll have to paint it myself next year sometime. I’m looking forward to it, take the family, have a holiday and paint the house, it should add $10,000 to the value i expect. I bought it on builders report condition and finance, it is tenanted at 100pw but is in the heart of town and i’ve been told it is undervalue i should get 120pw. i’ll fix it up and put the rent up on the next tenant if this one is a good tenant which i’m told they are.
i’m disapointed i missed you on the panel, i didn’t realize you were on so early in Sept, when are your Melbourne Gigs?
regards westanHi guys
WayneL your point is right prices will eventually double. History shows even when houses drop in value (which rarely happens they never fail to regain and pass their previous highs. However as Crashy says the market may drop so if your a trader then maybe you would like to take some profits, but if your an investor why get nervous? as long as my properties are cash positive, i’m happy to own property.
regards westanhi rosscoe,
i don’t have a crystal ball and don’t really know the Qld market but my thoughts are
you may not be able to claim interest costs as a tax deduction on the town house because its your own home check with an accountant.
Generally the logan area i thought would continue to rise with the new freeway from the Gold coast to brisbane. I would think about the big picture where will prices be in 10 yrs. If the property was to remain flat for a few years then grow again and the average increase was 7% (which i would think you could achieve) when the town house would have Doubled in Value by 2013. therefore then it would be worth $320,000.
regards westan
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