Forum Replies Created
The property is now sold. He wants to put a sold sticker on the sign. He reckons thats the best form of advertising.
I then said I will charge you for advertising.
Now not I am going to deduct $10 a day from the advertising he charged me.
How do you reckon he will react?
I know what you mean by nerves of steel. I have just gone through the process of selling a property. It was subject to finance but finance was approved in a week so it worked out okay for me.
The worse part for me was what price should I really accept. And the tricks of the agent. Trying to get you to pay for advertising. They even wanted money to put a sign up.
I have not read the article but it does not surprise me.
I read the other day that the average home is now 9 times average salaries whereas the norm is around 6 times average salaries.
The only way prices will stay where they are is if salaries increase and there are no interest rate rises.
I believe over time prices will fall as interest rates rise and prices will increase as salaries increase. But normally the market price for an average property is 6 times the average income so over the next 5-10 yrs prices do have to kool a little.
I also recall back in 1997 when I bought my first property – how unfashionable property was and how there was no price increases in the previous few years.
I agree with Baloo.
As a victorian I had never had an understanding of rugby or league.
But having spent some time in the UK with some kiwis I came to learn and understand both rugby and league.
From a spectator point of view, I have never played either, I prefer rugby but the boundary throw ins still have me stuffed.
<<<<<does this look like a good deal or am i missing something?>>>>>
I was just asking if the rent was accuruate. Thats what may be missing. I am not interested. I have other projects I am working on. But thanks for the offer.
Sounds like you a little over geared. Why dont you sell an investment property or two. Get the dream home under control then try and cash up for the opportunities that will exist in 2-3 yrs time.
Here are some interest rate forecasts from the US.
WASHINGTON (CBS.MW) — The Federal Reserve will move cautiously to raise interest rates despite signs that inflation has picked up, the American Bankers Association’s economic advisory committee predicted Wednesday.
The Fed will raise rates by 25 basis points at the Federal Open Market Committee meeting next week, the panel said. After that, the central bank will raise rates only gradually for the remainder of the year.
The target federal funds rate — now at a historically low 1 percent — will hit 2 percent by the end of 2004, the panel said.
Rates will continue to rise from there, according to the bankers’ forecast, hitting 3.35 percent by the end of 2005 and not reaching a neutral range above 4 percent until 2006.
The committee said the economy “can easily withstand” the expected rate hikes.
Economic growth should average 4.5 percent in the second half of the year and nearly 4 percent over the course of 2005, according to the committee.
Your comments appreciated!!!! Should this be another thread?
How sure are you that it gets $300 per week? Sounds too good to me. I cant get that in the surburbs of Melbourne.
Andrew Who??????
Just do what you believe is fair and complies with the law. Dont worry about gifts. Just charge market rent.
Borrowing further money will depend on your other income. I would expect the rent from the investment property would be added to your other income in working out how much you can borrow from the bank.
Oh well – Time will tell. As always just be cautious. Thats all I am saying. At some time in the future people will assess whether investing in those towns is worth all the effort.
As for Jenman, sure he has his own barrow to push. But I believe some people will regret investing in these smaller rural towns.
Yes we have and I maybe agree with you, but I am more getting at the areas outside the regional areas. The article i suppose is referring to those. Its like a pyramid scheme. The last ones holding the properties may loose and end up selling to the locals. Time will tell. All I am getting at is be CAUTIOUS.
I also posted this in the creative finance section. Its a tough one. Was wrapping involved – I dont know.
I suppose a free market economy expects a person to be rewarded for his efforts. But at the same time we dont expect people to be ripped off at their expense so someone can gain a very good profit.
Really what value did that company add to the process. They merely found a naive person and sold them a house at an inflated price they bought after they sold it to her. They added no value to our society so there behavior should not be sanctioned.
Well its good to share success stories and it keeps us motivated and makes the sacrifices worth it.
I sold a property last week. A 2 bed unit in bayside surburb of Melbourne.
Bought 2002 $220k
Other costs $10k
Minor Renos $8k
Holding costs after tax $8k.Total costs $246k
Sold $286k less costs $6k
Profit $34k
Not bad when you consider only $1k cash was invested as the equity from other properties was used to purchase. (Gotta be better than shares). It was a speculative purchase, as there was no deposit saved prior to purchase.
Now I am cashed up ready for better opportunities. Portfolio is now positive. I will sit tight for next 6-12 months.
I only increase rent when the market rent has gone up in the area.
I dont waste my time trying to offer air conditioning and dishwasher etc. to increase the rent.
I only consider that if the tenant requests it. I am yet to see a tenant request it.
I only enhance a property if I consider it necessary and only between tenants.
Why dont you check out what ikea has to offer in the way of kitchens. They even have a planning tool on their web site.
Kay said
>>>That area is not looking good, from a driveby point of view. Also, there are lots of social problems (hoons) in the southbank area. Slums of the future is my call on them.>>>
I tend to disagree. You get hoons in all different inner city areas. As Melbourne matures more people will move into inner melbourne. I work near Southbank, but I personally dont like the buildings and prefer to live in other areas. I would go for a 2 bed unit in South Yarra myself. I often go for walks at lunch time and there is always new development taking place.
I still prefer Docklands to Southbank. On Friday night I had dinner in Southbank and walked to Docklands via the Casino. Outside Southbank I was asked twice for food money from kids. Having lived in San Francisco I have no qualms nowadays saying NO. But it is off putting.
I felt safe walking all the way to Docklands on my own but that was at 6:00pm. I dont know about 11pm as I got a lift home with the boys.
<<<<this seems rather difficult in the fact of getting a house for half the price of the actual value.>>>>>
I am not sure what makes you think you can ever buy a property for half price. You may make an offer below market value and it gets accepted, but as far as the bank is concerned that is all you can borrow. Maybe a year down the track you can have it valued again.
Just focus on the sums – rent less expenses eg. interest. At your age I was concerned about School, School, School. Focus on furthering your education or getting a job. In my view further education. Then speak to a broker or bank and find out how much if any you can borrow. Then buy a house.
At 17 I was too scared to even go to the bank to take money out over the counter.
Good Luck with it all.
Go see an accountant. Take with you all income/agents statements, all expenses on the property, loan statements etc.
Do a listing of depreciable assets in the property and preferably get a quantity survey of your property. If your not sure do a search for depreciation reports or quantity survey.
Then maybe after a few years you may have the confidence to do your own tax. But please note, I am an accountant but still get a tax accountant to do my tax. I still need someone to discuss things with.
